Blue Holdings, Inc. Returns to Profitability and Reports First Quarter 2007 Financial Results.COMMERCE, Calif. -- In the Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Statements of Operations table, the Net income per common share, basic and diluted figure for the three months ended March 31, 2007 should read $0.005 (sted $0.05). The corrected release reads: BLUE HOLDINGS, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . RETURNS TO PROFITABILITY AND REPORTS FIRST QUARTER 2007 FINANCIAL RESULTS Blue Holdings, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BLUE), a designer, manufacturer and distributor of high-end fashion jeans, apparel and accessories, today announced financial results for the first quarter ended March 31, 2007. The Company continued to make significant progress in a number of critical areas during the quarter and subsequent to it including; * The creation of a brand extension of Antik Denim denim Durable twill-woven fabric with coloured (usually blue) warp (lengthwise) and white filling (crosswise) threads, also sometimes woven in coloured stripes. The name originated in the French serge de Nîmes. with pop icon For the British television series, see . For religious icons, see . A pop icon is a celebrity whose fame in pop culture constitutes a defining characteristic of a given society or era. and producer will.i.am of the Black Eyed Peas This article is about the American hip hop group. For the vegetable, see Black-eyed pea. The Black Eyed Peas are an American hip hop group from Los Angeles, California, who have enjoyed worldwide pop success. The group is currently composed of will.i.am, apl.de. . This limited edition clothing line - "i.am Antik" - will be launched on August 27th at the Project Show in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. . * The signing of a license agreement between Antik Denim and Mercier SARL SARL South African Radio League SARL Société Anonyme à Responsabilité Limitée (French: limited liability company) SARL Salem Animal Rescue League (Salem, NH) SARL Sociedade Anónima de Responsabilidade Limitada to manufacture, sell, market and distribute apparel and accessories for Antik throughout Europe. The license agreement provides for an upfront advance to Blue Holdings of $250,000 and aggregate royalty payments of $2.5 million for the years 2009 through 2012 assuming the license agreement is renewed at the end of 2008. * The signing of a license agreement with Max Ray, Inc. to produce and distribute handbags, belts, small leather accessories and scarves scarves n. A plural of scarf1. scarves Noun a plural of scarf1 in 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. . * The signing of a license agreement to further develop the highly recognized contemporary knit collection Faith Connexion, headquartered in France. * The appointment of Scott Drake, the Company's New President of Sales and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . * The appointment of Mr. Harry Haralambus and Mr. Len Mr. Len (Leonard "Lenny" Smythe) is a hip hop DJ from Brooklyn, New York. He was a member, with Bigg Jus and El-P, of the underground hip hop trio Company Flow, which disbanded in the late-1990s. Hecht as independent board members to the Company's Board of Directors. 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 first quarter of 2007 were $8.4 million, a 29% decrease from the $11.9 million reported in the prior year period. Net income for the quarter was $0.1 million versus net income of $0.7 million for the first quarter of 2006. Basic and diluted net earnings per share were $0.01 on 26.1 million weighted average shares outstanding versus net earnings of $0.03 on the same number of shares for the first quarter of 2006. Net sales and earnings for the quarter were impacted by a couple of factors, including a lack of European distribution and prior period product delays that caused some retailers to hold back orders in the first quarter. However, these production delays have been fixed and the retail partners have begun to re-establish their sales orders The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. with the Company. Additionally, as discussed above, the Company recently announced a European licensing agreement for the Antik Denim brand. Blue Holdings' gross profit decreased to $5.1 million in the first quarter of 2007 compared to $5.9 million in the prior year period. Gross margin increased significantly to 60.1% of net sales compared to 50.0% of net sales in the prior year period. The increase in gross margin was due to the full package system implemented for the Company's manufacturing and renewed retail interest in the Company's products, resulting in higher margins. The Company expects the gross profit to exceed 50% for the balance of the year. Selling, distribution and administrative expenses were $4.5 million in the quarter, down from $4.6 million in the prior year period. The slight decrease in 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. was due to a combination of lower sales volume and the move towards outsourcing the manufacturing of products to lower cost providers, as well as going to a full package product solution. Operating expenses, as a percentage of sales, increased to 53.6% as compared to 38.7% in the prior year period. The percentage increase was due to lower sales volume. "We are very pleased to return to profitability this quarter, excited about our prospects in 2007, and confident in our ability to continue to successfully build the Blue Holdings' brands and execute our strategic plan," said Paul Guez, Chairman, Chief Executive Officer and President of Blue Holdings, Inc. "We continue to remain focused, committed and encouraged about the growth of our business. Recently we have made several significant announcements which should further our success and expand our strategy to seek strategic licensees for our brands. In particular, the announcements of both our European license agreement for Antik Denim with Mercier SARL as well as our brand extension for Antik with will.i.am. Both these agreements are meaningful positive developments which will help to fuel our future growth." Balance Sheet As of March 31, 2007, cash and equivalents approximated $164,104 plus approximately $8.6 million of factored and house accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . This compares with $109,000 in cash and equivalents plus approximately $9.0 million of factored and house accounts receivable as of December 31, 2006. The Company's working capital balance at the end of the first quarter of 2007 was $1.5 million and inventory was approximately $8.8 million compared with working capital of $1.6 million and inventory of $5.4 million on December 31, 2007. 2007 Outlook While the Company will not be providing financial guidance, the Company is committed to improving its financial results and growing its brands in the future. Conference Call The Company will host a conference call to discuss its first quarter ended March 31, 2007 financial results today, May 15, 2007, at 4:30 p.m. ET. To participate in the conference call, investors should dial 800-802-2266 ten minutes prior to the scheduled start time. International callers should dial 913-312-1270. For those investors unable to participate in the live call, a replay will be available beginning day, May 15, 2007 at 7:30 p.m. ET, through Wednesday, May 29, 2007 at midnight ET. To access the replay, dial 888-203-1112 (passcode: 8446114). International callers should dial 719-457-0820. The call will be open to all interested investors through a live audio Web broadcast via the Internet at www.earnings.com. For those who are not available to listen to the live broadcast, the call will be archived. About Blue Holdings, Inc. Blue Holdings, Inc., directly and through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Antik Denim, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and Taverniti So Jeans Taverniti So Jeans is a sportswear collection from Jimmy Taverniti, who also sells Taverniti Couture. Known for his garment-dying and stonewashing techniques. Taverniti, has focused on jeans, T-shirts, sweatshirts, sweatpants ans stretch silk tops. , LLC, designs, develops, manufactures, markets, distributes and sells high-end fashion jeans, apparel, and accessories under the "Antik Denim," "Yanuk," "Taverniti So Jeans," and "Faith" brands, and under its joint venture "Life and Death" brand, both in the United States and internationally. Blue Holdings currently sells men's, women's and children's styles. Antik Denim, Yanuk, Taverniti So, Life and Death and Faith jeans and apparel are made from high-quality fabrics milled in the United States, Japan, Italy and Spain, and are processed with cutting-edge treatments and finishes. Blue Holdings' concepts, designs, embellishments, patent-pending pockets and great attention to detail and quality give it a competitive advantage in the high-end fashion jeans market. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release contains "forward-looking statements" that include information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events and future financial and operating performance. Examples of forward looking statements included in this release include statements regarding Blue Holdings' future financial results and the anticipated growth of its brands. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Blue Holdings' products, the introduction of new products, Blue Holdings' ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of Blue Holdings' liquidity and financial strength to support its growth, and other information that may be detailed from time to time in Blue Holdings' filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting Blue Holdings, please refer to the Company's recent Securities and Exchange filings, which are available at www.sec.gov. Blue Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion