Biscayne apparel announces 1996 second 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)--Aug. 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. ) Tuesday Tuesday: see week. announced its operating results for the second quarter ended June June: see month. 30, 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 second quarter were $12.9 million versus $14.5 million in the same period of 1995. Net loss in the 1996 second quarter was $2.2 million, or $0.20 per share versus a net loss of $1.8 million, or $0.17 per share posted in the second quarter of 1995. Net sales for the first half of 1996 were $29.1 million, compared to $29.9 million in the first half of 1995. The 1996 six month net loss was $3.6 million, or $0.33 per share, compared to a loss of $3.4 million, or $0.31 per share in 1995. Since 70% to 75% of Biscayne's sales are derived from fall and winter outerwear products, net sales for the first half of the fiscal year approximate 25% to 30% of the company's total annual net sales, and typically reflect an operating loss operating loss The 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. . Biscayne's 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: 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 June 30, 1996 was $62.7 million versus $57.4 million as of June 30, 1995. This 9% increase resulted from enhanced product development and increased bookings in the 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. Fashions International division. The company's gross margin was 19.9% in the second quarter of 1996, compared to 22.9% in the same period in 1995. The decline in gross margin was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower-than-normal realizable sale prices for the close-out of prior season outerwear products, offset by lower product costs in the Varon and Mackintosh units. Selling, general and administrative expense ("S,G&A") declined 6% from $5.5 million in 1995 to $5.1 million in 1996 due to management's continued cost reduction efforts. 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 second quarter results reflect improved sales in two of the company's four product groups and reduced costs in three of the four. While progress has been made, there is much work that needs to be done in implementing our new strategic operating plan. In the past six months, we have completed the following cost savings and operational initiatives: -- closing high cost manufacturing facilities 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. 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. foreign production to 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. Pollack continued, "In addition to the foregoing, we are identifying and implementing further cost reductions in the following areas: -- consolidating the administrative functions in several of our outerwear operating divisions, -- lowering S,G&A through reductions in personnel, management salaries and fees, and facilities consolidation, -- expanding lower-cost production in our new offshore manufacturing facility in Honduras Honduras (hŏnd  r`əs, –dyr`–; Span., ōnd , and
-- implementing co-operative sourcing among the outerwear product groups, utilizing a network of existing overseas satellite offices and staff. Pollack concluded: "While our new strategic operating plan will generate significant administrative and operational cost savings in 1996, we do not expect Biscayne Biscayne can refer to:
adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons to 1995 for the balance of the year." 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 junior's
Junior's is a restaurant at the corner of Flatbush Avenue Extension and DeKalb Avenue in Brooklyn (386 Flatbush Avenue). outerwear; Andy Johns Kids - 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 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)
JUNE 30, DECEMBER 31,
1996 1995
(Unaudited)
ASSETS Current assets: Cash and cash equivalents. . . $ 114 $ 312 Trade accounts receivable, less allowances of $1,184 in 1996 and $1,967 in 1995. . . 9,809 18,271 Inventories. . . . . . . . . . .30,951 25,890 Federal income tax receivable. . 2,302 1,969 Prepaid expenses and other . . . 2,256 1,972
Total current assets . . . .45,432 48,414
Property, plant and equipment,
less accumulated depreciation
of $2,184 in 1996 and $1,917
in 1995 . . . . . . . . . . . . . 3,520 3,652
Investment in Hartwell Sports,
Inc.. . . . . . . . . . - 1,627
Goodwill, net. . . . . . . . . . . 5,963 6,072
Other assets, net. . . . . . . . . 1,664 1,977
$56,579 $61,742
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable . . . . . . . $ 7,463 $ 3,841 Accrued liabilities. . . . . . . 3,819 5,914 Notes payable to banks . . . . .16,023 17,850 Current portion of long-term debt. . . . . . . . . . . . . . 1,750 1,250
Total current liabilities. .29,055 28,855
Subordinated notes . . . . . . . . 6,444 6,444 Long-term debt . . . . . . . . . . 4,500 6,250 Other liabilities. . . . . . . . . . 305 358 Commitments and contingencies. . . . . - - Stockholders' Equity: Common stock, $0.01 par value; 25,000,000 shares authorized; 10,741,521 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. . . . . . . . . . . (101) (135) Retained deficit . . . . . . . .(10,040) (6,446)
Total stockholders'
equity . . . . . . . . . . 16,275 19,835
$56,579 $61,742
BISCAYNE APPAREL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of dollars, except per share data)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------- -------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
Net sales $ 12,893 $ 14,517 $ 29,129 $ 29,906
Operating costs
and expenses:
Cost of goods
sold 10,336 11,194 22,606 22,718
Selling,
general and
administrative 5,137 5,468 10,944 11,432
----------- ----------- ----------- -----------
Operating loss (2,580) (2,145) (4,421) (4,244)
Other income and
(expenses):
Interest and other
expenses (794) (806) (1,631) (1,402)
Interest and other
income 12 36 163 68
Gain on sale and
equity in net
income of investee - 20 123 83
----------- ----------- ----------- -----------
Loss before income tax benefit (3,362) (2,895) (5,766) (5,495)
Income tax
benefit (1,181) (1,108) (2,172) (2,120)
----------- ----------- ----------- -----------
Net loss $ (2,181) $ (1,787) $ (3,594) $ (3,375)
=========== =========== =========== ===========
Net loss per
common share $ (0.20) $ (0.17) $ (0.33) $ (0.31)
=========== =========== =========== ===========
Shares used in
computing net
loss per common
share 10,741,521 10,730,214 10,741,521 10,730,214
=========== =========== =========== ===========
BISCAYNE APPAREL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
SIX MONTHS ENDED
JUNE 30,
--------------------------
1996 1995
------------ ------------
Operating activities:
Net loss $ (3,594) $ (3,375)
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 - (89)
Amortization of unearned
stock award compensation 34 34
Depreciation expense 279 250
Amortization expense 133 62
Provision for losses and
sales allowances on
receivables 1,937 597
(Increase) decrease in operating assets: Trade accounts receivable 6,215 8,430 Inventories (5,314) (15,640) Prepaid expenses and other (352) (672) Federal income tax receivable (287) - Other assets 13 (1,671)
Increase (decrease) in operating
liabilities:
Accounts payable 3,744 (639)
Accrued liabilities (1,339) (2,416)
Other liabilities - (228)
----------- -----------
(used in) operating
activities 1,335 (15,360)
Investing activities:
Net sale of assets 11 8
Capital expenditures (176) (725)
Proceeds on sale of equity
investee 1,750 -
----------- -----------
Net cash provided by
(used in) investing
activities 1,585 (717)
Financing activities:
Payments under notes payable
to banks (19,520) (14,675)
Borrowings under notes payable
to banks 17,693 26,317
Proceeds from term loan - 7,500
Principal payments under
term loan (1,250) -
Repayment of subordinated
notes - (6,276)
Principal payments of capital
leases (41) (12)
----------- -----------
Net cash (used in) provided
by financing activities (3,118) 12,854
Net decrease in cash and
cash equivalents (198) (3,223)
Cash and cash equivalents at
beginning of year 312 4,178
----------- -----------
Cash and cash equivalents at
end of year $ 114 $ 955
=========== ===========
Supplemental disclosure
information:
Interest expense paid $ 1,611 $ 1,385 Income taxes paid $ 60 $ 1,253 -0- NOTE TO EDITORS: In the Internet/email address noted in this news release, there is an "at" symbol between cfo and panix.com. Also in the World Web Site address there is a double slash symbol between http: and www.cfonews.com/bha These symbols may not appear properly in some systems. CONTACT: Peter Vandenberg Vandenberg is the name of:
Vice President, CFO 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 |
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