Cygne Designs, Inc. Announces Fourth Quarter and Year-End 1997 Results.NEW YORK--(BUSINESS WIRE)--May 1, 1998--Cygne Designs, Inc. (Nasdaq: CYDS CYDS Centre for Youth Drug Studies (Australia) ) today announced results of operations for the fourth quarter and fiscal year ended January 31, 1998. 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 fourth quarter ended January 31, 1998 were $9.0 million, a decrease of $4.9 million or 35.5% from the comparable prior period. Net sales for the fiscal year ended January 31, 1998 were $43.4 million, a decrease of $210.9 million or 82.9% from the prior fiscal year. The decrease in net sales for the fiscal year ended January 31, 1998 was primarily attributable to the sale of the Company's Ann Taylor Notable people named Ann Taylor include:
v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: customers and product lines, which generated sales of $1.5 million and $22.4 million, respectively, in the comparable 1996 periods, and decreases in sales to those divisions of The Limited, Inc. with which the Company continues to do business of $4.1 million and $24.8 million, respectively. These decreases were partially offset by increases in sales to customers other than The Limited, Inc. and Ann Taylor of $0.7 million and $5.9 million, respectively. The Company anticipates that sales to The Limited, Inc. will continue to decrease. During the fiscal year ended January 31, 1998 the Company provided for lease termination expense of approximately $4.0 million as a result of the Company's decision to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. from its existing 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 office space and to seek substantially smaller New York office space. Although the Company believes that the amount of this charge is adequate to cover the financial effect of this relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. decision, no assurance can be given in this regard. During the fiscal year ended February 1, 1997 the Company had reorganization expense of approximately $4.8 million as a result of the downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of the Company and the redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of assets necessary to meet changes in continuing customer needs. Net loss for the fourth quarter ended January 31, 1998 was $2.8 million, or $0.22 on a per share basis, compared to net loss of $2.0 million, or $0.16 on a per share basis, in the comparable prior period. Net loss for the fiscal year ended January 31, 1998 was $14.5 million, or $1.16 on a per share basis, compared to net income of $17.9 million, or $1.44 on a per share basis, in the prior fiscal year. Since the closing of the Ann Taylor Disposition the Company has not had, and does not anticipate that it will have, sales to Ann Taylor. If the Ann Taylor Disposition had been consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. on February 4, 1996 (and excluding the gain on the Ann Taylor Disposition and on the subsequent sale of the Ann Taylor common stock acquired in connection therewith there·with adv. 1. With that, this, or it. 2. In addition to that. 3. Archaic Immediately thereafter. Adv. 1. ), the Company would have had pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net sales of $84.8 million for the fiscal year ended February 1, 1997 and pro forma loss from operations would have been $15.5 million. Pro forma net loss for the fiscal year ended February 1, 1997 would have been $17.7 million and the pro forma net loss per share would have been $1.42. The Company anticipates that it will have a net loss for fiscal 1998 (ending January 30, 1999). The extent of the net loss will depend, among other things, on the amount of sales to The Limited, Inc. The Company is continuing to review its business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and expects to incur additional costs in the future associated with the further restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). or downsizing of its operations. Statements contained in this press release which are not 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. 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 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. for the year ended January 31, 1998 and the Company's other filings with the Securities and Exchange Commission. Cygne Designs, Inc. is a private label merchandiser and manufacturer of woven and knit career and casual clothing for women.
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Quarters Ended Fiscal Year Ended
January 31 February 1 January 31 February 1
1998 1997 1998 1997
Net sales $9,010 $13,962 $43,379 $254,313
Cost of goods sold 9,834 15,187 43,063 226,456
Gross (loss) profit (824) (1,225) 316 27,857
Selling, general and
administrative
expenses 1,346 3,348 10,331 27,251
Provision for lease
termination expense 398 - 3,964 -
Gain from sale of Ann Taylor
Woven Division and CAT - - - (29,588)
Reorganization expense - - - 4,813
Amortization of goodwill 91 91 364 364
(Loss) income from
operations (2,659) (4,664) (14,343) 25,017
Other income, principally
gain from sale of
Ann Taylor common stock - (5,571) - (6,864)
Settlement of shareholder
class action and related
legal expenses - 2,627 - 2,627
Interest (income)
expense, net 78 285 (83) 3,260
(Loss) income before
provision for income
taxes and minority
interests (2,737) (2,005) (14,260) 25,994
Provision (benefit) for
income taxes 51 (7) 204 7,117
(Loss) income before
minority interests (2,788) (1,998) (14,464) 18,877
Income attributable to
minority interests - - - 961
Net (loss)income $(2,788) $(1,998) $(14,464) $17,916
Net (loss) income per
share-basic $(0.22) $(0.16) $(1.16) $1.44
Weighted average
number of common
shares outstanding 12,438 12,438 12,438 12,438
Net (loss) income
per share-
assuming dilution $(0.22) $(0.16) $(1.16) $1.44
Weighted average
number of common
shares and dilutive
securities 12,438 12,438 12,438 12,439
CONTACT: Roy E. Green Chief Financial Officer 212-354-6474 or IR CONTACT: Shannon Moody Press: Michael McMullan Morgen-Walke Associates 212-850-5600 |
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