Biscayne Apparel announces 1995 operating 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)--March 29, 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. ) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant announced its operating results for the year ended Dec. 31, 1995. 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 1995 were $100.3 million, compared to $119.5 million on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis in 1994. Net loss in 1995 was $6.1 million, or $0.57 per share, compared to pro forma net income of $3.6 million, or $0.32 per share in 1994. Pro forma operating results for 1994 reflect the inclusion of M&L International Inc., a manufacturer of children's outerwear, sportswear, and swimwear, as if it were acquired Jan. 1, 1994, rather than Nov. 30, 1994. Actual 1994 results included net sales of $72.3 million and net income of $2.0 million, or $0.21 per share. Gross margins for the fiscal year ended Dec. 31, 1995 were 20.0%, compared to pro forma gross margins of 30.3% in 1994. Selling, general and administrative expenses ("S,G&A") were $25.4 million in 1995, or 25.4% of net sales, compared to $27.4 million of pro forma S,G&A expenses in 1994, or 23.0% of net sales. Net interest expense in 1995 was $3.8 million, compared to the pro forma 1994 amount of $2.8 million. Biscayne Biscayne can refer to:
v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. the demand for outerwear. Biscayne was challenged by other factors, including: increased raw material costs, particularly cotton, which sold at one of its highest levels in history; increased labor expense, which affected the operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of both domestic manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and those in the Philippines Philippines officially 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. ; start-up Start-up The earliest stage of a new business venture. expense at the new Varon manufacturing facility in Honduras Honduras (hŏnd  r`əs, –dyr`–; Span., ōnd ; and interest expense increased due to higher interest rates
and increased borrowings from higher inventory levels, 1995 operating
losses operating lossThe excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and increased M&L acquisition debt. These factors caused 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 Mackintosh to sustain significant losses during the 1995 third and fourth quarters from the sale of inventory at low margins and markdowns of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of remaining inventory. Biscayne expensed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.4 million of consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: inventory markdowns during the 1995 fourth quarter. The Philippine plants, which ceased operations on March 1, 1996, lost approximately $0.7 million in 1995 due to increased labor costs and production inefficiencies. Biscayne's net sales for the fourth quarter ended Dec. 31, 1995 were $29.5 million, compared to pro forma net sales of $29.9 million in the fourth quarter of 1994. The net loss for the 1995 fourth quarter was $4.1 million, or $0.38 per share, compared to the pro forma net income of $0.8 million, or $0.07 per share, in the fourth quarter of 1994. Pro forma results for the fourth quarter of 1994 include M&L International Inc., which was acquired Nov. 30, 1994. Biscayne's actual 1994 fourth quarter results reflected net sales of $22.0 million and net income of $0.7 million, or $0.07 per share. 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, said: "Biscyane Apparel's operating results in 1995 were very disappointing. However, we have moved aggressively to improve our 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, while making investments in product development and marketing. Notable areas of progress include: -0- 1. consolidating the administrative functions in several of our outerwear operating divisions, 2. 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. , 3. expanding lower-cost production in our new offshore manufacturing facility in Honduras, 4. closing high cost manufacturing facilities in the Philippines 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, 5. consolidating outerwear distribution functions in 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, 6. 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, 7. enhancing our sales and marketing effort with new and proven personnel, and 8. replacing foreign production agents with company personnel, thereby reducing costs and improving controls. -0- Pollack added: "We expect that these cost reductions and consolidations will generate costs savings in 1996 in excess of $1.7 million. These initiatives should result in improved operating performance in 1996 and register favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons to 1995." Pollack concluded: "Biscayne's backlogs as of March 15, 1996 were $52.1 million, compared to $38.9 million at March 17, 1995. This represents a 34% increase, which currently reflects the positive efforts of our new product development and sales teams." On March 27, 1996, the company sold its 20% investment in Hartwell Sports Inc. for $1.75 million. Proceeds from the sale will be used to reduce notes payable to banks. Biscayne Apparel Inc. is a designer, manufacturer, and importer of diversified diversified (di·verˑ·s apparel and has the following operations: Andy Johns Fashions International - women's and children's outerwear; M&L International - infants', toddlers' and children's outerwear, sportswear and swimwear; Mackintosh of New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. - women's woolen wool·en also wool·len 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, by modem modem [modulator/demodulator], an external device or internal electronic circuitry used to transmit and receive digital data over a communications line normally used for analog signals. to 718/279-3590; or send E-mail to cfo@panix.com, with the subject bha. -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" symbol between cfo and panix.com. These symbols may not appear properly in some systems. -0-
BISCAYNE APPAREL INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
DEC. 31, DEC. 31,
1995 1994
-------- --------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 312 $ 4,178
Trade accounts receivable,
less allowances of
$1,967 in 1995 and $1,754
in 1994 18,271 21,009
Inventories 25,890 22,584
Federal income tax receivable 1,969 --
Prepaid expenses and other 1,972 1,573
------ ------
Total current assets 48,414 49,344
Property, plant and equipment,
less accumulated depreciation
of $1,918 in 1995 and $1,388 in
1994 3,652 2,984
Investment in Hartwell Sports Inc. 1,627 1,505
Goodwill, net 6,072 5,202
Other assets, net 1,977 1,543
------ ------
$61,742 $60,578
------ ------
------ ------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,841 $ 6,060
Accrued liabilities 5,914 6,841
Notes payable to banks 17,850 8,500
Current portion of long-term debt 1,250 --
Senior subordinated bridge notes -- 4,776
------ ------
Total current liabilities 28,855 26,177
Subordinated notes 6,444 7,944 Long-term debt 6,250 -- Other liabilities 358 576 Commitments and contingencies -- --
Stockholders' Equity:
Common stock 107 102
Additional paid-in capital 26,309 25,225
Unearned stock award compensation (135) (203)
Retained earnings (deficit) (6,446) 757
------ ------
Total stockholders' equity 19,835 25,881
------ ------
$61,742 $60,578
------ ------
------ ------
See accompanying notes.
BISCAYNE APPAREL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
YEAR ENDED DEC. 31,
1995 1994
-------- --------
Operating activities:
Net earnings (loss) $(6,127) $ 2,048
Adjustments to reconcile net
earnings (loss) to net cash
used in operating activities:
(Gain) loss on sale of assets 91 (2)
Equity in net income of investee (122) (5)
Non-cash stock compensation expense 68 67
Depreciation expense 584 409
Amortization expense (35) 230
Provision for losses and sales
allowances on receivables 4,584 3,558
(Increase) decrease in operating assets: Trade accounts receivable (1,846) (1,151) Inventories (3,737) (4,901) Prepaid expenses and other (410) (613) Federal income tax receivable (1,969) -- Other assets (499) 583
Increase (decrease) in operating liabilities:
Accounts payable (2,398) 1,994
Accrued liabilities (1,178) (1,476)
Other liabilities (501) 269
------ ------
Net cash (used in) provided by
operating activities (13,495) 1,010
Investing activities:
Proceeds from sale of assets 9 15
Capital expenditures (941) (1,090)
Investment in Hartwell Sports Inc. -- (1,500)
Purchase of subsidiary, net of
cash acquired -- 1,858
------- ------
Net cash used in investing activities (932) (717)
Financing activities:
Payments under notes payable
to banks (72,155) (66,845)
Borrowings under notes payable
to banks 81,505 69,160
Proceeds from term loan 7,500 --
Repayment of subordinated notes (6,276) --
Principal payments of capital
leases (26) (37)
Proceeds from exercise of employee
stock options 13 39
------ ------
Net cash provided by financing
activities 10,561 2,317
Net (decrease) increase in cash
and cash equivalents (3,866) 2,610
Cash and cash equivalents at
beginning of year 4,178 1,568
------ ------
Cash and cash equivalents
at end of year $ 312 $ 4,178
------ ------
------ ------
BISCAYNE APPAREL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of dollars, except per share data)
THREE MONTHS ENDED
DEC. 31, YEAR ENDED
(Unaudited) DEC. 31,
1995 1994 1995 1994
------- ------- ------- -------
Net sales $ 29,490 $ 21,990 $100,294 $ 72,350
Operating costs and
expenses:
Cost of goods sold 27,112 15,007 80,121 51,697
Selling, general
and administrative 6,933 5,404 25,434 15,693
------- ------- ------- -------
Operating income
(loss) (4,555) 1,579 (5,261) 4,960
Other income and
(expenses):
Interest and other
expenses (1,380) (554) (3,805) (1,673)
Interest and other
income 51 54 109 115
Equity in net income
of investees (20) 5 122 5
------- ------- ------- -------
Earnings (loss)
before provision
(benefit) for
income taxes (5,904) 1,084 (8,835) 3,407
Provision (benefit)
for income taxes (1,797) 395 (2,708) 1,359
------- ------- ------- -------
Net earnings (loss) $ (4,107) $ 689 $ (6,127) $ 2,048
------- ------- ------- -------
------- ------- ------- -------
Net earnings (loss)
per common share $ (0.38) $ 0.07 $ (0.57) $ 0.21
------- ------- ------- -------
------- ------- ------- -------
Shares used in
computing net
earnings (loss)
per common
share 10,741,253 10,038,061 10,733,551 9,651,637
PRO FORMA
BISCAYNE APPAREL INC.
& M&L INTERNATIONAL INC.
THREE MONTHS YEAR
ENDED ENDED
DEC. 31, DEC. 31,
(Unaudited)
1994 1994
------- -------
Net sales $ 29,901 $119,506
Operating costs and
expenses:
Cost of goods sold 20,058 83,306
Selling, general
and administrative 7,650 27,436
------- -------
Operating income (loss) 2,193 8,764
Other income and
(expenses):
Interest and other expenses (846) (2,806)
Interest and other income 21 90
Equity in net income of investees 21 5
------- -------
Earnings (loss) before provision
(benefit) for income taxes 1,389 6,053
Provision (benefit) for income taxes 611 2,436
------- -------
Net earnings (loss) $ 778 $ 3,617
------- -------
------- -------
Net earnings (loss) per common share $ 0.07 $ 0.32
------- -------
------- -------
Shares used in computing net
earnings (loss) per common
share 11,125,233 11,172,486
CONTACT: Biscayne Apparel Inc., Clifton Peter Vandenberg Vandenberg is the name of:
Vice President, Chief Financial Officer 201/473-3240 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 |
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