Cutter & Buck Fiscal 1999 Sales Increase 53% to Record $107.3 Million; Profits Rise 41% to $8.0 Million or $.94 Per Share; Company Announces Plans for Upcoming Stock Offering.SEATTLE--(BUSINESS WIRE)--June 17, 1999-- Cutter cutter, small, one-masted sailing vessel, with a rig similar to that of a sloop except that it usually has a sliding bowsprit and a topmast. From 1800 to 1830 cutters were in service between England and France. & Buck Buck after murder of his master, leads wolf pack. [Am. Lit.: The Call of the Wild] See : Dogs Buck clever and temerarious dog perseveres in the Klondike. [Am. Lit.: Call of the Wild] See : Resourcefulness (Nasdaq:CBUK) today reported record sales for fiscal year 1999 of $107.3 million, a 53% increase over the previous year. Cutter & Buck's net income increased to $8.0 million in fiscal year 1999, or $.94 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $5.7 million, or $.68 per diluted share, on 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 of $70.1 million a year ago, as brand awareness increased and new markets were penetrated. All per share information reflects the 3 for 2 stock split which took place after market close on June June: see month. 15, 1999. For the fourth quarter ended April 30, 1999, Cutter & Buck's net sales increased 54% and net income increased 37% compared to the like quarter a year ago. The company earned $4.6 million, or $.53 per diluted share, on net sales of $40.4 million during the 1999 fourth quarter compared to $3.4 million, or $.40 per diluted share, on net sales of $26.2 million in the fourth quarter a year ago. Cutter & Buck also announced its intention to file a registration statement with the Securities and Exchange Commission for a proposed underwritten public offering of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.7 million shares of its common stock, all of which will be offered by the company. The company currently has approximately 8.3 million shares outstanding. The purpose of the offering will be to raise proceeds for capital expenditures including company-owned retail stores and a new distribution center, to repay certain indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and for working capital and other general corporate purposes. The offering will be made only by means of a prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. . "Fiscal 1999 was a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. year for Cutter & Buck as net sales exceeded $100 million, we entered new markets and introduced new product lines," said Harvey Harvey, city (1990 pop. 29,771), Cook co., NE Ill., a suburb S of Chicago; inc. 1895. Its manufactures include steel castings, metal products, chemicals, machinery, and electronic equipment. Harvey has an oil research center. The city was founded by Turlington W. N. Jones, chief executive officer. "The year started with the launch of our women's apparel line. Next was the opening of our flagship retail store in downtown Seattle Downtown is the central business district of Seattle, Washington. It is fairly compact compared to other city centers on the West Coast because of its geographical situation: hemmed in on the north and east by hills, on the west by Elliott Bay, and on the south by reclaimed land , allowing us to showcase A showcase, or vitrine, is a glassed-in cabinet or case for displaying delicate or valuable articles such as objects d'art or merchandise in a shop, museum, or house. our complete collections to consumers in a spacious setting. We concluded the year by introducing a new line of fashionable, waterproof golf shoes shoe n. 1. A durable covering for the human foot, made of leather or similar material with a rigid sole and heel, usually extending no higher than the ankle. 2. A horseshoe. 3. for men and women, which are available through golf pro shops and specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" ." This year's fiscal performance was driven by continued expansion in the golf distribution channel, as the average annual net sales per golf pro shop increased and new golf pro shops purchased Cutter & Buck products. In fiscal 1999, approximately 3,800 golf pro shops featured Cutter & Buck products, compared with approximately 3,000 in fiscal 1998. During fiscal 1999, the company also purchased and installed additional in-store fixturing designed to enhance the presentation of Cutter & Buck's apparel collections. "We are also pleased to announce that sales to our corporate customers increased significantly this year, nearly doubling last year's sales levels for this channel," continued Jones. "Our overall sales volume in the golf pro shop and corporate sectors saw the greatest growth. In addition we increased sales in the smaller specialty store channel." "We are delighted by the positive reception that Cutter & Buck products are receiving in our target markets," Jones added. "During this next year, we plan to continue to expand our current channels of distribution and target new opportunities to introduce consumers to Cutter & Buck's lifestyle apparel and 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). ." "We have continued our year-over-year gross margin improvements maintaining levels in excess of 40% for the tenth straight quarter," added Martin J. Marks, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . During fiscal 1999, Cutter and Buck's 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. increased to 43.1%, up from 42.0% a year ago, as the company benefited from additional economies of scale. In the fourth quarter, the gross profit margin improved to 44.0%, up from 43.5% in the like quarter a year ago. 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. as a percentage of net sales during fiscal 1999 increased to 31.4% of net sales from 29.9% last year. "During fiscal 1999, Cutter & Buck implemented a number of planned strategic initiatives which increased operating expenses," continued Marks. "These included an investment in higher inventory levels in support of our increased sales volumes, particularly in the corporate channel. Other investments contributing to higher operating expenses resulted from the introduction of our new women's line, the opening of our Pacific Place store in downtown Seattle, the design and production of Cutter & Buck's new line of golf shoes and the introduction of our in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. marketing division." While declining as a percentage of net sales, general and administrative expenses increased to $8.5 million in 1999, up from $5.7 million in 1998. This resulted from additional investments in systems, technical support and the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. professional fees required to support Cutter & Buck's expanding operations and future growth. "Consistent with the company's operating philosophy, we continue to position Cutter & Buck for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth as a premier sportswear brand by further expanding our sales and distribution channels, marketing investments, and infrastructure," concluded Jones. Statements made in this news release that are not historical facts are forward looking information. Actual results may differ materially from those projected in any forward looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward looking information. Those factors include, but are not limited to, style changes and product acceptance, relations with suppliers and independent sales representatives, the ability of the Company to control costs and expenses, the ability of the Company to carry out successful design and planned product and brand extension activities and to penetrate its chosen distribution channels, competition, foreign currency risks, risks associated with opening and operating a retail location, the successful implementation of the Company's Year 2000 compliance initiative, political and trade relations and general economic conditions. Additional information on these and other factors which could affect the Company's financial results are included in its Securities and Exchange Commission filings. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information. Cutter & Buck designs, sources and markets updated traditional sportswear and outerwear. It distributes its products both domestically and internationally, predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. through golf pro shops and resorts, better specialty stores and corporate sales accounts. The company has developed a colorful, innovative collection of high-quality sportswear targeted to the upscale apparel market. The updated American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of traditional design is evocative e·voc·a·tive adj. Tending or having the power to evoke. e·voc  a·tive·ly adv. of a lifestyle associated with the game of golf. -0-
FINANCIAL HIGHLIGHTS
(audited, except as noted)(in thousands, except per share data)
(per share data reflects the June, 1999 - 3 for 2 stock split)
Consolidated Statements of Income Three months Years ended
ended April 30, April 30,
------------------- --------------
1999 1998 1999 1998
------ ------ ------ ------
(unaudited) (unaudited)
Net Sales $ 40,382 $ 26,226 $107,286 $ 70,104
Total Cost of Goods Sold 22,597 14,821 61,058 40,642
-------- -------- -------- --------
Gross Profit 17,785 11,405 46,228 29,462
Total Operating Expenses 10,494 6,395 33,719 20,959
-------- -------- -------- --------
Income From Operations 7,291 5,010 12,509 8,503
Total Other Income
(Expenses) (129) 67 7 77
-------- -------- -------- --------
Net Income Before
Provision For Income Taxes 7,162 5,077 12,516 8,580
Provision For Income Taxes 2,581 1,725 4,508 2,920
-------- -------- -------- --------
Net Income After Taxes $ 4,581 $ 3,352 $ 8,008 $ 5,660
======== ======== ======== ========
Basic net income per share $ 0.55 $ 0.43 $ 0.98 $ 0.72
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Diluted net income per share $ 0.53 $ 0.40 $ 0.94 $ 0.68
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Shares used in computation of:
Basic net income per share 8,301 7,867 8,212 7,852
Diluted net income per share 8,615 8,399 8,562 8,293
Consolidated Balance Sheets April 30, 1999 April 30, 1998
-------------- ----------------
Current Assets:
Cash $ 4,760 $ 7,590
Accounts Receivable 32,519 20,217
Inventories 28,621 13,248
Other Current Assets 4,785 2,233
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Total Current Assets 70,685 43,288
Fixed Assets, net of
accumulated depreciation 9,478 4,568
Other Assets 425 288
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Total Assets 80,588 48,144
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Liabilities & Stockholders'
Equity
Current Liabilities:
Accounts Payable 6,807 5,110
Accrued Liabilities 6,661 3,106
Notes Payable to Bank 12,085 487
Other Current Liabilities 220 194
------- -------
Total Current Liabilities 25,773 8,897
Long Term Liabilities
Long Term Debt 5,907 626
Total Stockholders' Equity 48,908 38,621
------- -------
Total Liabilities &
Stockholders' Equity $80,588 $48,144
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