DAKOTAH announces first quarter results.WEBSTER Webster, town (1990 pop. 16,196), Worcester co., S Mass., near the Conn. line; settled c.1713, set off from Dudley and Oxford and inc. 1832. The chief manufactures are footwear, fabrics, and textiles. , SOUTH DAKOTA--(BUSINESS WIRE)--May 15, 1997--DAKOTAH(R), INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (NASDAQ/NNM: DKTH) announced today the operating results for the first quarter ended March 31, 1997. For the first quarter ended March 31, 1997, revenues decreased from $7,405,000 to $6,682,000 in the same period of 1996. The lower revenues are primarily related to the effect on production as a result of: - The Company's consolidation of its primary warehouse and shipping and receiving facility to the main Webster, SD manufacturing facility; - The move of the Webster pillow pillow Medtalk A functional 'unit' used to assess the severity of orthopnea in Pts with CHF, which refers to the number of pillows a Pt needs to sleep comfortably. See Congestive heart failure. finishing equipment to the main Webster, SD manufacturing facility; - The comprehensive reconfiguration of the main Webster, SD manufacturing facility, and; - The effect of the severe winter weather. For the three months ended March 31, 1997, the net loss was $391,000 as compared to net earnings of $2,000 for the same period of 1996. The decline in net earnings was primarily caused by the lower 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 , the costs associated with the move of the warehouse, shipping and receiving facility, Webster, SD pillow finishing, and the severe winter weather. Gross margin percentages decreased from 26.5% in the first quarter of 1996 to 25.8% for the same period of 1997. Gross margin percentages were adversely affected by an increase of off-standard and indirect labor and other related costs associated with the Company's move of its Webster, SD warehouse and Webster, SD pillow finishing manufacturing and the comprehensive Webster, SD plant reconfiguration. Gross margin percentages were positively affected by improved product mix. Troy Jones, Jr., Chief Executive Officer of DAKOTAH(R), INC., stated, "Operationally, sales and profits were below expectation in the first quarter. We did not execute the warehouse move and plant reconfiguration as quickly as I had hoped. However, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , getting the warehouse located with manufacturing will lower operating costs operating costs npl → gastos mpl operacionales and reduce our lead time to better allow us to serve our customers. Open orders continue to be significantly above 1996 levels, our new products were well received at the April Market, our manufacturing plants and associates are positioned to maximize the sales opportunity in the second half of the year, and management believes that the home furnishing industry is coming out of the slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. that began Spring of 1995." DAKOTAH(R), INC. designs and manufactures decorative pillows, decorative throws, bedroom ensembles, table linens Linens are fabric household goods, such as pillowcases and towels. Originally, many, such as bed sheets and tablecloths, were made of linen. Today, the term "linen" has come to be applied to all related products even though most are made of cotton, various synthetic and other home accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. products. The Company has showrooms nationwide including 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 , Atlanta, Chicago, Denver, and Seattle. 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. are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of 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. Investors are cautioned that such forward looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, cancellation of orders, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third party suppliers, intellectual property rights and other risks detailed from time-to-time in the Company's periodic reports filed with the Securities and Exchange Commission. -0-
DAKOTAH,(R) INC.
CONDENSED STATEMENTS OF OPERATIONS
(000'S), EXCEPT PER SHARE AMOUNTS
(unaudited)
For the Three Months Ended:
March 31, 1997 March 31, 1996
Net sales $ 6,682 $ 7,405
Cost of goods sold 4,957 5,441
-------- -------
Gross Profit 1,725 1,964
Operating expenses
Selling 1,183 1,094
General & administrative 969 775
------- -------
2,152 1,869
------- -------
Operating profit (loss) (427) 95
Other income(expense),net (144) (92)
------- -------
Earnings (loss)
before income taxes (571) 3
Income tax expense
(benefit) (180) 1
-------- --------
NET EARNINGS (LOSS) $ (391) $ 2
======= ======
Net earnings (loss)
per share $ (0.11) $ --
======= ======
Weighted average common
shares outstanding 3,500 3,500
======= ======
DAKOTAH(R), INCORPORATED
CONDENSED BALANCE SHEETS
(000'S) unaudited
March 31, 1997 December 31, 1996
ASSETS
Current assets $ 19,982 $ 18,329
Property, plant
& equipment, net 4,024 3,907
Other assets 810 694
---- ----
$ 24,816 $ 22,930
========== ==========
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities $ 13,133 $ 11,570
Long-term obligations,
less current
maturities 1,602 912
Stockholders' equity 10,081 10,448
----- -----
$ 24,816 $ 22,930
CONTACT: TROY JONES, JR., 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. 605/345-4646 WILLIAM RETTERATH, CFO See Chief Financial Officer. 605/345-4646 or ADRIAN MADONIA, PR 908/788-9660 |
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