Danskin, Inc. Reports Improved Results for Fiscal 2000; Bank Line Secured to Support 2001 Strategy; Fourth Quarter Revenues Increase 13.7%.Business Editors NEW YORK--(BUSINESS WIRE)--April 3, 2001 Company Successfully Completes 2000 Reorganization Initiatives 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 substantially improved results for both the fourth quarter and year ended December December: see month. 30, 2000. The Company also said 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, had amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its bank credit line to provide an additional $7,631,000 in borrowing capacity to support its forecasted monthly business plans through FY 2001. Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. Schupak, Danskin Inc.'s Chairman said that the agreement with Century Business Credit to provide the Company with the additional funding "was reached after an in-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis review of both the Company's 2001 business plans and the Company's progress in its Project 'Runrite' initiatives, designed to rightsize costs, increase margins, maximize factory efficiency, improve 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 selling, and place new emphasis on high quality businesses, including adding new customers and licenses." Carol Hochman, President and Chief Executive Officer, added, "FY 2000 was a 'Transition' year for Danskin. The amended financing represents a real vote of confidence in the Company's management and its strategic direction." She further stated that, "This positive news on our financing coupled with our recent agreement with Target Stores to put Danskin's new Freestyle The code name for the MCE version of Windows. See Media Center Edition. line of activewear for women and girls in all 991 Target stores nationwide beginning 2001 provides a solid future platform for the Company." Danskin reported a substantial revenue improvement for the fourth quarter ended December 30, 2000, with net revenues reaching $21,760,000, a 13.7% increase compared with $19,130,000 in the previous year. The Company also reported a substantial improvement for the fourth quarter of 2000, with a net loss reduced to $(2,881,000), or $(0.04) per share, compared to $(11,281,000), or $(0.36) per share for the comparable quarter of 1999. For the fiscal year ended December 30, 2000, the Company reduced its net loss to $(9,274,000), or $(0.13) per share, an improvement of $11,712,000 compared to the net loss of $(20,986,000), or $(0.89) per share for fiscal 1999. Revenues for the year ended December 30, 2000 were $84,654,000, compared to $87,970,000 for the same period a year ago. The Company's strategy is to build on the power of the Danskin Brand, which has over 80 percent total brand name recognition among its target audience and ranks fourth on the Fairchild Companies named Fairchild include:
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 from Danskin, which builds on the trend for Yoga yoga (yō`gə) [Skt.,=union], general term for spiritual disciplines in Hinduism, Buddhism, and throughout S Asia that are directed toward attaining higher consciousness and liberation from ignorance, suffering, and rebirth. and loose-fitting sports clothing Sports clothing is a general term for clothing while performing a sport. Each sport has its own styled clothes fitting their needs, e.g. regarding the textile (depending on the environment), the cutting and the form of clothing. , DryZone, a new moisture-management fabric designed to regulate body temperature in multi-climate conditions. In addition to the new Target business, the Company also acquired licenses to manufacture, sell, market and distribute legwear 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 Canada under the Ellen Tracy(R) and Evan Picone(R) names. In addition, the Company has been named the preferred dancewear and legwear supplier for the Radio City Rockettes. These moves are significant elements of the Company's strategy to expand distribution, add new customers and licenses, increase retail profitability, and position itself as a brand manager and marketer as well as a manufacturer. The Company enjoys strong recognition in foreign markets and has targeted the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. market as a significant source of growth in FY2001 and beyond. A new position of Vice President of European Sales has been created and filled. The Company recently re-launched its Web site, www.danskin.com, focused not only on products, but also on the active lifestyle associated with the Danskin brand name. The site provides an additional distribution channel for all Danskin products, as well as providing an information source for its sponsorship programs, especially the Danskin Women's Triathlon triathlon, athletic event made up of three contests. Since the 1970s the term has come to mean especially a race combining swimming, bicycling, and running. A notable example is Hawaii's Ironman Triathlon, held since 1978, which features a 2. Series now in the 12th year of operation. A business-to-business sector is under development and will be added to the site to enable dance and specialty stores 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" and other retail partners to easily order and obtain Danskin products. "We are very pleased with our hard-earned achievements this year," declared Ms. Hochman. "Financially we are well positioned. We have a world-class management team in place and our right-sizing reorganization has made the Company lean and strong and ready to support the kind of growth this brand deserves. The Danskin name is identified with quality and market leadership around the world. The success of our new products and the expansion of our licensing and distribution reflect this reputation. We have now built the solid business foundation to grow the Company and seize seize v. To exhibit symptoms of seizure activity, usually with convulsions. the many opportunities before us." 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 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 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. , a division of Danskin, Inc. is a manufacturer of branded and private label hosiery sold in department and fine specialty stores. 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 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 per share amounts)
Fiscal Years Ended
-------------------------
12/30/00 12/25/99
-------- --------
Income Statement Data:
Net revenues
Danskin $ 56,694 $ 60,643
Pennaco 27,960 27,327
---------- ----------
Total 84,654 87,970
Cost of goods sold
Danskin 38,065 43,902
Pennaco 21,831 21,387
---------- ----------
Total 59,896 65,289
Gross profit
Danskin 18,629 16,741
Pennaco 6,129 5,940
----------- -----------
Total 24,758 22,681
Selling, general and
administrative expenses 29,864 36,312
Non-recurring (income) charges (510) 795
Interest expense 3,289 5,462
----------- -----------
Loss before provision for
income taxes (7,885) (19,888)
Provision for income taxes 20 20
------------- -------------
Net (loss) (7,905) (19,908)
============ ===========
Preferred Stock dividend 1,369 1,078
----------- -----------
(Loss) applicable to
Common Stock $ (9,274) $ (20,986)
=========== ==========
Basic and Diluted Net
Income (Loss) Per Share:
------------------------------
Net loss per share $ (0.13) $ (0.89)
Net income per share for
extraordinary item -- --
Net loss per share (0.13) (0.89)
Weighted average number of
common shares outstanding 73,688 23,493
Balance Sheet Data:
------------------
Working Capital $ 286 $ 8,235
Total Assets 48,852 47,888
Long-term debt (excludes
current obligations) 10,558 11,500
Total debt 33,679 21,541
Total stockholders'
(deficit) equity (3,124) 5,874
Danskin, Inc. and Subsidiaries
Supplemental Financial Information
Selected Quarterly Financial Information
(Dollar amounts in thousands, except share and per share amounts)
For the Quarter Ended
---------------------------
12/30/00 12/25/99
Net revenues $ 21,760 $ 19,130
Gross profit $ 5,886 $ 1,818
Net loss $ (2,538) $ (11,015)
Net loss applicable to Common Stock $ (2,881) $ (11,281)
Basic and diluted net loss per share $ (0.04) $ (0.36)
Weighted average common shares and
share equivalents outstanding 72,768,000 30,916,000
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