Bolle Inc. Announces Third Quarter 1998 Results.RYE, N.Y.--(BUSINESS WIRE)--Nov. 3, 1998--Bolle Inc. (Nasdaq: BEYE), today reported financial results for the third quarter and nine months ended September September: see month. 30, 1998. During the second quarter of fiscal 1998, the Company completed its acquisition of 75% of Bolle Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and 100% of related sunglass sun·glass n. 1. A convex lens used to focus the sun's rays and produce heat, especially for ignition. 2. sunglasses Eyeglasses with tinted or polarizing lenses to protect the eyes from the sun's glare. distributors in the U.K. and Asia. Additionally, in July July: see month. 1997, the Company completed its acquisition of Bolle France. Accordingly, historical results are not comparable. For the third quarter, 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 34% to $13.7 million compared to $10.2 million during the same period in fiscal 1997. The Company reported a net loss of $12,000 for the third quarter of 1998 compared to net income of $319,000 for the third quarter of 1997. After accounting for preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , the net loss for the quarter was $154,000, or a loss of $0.02 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, compared to a net income of $319,000 for the same period in 1997. The per share amount for 1997 is not comparable due to the fact that basic weighted average shares outstanding for the quarter ended September 30, 1998 were approximately 6,900,000 versus 1,793 for the same period last year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the September 30, 1998 quarter was $978,000 compared to $1.6 million for the quarter ended September 30, 1997. For the nine months ended September 30, 1998, net sales increased to $38.2 million from $20.7 million during the same period in fiscal 1997. The Company reported net income of $265,000 or $0.05 per basic and diluted share in 1998, after accounting for preferred dividends, compared to a net income of $401,000 for the same period in 1997. The per share amount for 1997 is not comparable. EBITDA for the nine months ended September 30, 1998 was $4.2 million compared to $2.0 million for the nine months ended September 30, 1997. As previously announced, Bolle North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. has been named the exclusive North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. distributor of Reusch Reusch is a German company manufacturing sports equipment. They are mostly known for their manufacture of football goalkeeper gloves but they also make footballs, football apparel, bags, shin guards and other protective gear, mainly for the knees and elbows. winter sports winter sports: see bobsledding; curling; hockey, ice; ice dancing; ice skating; skiing; snowshoes; tobogganing. gloves, and will begin distribution in January 1999. Reusch has a 40% market share of the winter glove glove, hand covering with a separate sheath for each finger. The earliest gloves, relics of the cave dwellers, closely resembled bags. Reaching to the elbow, they were most probably worn solely for protection and warmth. market in its native Germany, and is one of the top winter sports brands worldwide. Historically, Reusch International has sold approximately $2.5 million of winter gloves per year in the North American market. Mr. Gary Kiedaisch, Chief Executive Officer of Bolle Inc., commented, "The Bolle team is now in place to execute our 1999 goals. The 1999 sunglass collection, consisting of 54 styles of which 26 are new this year, is the strongest Bolle has ever developed." Mr. Kiedaisch concluded, "As the results show, 1998 has been a transitional year. We are investing heavily in our future and have not cut corners in preparing for what should be an extremely exciting year for Bolle." Bolle Inc. (Nasdaq: BEYE), is a vertically integrated designer, manufacturer and marketer of Bolle(R) branded eyewear eye·wear n. 1. Eyeglasses, goggles, or other objects worn over the eyes. 2. Fashionable eyeglasses. , 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 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. (statements which are not historical facts) 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 of 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. Bolle Inc.'s actual results could differ materially from those expressed or indicated by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in fashion trends, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the retail industry, use of contract manufacturing and 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 the Securities and Exchange Commission. -0-
BOLLE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Quarter ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
Revenues
Net sales $ 13,733 $ 10,192 $ 38,209 $ 20,670
Costs and expenses
Cost of sales 6,283 4,813 17,501 9,750
Selling, general and
administrative 6,824 4,003 17,738 9,757
Depreciation and amortization 661 652 2,162 836
Interest expense 301 447 1,096 516
Other income (352) (217) (1,271) (803)
Total costs and expenses 13,717 9,698 37,226 20,056
Income before taxes 16 494 983 614
Provision for income taxes 6 158 373 196
Minority interests 22 17 32 17
Net income (loss) (12) 319 578 401
Preferred dividends 142 313
Net income (loss) attributable
to common stock $ (154) $ 319 $ 265 $ 401
Weighted average shares outstanding
Basic 6,891,620 1,793 5,038,013 664
Diluted 7,238,260 1,793 5,306,644 664
Earnings (loss) per share
Basic $ (0.02) $ 177.91 $ 0.05 $ 603.92
Diluted $ (0.02) $ 177.91 $ 0.05 $ 603.92
BOLLE INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
September 30, December 31,
1998 1997
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 2,827 $ 1,204
Trade receivables from related parties 1,120
Trade receivables, net 12,603 11,332
Inventories 15,904 11,734
Other current assets 2,604 1,617
Total current assets 33,938 27,007
Property and equipment, net 4,919 4,687
Trademarks, net 40,981 39,029
Goodwill and other intangibles, net 28,753 23,447
Equity in and notes receivable
from affiliated companies 5,578
Other assets 6,204 527
Total assets $ 120,373 $ 94,697
Liabilities and Stockholders' equity
Current liabilities:
Short term debt and current
portion of long term debt $ 13,219
Accounts payable 4,666 $ 6,247
Indebtedness to related parties 35,782
Accrued compensation 616 1,111
Other accrued expenses 6,976 4,803
Total current liabilities 25,477 47,943
Long-term debt 6,677
Zero coupon convertible
subordinated notes 7,000
Deferred tax liability 14,690 14,000
Other 3,612 2,856
Total liabilities 57,456 64,799
Minority interests 32
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 9,937
Stockholders' equity:
Common stock -- par value $.01; 20,000
shares authorized; 6,893 shares
issued and outstanding 69
Additional paid-in capital 44,593 23,960
Cumulative translation adjustment 1,621 (462)
Accumulated deficit (4,390) (4,655)
Total stockholders' equity 41,893 18,843
Total liabilities and
stockholders' equity $ 120,373 $ 94,697
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