Carson, Inc., Reports First Quarter Profit.SAVANNAH Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. , Ga.--(BUSINESS WIRE)--April 26, 1999-- Carson Carson, city (1990 pop. 83,995), Los Angeles co., S Calif., an industrial and residential suburb of Los Angeles; inc. 1968. Oil refining is the major industry; fabricated metals, paper, and other products are manufactured. The California State Univ. Dominguez Hills is there. , Inc. (NYSE NYSE See: New York Stock Exchange :CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. ), the number one manufacturer and marketer of hair care and shaving products for people of color Noun 1. people of color - a race with skin pigmentation different from the white race (especially Blacks) people of colour, colour, color race - people who are believed to belong to the same genetic stock; "some biologists doubt that there are important , noting positive results from the program to focus on its core business, today announced operating results for the first quarter ended March 31, 1999. FIRST QUARTER OPERATING RESULTS 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 increased 58.3 % to $41.7 million, compared with $26.3 million in the corresponding year-earlier period. Net sales in the U.S., including exports, grew by 78.5%, to $33.0 million, compared with $18.5 million in the corresponding year-earlier period. Included in U.S. results for the first quarter of 1999 are $14.6 million of net sales attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to Johnson Products and Dermablend, acquired in July July: see month. 1998. Net sales of Carson Holdings, a 52.8% owned subsidiary headquartered in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , increased by 10.3% to $8.6 million for the first quarter compared to $7.8 million in the corresponding year earlier period. On a local currency basis, the increase in sales was 35%. For the quarter, gross profit was $21.8 million, compared with $13.5 million in the corresponding year-earlier period. General and administrative expenses as a percentage of net sales improved to 17.3% compared to 20.9% a year ago. The quarter's 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. amounted to $4.2 million, compared to $0.2 million in the corresponding year earlier period. 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 (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The results above exclude in the first quarter of 1998 operating results of Cutex for comparative purposes, since substantially all the Cutex business was sold in December December: see month. 1998. Operations of Cutex for the three months ended March 31,1998 are included in the consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. . The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income for the first quarter of 1999 amounted to $180,000, or $0.01 per share, compared to the year-ago net loss of $501,000, or $0.03 per share. "This has been a challenging quarter, and I am pleased to report that Carson has provided an impressive performance," said Malcolm Malcolm, Máel Coluim, or Maol Choluim may refer to: Nobility
U.S. OPERATIONS Carson reported that, with the acquisition of Johnson Products, its number one domestic market share in the first quarter this year rose to 20.4% from 13.8% a year ago, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. data gathered by an industry market research firm, Informational Resources, Inc. ("IRI Iri (ē`rē`), former city, North Jeolla (Cholla) prov., SW South Korea. An agricultural center and transportation hub, it was absorbed into Iksan. "). Carson maintains the leading market position in five major ethnic hair care product categories -- adult relaxer re·lax·er n. One that relaxes, as a chemical solution used on tightly curled hair to soften or loosen the curls. Noun 1. relaxer - any agent that produces relaxation; "music is a good relaxer" kits, hair dress/conditioners, ethnic hair color, shaving products, and combout/oil sheens -- which comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 56% of the total ethnic hair care market, according to IRI. Integration of operations in Johnson Products' Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. manufacturing facility, including production of some items previously outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, , is progressing on schedule. Inventory levels have continued to improve, and currently are approximately 3% below where they stood at the 1998 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Inventories on hand now approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. a three-month supply, versus in excess of five months a year earlier. AFRICA Carson Holdings in the first quarter of 1999 increased net sales 10.3%, to $8.6 million, from $7.8 million in the corresponding year earlier period. On a local currency basis, the increase in sales was 35%. Net income for the first quarter of 1999 rose 11.1%, to $1.1 million from $1.0 million in the corresponding year earlier period. Carson, Inc. is the leading global manufacturer and marketer of hair and skin care products which are specifically formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. to address the unique characteristics of people of color. Carson sells its products in the U.S. and in over 60 countries around the world under the leading brand names Dark & Lovely, Gentle Treatment, Magic Shave, and Ultra Sheen. Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; together with other statements that are not historical facts, are "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. " as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, industry cyclicality, fluctuations in customer demand and order patterns, the seasonal nature of the business, changes in pricing, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. -0-
CARSON, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands)
Three Months Ended March 31,
1999 1998
------------ ------------
OPERATING ACTIVITIES:
Net income (loss) $ 180 $ -501
Adjustments to reconcile
net income (loss) to
net cash used in
operating activities:
Depreciation and amortization 1,759 1,608
Provision for
doubtful accounts 334 103
Minority interest in
earnings of subsidiary 540 318
Other, net 364 -298
Changes in operating
assets and liabilities:
Accounts receivable 2,252 -2,066
Inventories 341 -4,075
Restricted cash 499 0
Other current assets -283 -7
Accounts payable -3,595 1,585
Accrued liabilities 73 2,013
Income taxes payable -604 383
------------ ------------
Total adjustments -2,824 -436
------------ ------------
Net cash used in
operating activities -2,644 -937
------------ ------------
INVESTING ACTIVITIES:
Additions to property,
plant and equipment -2,064 -1,090
------------ ------------
Net cash used in
investing activities -2,064 -1,090
------------ ------------
FINANCING ACTIVITIES:
Proceeds from long-term
borrowings 897 2,000
Principal payments on
long-term debt -45 -3,089
Payment on A&J Cosmetics
payable -6,171 -5,416
Other, net -58 -327
------------ ------------
Net cash used in
financing activities -5,377 -6,832
------------ -----------
EFFECT OF EXCHANGE RATE CHANGES -743 0
NET DECREASE IN CASH
AND CASH EQUIVALENTS -10,828 -8,859
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 28,706 14,043
--------------- ----------------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 17,878 $ 5,184
================ =================
See notes to condensed consolidated financial statements.
CARSON, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
(In thousands, except share and per share data)
March 31, December 31,
ASSETS 1999 1998
--------------- ---------------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 17,878 $ 28,706
Accounts receivable less
allowances of $6,268
and $6,457 at March 31,
1999 and
December 31, 1998,
respectively 40,305 38,953
Inventories 22,065 22,825
Restricted cash 4,001 4,500
Other current assets 935 669
--------------- ---------------
Total current assets 85,184 95,653
PROPERTY, PLANT
AND EQUIPMENT, net 36,729 35,765
INTANGIBLES, net 127,530 129,183
OTHER ASSETS 6,472 6,862
--------------- ---------------
TOTAL ASSETS $ 255,915 $ 267,463
=============== ===============
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 8,850 $ 12,584
Due for A&J Cosmetics 0 6,355
Accrued expenses 19,343 19,306
Income taxes payable 1,803 2,508
Current maturities
of long-term debt 0 126
--------------- ---------------
Total current liabilities 29,996 40,879
LONG-TERM DEBT 134,270 133,423
OTHER LIABILITIES 3,315 3,345
MINORITY INTEREST IN SUBSIDIARY 20,241 20,656
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par
value, 10,000,000 shares
authorized, none outstanding 0 0
Common stock:
Class A, voting, $.01 par
value, 150,000,000 shares
authorized, 9,786,162 and
7,926,485 shares issued as
of March 31, 1999 and December
31, 1998, respectively 98 79
Class B, nonvoting, $.01 par
value, 2,000,000 shares
authorized, 0 and 1,859,677 shares
issued and outstanding as of
March 31, 1999 and December 31,
1998, respectively 0 19
Class C, voting, $.01 par value,
13,000,000 shares authorized,
5,334,700 shares issued 53 53
Paid-in capital 80,970 80,970
Accumulated deficit -3,740 -3,920
Accumulated other
comprehensive losses -7,725 -6,495
Notes receivable from
shareholders, net of discount -1,226 -1,209
Treasury stock, 13,245 shares
of Class A common stock and
28,969 shares of Class C
common stock -337 -337
--------------- ----------------
Total stockholders' equity 68,093 69,160
--------------- ----------------
TOTAL LIABILITIES AND =============== ================
STOCKHOLDERS' EQUITY $ 255,915 $ 267,463
=============== ================
See notes to condensed consolidated financial statements.
CARSON, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands, except per share data)
Three Months Ended March 31,
--------------------------------
1999 1998
------------ ------------
Net sales $ 41,653 $ 31,797
Cost of goods sold 19,885 15,378
------------ ------------
Gross profit 21,768 16,419
------------ ------------
Marketing and selling expenses 10,324 8,691
General and administrative expenses 7,227 5,948
------------ ------------
Operating expenses 17,551 14,639
------------ ------------
Operating income 4,217 1,780
Interest expense -4,277 -2,837
Other income, net 890 539
------------ ------------
Income (loss) before income
taxes and minority interest 830 -518
(Provision for) benefit from
income taxes -110 335
------------ ------------
Income (loss) before
minority interest 720 -183
Minority interest in earnings
of subsidiary -540 -318
------------ ------------
Net income (loss) $ 180 $ -501
============ ============
Basic and diluted net income
(loss) per common share $ 0.01 $ -0.03
============ ============
Weighted average common
shares outstanding 15,079 14,993
============ ============
See notes to condensed consolidated financial statements.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion