Cygne Designs, Inc. Announces Results of Fourth Quarter and Year 2003.Business Editors NEW YORK--(BUSINESS WIRE)--April 30, 2004 Cygne Designs, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CYDS CYDS Centre for Youth Drug Studies (Australia) ) today announced results of operations for the fourth quarter and the year ended January January: see month. 31, 2004. 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 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the year 2003 were $27,082,000, an increase of $3,063,000, or 13%, from $24,019,000 for the year 2002. The increase in sales was primarily attributable to increased sales to Lerner Ler·ner , Alan Jay 1918-1986. American playwright and lyricist. He wrote a number of musicals with the composer Frederick Loewe, including Brigadoon (1947) and My Fair Lady (1956). Noun 1. 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 ("Lerner") and sales to a new customer, Jordache Jordache Enterprises, Inc. is a clothing company that manufactures (or contracts for the manufacture of) apparel including shirts, jeans, and outerwear.[0] The brand is known for its designer jeans that were popular in the late 1970s and early 1980s. Enterprises. Lerner accounted for 91% and 93% of the net sales from continuing operations for years 2003 and 2002, respectively. Income from continuing operations before income taxes for the year 2003 was $538,000, compared to a loss of $255,000 for the year 2002. The sale of Cygne's Jordanian business in 2002 and its related operating results for years 2003 and 2002 have been excluded from the results from continuing operations and have been classified as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . The loss from the discontinued operation for the year 2003 was $528,000, or $0.04 on a basic and 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. per share basis, compared to the loss of $2,410,000, or $0.19 on a basic and diluted per share basis, for the year 2002. Net income for the year 2003 was $384,000, or $0.03 on a basic and diluted per share basis, compared to a net income of $2,085,000 (after a $4,800,000 tax benefit), or $0.17 on a basic and diluted per share basis, for the year 2002. Net income for 2002 includes the reversal of a tax accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of $4,800,000 that was established in a prior year in connection with a potential tax deficiency proposed by the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. . Net sales from continuing operations for the fourth quarter of 2003 were $6,112,000, a decrease of $1,122,000, or 16%, from $7,234,000 for the fourth quarter of 2002. The decrease in sales was primarily attributable to decreased sales to Lerner partially offset by sales to a new customer, Jordache Enterprises. Lerner accounted for 89% and 100% of the net sales from continuing operations for fourth quarter of 2003 and 2002, respectively. Income from continuing operations before income taxes for the fourth quarter of 2003 was $80,000, compared to income from continuing operations before income taxes of $384,000 in the comparable period in 2002. The sale of Cygne's Jordanian business in 2002 and its related operating results for fourth quarter of 2003 and 2002 have been excluded from the results from continuing operations and have been classified as a discontinued operation. The loss from the discontinued operation for the fourth quarter of 2003 was $456,000, or $0.03 on a basic and diluted per share basis, compared to the loss of $114,000, or $0.01 on a basic and diluted per share basis, in the comparable period in 2002. Net income for the fourth quarter of 2003 ended January 31, 2004, was $22,000, or $0.00 on a basic and diluted per share basis, compared to net income of $244,000, or $0.03 on a basic and diluted per share basis, in the comparable period in 2002. Cygne Designs, Inc. is a manufacturer of private label women's career and casual apparel with sales to retailers and wholesalers located in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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, 2004 and the Company's other filings with the Securities and Exchange Commission.
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Quarters Ended Twelve Months Ended
--------------------- ---------------------
January 31 February 1 January 31 February 1
2004 2003 2004 2003
------------------------------------- ---------- ---------- ----------
Net sales $6,112 $7,234 $27,082 $24,019
Cost of goods sold 5,058 5,748 22,932 20,694
---------- ---------- ---------- ----------
Gross profit 1,054 1,486 4,150 3,325
Selling, general and
administrative expenses 940 757 3,448 3,099
Provision for impairment of
fixed assets -- 282 -- 282
---------- ---------- ---------- ----------
Income (loss) from
continuing operations 114 447 702 (56)
before interest and
income taxes
Interest expense, net 34 63 164 199
---------- ---------- ---------- ----------
Income (loss) from
continuing operations 80 384 538 (255)
before income taxes
(Benefit) provision for
income taxes (398) 26 (374) (4,750)
---------- ---------- ---------- ----------
Income from continuing
operations 478 358 912 4,495
(Loss) from discontinued
operation, net (456) (114) (528) (2,410)
---------- ---------- ---------- ----------
Net income $22 $244 $384 $2,085
========== ========== ========== ==========
Income per share-basic and
diluted from continuing $0.03 $0.04 $0.07 $0.36
operations
(Loss) per share-basic and
diluted from discontinued (0.03) (0.01) (0.04) (0.19)
operation
---------- ---------- ---------- ----------
Net income per share-basic
and diluted $0.00 $0.03 $0.03 $0.17
========== ========== ========== ==========
Weighted average common
shares outstanding:
Basic 12,438 12,438 12,438 12,438
========== ========== ========== ==========
Diluted 12,443 12,439 12,441 12,439
========== ========== ========== ==========
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