Donnkenny, Inc. reports year-end results.NEW YORK--(BUSINESS WIRE)--February 14, 1996--Donnkenny, Inc. (Nasdaq:DNKY) today announced results for the fourth quarter and fiscal year ended December December: see month. 2, 1995. 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 for fiscal 1995 increased 32.4% to $210.3 million from $158.8 million for the 1994 fiscal year. Net income for the year was $5.8 million, or $0.41 per share, versus net income before an extraordinary item of $10.1 million, or $0.76 per share, for the same period in 1994. The 1995 results reflect special pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges of $13.8 million, or $0.58 per share after taxes, including a previously announced restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. recognized in the fourth quarter of $8.7 million and nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. costs related to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of certain of the Company's product lines of $5.1 million. Without the special charges, net income for the year rose 36.2% to $13.7 million, or $0.99 per share. The 1995 special pre-tax charges of $13,804,000, or $0.58 per share after tax, are related to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of costs associated with several discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: product lines. The Company stated that these costs relate to write-offs associated with the discontinuance of certain of its mass merchant products, the Scaasi Scaasi is an American fashion designer who has created gowns for First Lady Laura Bush, Jackie Kennedy and First Lady Mamie Eisenhower He was born Arnold Isaacs in Montreal, the son of a furrier. and J.G. Hook product lines, as well as the integration of the Oak Hill Sportswear acquisition. The Company is also consolidating certain divisions' distribution facilities into one central site in Charleston, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. as well as closing sewing sewing: see needlework. plants in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . The Company believes this restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). will further enhance its competitive position by redeploying its capital to promote its high growth, higher margin businesses. Net sales for the fourth quarter ended December 2, 1995 increased 42.4% to $60.8 million from $42.7 million for the same period in 1994. Net loss for the quarter was $3.9 million, or $0.28 per share, versus net income of $2.1 million, or $0.15 per share, for the same period in 1994. Excluding the effect of the special charges taken in the fourth quarter, net income for the quarter rose 95.2% to $4.1 million, or $0.29 per share, versus $2.1 million, or $0.15 per share, for the same period in 1994. Earnings per share figures have been adjusted to reflect the two-for-one stock split paid on December 18, 1995. Richard Rubin, President and Chief Executive Officer commented, "1995 was a year of building and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar our portfolio of businesses. The actions taken, including the acquisitions of Oak Hill and Beldoch as well as the restructuring of our product lines, will make Donnkenny an even stronger and more formidable competitor. Our strategic decision to focus on high growth, higher margin businesses will ensure solid sales and earnings growth in 1996 and beyond." Donnkenny, Inc. designs, manufactures and markets moderately-priced women's sportswear and licensed apparel as well as designs and distributes cartoon cartoon [Ital., cartone=paper], either of two types of drawings: in the fine arts, a preliminary sketch for a more complete work; in journalism, a humorous or satirical drawing. character apparel. -0-
DONNKENNY, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In Thousands, Except Share and Per Share Data)
For the fiscal years ended
December 2, 1995 and December 3, 1994
Twelve Months ended Three Months Ended
12/2/95 12/3/94 12/2/95 12/3/94
Net Sales $210,270 $158,800 $60,755 $42,680 Cost of sales 153,919 112,283 47,920 30,645 Gross profit 56,351 46,517 12,835 12,035 Selling, general and administrative expenses 32,763 26,772 8,669 7,631 Amortization of excess of costs over fair value of net assets acquired and other related acquisition costs 1,041 1,145 368 229 Restructuring Charge (a) 8,678 --- 8,678 ---
Operating Income
(loss) 13,869 18,600 (4,880) 4,175
Other income (expense):
Gain on sale of
license --- 1,116 --- ---
Interest expense (4,135) (2,870) (1,794) (739)
Income (loss)
before income
taxes and
extraordinary
item 9,734 16,846(c) (6,674) 3,436
Income taxes 3,971 6,782 (2,753) 1,357
Income (loss)
before
extraordinary
item 5,763 10,064(c) (3,921) 2,079
Extraordinary item - related to the early extinguishment of debt, net of taxes (b) --- 295 --- --- Net income (loss) $5,763 $9,769 $(3,921) $2,079
Income (loss) per
common share:
Net income (loss)
before
extraordinary
item $0.41 $0.76(c) $(0.28) $0.15
Extraordinary
item (b) --- (0.02) --- ---
Net income
(loss) $0.41 $0.74 $(0.28) $0.15
Weighted average number of common and common equivalent shares outstanding 13,910,342 13,330,192 14,219,874 13,727,164 ------------------------------------------------------------------------------ (a) The restructuring charge of $8,678 related to the discontinuance of several product lines, and is equivalent to $0.37 per share. (b) These extraordinary charges relate to the early extinguishment of debt with proceeds from the company's public offering. (c) Includes one-time gain on the sale of the Ship 'N Shore trademarks that had a pre-tax value of $1.1 million, or $0.05 per share on an after-tax basis. Excluding the gain, earnings per share would have been $0.71 for the twelve months ended December 3, 1994. CONTACT: Donnkenny Inc. Ed Creevy Chief Financial Officer 212/730-7770 Ext. 3039 or Morgen-Walke Associates Investor Relations Investor relations The process by which the corporation communicates with its investors. : David Walke, Eileen Howard Stacey Herschaft Press: Michael McMullan 212/850-5600 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion