Cygne Designs, Inc. Announces First Quarter 2007 Results.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 -- Cygne Designs, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CYDS CYDS Centre for Youth Drug Studies (Australia) ) today announced results of operations for the first quarter ended April 30, 2007. 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 for the first quarter of 2007 were $20,863,000 a decrease of $32,000 from $20,895,000 net sales for the first quarter of 2006. Of this change in sales, $12,048,000 in sales resulted from Cygne's acquisition of the private label division of Innovo Group Inc. on May 12, 2006 offset by a decrease in sales of $12,080,000 to our mid tier and department store customers. Gross profit for the first quarter of 2007 was $4,173,000, a decrease of $791,000, or 15.9%, from the gross profit of $4,964,000 for the first quarter of 2006. Gross margins decreased to 20.0% compared to 23.8% in the prior year period as a result of the product mix. Gross margins are guaranteed through a Supply Agreement by product categories for products produced in Mexico by Diversified Apparel, a related party. The Company recorded a net loss of $1,372,000 or $0.05 loss per share on a basic and diluted share basis for the quarter ended April 30, 2007 as compared to a net loss of $976,000 or $0.04 per share on a basic and diluted share basis for the prior year period. The net loss of $1,372,000 for the three months ended April 30, 2007 included expenses of $1,201,000 for the amortization of intangible assets attributable to Cygne's acquisitions and amortization of the debt discount on its secured subordinated promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. and $432,000 for the provision for deferred income taxes. Cygne and its factor use EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become as a supplemental financial measure to assess the financial performance of its assets without regard to financing methods and capital structure. EBITDA should not be considered an alternative to net income, 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. and cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . EBITDA excludes some items that affect net income and operating income. Since these items may vary among other companies, EBITDA as presented below may not be comparable to similarly titled measures of other companies. A reconciliation of the net (loss) to EBITDA is shown in the table below. [TABLE OMITTED] Cygne Designs, Inc. is a designer, merchandiser, manufacturer and distributor of branded and private label women's denim, casual and career apparel with sales to retailers located in the United States. Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the 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. All forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those projected. Such risks and uncertainties are discussed more fully in the Company's Annual Report on Form 10-K for the year ended January 31, 2007 and the Company's other filings with the Securities and Exchange Commission. [TABLE OMITTED] |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion