Correcting Ryka net loss per share figures in financial table.KING OF PRUSSIA King of Prussia, industrialized suburban area (1990 pop. 18,406), Montgomery co., SE Pa. It has glass and steel fabricating, food processing, printing and publishing, and varied manufacturing (textiles, liquified petroleum gas, water-treatment and electrical , Pa.--(BUSINESS WIRE)--Aug. 21, 1996--Ryka Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :RYKA RYKÄ (or Ryka) is an athletic shoe brand that caters specifically to women. They are owned by the American Sporting Goods Corp., who also owns the Avia line of shoes. ) has reported a loss of $471,357 or $(.01) per share, for the second quarter ended June 30, 1996, as compared to a loss of $1,909,702, or $(.07) per share, for the second quarter of 1995. Michael Rubin, chairman and chief executive officer, commenting on the results for the quarter said that the quarter was in line with the plans set forth by the company, and that the company has begun the year on a positive note. Sales increased $74,368 (5%) from $1,483,613 for the second quarter of 1995 to $1,557,981 for the second quarter of 1996. Gross profit and gross profit expressed as a percentage of sales, improved dramatically in the second quarter of 1996. Gross profit increased by $688,990 (215.1%) from $(315,623) (-21.3% of sales) for the second quarter of 1995 to $363,367 (23.3% of sales) for the second quarter of 1996. The company, which has been under new management since Aug. 1, 1995, has continued to stress its commitment to its product line by devoting substantial resources to the design and development of performance based women's athletic 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). competitive in today's marketplace. As evidence of this commitment, the results for the second quarter of 1996 include expenditures of $205,435 for research and development, an increase of $69,572 (51.2%) over that of the second quarter 1995. As a percentage of 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 , research and development expenses increased to 13.2% in the second quarter of 1996 from 9.2% in the second quarter of 1995. These expenses primarily relate to new product developed for future production and delivery for spring of 1997. It is anticipated that the company will continue to make expenditures substantially in excess of the prior year in this area. Sales, general and administrative expenses decreased $363,585 (52.9%) from $687,167 for the second quarter of 1995 to $323,582 for the second quarter of 1996. Michael Rubin continued by stating that the reduction in overhead will position the company for future improved results of operations. Ryka designs, develops and markets high-performance, fashionable athletic footwear for women including Ryka Training Body; aerobics/step; cross training; aqueous aqueous /aque·ous/ (a´kwe-us) 1. watery; prepared with water. 2. see under humor. a·que·ous adj. water fitness; walking, walk / run. Ryka is sold worldwide in sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport stores, footwear specialty retailers, and 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. . -0- "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 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 Statements about the company's 1996 outlook and all other statements in this release other than 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. . Since these statements involve risks and uncertainties and are subject to change at any time, the company's actual results could differ materially from expected results. The company derives most of its forward-looking statements from its operating budgets Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. and forecasts which are based upon many detailed assumptions. While the company believes that its assumptions are reasonable, it cautions that there are inherent difficulties in predicting certain important factors, especially the timing and magnitude of sales and the overall condition of the athletic footwear industry. These factors, as and when applicable, are discussed in the company's filings with the Securities and Exchange Commission, including its most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , a copy of which may be obtained from the company without charge. -0-
Ryka Inc. and Subsidiary
Summary of Results
(In thousands except share and per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1996 1995 1996 1995
-------------------- --------------------
Net sales $ 1,558.0 $ 1,483.6 $ 3,572.3 $ 5,618.3
Other revenues -- 0.7 -- 29.9
--------- --------- --------- ---------
1,558.0 1,484.3 3,572.3 5,648.2
--------- --------- --------- ---------
Costs and Expenses
Costs of goods sold 1,194.6 1,739.9 2,570.8 5,189.7
Inventory write-down to
lower of cost or market -- 60.0 -- 586.0
General and administrative
expenses 323.6 687.2 574.0 1,296.1
Sales and marketing
expenses 253.7 598.2 668.2 1,394.1
Research and development
costs 205.4 135.9 413.8 249.4
--------- --------- --------- ---------
1,977.3 3,221.2 4,226.8 8,715.3
--------- --------- --------- ---------
Operating income (loss) (419.3) (1,736.9) (654.5) (3,067.1)
Other expenses, net 52.1 172.8 80.5 1,082.9
--------- --------- --------- ---------
Net loss ($471.4) ($1,909.7) ($735.0) ($4,150.0)
========= ========= ========= =========
Net loss per share ($0.01) ($0.07) ($0.02) ($0.16)
========= ========= ========= =========
Weighted average common
shares and common
equivalent shares
outstanding 46,934,007.0 26,474,959.0 46,576,864 26,474,673
========= ========= ========= =========
CONTACT: Ryka Inc., King of Prussia Janet Janet: see Clouet, Jean. JANET - Joint Academic NETwork Rosowicz, 610/337-2200 |
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