Big Smith Shows Profit in Third Quarter.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Nov. 16, 1998--Big Smith Brands, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :BSBI BSBI Botanical Society of the British Isles ) today announced a net income of $ 249,444 on net trade sales of $4,123,616 for the fiscal third quarter ended September September: see month. 30, 1998. This compares with a net loss of $820,853 on net trade sales of $4,232,476 for the quarter ended September 30, 1997. Net income per share was $.04 as compared with $.21 per share loss for the three months ended September 30, 1997. "Cost stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders and strong sales helped us to turn a difficult corner and report a profit this quarter," said S. Peter Lebowitz, Big Smith Chief Executive. "We are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. further growth and a strong fourth quarter to keep us decidedly in the black. Going forward into 1999, our domestic and international distribution of Big Smith Sportswear looks exceedingly ex·ceed·ing·ly adv. To an advanced or unusual degree; extremely. exceedingly Adverb very; extremely Adv. 1. good. It has been an arduous ar·du·ous adj. 1. Demanding great effort or labor; difficult: "the arduous work of preparing a Dictionary of the English Language" Thomas Macaulay. 2. two years, but the company is now back on track." 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 for the three months ended September 30, 1998 decreased by $.11 million, or 2.6%, to $4.12 million from $4.23 million for the three months ended September 30, 1997. Net sales for the three months ended September 30, 1998 of Big Smith workwear Noun 1. workwear - heavy-duty clothes for manual or physical work apparel, clothes, wearing apparel, dress - clothing in general; "she was refined in her choice of apparel"; "he always bought his clothes at the same store"; "fastidious about his dress" and other branded workwear, Big Smith sportswear and private label products were $2.88 million, $.47 million and $.77 million, respectively, as compared with $3.82 million, $.0 and $.41 million, respectively, for the three months ended September 30, 1997. The decrease in sales resulted from product purchases which fell into the first week of the next quarter by existing customers, especially Wal-Mart Stores, Inc. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold for the three months ended September 30, 1998 decreased by $0.49 million, or 14.0%, to $3.02 million from $3.51 million for the three months ended September 30, 1997. This decrease resulted primarilyfrom savings recognized by the Company by extending its annual summer vacation Summer vacation (also called summer holidays or summer break) is a vacation in the summertime between school years in which students are off for 3 months, depending on the country and district. closing for two additional weeks. The annual summer vacation closing allows the Company to make needed repairs and improvements to the plant and equipment and to effect otherroutine maintenance. The Company planned and implemented the additional closing to accommodate cash flow requirements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc making certain accounts with suppliers current and to implement planned changes One of the foundational definitions in the field of organizational development (aka OD) is planned change: “Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned relating to supervisory and executive personnel reductions. Gross profit for the three months ended September 30, 1998 was $1.10 million, or 26.7% of net sales, compared to $.72 million, or 17.0% of net sales, for the three months ended September 30, 1997. The increase in gross profit percentage was primarily due to the increased production levels and plant efficiencies resulting in lower overhead and an increase in the gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. of Big Smith workwear and other branded workwear and private label products. For the three months ended September 30, 1998, Big Smith workwear and other branded workwear, Big Smith sportswear and private label products accounted for 69.8%, 11.6% and 18.6% of net sales, respectively, as compared with 90.37%, 0% and 9.7% of net sales, respectively, for the three months ended September 30, 1997. Selling expenses increased by $.15 million to $.51 million, or 12.3% of net sales, for the three months ended September 30, 1998, from $.36 million, or 8.5% of net sales, for the three months ended September 30, 1997. This increase in selling expenses resulted principally from an increase of $.21 million in selling expense related to the new Big Smith sportswear line. General and administrative expenses were $.16 million, or 3.9% of net sales for the three months ended September 30, 1998, compared with $.96 million, or 22.7% of net sales, for the three months ended September 30, 1997. The decrease in the general and administrative expenses was primarily due to a decrease in restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and related litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. costs, a permanent and significant reduction in executive personnel salaries and related overhead costs overhead costs see fixed costs. due to streamlining of executive staff and a decrease in travel and entertainment costs related to reduced foreign sales activities. The Company's interest expense for the three months ended September 30, 1998 was $.13 million, or 3.2% of net sales, as compared with $.18 million, or 4.3% of net sales, for the three months ended September 30, 1997. The decrease in interest expense was primarily due to a decrease in borrowings and loan fees. As a result of the foregoing, the Company's net income for the three months ended September 30, 1998 was $249,444 compared to a net loss of $820,853 for the three months ended September 30, 1997. Big Smith Brands, Inc. is an apparel company engaged since 1916 primarily in the manufacture and sales of quality work and fashion apparel under the brand names Big Smith, Smith Mountain Classics, Big Smith Vintage and Big Smith Kids. -0-
BIG SMITH BRANDS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Month Period Nine Month Period
Ended September 30 Ended September 30
------------------ ------------------
1998 1997 1998 1997
---- ---- ---- ----
NET SALES $4,123,616 $4,232,476 $8,929,280 $8,342,082
COST OF GOOD SOLD 3,023,424 3,512,065 6,720,850 6,943,802
---------- ---------- ---------- ---------
GROSS PROFIT 1,100,192 720,411 2,208,430 1,398,280
---------- ---------- ---------- ----------
OPERATING EXPENSES
Selling 508,558 360,028 1,266,004 1.022.514
General and
administrative 161,328 963,444 1,266,721 1,959,640
---------- ---------- ---------- ----------
669,886 1,323,472 2,532,725 2,982,154
---------- ---------- ---------- ----------
INCOME (LOSS) FROM
OPERATIONS 430,306 (603,061) (324,295) (1,583,874)
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE)
Miscellaneous income (50,272) (35,477) (112,217) (110,411)
Amortization of
debenture discount (130,588) (182,315) (389,532) (489,350)
---------- ---------- ---------- ----------
Interest expense (180,860) (217,792) (1,107,953) (599,761)
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE
INCOME TAXES 249,444 (820,853) (1,432,248) (2,183,635)
PROVISION FOR
INCOME TAXES 0 0 0 0
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 249,444 $ (820,853) $(1,432,248) $(2,183,635)
========== ========== =========== ===========
NET INCOME (LOSS)
PER SHARE $ .04 $( 0.21) $( 0.20) $( 0.55)
========== ========== ========== ===========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 7,099,842 3,995,987 7,099,842 3,959,000
========== ========== ========== ==========
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