Chic By H.I.S. announces earnings.NEW YORK--(BUSINESS WIRE)--Dec. 19, 1996--Chic by H.I.S Inc. (NYSE NYSE See: New York Stock Exchange :JNS JNS Journal of Neurosurgery JNS Jump If No Sign JNS Narssaq, Greenland (Airport Code) JNS Journal of Neoplatonic Studies JNS Justification for New Start ) announced that it will record a $15 million non-cash restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. against earnings in the fourth quarter of fiscal 1996 in connection with its previously announced plan to establish manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . The company has now completed the acquisition of a manufacturing facility in Mexico, which will produce apparel for the domestic market, and expects such facility to be in operation early in fiscal 1997. The $15 million restructuring charge is expected to cover costs to be incurred in connection with the shifting of a portion of the company's domestic manufacturing operations to Mexico, the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of equipment in connection with the downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of the company's domestic manufacturing operations, and the write-off of certain deferred financing costs. The company believes that by transferring a portion of its manufacturing operations to Mexico, it will be able to improve its profit margins and enhance its ability to compete in the U.S. market. -0-
Income Statement Data
(In thousands, except share
and per share amounts)
Fiscal Fiscal
Year Ended Year Ended
Nov. 2, 1996 Nov. 4, 1995
Net sales 318,790 376,068
Gross profit 70,062 72,152
Licensing revenues 6,359 5,773
Less:
Selling, general & admin. expenses 61,295 69,415
Restructuring and non-recurring
charges 30,000 --
Operating income (14,874) 8,510
Less:
Interest and finance cost 6,544 6,129
Income (loss) before provision
for income taxes and extraordinary
items (21,418) 2,381
Less:
Provision for taxes 4,146 1,369
Cumulative effect on prior years of
change in accounting for income taxes 0 0
Net income (loss) (25,564) 1,012
Earnings per common share data:
Earnings before restructuring and
non-recurring charges $0.45 N/A
Net income (loss) $(2.62) $0.10
Average number of common shares 9,753,868 9,753,868
CONTACT: CHIC by H.I.S., 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 Burt Rosenberg, 212/302-6400, ext. 335 |
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