Cygne Designs, Inc. announces second quarter and six months 1995 results.NEW YORK--(BUSINESS WIRE)--September 11, 1995--Cygne Designs, Inc. (Nasdaq:CYDS CYDS Centre for Youth Drug Studies (Australia) ) today announced results of operations for the second quarter and six months ended July July: see month. 29, 1995. 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 second quarter increased 10% to $132.1 million from $119.6 million for the comparable prior year period. The Company incurred a net loss of $5.1 million, or $0.41 per share, in the second quarter of 1995 compared to net income of $2.0 million, or $0.17 per share, in the second quarter of 1994. The weighted average number of shares outstanding increased to 12,438,000 from 11,707,000. On a combined 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 basis, giving effect to the October October: see month. 1994 acquisition of GJM GJM Golden Jubilee Medal GJM Gay Japanese Male as of January January: see month. 30, 1994, net sales for the second quarter of 1994 were $140.4 million and net income was $1.6 million, or $0.13 per share on a pro forma weighted average number of shares outstanding of 12,357,000. Net sales for the six months increased 31% to $260.4 million from $198.8 million for the comparable prior year period. The Company incurred a net loss of $9.7 million, or $0.77 per share, for the six months of 1995 compared to net income of $3.6 million, or $0.35 per share, for the six months of 1994. The weighted average number of shares outstanding increased to 12,662,000 from 10,403,000. On a combined pro forma basis, giving effect to the April 1994 acquisition of Fenn, Wright & Manson Man·son , Sir Patrick 1844-1922. Scottish parasitologist. One of the founders (1899) of the London School of Tropical Medicine, he introduced (1877) the hypothesis that the mosquito is host to the malaria parasite. and the October 1994 acquisition of GJM as of January 30, 1994, net sales for the six months of 1994 were $257.6 million and net income was $1.8 million or $0.15 per share on a pro forma weighted average number of shares outstanding of 11,652,000. The loss for the second quarter and the six months ended July 29, 1995 is primarily the result of substantially lower than expected gross margins at certain of the Company's divisions, particularly FWM FWM Four-Wave Mixing FWM Fabric Workshop and Museum (Philadelphia, Pennsylvania) FWM Free Wheelchair Mission FWM Fine With Me FWM Fachverband Werbung Und Marktkommunikation , reflecting the weak retail environment for women's apparel and problems associated with the poor performance of FWM's Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. product sourcing office. The loss for the six months also includes a first quarter charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.1 million resulting from the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying from a customer which experienced financial difficulties and a gain of $4.7 million on the sale of FWM's U.K. branded business, net of 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). expenses of $2.8 million related to the integration of FWM's operations with Cygne's both in 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 and in Hong Kong. Higher selling, general and administrative expenses attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase in the number of employees and other 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. to support an anticipated growth in sales, which did not materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , also contributed to the loss for the six months. In light of the lower than expected sales growth and in connection with the integration of FWM's operations with Cygne's, the Company reduced selling, general and administrative expenses during the second quarter of 1995. Cygne Designs, Inc. is a leading private label designer, merchandiser and manufacturer of women's and men's apparel, serving several prominent retailers, including AnnTaylor, The Limited Stores, Lane Bryant Lena Himmelstein Bryant Malsin (1879? - September 26, 1951) was an American clothing designer and retailer who founded the plus-size clothing chain Lane Bryant. Early Life & Career , Victoria's Secret For the Sonata Arctica single, see Victoria's Secret (song) Victoria's Secret is an American retailer of high quality lingerie and beauty products.[2] Stores and 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. . The Company's products include a broad range of woven A woven is a cloth formed by weaving. It only stretches in the Bias directions (between the warp and weft directions), unless the threads are elastic. Woven cloth usually frays at the edges, unless measures are taken to counter this, such as the use of pinking shears or hemming. and knit career, casual and intimate women's apparel, as well as men's casual sportswear. -0-
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
July 29, July 30, July 29, July 30,
1995 1994 1995 1994
Net sales $132,067 $119,640 $260,434 $198,811 Cost of goods sold 119,391 100,356 236,630 165,965 Gross profit 12,676 19,284 23,804 32,846 Selling, general and administrative expenses 16,155 13,603 34,333 22,457 Gain from sale of subsidiary, net -- -- (4,742) -- Bad debt expense -- -- 1,030 -- Amortization of intangibles 965 563 1,921 781 Income (loss) from operations (4,444) 5,118 (8,738) 9,608 Interest expense 2,479 1,568 4,590 2,831 Income (loss) before provision (benefit) for income taxes and minority interests (6,923) 3,550 (13,328) 6,777 Provision (benefit) for income taxes (2,292) 1,177 (4,414) 2,243 Income (loss) before minority interests (4,631) 2,373 (8,914) 4,534 Income attributable to minority interests 424 415 821 914 Net income (loss) $ (5,055) $ 1,958 $ (9,735) $ 3,620 Net income (loss) per share $ (0.41) $ 0.17 $ (0.77) $ 0.35 Weighted average number of common and common equivalent shares outstanding 12,438 11,707 12,662 10,403 -0-
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
The following represents the pro forma effect of the FWM Acquisition (which occurred on April 6, 1994) and the GJM Acquisition (which occurred on October 7, 1994) as if such acquisitions had occurred on January 30, 1994. The pro forma information does not purport to be indicative of the results that actually would have occurred had the FWM Acquisition and the GJM Acquisition been effected on January 30, 1994, nor do they project the Company's results of operations for any future period.
Three Months Ended Six Months Ended
July 29, July 30, July 29, July 30,
1995 1994 1995 1994
Actual Pro Forma Actual Pro Forma
Net sales $132,067 $140,397 $260,434 $257,553
Cost of goods sold 119,391 118,779 236,630 217,703 Gross profit 12,676 21,618 23,804 39,850 Selling, general and administrative expenses 16,155 15,571 34,333 30,299 Gain from sale of subsidiary, net -- -- (4,742) -- Bad debt expense -- -- 1,030 -- Amortization of intangibles 965 829 1,921 1,657 Income (loss) from operations (4,444) 5,218 (8,738) 7,894 Interest expense 2,479 1,908 4,590 3,821 Other income -- -- -- 660 Income (loss) before provision (benefit) for income taxes and minority interests (6,923) 3,310 (13,328) 4,733 Provision (benefit) for income taxes (2,292) 1,332 (4,414) 2,027 Income (loss) before minority interests (4,631) 1,978 (8,914) 2,706 Income attributable to minority interests 424 415 821 914 Net income (loss) $ (5,055) $ 1,563 $ (9,735) $ 1,792 Net income (loss) per share $ (0.41) $ 0.13 $ (0.77) $ 0.15 Weighted average number of common and common equivalent shares outstanding 12,438 12,357 12,662 11,652 -0-
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
($ in thousands, except per share amounts)
July 29, January 28,
1995 1995
Assets
Current assets:
Cash $ 4,845 $ 7,558
Restricted cash 7,004 6,644
Trade accounts receivable 62,706 64,921
Inventory 51,797 57,570
Other receivables and prepaid expenses 16,303
15,966 Deferred income taxes 2,569 2,602
Total current assets 145,224 155,261
Fixed assets, net 17,857 14,652
Other assets including intangibles 6,034 6,075
Deferred income taxes 881 881
Goodwill, net 79,305 76,659
Total assets $249,301 $253,528 Liabilities and stockholders' equity Current liabilities: Short-term borrowings $ 41,676 $ 38,889 Accounts payable 50,075 42,429 Credit facilities outstanding 7,596 3,562 Accrued expenses 13,652 13,440 Income taxes payable 2,631 7,081 Current portion of long-term debt 2,054 1,829 Total current liabilities 117,684 107,230 Long-term debt 1,815 1,460 Deferred rent credits 1,187 635 Total liabilities 120,686 109,325 Minority interests in subsidiaries 3,364 2,511 Stockholders' equity: Preferred stock, $0.01 par value; 4,000,000 shares authorized, none issued and outstanding -- -- Common stock, $0.01 par value; 75,000,000 shares authorized; 12,438,038 (July 29, 1995) and 12,979,750 (January 28, 1995) shares issued and outstanding 124 130 Paid-in capital 120,918 127,716 Retained earnings 4,324 14,059 Foreign currency translation adjustment (115) (213) Total stockholders' equity 125,251 141,692 Total liabilities and stockholders' equity $249,301 $253,528 -0- CONTACT: Roy Roy, city (1990 pop. 24,603), Weber co., N Utah, near Great Salt Lake; settled by Mormons 1877, inc. 1937. Computer equipment is manufactured, and many residents work at nearby Hill Air Force Base. E. Green Chief Financial Officer (212) 354-6474 or IR CONTACT:David Walke, Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. Zar Press: Stacy Stacy may refer to: Places:
Morgen-Walke Associates 212/850-5600 |
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