Danier First Quarter Sales Up 37 Percent.TORONTO--(BUSINESS WIRE)--Oct. 22, 1998--Danier Leather Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DL.) today announced that sales for the fiscal 1999 first quarter ended September September: see month. 26, 1998 rose 37 percent to $14.3 million from $10.4 million in the same period last year. On a comparable-store basis, sales increased 16.6 percent. Reflecting the seasonal nature of the leather apparel manufacturer and retailer's business, Danier incurred a net loss for the period of $804,000 ($0.10 per share), a significant improvement from the net loss of $923,000 in the fiscal 1998 first quarter. The weighted average number of shares outstanding during the 1999 quarter was 7,264,329 reflecting the initial public offering of 6,040,000 subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. on May 20, 1998. "Danier achieved double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. comparable-store sales increases in every region of the country," said Jeffrey Wortsman, President and Chief Executive Officer. "Due to the seasonal nature of our business, it is normal for us to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a loss during the first quarter. With an additional five locations at the end of this quarter compared with the first quarter last year, our plans anticipated a higher first quarter operating and net loss. We are therefore pleased with Danier's operating and financial performance and expect to achieve further increases in total revenues, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , and net income as we continue to maintain our leadership in profitability in the publicly traded specialty apparel retail industry." "Our plans to open nine power centre locations and five shopping mall shopping mall or shopping centre Collection of independent retail stores, services, and parking areas constructed and maintained by a management firm as a unit. It is a 20th-century adaptation of the historical marketplace. In the U.S. stores, including one shopping mall store 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. are on track," said Mr. Wortsman. "During the past quarter we opened power centre locations in Niagara Falls, Ontario Niagara Falls is a Canadian city of 82,184 residents<ref name="2006CensCommun" /> on the Niagara River in the Golden Horseshoe region of south-central Ontario. It lies across the river from Niagara Falls, New York, and was incorporated on June 12, 1903. and Langley Lang·ley , Mount A peak, 4,227.9 m (14,026 ft) high, in the Sierra Nevada of southern California. lang·ley n. pl. , B.C. In October October: see month. , we opened a power centre location in Calgary Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial giving us 14 such outlets across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. . Also in October, we launched shopping mall stores in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. and Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. City, Quebec." Danier Leather Inc. is a leading integrated designer, manufacturer, and retailer of high-quality leather and suede clothing Noun 1. suede cloth - a fabric made to resemble suede leather suede cloth, fabric, textile, material - artifact made by weaving or felting or knitting or crocheting natural or synthetic fibers; "the fabric in the curtains was light and semitransparent"; . The company's merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain is marketed exclusively under the well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. Danier brand name and is available only at its 61 shopping mall, street front, and power centre stores. This news release may include comments that do not refer strictly to historical results or actions and may be deemed to be 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. . Forward-looking statements involve risks and uncertainties, including, but not limited to, the weather and performance of the economies in the markets in which the company operates, continued acceptance of the company's products, competitive factors, the company's ability to identify and interpret To run a program one line at a time. Each line of source language is translated into machine language and then executed. fashion trends, factors affecting its sourcing of skins from operations in 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). , New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. ,
and Asia, and other such risks as we may identify in this release or in
other published documents. Accordingly, there is no certainty CERTAINTY, UNCERTAINTY, contracts. In matters of obligation, a thing is certain, when its essence, quality, and quantity, are described, distinctly set forth, Dig. 12, 1, 6. It is uncertain, when the description is not that of one individual object, but designates only the kind. Louis. that the
company's plans will be achieved. -0-
DANIER LEATHER INC.
STATEMENTS OF EARNINGS (LOSS) AND RETAINED EARNINGS (DEFICIT)
(thousands of dollars)
For the 13 Weeks Ended
--------------------------
September September
26, 1998 27, 1997
----------- -----------
(unaudited) (unaudited)
Revenue $14,290 $10,405
Cost of sales 8,219 5,576
----------- -----------
Gross profit 6,071 4,829
----------- -----------
Selling, general and
administrative expenses 7,475 6,033
Other expenses - 27
----------- -----------
Earnings (loss) before interest
and income taxes (1,404) (1,231)
Interest (11) 360
----------- -----------
Earnings (loss) before income taxes (1,393) (1,591)
Income tax recovery (589) (668)
----------- -----------
Net earnings (loss) for the period $(804) $(923)
----------- -----------
----------- -----------
Retained earnings (deficit),
beginning of period 1,541 (934)
----------- -----------
Retained earnings (deficit),
end of period $737 $(1,857)
----------- -----------
----------- -----------
Earnings per share - Basic ($0.11) ($0.75)
Earnings per share - Fully Diluted ($0.10) ($0.57)
Weighted Average Number of
Shares Outstanding:
Basic 7,264,329 1,224,329
Fully Diluted 7,776,095 1,632,438
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DANIER LEATHER INC.
BALANCE SHEETS
(thousands of dollars)
September September
26, 1998 27, 1997
----------- -----------
(unaudited) (unaudited)
ASSETS
Current Assets
Cash and equivalents $ 1,194 $ --
Accounts receivable 385 608
Income taxes recoverable 1,359 102
Inventories 21,157 15,882
Prepaid expenses 135 264
----------- -----------
24,230 16,856
Other Assets
Capital assets 6,328 5,250
Other 379 1,014
Deferred income taxes 2,247 --
----------- -----------
$33,184 $23,120
----------- -----------
----------- -----------
LIABILITIES
Current Liabilities
Bank overdraft $ -- $5,147
Accounts payable and
accrued liabilities 6,084 5,287
Current portion of
long-term debt 232 2,294
----------- -----------
6,316 12,728
----------- -----------
Long-term debt 927 12,249
----------- -----------
7,243 24,977
----------- -----------
SHAREHOLDERS' EQUITY (DEFICIENCY)
Share capital 25,204 --
Retained earnings (deficit) 737 (1,857)
----------- -----------
25,941 (1,857)
----------- -----------
$33,184 $23,120
----------- -----------
----------- -----------
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DANIER LEATHER INC.
STATEMENTS OF CASH FLOW
(thousands of dollars)
For the 13 Weeks Ended
-------------------------
September September
26, 1998 27, 1997
----------- -----------
(unaudited) (unaudited)
Cash flows from operating activities
Net earnings (loss) for the period $(804) $(923)
Items not affecting cash:
Amortization 606 540
----------- -----------
(198) (383)
Change in operating assets and liabilities:
Accounts receivable 206 (390)
Inventories (1,373) (3,763)
Income taxes recoverable (2,905) (1,093)
Prepaid expenses 50 101
Accounts payable and
accrued liabilities 217 2,150
Accrued interest on
subordinated loan -- 244
----------- -----------
Net cash used for
operating activities (4,003) (3,134)
----------- -----------
Cash Flows from Investing Activities:
Acquisition of capital assets (1,501) (1,171)
----------- -----------
Net cash used for
investing activities (1,501) (1,171)
----------- -----------
Cash Flows from Financing Activities:
Obligations under capital leases (55) --
----------- -----------
Net cash used for financing activities (55) --
----------- -----------
Net decrease in cash and equivalents (5,559) (4,305)
Cash and equivalents (bank overdraft),
beginning of period 6,753 (842)
----------- -----------
Cash and equivalents (bank overdraft),
end of period $1,194 $(5,147)
----------- -----------
----------- -----------
Comprised of:
Cash and equivalents 1,194 --
Bank overdraft -- (5,147)
----------- -----------
$1,194 $(5,147)
----------- -----------
----------- -----------
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