Carson, Inc. Reports First Quarter Sales and Earnings.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 22, 1998--Carson, Inc. (NYSE NYSE See: New York Stock Exchange : CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. ), a leading manufacturer and marketer of retail ethnic hair care products for people of African descent descent, in anthropology, method of classifying individuals in terms of their various kinship connections. Matrilineal and patrilineal descent refer to the mother's or father's sib (or other group), respectively. , today reported operating results for the three month period ended March 31, 1998. For the first quarter of 1998, 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 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 were $31.8 million, an increase of 77.3% over consolidated net sales of $17.9 million for the first quarter of 1997. Gross profit for the first quarter of 1998 was $16.4 million, compared to $10.1 million for the corresponding quarter of 1997, and 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. was $1.8 million for the first quarter of 1998, compared to $1.6 million for the corresponding quarter of 1997. Interest expense was $2.8 million in the first quarter of 1998 compared to $0.6 million in the first quarter of 1997, reflecting additional debt incurred in 1997 to finance acquisitions, which was subsequently refinanced with the proceeds from the sale of $100 million aggregate principal amount of 10 year 10y% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes. As a result, the company reported a net loss for the first quarter of 1998 of $0.5 million, or $0.03 per share, compared to net income of $0.7 million, or $0.05 per share for the corresponding quarter of 1997. Carson's domestic net sales for the first quarter of 1998 increased 74.1% over the corresponding quarter in 1997, to $20.7 million. Domestic net sales of ethnic hair care products for the first quarter of 1998, excluding the Let's let's Contraction of let us. Jam brand, which was acquired in April 1997, increased 12.4% over the corresponding quarter of 1997 to $13.3 million. Net sales of Let's Jam added $1.1 million to total domestic ethnic hair care sales for the first quarter of 1998. Net sales of the Cutex brand of nail polish Polish (when pronounced /ˈpoʊːlɪʃ/ or /ˈpəʊːlɪʃ/) may refer to:
nail polish remover nail n → dissolvant m nail polish remover nail n , which was also acquired in April 1997, was $5.5 million during the first quarter of 1998. International net sales for the first quarter of 1998 increased 83.6% over the corresponding quarter of 1997 to $11.1 million. Net sales by the Company's 68.7% owned South African subsidiary more than tripled to $7.8 million and represented 24.5% of consolidated net sales for the first quarter of 1998, as compared to 14.3% in the corresponding year-ago period. Although the Company experienced strong year over year consolidated net sales growth, this sales performance fell short of management's expectations, and as a result, U.S. production of hair care products was curtailed in order to manage inventory levels. This lower production volume contributed in part to a lower gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. . Additionally, the Company's general and administrative cost administrative cost Managed care A cost incurred by the 'business' end of a health care facility or university–eg, staffing and personnel costs, nursing home and hospital administration, insurance, and overhead expenses. Cf Indirect costs. base has increased substantially since the first quarter of 1997 in order to provide management and infrastructure sufficient to manage anticipated organic growth, new product launches and acquisitions. While the Company continues to be committed to this strategy, the short term effect of building a higher cost structure which has not been offset by expected sales growth has had an adverse impact on profitability. Management continues to believe that with the launch of Dark & Lovely Cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). , the persistent Permanent. See persistent data, persistent name and persistent object. persistent - persistence search for viable acquisition opportunities and an anticipated return to growth of the core business in response to new creative advertising and marketing initiatives focused on core brands, this strategy ultimately will produce growth in income and stockholder value. 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. is a leading global manufacturer and marketer of retail ethnic hair 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 hair characteristics of people of African descent, including hair relaxers and texturizers, hair color, shaving products and hair maintenance products. Carson sells its products in the U.S. and in over 60 countries around the world under the brand names Dark & Lovely, Excelle, Beautiful Beginnings, Dark & Natural, Magic, and Let's Jam. In the U.S., Carson also owns CUTEX Nail Polish and the U.S. market leading CUTEX Nail Polish Remover. -0- 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, foreign business risks, industry cyclicality, fluctuations in customer demand and order pattern, the seasonal nature of the business, changes in pricing, the identification of suitable acquisition candidates, changes in the implementation of the Company's acquisition plans, the availability of financing, 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 Balance Sheets
March 31, 1998 and December 31, 1997
(In thousands)
March 31, December 31,
ASSETS 1998 1997
===============================
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 5,184 $ 14,043
Accounts receivable
(less allowance for doubtful
accounts and returns of
$2,307 and $3,881 at March
31, 1998 and December 31,
1997, respectively) 30,111 28,148
Inventories, net 28,936 24,861
Other current assets 905 832
------------- ------------
Total current assets 65,136 67,884
PROPERTY, PLANT AND EQUIPMENT,
net of accumulated depreciation 22,288 22,202
INVESTMENT IN AM COSMETICS 3,695 3,587
INTANGIBLES, net 99,700 100,385
OTHER ASSETS 7,427 7,366
------------- ------------
TOTAL ASSETS $ 198,246 $ 201,424
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 10,152 $ 8,567
Due for A&J Cosmetics 4,003 5,416
Accrued expenses 9,426 7,413
Income taxes payable 1,927 1,544
------------- ------------
Total current liabilities 25,508 22,940
LONG-TERM DEBT 102,534 103,623
DUE FOR A&J COSMETICS -- 4,088
DEFERRED INCOME TAXES
AND OTHER LIABILITIES 1,705 1,742
MINORITY INTEREST IN SUBSIDIARY 7,636 7,500
STOCKHOLDERS' EQUITY:
Preferred stock,
$.01 par value,
10,000,000 shares
authorized, none outstanding -- --
Common stock:
Class A, voting,
$.01 par value,
150,000,000 shares
authorized and 5,018,248
shares issued 50 50
Class B, nonvoting,
$.01 par value,
2,000,000 shares
authorized and 1,859,677
shares issued and outstanding 19 19
Class C, voting,
$.01 par value,
13,000,000 shares authorized
and 8,127,937 shares
issued and outstanding 81 81
Paid-in capital 69,018 69,022
Accumulated deficit (4,513) (4,011)
Accumulated other
comprehensive losses (2,308) (2,170)
Note receivable from
employee shareholders,
net of discount (1,377) (1,353)
Treasury stock, 13,245
shares of Class A
common stock (107) (107)
------------- -------------
Total stockholders' equity 60,863 61,531
------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 198,246 $ 201,424
================ =============
-0-
Carson, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
For the Three Months Ended March 31, 1998 and 1997
(In thousands, except per share data)
Three Months
Ended March 31,
1998 1997
======== ========
Net sales $ 31,797 $ 17,932
Cost of goods sold 15,378 7,880
-------- --------
Gross profit 16,419 10,052
Expenses:
Marketing and selling 8,691 5,724
General and administrative 5,948 2,729
-------- --------
14,639 8,453
-------- --------
Operating income 1,780 1,599
Interest expense (2,837) (604)
Other income, net 221 223
-------- --------
(Loss) income
before income taxes (836) 1,218
Benefit from
(provision for) income taxes 335 (536)
-------- --------
Net (loss) income $ (501) $ 682
======== ========
Net (loss) income per share $ (0.03) $ 0.05
======== ========
Weighted average common
shares outstanding 14,993 14,984
CONTACT: Carson, Inc., Savannah Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Pierce Pierce may refer to: Places
912/651-3967 or Anreder Hirschhorn Hirschhorn is derived from German composite word 'Hirsch' (deer) and 'Horn' (horn), part of a deers' antlers. It may refer to:
Steven S Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. . Anreder 212/421-4020 Today's News On The Net - Business Wire's full file on 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 with Hyperlinks to your home page. URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com |
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