Candie's, Inc. Reports Fourth Quarter and Fiscal Year Ended December 31, 2004 Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Candie's, 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 : CAND) (the "Company") announced today its results for the quarter (the "two-month Fourth Quarter") and 11-month current year ended December December: see month. 31, 2004 (the "11-month Current Year"). As previously announced, the Company changed its fiscal year end from January 31 to December 31. As a result, the Fourth Quarter has been reported as a two-month period and the current fiscal year has been reported as an 11-month period ended December 31, 2004. The Company reported consolidated net income of $241,000 or $0.01 per 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 11-month Current Year, as compared to a loss of $11.3 million or $0.45 loss per diluted share for the prior year. Licensing revenue for the 11-month Current Year increased by 30.4% to $8.6 million from $6.6 million in the prior year and selling, general and administrative expenses decreased by 45.2% from $32.3 million to $17.7 million. For the two-month Fourth Quarter, the Company reported a consolidated operating net loss of $314,000 before special charges of $196,000, as compared to a consolidated operating net loss of $4.8 million before special charges of $981,000 in the same quarter for the prior year. Special charges in the Fourth Quarter consisted of $434,000 of legal fees incurred by the Company relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. involving Unzipped Apparel, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Unzipped"), its former jeans wear operations that have now been fully transitioned to a license arrangement, which was offset by $238,000 of special income resulting from the Company's termination of certain long term debt payments. The Company reported a consolidated net loss of $912,000 or $0.03 per diluted share for the Fourth Quarter compared to a consolidated net loss of $6.4 million, or $0.25 per diluted share for the prior year quarter. Licensing revenue was $1.8 million for the two-month Fourth Quarter, as compared to $1.7 million in the prior year quarter, an increase of 4.5%. Selling, general and administrative expenses for the two-month Fourth Quarter decreased by $2.5 million, or 37.6% to $4.1 million from $6.6 million in the prior year quarter. Included in the Company's consolidated operations are the results from the former jeans wear operations of Unzipped. For the 11-month Current Year, Unzipped had a net loss of $6.4 million prior to adjustments, compared to a net loss of $266,000 for the prior year. The Company, however, is guaranteed a certain profit pursuant to a third-party management agreement with Unzipped's former manager, Sweet Sportswear, LLC ("Sweet"), consequently, the Company has offset shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. payments of $7.6 million and $1.6 million in the current and prior year, respectively, against cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold and an $11 million note payable to Sweet. For the two-month Fourth Quarter, Unzipped had a net loss of $2.2 million prior to adjustments, compared to a net loss of $2.4 million for the prior year quarter. The Company has now completed the process of transforming from a 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). and jeans wear operating company operating company A business that engages in transactions with outsiders. to a multi-brand licensing and management business. In December 2004, the Company licensed CANDIE'S(R) to Kohl's Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , with plans to launch CANDIE'S as a lifestyle brand in Fall 2005 and become exclusive in all categories except optical by the end of 2006. The BONGO(R) brand is licensed in 15 categories for women's, kids and men's products, including for jeans wear and footwear. As previously announced in October 2004, the Company acquired the designer trademark BADGLEY MISCHKA Badgley Mischka is an American fashion label designed by Mark Badgley and James Mischka. Badgley & Mischka met at Parsons and found a common vision. The two launched the label Badgley Mischka in 1988, though their bridal business launched in 1993. (R) and has begun to implement its strategy to license that brand as well with four new licenses and additional categories planned. Neil Cole Neil Cole (born 1 March 1972) is an English television presenter, comedian, radio broadcaster and actor. Early life Cole was born in Bristol in 1972, and attended King Edward Grammar School in Chelmsford. He studied English & French Literature at Bristol University. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. commented, "Our transition to a licensing and marketing company is finally complete. We are now fully focused on generating the maximum revenue from our three valuable brands and believe that we have positioned the Company to achieve sustained growth and profitability in 2005 and beyond." Shareholders are invited to listen to the conference call scheduled for today at 10:00 AM Eastern Daylight Time. The call will be web cast live via 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 and can be accessed by logging on to www.candiesinc.com and clicking on the "Live Web cast" link on the "Investor's Overview" page. The call will be archived on the web and a replay can also be accessed via telephone by dialing 1-888-286-8010 and entering the passcode 42968486. The replay will be available through March 30, 2004. About Candie's, Inc. Candie's, Inc. is in the business of licensing the CANDIE'S, BONGO and BADGLEY MISCHKA trademarks on a variety of women's apparel, footwear and accessories. Through its wholly owned subsidiary 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. Brightstar Footwear, Inc., the Company also arranges for the manufacture of footwear products for mass market and discount retailers under the private label brand of the retailer. For investor information please visit the corporate web site at http://www.candiesinc.com. 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. Statement under 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 statements that are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding the results of the Company's decision to license its business, continued market acceptance of the Company's branded products, the ability of licensees to successfully market and sell branded products, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the risks of litigation and other risks detailed in the Company's SEC filings. The words "believe", "anticipate," "expect", "confident", and similar expressions identify 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. . Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement was made.
Candie's, Inc.
Condensed Consolidated Statements of Operations
(000's omitted, except per share data)
Two Three Eleven Twelve
months months months months
ended ended ended ended
December January December January
31, 31, 31, 31,
2004 2004 2004 2004
Net sales $ 5,851 $18,421 $60,409 $124,803
Licensing revenue 1,826 1,747 8,571 6,574
Net revenues 7,677 20,168 68,980 131,377
Cost of goods sold 3,846 18,282 48,229 102,604
Gross profit 3,831 1,886 20,751 28,773
Operating expenses:
Selling, general and
administrative expenses 4,145 6,640 17,720 32,308
Special charges 196 981 295 4,629
4,341 7,621 18,015 36,937
Operating income (loss) (510) (5,735) 2,736 (8,164)
Interest expense 402 656 2,495 3,118
Income (loss) before income taxes (912) (6,391) 241 (11,282)
Income tax provision - 11 - 58
Net income (loss) $ (912) $(6,402) $ 241 $(11,340)
Earnings (loss) per common share:
Basic $ (0.03) $ (0.25) $ 0.01 $ (0.45)
Diluted $ (0.03) $ (0.25) $ 0.01 $ (0.45)
Weighted average number of common
shares outstanding:
Basic 27,829 25,265 26,851 25,181
Diluted 27,829 25,265 28,706 25,181
Selected Balance Sheet Data:
12/31/2004 01/31/2004
Total Assets 59,475 74,845
Total Liabilities 35,217 55,977
Shareholders' Equity 24,258 18,868
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion