Bicayne Apparel announces 1996 first quarter results.CLIFTON Clifton, industrial city (1990 pop. 71,742), Passaic co., NE N.J., on the Passaic River; settled 1685, set off from Passaic and inc. 1917. It has steel, textile equipment, chemical, plastics, clothing, and electronics industries. , N.J.--(BUSINESS WIRE)--May 6, 1996--Biscayne Apparel Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :BHA BHA butylated hydroxyanisole, an antioxidant used in foods, cosmetics, and pharmaceuticals that contain fats or oils. BHA n. A white, waxy phenolic antioxidant used to preserve fats and oils, especially in foods. ) Monday Monday: see week. announced its operating results for the first quarter ended March 31, 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the 1996 first quarter were $16.2 million, a 6% increase from the $15.4 million in the same period of 1995. The net loss in the 1996 first quarter was $1.4 million, or $0.13 per share, an improvement of 11% from the net loss of $1.6 million, or $0.15 per share posted in the first quarter of 1995. The increase in quarterly sales was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher sales in the company's Andy Johns Andy Johns, younger brother of famous Olympic Studios engineer Glyn Johns, father of HURT drummer Evan Johns and uncle of Kings of Leon and Ryan Adams producer Ethan Johns (son of Glyn Johns) is a prolific engineer and producer. and M&L operations, offset by decreased sales in Mackintosh and Varon. Biscayne's consolidated sales backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. as of April 30, 1996 was $61.1 million versus $51.0 million as of April 30, 1995. This 20% increase resulted from the company's refocused marketing strategy, including higher sales of private label outerwear products and better market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . The company's gross margin was 24% in the first quarter of 1996, compared to 25% in the same period in 1995. The slight decrease in gross margin was attributable to lower-than-normal realizable sale prices for Fall 1995 outerwear products in the Andy Johns and Mackintosh units and higher labor costs in the Varon division, offset by lower product costs in M&L. Selling, general and administrative expense ("SG&A") declined 3% from $6.0 million in 1995 to $5.8 million in 1996 due to management's continued cost reduction efforts. However, interest expense increased from $595,000 in the first quarter of 1995 to $837,000 in the same period of 1996 due to increased borrowings and related rate increases. On March 27, 1996, the company sold its 20% interest in Hartwell Sports Inc. for $1.8 million, which resulted in a gain of $123,000 in the first quarter of 1996. Proceeds were used to reduce notes payable to the company's banks. John E. Pollack pollack: see cod. pollack or pollock Either of two commercially important North Atlantic species of food fish in the cod family (Gadidae). , president and chief executive officer, commented: "Our first quarter results reflect certain improvements brought about by the implementation of our new strategic operating plan. Typically, the first quarter is Biscayne's weakest. However, we were able to reduce the level of our loss by 11% from the same period in 1995. This reflected improved sales in two of our units and contained and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. reduced costs in each of the company's segments." Pollack continued: "In an effort to improve long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. sales and profitability, we have undertaken a number of significant cost saving activities and operational initiatives in our new strategic operating plan, while making investments in product development and marketing. Notable areas of progress include: -0- -- consolidating the administrative functions in several of our outerwear operating divisions, -- lowering S,G&A through reductions in personnel, management salaries, management fees and overall operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , -- expanding lower-cost production in our new offshore manufacturing facility in Honduras Honduras (hŏnd  r`əs, –dyr`–; Span., ōnd , -- closing high cost manufacturing facilities
in the Philippines Philippinesofficially Republic of the Philippines Island country, western Pacific Ocean, on an archipelago off the southeast coast of Asia. Area: 122,121 sq mi (316,294 sq km). Population (2005 est.): 84,191,000. and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , while outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. production overseas into low-cost manufacturing facilities, -- consolidating outerwear distribution functions into our Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. facilities, -- merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and redesigning our spring and fall 1996 apparel and outerwear lines with a new product development team, -- enhancing our sales and marketing effort with new and proven personnel, and -- replacing foreign production agents with company personnel, thereby reducing costs and improving controls. -0- Pollack concluded: "We expect that these cost reductions and consolidations will generate cost savings in 1996 in excess of $1.7 million. While we expect 1996 to continue to be challenging, these initiatives should result in improved operating performance in 1996 and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons to 1995. Biscayne Biscayne can refer to:
adj. 1. Made or consisting of wool. 2. Of or relating to the production or marketing of woolen goods. n. Fabric or clothing made from wool. Often used in the plural. coats and outerwear; and Varon - girls' and boys' underwear and girls' daywear day·wear n. Attire that is appropriate for use during the day. . Additional information on Biscayne Apparel Inc. is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the World Wide Web at this address: http://www.cfonews.com/bha; or interested parties may dial direct by modem to 718/279-3590; or may send E-mail to cfo@panix.com, with the subject bha. -0-
BISCAYNE APPAREL INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
MARCH 31, MARCH 31,
1996 1995
--------------------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 176 $ 312
Trade accounts receivable,
less allowances of $1,674
in 1996 and $1,967 in 1995 10,826 18,271
Inventories 24,574 25,890
Federal income tax receivable 2,936 1,969
Prepaid expenses and other 2,050 1,972
------------ ------------
Total current assets 40,562 48,414
Property, plant and equipment,
less accumulated
depreciation of $2,056 in
1996 and $1,917 in 1995 3,610 3,652
Investment in Hartwell Sports
Inc. - 1,627
Goodwill net 6,012 6,072
Other assets, net 1,825 1,977
------------ ------------
$ 52,009 $ 61,742
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,678 $ 3,841
Accrued liabilities 3,916 5,914
Notes payable to banks 12,950 17,850
Current portion of long-term
debt 1,750 1,250
------------ ------------
Total current liabilities 22,294 28,855
Subordinated notes 6,444 6,444 Long-term debt 4,500 6,250 Other liabilities 332 358 Commitments and contingencies - -
Stockholders' Equity:
Common stock, $0.01 par value;
25,000,000 shares authorized;
10,741,407 issued and
outstanding in 1996 and
10,741,253 in 1995 107 107
Additional paid-in capital 26,309 26,309
Unearned stock award
compensation (118) (135)
Retained deficit (7,859) (6,446)
------------ ------------
Total stockholders' equity 18,439 19,835
------------ ------------
52,009 61,742
============ ============
BISCAYNE APPAREL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of dollars, except per share data)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
--------------------------
1996 1995
----------- -----------
Net sales $ 16,236 $ 15,389
Operating costs and expenses:
Cost of goods sold 12,270 11,524
Selling, general and
administrative 5,807 5,964
----------- -----------
Operating loss (1,841) (2,099)
Other income and (expenses):
Interest and other expenses (837) (595)
Interest and other income 151 32
Gain on sale and equity
in net income of investee 123 63
----------- -----------
Loss before income tax benefit (2,404) (2,599)
Income tax benefit (991) (1,011)
----------- -----------
Net loss $ (1,413) $ (1,588)
=========== ===========
Net loss per common share $ (0.13) $ (0.15)
=========== ===========
Shares used in computing net
loss per common share 10,741,407 10,730,228
=========== ===========
BISCAYNE APPAREL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
--------------------------
1996 1995
------------ ------------
Operating activities:
Net loss $ (1,413) $ (1,588)
Adjustments to reconcile
net loss to net cash
provided by (used in)
operating activities:
(Gain) on sale of asset (11) (3)
(Gain) on sale of equity
investee (123) -
Equity in net income of
investee - (63)
Amortization of unearned
stock award compensation 17 17
Depreciation expense 158 108
Amortization expense 69 57
Provision for losses and
sales allowances on
receivables 1,268 337
(Increase) decrease in operating assets: Trade accounts receivable 5,867 11,432 Inventories 1,064 (8,059) Prepaid expenses and other (101) (1,032) Federal income tax receivable (967) - Other assets (133) (870)
Increase (decrease) in operating
liabilities:
Accounts payable (51) (1,537)
Accrued liabilities (1,226) (1,655)
Other liabilities - (3)
----------- -----------
(used in) operating
activities 4,418 (2,859)
Investing activities:
Net sale of assets 11 9
Capital expenditures (145) (422)
Proceeds on sale of equity
investee 1,750 -
----------- -----------
Net cash provided by
(used in) investing
activities 1,616 (413)
Financing activities:
Payments under notes payable
to banks (13,100) (13,825)
Borrowings under notes payable
to banks 8,200 14,325
Proceeds from term loan - 7,500
Principal payments under
term loan (1,250) -
Repayment of subordinated
notes - (6,276)
Principal payments of capital
leases (20) (6)
----------- -----------
Net cash (used in) provided
by financing activities (6,170) 1,718
Net decrease in cash and
cash equivalents (136) (1,554)
Cash and cash equivalents at
beginning of year 312 4,178
----------- -----------
Cash and cash equivalents at
end of year $ 176 $ 2,624
=========== ===========
Supplemental disclosure
information:
Interest expense paid $ 763 $ 440 Income taxes paid $ 59 $ 114-0- NOTE TO EDITORS: In the World Wide Web address noted in this news release, there is a double slash between http: and www.cfonews.com/bha and in the Internet/email address there is an "at" sign between cfo and panix.com. These symbols may not appear properly in some systems. CONTACT: Biscayne Apparel Inc. Peter Vandenberg Vandenberg is the name of:
Vice President, Chief Financial Officer 201/473-3240, x221 or A. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Hurwitz Hurwitz is a surname and may refer to:
Vice President, Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. 305/858-2200 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion