D.G. Jewelry Inc. Announces Record Operating Income Gross Margins Increase to 36.88 Percent; Amounts Expressed in U.S. Dollars.Business Editors TORONTO--(BUSINESS WIRE)--March 31, 2000 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:DGJL) today announced its best operating results in the Company's thirty-one year history. 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. increased to $9.1 Million, compared to $7.6 Million in 1998. Income before unusual items and income taxes increased to $7.0 Million, an increase of 46.5% over $ 4.7 million reported in 1998. Revenues for the year were $35.4 Million, compared to $35.3 Million in 1998. 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. income before unusual items and taxes per share climbed by 29% to $1.10, compared to $0.85 in 1998. Total diluted shares outstanding in 1999 were 6,343,662, compared to 5,558,341, an increase of 14.1%. The Company elected to take a full reserve of $2.0 Million against its receivable from a 50% owned subsidiary. In addition , the Company took a 100% write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of its balance of moulds and dies in the amount of $1.8 Million, the cost to acquire its Supply Agreement with a major retailer in the amount of $1.4 Million, and goodwill in the amount of $146,000. Revenues in 1999 were impacted by certain large clients' requirements that deliveries be postponed to the first quarter of 2000. As a result, we are seeing improvement in revenues in the first quarter, compared to the corresponding quarter in 1999. The cumulative effect resulted in Net Income of $1.0 Million or $0.16 per fully diluted share compared to $3.2 Million or $0.59 in 1998. President and 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. commented: "these results reflect our on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" commitment to increase margins and reduce expenses. We have been able to execute these objectives by partnering with select retailers who appreciate the price/value equation our products represent. As a result, we have proven our ability to reduce our revenue breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations point even as we continue to invest in new ventures which we hope will be bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. positive in the very near future. The retailer marketplace has come to realize that we offer great service, design and value. Our selectiveness of retailer/partners is paying dividends and we are seeing clear signs that this recognition is fast spreading. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our revenues will now reflect that new recognition. Our results become even more impressive when taking into account that the comparative income in 1998 included an unusual income item of $1.1 Million, with no such corresponding income item in 1999. In addition, the weighted number of shares outstanding, assuming dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. , grew to 6,343,662 in 1999, from 5,558,341 in 1998. With results such as these, we felt it appropriate to take large scale write-offs of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , and reserves against a receivable from our 50% owned internet subsidiary company. These write-offs effectively reduced our tax liability and should have significant positive impact going forward should these assets prove to be of on-going value and should the receivable be collected. We are optimistic that this may prove to be the case". 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 major retailers including 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, shopping networks, major high-volume retailers and other major discounters in the U.S., Canada and Europe. 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.
D.G. JEWELRY INC.
CONSOLIDATED STATEMENT OF INCOME
For the years ended December 31
(Amounts expressed in U.S. dollars)
1999 1998
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Net sales 35,414,133 35,350,022
Cost of sales 22,355,496 23,855,178
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Gross profit 13,058,637 11,494,844
Other Income - 1,082,239
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Gross earnings 13,058,637 12,577,083
Operating expenses:
Selling 1,317,528 2,305,130
General and
administrative 2,623,140 2,607,556
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3,940,668 4,912,686
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Operating income 9,117,969 7,664,397
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Interest expenses 1,791,463 1,820,278
Other expenses 357,439 1,088,058
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2,148,902 2,908,336
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Income before
undernoted items 6,969,067 4,756,061
Unusual items (5,415,585) -
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Income before income
taxes 1,553,482 4,756,061
Provision for income
taxes 553,254 1,477,369
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Net income 1,000,228 3,278,692
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Earnings per common
share 0.16 0.63
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Earnings per common
share assuming
dilution 0.16 0.59
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