D.G. Jewelry Announces Year 2000 Results; Company Enjoys Record Annual and Fourth Quarter Revenues; Internet Subsidiary Turns First Quarterly Profit.Business Editors TORONTO--(BUSINESS WIRE)--April 2, 2001 D.G. Jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. Inc. (Nasdaq,SC:DGJL), one of North America's leading jewelry manufacturers, today reported record sales for the fourth quarter ended December December: see month. 31, 2000 and for the year then ended. Total revenues for the year were approximately $40.0 million compared to $35.4 million for the year ended December 31, 1999, an increase of 12.8%. Revenues for the fourth quarter ended December 31, 2000 were $13.9 million compared to $12.3 million for the comparable quarter of 1999, an increase of 13.3%. Earnings per share for the year ended December 31, 2000, on a fully 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. basis were $0.21, compared to $0.16 in the previous year, an increase of 31%. For the quarter, net loss was $0.04, down from $0.25, for the year-earlier quarter. In the fourth quarter, the Company took unusual charges to income totaling pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern $4.8 million, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ($3.1 million after tax). These charges were to set up provisions in the amounts of pretax $2.4 million ($1.56 million after tax) for litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in progress and pretax $2.38 million ($1.55 million after tax) for advances to a 50%-owned investee company, including the Company's equity share of the investee company's losses. Equity loss in the 50% investee company for the year was $105,783, down from $423,156 in the year-earlier period. The investee company enjoyed its first ever profitable quarter in the three months ended December 31, 2000 with profits of approximately $300,000. Commenting on the Company's results, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jack Berkovits Berkovits is the name of
This page or section lists people with the surname Berkovits. stated: "We are extremely pleased with the Company's performance on all fronts. We have managed to maintain the Company's gross margin in the face of growing competition and adverse economic conditions, particularly in the fourth quarter. Our numbers for the year include provisions in total of $3.12 million, net of tax, taking into account the possibility of an adverse appeals court decision in our outstanding litigation; as well as the possibility of uncollectability of advances to our 50%-owned investee company. The total of such provisions amount to $0.47 per fully diluted share. We are still hopeful that these provisions will prove generous over time. In addition, we have provided for the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of operations at one of the Company's subsidiaries, and we expect that savings in the consolidation of operations will prove synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. in the future." Further, Jack Berkovits stated: "We continue to grow and enhance current relationships while adding new ones, all of which recognize the Company's unique capacity to provide quality, value and design, with unparalleled service. We have proven that these relationships tend to withstand the test of time and the onslaught of competition. We will continue to target such retailers in the future." D.G. Jewelry Inc. is primarily engaged in the design, merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and distribution of stone-set jewelry for department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , mass merchants, catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. showrooms, television shopping networks and other high-volume retailers and other major discounters in the U.S., Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . For more information, please visit us at www.dgjewelry.com
Except for the historical information contained herein, the matters discussed in this release include 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. that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, release and sales of new products, other risk factors detailed in the Company's most recent annual report and filings with the Securities and Exchange Commission. There can be no guarantee that the company will retain or grow any of the relationships with retailers currently in place or that it will add any new clients in the future. As well, there can be no guarantees that the Company's sales will grow or that gross margins will grow or be maintained. As well, there can be no guarantees that provisions for the outcome of currently outstanding litigation is adequate.
$ US Year Ended December 31 Three Months Ended December 31
( ' 000 ) 2000 1999 2000 1999
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Sales 39,955 35,414 13,934 12,296
CGS 25,157 22,355 7,944 6,933
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GP 14,798 13,059 5,990 5,363
GP % 37.04% 36.88% 42.99% 43.62%
Expenses:
Selling 3,559 2,078 1,864 636
G&A 2,168 2,180 883 1,187
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5,727 4,258 2,747 1,823
Operating
Income 9,071 8,801 3,243 3,540
Interest
Expenses 1,931 1,832 579 738
Other Expenses 0 0 (473) (336)
Loss in 50%
owned NJ 0 0 (133) (501)
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1,931 1,832 (27) (99)
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IBT & Unusual
Items 7,140 6,969 3,270 3,441
Unusual
Items(a) 4,783 5,416 3,571 5,416
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IBT 2,357 1,553 (301) (1,975)
IT 841 553 (143) (410)
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NI before
Disc. Oper. 1,516 1,000 (158) (1,565)
Disc. Oper. 134 0 134 0
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NI 1,382 1,000 (292) (1,565)
EPS 0.21 0.16 (0.04) (0.27)
EPS Dil. 0.21 0.16 (0.04) (0.25)
(a) 1999 was relocated from last Q after we filed the 10k to
previous quarters.
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