Chic by H.I.S Inc. and Subsidiaries 1999 Third Quarter Report.NEW YORK--(BUSINESS WIRE)--Sept. 16, 1999-- 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 ) today reported net loss for the quarter ended Aug. 7, 1999, of $1.9 million, or $.19 per share, as compared to a net loss of $1.4 million, or $.14 per share for the prior year period. 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. for the third quarter increased $.9 million from the prior year period, primarily due to the Company aggressively managing its 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. . During the last fiscal year, the Company has completed the acquisition of certain assets of Stuffed Shirt stuffed shirt n. Informal A person regarded as pompous or stiff. stuffed shirt Noun Informal a pompous or old-fashioned person Noun 1. Inc. and Sierra Pacific, expanding its domestic channel of distribution and product line. In addition, the Company's Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum laundry Laundry can be:
Before industrialization facility commenced operations on schedule at the beginning of August. While continuing to control operating expenses, the Company is launching a comprehensive advertising campaign to revitalize re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. brand recognition. Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. Rubin Ru´bin n. 1. A ruby. , Chic's 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. , remarked that, "Performance continues to be hampered by lower sales due to the weakness in denim products at retail. Costs have been cut to help mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the losses. We
look to improving sales due to our new ad campaign, the acquisition of
Sierra Pacific, and efforts being put into private label
manufacturing."
This press release contains 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. that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the Company, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, those set forth in item 5 of the Company's quarterly report on form 10-Q Form 10-Q See 10-Q. for the quarter ended May 8, 1999, as well as the following: general economic and business conditions; industry capacity; fashion, apparel and other industry trends; competition; overseas expansion; the loss of major customers; the effectiveness of the planned savings; changes in demand for the Company's products; cost and availability of raw materials; changes in business strategy or development plans; quality of management; satisfaction of the conditions of the acquisition; and availability, terms and deployment of capital. Chic designs, manufactures and markets moderately priced, basic style cotton denim jeans, casual pants and shorts for women, girls, men and boys. Chic's German subsidiary markets women's and men's jeans and casual pants under the h.i.s. brand primarily in Germany and, to a lesser extent, Austria, Switzerland, the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Slovakia and Poland. -0-
Results of operations:
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Thirty-six weeks ended Thirteen weeks ended
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(In Thousands,
except share and per August 7, August 1, August 7, August 1,
share amounts) 1999 1998 1999 1998
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Net Sales:
United States $102,569 $119,433 $32,256 $37,615
Europe 70,968 73,535 20,042 22,281
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Consolidated $173,537 $192,968 $52,298 59,896
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Gross Profit:
United States 10,782 14,591 3,226 4,826
Europe 29,805 30,893 8,389 9,315
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Consolidated 40,587 45,484 11,615 14,141
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Licensing revenues 1,822 2,327 406 1,066
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Selling, general and
administrative
expenses 41,838 44,206 11,028 15,059
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Restructuring and
special charges - 24,125 - -
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Operating income (loss) 571 (20,520) 993 148
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Interest and finance
costs (5,298) (3,232) (1,834) (1,246)
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Other expense, net - (1,104) - -
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Benefit (provision)
for income taxes (2,220) 3,409 (684) 139
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Loss before minority
interest and
extraordinary item (6,947) (21,447) (1,525) (958)
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Minority interest (1,121) (1,611) (342) (413)
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Net loss (8,068) (23,058) (1,867) ($1,371)
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Earnings (loss) per
common share:
Basic ($.82) ($2.30) ($.19) ($.14)
Diluted ($.82) ($2.30) ($.19) ($.14)
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Weighted average number
of common shares and share
equivalents
outstanding
Basic: 9,870,793 9,870,793 9,870,793 9,870,793
Diluted 9,870,793 9,870,793 9,870,793 9,870,793
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Balance Sheet Data: August 7, 1999 August 1, 1998
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Working capital $ 46,915 $ 50,267
Total assets 187,489 192,992
Short-term debt 41,529 48,027
Long-term debt 44,255 26,883
Stockholders' equity 51,045 66,424
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