Danskin, Inc. Reports First Quarter 2001 Results; Net Revenues Rise to More Than $22 Million.Business Editors NEW YORK--(BUSINESS WIRE)--May 16, 2001 Danskin, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: DANS), a designer and manufacturer of women's activewear, dancewear dance·wear n. Clothing such as leotards and warmup suits that are worn for dance practice and exercising. and legwear, today announced improved revenues for the first quarter ended March 31, 2001. During this period, the Company secured an additional $7.6 million in borrowing capacity from its secured lender, Century Business Credit, a unit of Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank, based on the Company's forecasted business plan for 2001. Donald Schupak, Chairman of Danskin, Inc. said, "The additional financing represents a strong vote of confidence in Danskin's success in pursuing its right-sizing initiatives, which have increased margins, eliminated unprofitable businesses and products, and cut infrastructure costs. The Company has improved operating results before interest and taxes versus last year's first quarter. Furthermore, the Company has substantially expanded its distribution outlets and added strong new customers and licenses. It has also increased volume in the specialty store Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" class of trade, boosted retail store profitability, and has positioned itself to take advantage of consolidation opportunities in the hosiery hosiery Knit or woven coverings for the feet and legs, worn inside shoes. In the 8th century BC, Hesiod referred to linings for shoes; the Romans wrapped their feet, ankles, and legs in long strips of leather or woven cloth. industry." Carol Hochman, President and Chief Executive Officer, added, "We have performed extremely well for the first quarter of 2001, especially in light of the weakness of the retail environment 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. and internationally. The Company is now in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a successful financial turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. based on aggressively "right-sizing" its operations and enhancing product lines and distribution channels. Management has undertaken a broad range of initiatives to increase the strength and durability du·ra·ble adj. 1. Capable of withstanding wear and tear or decay: a durable fabric. 2. of our brand name, which already enjoys an extraordinary 80 percent total brand recognition among its target audience. We are moving aggressively from being strictly a manufacturer to becoming a proactive manager and marketer of Brand Danskin(R), leveraging its worldwide reputation for quality throughout its product lines." Ms. Hochman continued, "Danskin is seeking to increase its retail presence, by exploring various licensing opportunities for Brand Danskin(R) as well as seeking to increase its presence in international markets. During the first quarter, the Company was successful in signing a multi-year license agreement with Jacques Moret, Inc., for the manufacture of the "Freestyle The code name for the MCE version of Windows. See Media Center Edition. (R), a Danskin Company" line of women's and girl's activewear for distribution to all 991 Target Stores retail locations throughout the United States commencing June 2001, in which Danskin will receive minimum royalties of $320,000 for fiscal 2001. "Brand Danskin(R) strengthened ties with its primary audiences through a partnership with the Radio City Rockettes, which designated Danskin as the preferred dancewear and legwear supplier of this world-renowned organization. The Company has assertively as·ser·tive adj. Inclined to bold or confident assertion; aggressively self-assured. as·ser  tive·ly adv. increased Brand
Danskin's(R) presence in all major markets and in important new
ones as well. Danskin is taking full advantage of its new and stronger
financial position, world-class management team, and expanding
partnerships to capture the market leadership and power this enduring
and beloved brand deserves. The success of our new products and the
expansion of our licensing and distribution efforts reflect the
market's enthusiasm for this Company's rejuvenation RejuvenationAeson in extreme old age, restored to youth by Medea. [Rom. Myth.: LLEI, I: 322] apples of perpetual youth by tasting the golden apples kept by Idhunn, the gods preserved their youth. [Scand. Myth. ," Ms. Hochman declared. "There are several other opportunities targeted for the rest of the year, and the Company is well positioned, with a solid business foundation, to capture each one of them." Danskin reported net revenues reaching $22,093,000 for the first quarter ended March 31, 2001, a 4.2% increase compared with $21,204,000 for the quarter ended April 1, 2000. The Company reported a net loss of $(2,422,000), or $(0.04) per share, compared to $(2,277,000), or $(0.03) per share for the comparable quarter of 2000. About Danskin, Inc. Danskin, Inc. markets and manufactures leading brands of women's activewear and dancewear under the Danskin(R), Danskin Plus(R), Danskin Packables(TM) and Zen Zen Important school of Buddhism that claims to transmit the experience of enlightenment achieved by the Buddha Gautama. Arising as Chan in China in the 6th century (introduced by Bodhidharma), it divided into two schools, the Southern school, which believed in sudden Sport(TM) from Danskin(R) trademarks, and legwear under the Danskin(R), Givenchy(R), Ellen Tracy(R), Evan-Picone(R) and Round the Clock(R) trademarks. Pennaco Hosiery, a division of Danskin, Inc. is a manufacturer of branded and private label hosiery sold in department and fine specialty stores. The Company's Danskin Division operates two full-priced stores 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 Boston and 31 outlet stores An outlet store or factory outlet is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. The stores can be can be brick and mortar or online. in 19 different states. For further information and for store locations, please visit www.danskin.com or call (888) DANSKIN. This press release may contain "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. " with respect to operations, assumptions, the financial condition and future performance of the Company. Additional information on risk factors that could potentially have a material impact on the Company's operations and financial position, and risk factors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the management of the Company is contained in the Company's filings with the Securities and Exchange Commission ("SEC"). SEC filings for Danskin, Inc. are available at www.freeedgar.com This press release and prior releases are available on the Danskin, Inc. Web site at www.danskin.com and the KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Worldwide Web site at www.kcsa.com
Danskin, Inc. and Subsidiaries
Statement of Operations
(Dollar amounts in thousands, except share and per share amounts)
Fiscal Three Months Ended
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March 31, April 1,
2001 2000
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Income Statement Data:
Net revenues
Danskin $ 14,660 $ 15,474
Pennaco 7,433 5,730
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Total 22,093 21,204
Cost of goods sold
Danskin 9,861 10,616
Pennaco 5,944 4,418
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Total 15,805 15,034
Gross profit 6,288 6,170
Selling, general and administrative expenses 7,406 7,402
Interest expense 950 688
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8,356 8,090
Loss before income tax provision (2,068) (1,920)
Provision for income taxes 12 15
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Net (loss) (2,080) (1,935)
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Preferred dividends 342 342
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Net loss applicable to Common Stock $ (2,422) $ (2,277)
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Basic and Diluted Net Loss Per Share:
Net loss per share $ (0.04) $ (0.03)
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Weighted average number of common
shares outstanding 68,947,000 73,986,000
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