CORRECTING and REPLACING Maxwell Shoe Company Announces Third Quarter and Nine Month Results.Business Editors CORRECTION...by Maxwell Shoe Company Inc. HYDE PARK Hyde Park, park, London, England Hyde Park, 615 acres (249 hectares) in Westminster borough, London, England. Once the manor of Hyde, a part of the old Westminster Abbey property, it became a deer park under Henry VIII. , Mass.--(BUSINESS WIRE)--Sept. 8, 2003 Please replace BW5285, (MA-MAXWELL-SHOE-COMPANY) Announces Third Quarter and Nine Month Results, with the following revised release. The corrected release reads: MAXWELL SHOE COMPANY ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS Third Quarter Diluted Earnings Per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of Totals $0.24; Company Currently Estimates Fiscal 2003 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in the Range of $0.94 - $0.96 Maxwell Shoe Company 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 : MAXS), today announced financial results for the third quarter and nine months ended July July: see month. 31, 2003. In 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 rose 21.5% to $56.4 million compared to $46.4 million in 2002 -- Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 11.5% to $5.1 million, or 9.1% of net sales compared to $4.6 million, or 10.0% of net sales in 2002 -- Diluted earnings per share totaled $0.24 compared to $0.23 in 2002 For the Nine Months Ended July 31, 2003: -- Net sales rose 14.8% to $159.9 million compared to $139.3 million in 2002 -- Operating income increased 22.8% to $15.4 million, or 9.6% of net sales, compared to operating income of $12.5 million, or 9.0% of net sales, in 2002 -- Diluted earnings per share increased 6.5% to $0.66 compared to $0.62 in 2002 Gross profit for the third quarter of 2003 increased 14.3% to $14.1 million, or 25.0% of net sales, compared to $12.3 million, or 26.6% of net sales, in the third quarter of 2002. The decline in third quarter gross margin was mainly attributed to the highly promotional retail environment. To a lesser extent, an increase in freight costs also impacted the Company's gross margin. 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. totaled $9.0 million, or 15.9% of net sales compared to $7.7 million, or 16.6% of net sales in the third quarter of 2002. The 70 basis point improvement in operating expenses as a percent of net sales resulted from increased efficiencies and strict expense controls. Net income for the third quarter increased 3.5% to $3.6 million compared to net income of $3.5 million in the third quarter of 2002. "The Company's third quarter performance reflected the growing importance of our brands with consumers. Each of our branded and private label lines enjoyed double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" gains during the quarter," began Mark Cocozza, Chairman and Chief Executive Officer, Maxwell Shoe Company. "Our ability to be relevant with strong brands and trend right styles in each of our distribution channels has allowed us to expand market share despite the difficult retail environment. This coupled with prudent expense management and disciplined financial controls enabled us to exceed last year's results." For the nine months, gross profit totaled $42.8 million, or 26.8% of net sales compared to $38.1 million, or 27.4% of sales in the first nine months of 2002. Operating expenses totaled $27.4 million, or 17.1% of net sales compared to $25.6 million, or 18.4% of net sales in the first nine months of 2002. Net income rose 11.2% to $10.2 million, as compared to net income of $9.1 million in the first nine months of 2002. Diluted earnings per share totaled $0.66 compared to $0.62 in the first nine months of 2002. The Company's balance sheet remained strong. At quarter end, cash on the balance sheet rose approximately 20% to $79.2 million compared to $66.1 million at July 31, 2002. Inventory was on plan and current at $22.7 million, a 2.3% increase from $22.2 million at July 31, 2002. Working capital rose by $20.9 million to $137.2 million from $116.3 million at July 31, 2002. Mr. Cocozza added: "Fiscal 2003 is expected to be another growth year for Maxwell Shoe Company. Our moderate, better and bridge lines are achieving solid sell through rates at retail with our newest lines such as Circa Joan Joan of Arc, St. (1412–1431) heroically followed call to save France. [Christian Hagiog.: Attwater, 187] See : Patriotism & David and AK Anne Klein Anne Klein (August 3, 1923 - March 19, 1974) was an American fashion designer whose label was continued by designer Donna Karan after Anne Klein's death. Anne Klein was born as Hannah Golofski in New York City on August 3, 1923. Sport exceeding the expectations we set at the beginning of the year. Our compelling portfolio of brands, efficient infrastructure and disciplined approach to the footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). business separates us from our peers and has enabled us to deliver consistent results over a number of years. We remain confident in our ongoing ability to create value for our stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ." Mr. Cocozza continued, "With regard to guidance, we currently estimate fourth quarter 2003 sales in the range of $57 million to $61 million compared to $65 million in the fourth quarter of 2002. Fourth quarter diluted earnings per share is currently estimated in the range of $0.27 to $0.29 compared to $0.27 in the fourth quarter of fiscal 2002. For fiscal 2003, we currently estimate sales in the range of $217 million to $221 million representing annual growth of 7% at the mid-point of the range. We currently estimate fiscal 2003 diluted earnings per share in the range of $0.94 and $0.96. This compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to fiscal 2002 diluted earnings per share of $0.89." Interested stockholders and other persons are invited to listen to the third quarter earnings conference call scheduled for Monday Monday: see week. , September 8, 2003 at 10:00 a.m. Eastern Time. The call will be broadcast live over 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 at http://www.viavid.com. An online archive will be available immediately following the call and will be accessible until September Until September is a 1984 romantic drama set in France. It stars Karen Allen as an American tourist in Paris who falls in love with a married Frenchman (Thierry Lhermitte). External links 15, 2003. Maxwell Shoe Company Inc. designs, develops and markets casual and dress footwear for women and children. The Company's brands include AK ANNE KLEIN(R), DOCKERS
Dockers is a brand of Levi Strauss & Co. Levi Strauss & Co. (R)FOOTWEAR FOR WOMEN, J. G. HOOK, JOAN & DAVID, CIRCA JOAN & DAVID, MOOTSIES TOOTSIES AND SAM & LIBBY. Certain statements contained in this press release regard matters that are not historical facts and are forward looking statements (as such term is defined in the rules promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. pursuant to the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. ). Because such forward looking statements contain risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward looking statements. Factors that could cause actual results to differ materially include, but are not limited to: changing consumer preference, inability to successfully design, develop or market its footwear brands, the inability to successfully re-introduce the Joan & David brand Sir David Brand KCMG (1 August 1912-15 April 1979) was Premier of Western Australia from 1959-1971 and a Member of the Legislative Assembly from 1945-1975. Early life into the market, competition from other footwear manufacturers or retailers, loss of key employees, general economic conditions and adverse factors impacting the retail footwear industry, and the inability by the Company to source its products due to political or economic factors, potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in supply chain or customer purchasing habits due to health concerns relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc severe acute respiratory syndrome Severe Acute Respiratory Syndrome (SARS) Definition Severe acute respiratory syndrome (SARS) is the first emergent and highly transmissible viral disease to appear during the twenty-first century. or other related illnesses; the imposition The printing of pages on a single sheet of paper in a particular order so that they come out in the correct sequence when cut and folded. of trade or duty restrictions or work stoppages of transportation or other workers who handle or manufacture the Company's goods. The information contained in the press release was accurate only as of the date issued. Investors should not assume that the statements made in this document remain operative OPERATIVE. A workman; one employed to perform labor for another. 2. This word is used in the bankrupt law of 19th August, 1841, s. 5, which directs that any person who shall have performed any labor as an operative in the service of any bankrupt shall be at a later time. Maxwell Shoe Company undertakes no obligation to update any information appearing in this release. The Company undertakes no obligation to release publicly the results of any revisions to these forward looking statements that may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.
MAXWELL SHOE COMPANY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited-In Thousands Except Per Share Amounts)
Three Months Ended Nine Months Ended
July 31, July 31,
------------------ ------------------
2003 2002 2003 2002
-------- --------- -------- ---------
Net sales $ 56,372 $ 46,401 $ 159,877 $ 139,321
Cost of sales 42,270 34,065 117,069 101,203
-------- -------- --------- ---------
Gross profit 14,102 12,336 42,808 38,118
Operating expenses:
Selling 3,906 3,138 12,581 11,373
General and administrative 5,049 4,580 14,829 14,201
-------- -------- --------- ---------
8,955 7,718 27,410 25,574
-------- -------- --------- ---------
Operating income 5,147 4,618 15,398 12,544
Other expenses (income)
Interest, net (259) (249) (716) (694)
Other, net (93) 9 (296) (199)
-------- -------- --------- ---------
(352) (240) (1,012) (893)
-------- -------- --------- ---------
Income before income taxes 5,499 4,858 16,410 13,437
Income taxes 1,871 1,351 6,236 4,289
-------- -------- --------- ---------
Net income $ 3,628 $ 3,507 $ 10,174 $ 9,148
======== ======== ========= =========
Net income per share
Basic $ .25 $ .25 $ .68 $ .66
Diluted $ .24 $ .23 $ .66 $ .62
Shares used to compute net
income per share:
Basic 14,758 14,111 15,019 13,788
Diluted 15,309 15,083 15,492 14,806
MAXWELL SHOE COMPANY INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited In Thousands -- except per share amounts)
July 31, October 31,
ASSETS 2003 2002
--------- ----------
Current assets:
Cash and cash equivalents $ 79,218 $ 70,518
Accounts receivable, trade (net of allowance
for doubtful accounts and discounts of $930
in 2003 and $955 in 2002) 43,832 40,729
Inventory, net 22,721 18,311
Prepaid expenses 930 596
Prepaid income taxes - 1,721
Deferred income taxes 1,469 1,469
-------- --------
Total current assets 148,170 133,344
Property and equipment, net 2,993 3,928
Trademarks, net 14,462 14,462
Other assets 1 15
-------- --------
$165,626 $151,749
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,708 $ 724
Accrued expenses 8,797 8,512
Accrued income taxes 475 -
-------- --------
Total current liabilities 10,980 9,236
Long-term deferred income taxes 1,939 1,939
Stockholders' equity:
Class A common stock, par value $.01, 20,000
shares authorized, 14,821 shares outstanding
in 2003, 14,517 shares outstanding in 2002 148 145
Additional paid-in capital 52,153 50,609
Deferred compensation (554) (966)
Retained earnings 100,960 90,786
-------- --------
Total stockholders' equity 152,707 140,574
-------- --------
$165,626 $151,749
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