Cutter & Buck Reports Record First Quarter Sales and Earnings; Net Income Increases 27% on 34% Growth in Net Sales.Business Editors SEATTLE--(BUSINESS WIRE)--Sept. 7, 2000 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 Inc. (Nasdaq:CBUK) today reported record results for the first quarter of fiscal 2001, which ended July July: see month. 31, 2000. FIRST QUARTER HIGHLIGHTS: -- Net sales increased 34% to $39.0 million, compared to last year's $29.2 million -- Gross margins were 44.9%, 110 basis points ahead of the same quarter last year -- Net income increased 27% to $1.3 million, compared to $1.0 million in the same quarter last year -- Net income per diluted share totaled $.13 compared to $.12 last year (a) (a) Per share information for the first quarter of FY2001 includes a 24% increase (1,955,000 shares) in the number of shares outstanding as a result of the Company's follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. stock offering near the end of the first quarter of FY2000. "At our fashion trade shows during the past two months, our specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retail sales team worked with record numbers of buyers for both our men's and women's collections," stated Harvey Jones Harvey M. Jones (April 15, 1921 - December 13, 1998) was an American football running back in the NFL for the Cleveland Rams and the Washington Redskins. He played college football for Baylor University. , Chief Executive Officer. "We believe the acceptance of our designs and brand is clearly demonstrated by the 69% growth that our specialty retail channel experienced during the first quarter." "Sales of our Fall Season merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain are tracking favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with our plans, led by the growth in specialty retail, the 51% growth in corporate sales and the continuing growth in the golf channel of 13%," said Marty 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. . "Total Fall bookings are currently 29% ahead of last year at this same date. We believe that our stronger and more diversified diversified (di·verˑ·s distribution base reflects Cutter & Buck's favorable positioning Noun 1. favorable position - the quality of being at a competitive advantage favourable position, superiority advantage, vantage - the quality of having a superior or more favorable position; "the experience gave him the advantage over me" as an emerging premium lifestyle brand of choice in the broader retail marketplace." "We are consistently working to improve company performance while making critical investments in strategic initiatives to support our anticipated future growth," added Marks. "The first quarter was no exception. Along with our overall strong operating performance, we achieved a 110 basis point improvement in our gross margins to 44.9%, over last year's 43.8%. Accordingly, we have been pleased with our ability to make 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. investments in operations, information technology and marketing while successfully meeting our goals for sales and earnings growth." "The implementation of the third and final phase of our warehouse management system is progressing on schedule and should be completed by October October: see month. 31, 2000," added Marks. "We are happy to announce that the performance, timing and costs of the implementation are tracking positively with our stated project goals." "Over the past two years, we have opened seven retail stores and recently signed leases for two additional stores, in West Palm Beach, Florida West Palm Beach, also known as West Palm, is the most populous city in Palm Beach County, Florida, USA. The city is also the oldest incorporated municipality in South Florida. According to the University of Florida's 2006 estimates, the city had a population of 107,617. and Palm Springs, California Palm Springs is a famed Riverside County, California desert resort city, approximately 110 miles (177 km) east of Los Angeles and 140 miles (225 km) northeast of San Diego. As of the 2000 census, the city population was 42,807. . The new distribution center is open and we are nearing the completion of our state-of-the-art warehouse management system. Through all this, we have consistently grown sales and improved our bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance. We believe that Cutter & Buck is well positioned to aggressively compete on a long-term basis in the upscale sportswear market," concluded Jones. Cutter & Buck's FY 2001 first quarter conference call, which will be held today at 1:15 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT , is available live and on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front at www.streetfusion.com. Statements made in this news release that are not historical facts are 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. 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 messaging/extension activities and to penetrate its chosen distribution channels, competition, foreign currency risks, risks associated with opening and operating retail locations, the ability of the Company to timely implement the new warehouse management system and the efficacy efficacy /ef·fi·ca·cy/ (ef´i-kah-se) 1. the ability of an intervention to produce the desired beneficial effect in expert hands and under ideal circumstances. 2. of that new system as it relates to the Company's operations, technological change, 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 information. Cutter and Buck designs and markets upscale sportswear and outerwear under the Cutter & Buck brand. The Company sells its products primarily through golf pro shops and resorts, corporate sales accounts and better 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" . Cutter & Buck products feature distinctive, comfortable designs, high quality materials and manufacturing and rich detailing.
FINANCIAL HIGHLIGHTS
(unaudited, unless otherwise stated)
($ in thousands, except per share data)
Consolidated Statements of Income
Three months ended July 31,
---------------------------
2000 1999
-------- --------
Net sales $39,029 $29,189
Cost of sales 21,512 16,417
-------- --------
Gross profit 17,517 12,772
Operating expenses 15,274 10,868
-------- --------
Operating income 2,243 1,904
Other expense (111) (279)
-------- --------
Income before income taxes 2,132 1,625
Income taxes 810 585
-------- --------
Net income $ 1,322 $ 1,040
======== ========
Basic earnings per share $ 0.13 $ 0.12
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Diluted earnings per share $ 0.13 $ 0.12
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Shares used in computation of:
Basic earnings per share 10,379 8,375
Diluted earnings per share 10,453 8,655
Consolidated Balance Sheets
July 31, April 30, July 31,
2000 2000 1999
---------- ----------- ----------
(audited)
Assets
Current assets:
Cash and cash equivalents $ 4,036 $ 7,367 $16,047
Accounts receivable 41,741 50,463 26,571
Inventories 43,881 36,740 35,402
Other current assets 5,783 5,626 4,399
--------- --------- --------
Total current assets 95,441 100,196 82,419
Furniture and equipment, net 19,531 17,813 10,382
Other assets 548 538 424
--------- --------- --------
Total assets $115,520 $118,547 $93,225
========= ========= ========
Liabilities and Shareholders'
Equity
Current liabilities:
Short-term borrowings $ 3,232 $ 3,037 $ 2,647
Accounts payable 10,489 12,086 4,590
Accrued liabilities 3,661 6,553 4,541
Current portion of long-term debt 1,397 1,419 229
--------- --------- --------
Total current liabilities 18,779 23,095 12,007
Capital lease obligations and
long-term debt, net of current
portion 6,408 6,545 5,875
Total shareholders' equity 90,333 88,907 75,343
--------- --------- --------
Total liabilities and shareholders'
equity $115,520 $118,547 $93,225
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SUMMARY OF FALL BOOKINGS (in thousands)
Fall 2000 Fall 1999 Percentage
FY2001 FY 2000 Change Difference
-------------------- --------------------
(s of 9/5/00)(as of 9/2/99)
GOLF $ 31,092 $ 28,896 7.6% $2,196
SPECIALTY RETAIL 12,027 6,698 79.6% 5,329
CORPORATE 25,856 17,224 50.1% 8,632
OTHER 2,407 2,652 -9.2% (245)
--------- --------- --------
TOTAL DOMESTIC
FALL BOOKINGS 71,382 55,470 28.7% 15,912
TOTAL INTERNATIONAL
FALL BOOKINGS 5,488 4,042 35.8% 1,446
--------- --------- --------
TOTAL FALL BOOKINGS $ 76,870 $ 59,512 29.2% $17,358
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SUMMARY OF SALES INVOICED - FIRST QUARTER (in thousands)
Percentage
FY 2001 FY 2000 Change Difference
-------------------- --------------------
GOLF $ 13,028 $ 11,537 12.9% $1,491
SPECIALTY RETAIL 4,964 2,945 68.6% 2,019
CORPORATE 15,369 10,208 50.6% 5,161
OTHER 2,825 2,111 33.8% 714
--------- --------- --------
TOTAL DOMESTIC SALES 36,186 26,801 35.0% 9,385
TOTAL INTERNATIONAL
SALES 2,843 2,388 19.1% 455
--------- --------- --------
TOTAL SALES $ 39,029 $ 29,189 33.7% $9,840
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