Bolle Inc. Announces Fourth Quarter and Fiscal 1998 Year-End Results.DENVER--(BUSINESS WIRE)--March 25, 1999--Bolle Inc. (Nasdaq: BEYE), today reported financial results for the fourth quarter and year ended December December: see month. 31, 1998. The Company completed a number of acquisitions during 1997 and 1998 as part of its strategy of unifying the Bolle brand on a global basis. Accordingly, historical results are not comparable. During the fourth quarter of 1998, the Company completed its review 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 its long-term assets Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. . In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the requirements of FAS121, management concluded that significant operational and financial improvements that were anticipated and planned at the time the Company acquired Bolle France have not been achieved, nor could management predict that such operational improvements will be achieved in the future. As a result, the Company recognized an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss on its investment in Bolle France and wrote down the investment to its estimated fair market value, resulting in a $30.4 million reduction in intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Factors considered in assessing impairment included: (i) failure to meet financial projections; (ii) fierce competition due to changing market conditions; (iii) difficult and expensive transition from family-owned business to publicly-held company; (iv) lack of expansion into the US safety eyewear eye·wear n. 1. Eyeglasses, goggles, or other objects worn over the eyes. 2. Fashionable eyeglasses. market; and, (v) non-realization of projected synergies projected at the date of acquisition. For the fourth quarter of 1998, 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 increased 23.3 % to $14.3 million from $11.6 million for the same period last year. The Company reported a net loss after accounting for the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of intangible assets and non-cash preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) of $33.9 million, or a loss of $4.91 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the quarter ended December 31, 1998. For the same period in 1997, the Company reported a net loss of $5.1 million or $.76 per share. The weighted average shares outstanding and per share amount for 1997 has been restated to reflect the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. as if it had occurred at the beginning of the year. Net sales for the year ended December 31, 1998 increased by 63.4% to $52.6 million compared to $32.2 million for the previous year. Net loss for the year was $33.6 million or a loss of $4.98 per basic and diluted share compared to a net loss of $4.7 million or $.70 per share last year. As with the quarterly amounts reported, the historical weighted average shares outstanding and per share amounts have been restated to reflect the spin-off as if it had occurred at the beginning of the year. Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Kiedaisch, Chief Executive Officer of Bolle Inc., commented "The 1998 financial results reflect the cost of implementing the Company's transition to a global operation and the write-down resulting from impairment to the value of long-term assets. During 1998, Bolle Inc. invested in several endeavors, including internal 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). , increased marketing efforts in order to build the brand and position the Company to operate on a worldwide basis, and the transition to a public company in March 1998. We now have an improved operational base from which we can focus on growing sales and profitability, and we are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to note that our 1999 product line has been well-received by our customers and consumers." Bolle Inc. (Nasdaq:BEYE), is a vertically integrated designer, manufacturer and marketer of Bolle(R) branded eyewear, including Bolle(R) premium sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses , goggles goggles, n the protective eyewear worn by dental personnel and patients during dental procedures. goggles see periocular leukotrichia. , and tactical and safety eyewear. Forward looking statements (statements which are not historical) in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company's actual results could differ materially from those expressed or indicated by 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. . Factors that could cause or contribute to such differences include but are not limited to, changes in fashion trends, risks related to the retail industry, use of contract manufacturing, foreign sourcing, import restrictions, competition, seasonality and other factors. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company's filings with Securities and Exchange Commission.
BOLLE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Quarter ended Year ended
December 31, December 31,
1998 1997 1998 1997
Revenues
Net sales $14,342 $11,490 $52,551 $32,160
Costs and expenses
Cost of sales 8,796 5,603 26,304 15,354
Selling, general and
administrative expenses 11,959 5,108 29,690 14,865
Write-down of intangible assets 28,186 - 28,186 -
Merger and acquisition related
integration related expenses - 3,750 - 3,750
Depreciation and amortization 1,000 641 3,162 1,477
Interest expense 460 447 1,555 963
Other (income) expense (13) 110 (1,284) (693)
Total costs and expenses 50,388 15,659 87,613 35,716
Loss before income taxes and
minority interests (36,045) (4,169) (35,062) (3,556)
Provision for (benefit from)
income taxes (2,514) 903 (2,141) 1,099
Minority interests 38 - 70 -
Net loss (33,569) (5,072) (32,991) (4,655)
Preferred dividends 285 - 598 -
Net loss attributable to
common stock $(33,854) $(5,072) $(33,589) $(4,655)
Weighted average shares
outstanding
Basic and diluted 6,893,194 6,634,887 6,737,672 6,634,887
Earnings (loss) per share
Basic and diluted $ (4.91) $ (0.76) $ (4.98) $ (0.70)
BOLLE INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
December 31, December 31,
1998 1997
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,194 $ 1,204
Trade receivables, net 15,238 12,452
Inventories 11,210 10,934
Investment held for resale 4,922 -
Other current assets 3,676 1,617
Total current assets 36,240 26,207
Property and equipment, net 5,129 4,687
Trademarks, net 34,208 39,029
Goodwill and other intangibles, net 5,245 23,447
Other assets 1,424 527
Total assets $ 82,246 $ 93,897
Liabilities and Stockholders' equity
Current liabilities:
Short term debt and current portion of
long term debt $ 18,955 -
Accounts payable 5,851 6,247
Indebtedness to related parties - 35,782
Accrued expenses 7,455 5,914
Total current liabilities 32,261 47,943
Long-term debt, net of current portion 3,407 -
Zero coupon convertible subordinated
notes 7,000 -
Deferred tax liabilities 13,028 14,000
Other 3,063 2,056
Total liabilities 58,759 63,999
Minority interests 70 -
Mandatorily redeemable preferred stock-
redemption value $11,055; par value
$0.01; 64 shares authorized, issued
and outstanding 11,055 11,055
Mandatorily redeemable preferred stock-
redemption value $9,625; par value
$0.01; 10 shares authorized, issued
and outstanding 9,669 -
Stockholders' equity:
Common stock - par value $.01; 20,000
shares authorized; 6,893 shares issued
and outstanding 69 -
Additional paid-in capital 38,539 23,960
Cumulative translation adjustment 1,731 (462)
Accumulated deficit (37,646) (4,655)
Total stockholders' equity 2,693 18,843
Total liabilities and
stockholders' equity $ 82,246 $93,897
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