Hirsch Delivers Solid Profitability for Fiscal 2006.HAUPPAUGE Hauppauge can refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : HRSH) today announced its financial results for the fourth quarter and year ended January January: see month. 28, 2006. For the year ended January 28, 2006 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 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $51.1 million compared with $44.4 million for the 2005 fiscal year, an increase of $6.7 million or 15.1%. Gross profit dollars increased $3.4 million for the same period and gross margin improved from 30.9% in fiscal 2005 to 33.5% in fiscal 2006. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $0.6 million or 3.8% from fiscal 2005. Included in fiscal 2006 was a non-recurring charge for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when of $147,000. This resulted in the company having operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $622,000 for fiscal 2006 as compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.1 million for fiscal 2005 or a $2.7 million improvement for the year. Income from continuing operations was $0.1 million for fiscal 2006 as compared to loss from continuing operations of $2.1 million for the previous fiscal year. Included in other expense for fiscal 2006, was a write off of $0.6 million of transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). associated with the termination of the merger with Sheridan Sheridan, city (1990 pop. 13,900), seat of Sheridan co., N Wyo., on Goose Creek E of the Bighorn Mts., in a mineral, livestock, and irrigated farm region; inc. 1884. It is a regional trade and market hub. Square Entertainment. Net income was $0.5 million or an improvement $2.3 million for the year as compared to a net loss of $1.8 million in the previous fiscal year. Included in this fiscal year's net income was income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $447,000 associated with Hometown home·town n. The town or city of one's birth, rearing, or main residence. Noun 1. hometown - the town (or city) where you grew up or where you have your principal residence; "he never went back to his hometown again" Threads and the wind down of the HAPL HAPL High Average Power Laser Program (USA) HAPL High Altitude Power Loss (aviation) HAPL HIV/AIDS Policy and Law Newsletter (Canada) Leasing. Net loss for the fiscal 2005 included income from discontinued operations of $376,000. For the fourth quarter ended January 28, 2006, net sales were comparable at $12.0 million to last year's fourth quarter. Gross profit dollars increased by $ 1.0 million to $ 4.3 million and gross margin improved to 36% from 27.8% for the previous year. Operating expenses increased by $0.7 million over last year which then resulted in an operating loss of $0.2 million for fiscal 2006 an improvement of $ 0.3 million from an operating loss of $0.5 million for last year's fourth fiscal quarter. Included in the fiscal 2006 fourth quarter was the write off of approximately $ 0.6 million in transaction costs associated with the termination of the merger with Sheridan Square Entertainment. The net loss for the quarter was $0.3 million a decrease of $.02 million from the net loss for the same quarter last year of $0.5 million. Included in this year's fiscal fourth quarter net income was income from discontinued operations of $447,000 associated with Hometown Threads and the wind down of HAPL Leasing. Net loss for fiscal 2005 included income from discontinued operations of $376,000. For more detailed information please refer to the Company's filings with the Securities and Exchange Commission including, without limitation, its Report on Form 10K for the fiscal year ended January 29, 2005" "We are extremely pleased with our progress during fiscal 2006," stated Paul Gallagher
tr.v. re·in·vent·ed, re·in·vent·ing, re·in·vents 1. To make over completely: "She reinvented Indian cooking to fit a Western kitchen and a Western larder" Hirsch's "Tajima Sales & Support by Hirsch" business. In addition to re-establishing the company as the clear market leader and returning it to profitability, by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. we had succeeded in accumulating cash of over $13 million ($1.42 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) that is now available to support and expand our business." "Our outstanding team of professionals; expanded market presence, with twenty-five locations across the country; top-notch product offerings with Tajima equipment, software by Pulse Microsystems; and superior service and support continue to be the key drivers of the increases in both sales and profitability. I want to thank all of our stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. including all of our employees, our strategic partners, and most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , our customers, who continued to show their unwavering support for our products and services. We remain confident in our future and believe improved economic conditions and continued demand from our loyal customer base will continue to provide the company with opportunities for growth and profitability throughout the year." Mr. Gallagher Gallagher may refer to: People
"We will continue to protect and strengthen our core business while venturing into new investment and acquisition opportunities. We expect these opportunities to be both within and tangent tangent, in mathematics. 1 In geometry, the tangent to a circle or sphere is a straight line that intersects the circle or sphere in one and only one point. to our current core business and in other areas where we believe we can provide benefit from our combination of capital and strategic assistance. As always, our overall objective will be to maximize shareholder value." Hirsch International is the leading single source provider of Tajima embroidery embroidery, ornamental needlework applied to all varieties of fabrics and worked with many sorts of thread—linen, cotton, wool, silk, gold, and even hair. Decorative objects, such as shells, feathers, beads, and jewels, are often sewn to the embroidered piece. systems marketing under the name Tajima Sales & Support by Hirsch. For more information on Hirsch products and services, call Hirsch International Corp. at 1.800.394.4426 or visit the website at www.Tajima-Hirsch.com. Certain statements and information included in this press release constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements express our intentions, strategies, or predictions for the future. These forward looking statements involve unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Hirsch to be materially different from any future results, performance or achievements expressed or implied by the 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. . These factors include, without limitation, ongoing competition from other distributors and manufacturers of embroidery equipment, fluctuations in currency, the effectiveness of new advertising and promotion strategies, availability of adequate supplies of inventory, the ability to attract and maintain employees, legal and regulatory matters, potential new business opportunities, the Company's ability to have a competitive position in the embroidery machine market, volatility in sales, fluctuations in working capital and general economic conditions. A further discussion of factors that could affect Hirsch's results is included in reports filed with the Securities and Exchange Commission, including Hirsch's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January 28, 2006.
HIRSCH INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
January January
28, 29,
-------- --------
2006 2005
-------- --------
ASSETS
Cash and cash equivalents
(includes restricted cash) $13,676 $12,048
Accounts receivable, net 4,929 4,914
Inventories, net 4,128 5,776
Other current assets 513 393
Assets of discontinued operations - short
and long term 0 831
Property, plant and equipment, net 1,574 1,949
Other assets 1,534 715
-------- --------
TOTAL ASSETS $26,354 $26,626
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued expenses $9,428 $8,346
Customer deposits and other 430 585
Liabilities of discontinued operations 0 1,495
Deferred gain on sale of building - short
and long term 608 727
Long and short-term debt 1,270 1,418
-------- --------
TOTAL LIABILITIES 11,736 12,571
-------- --------
TOTAL STOCKHOLDERS' EQUITY 14,618 14,055
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $26,354 $26,626
======== ========
HIRSCH INTERNATIONAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except per share data)
THREE MONTHS YEARS END
ENDED
----------------- ------------------
January January January January
28, 29, 28, 29,
----------------- ------------------
2006 2005 2006 2005
-------- -------- -------- ---------
NET SALES $11,975 $11,968 $51,139 $44,394
-------- -------- -------- ---------
GROSS PROFIT 4,314 3,322 17,106 13,734
-------- -------- -------- ---------
OPERATING EXPENSES
Selling, general and
administrative expenses 4,563 3,861 16,337 15,874
Restructuring costs 0 0 147 0
-------- -------- -------- ---------
Total operating expenses 4,563 3,861 16,484 15,874
-------- -------- -------- ---------
OPERATING INCOME (LOSS) (249) (539) 622 (2,140)
-------- -------- -------- ---------
OTHER (INCOME) EXPENSE
Transaction costs 605 0 605 0
Other (income) expense (110) (5) (105) 1
-------- -------- -------- ---------
Total other (income)
expense 495 (5) 500 1
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE PROVISION
(BENEFIT)FOR INCOME TAXES AND
DISCONTINUED OPERATIONS (744) (534) 122 (2,139)
INCOME TAX PROVISION (BENEFIT) (6) (11) 32 9
INCOME (LOSS) FROM CONTINUING
OPERATIONS (738) (523) 90 (2,148)
INCOME FROM DISCONTINUED
OPERATIONS 447 0 447 376
-------- -------- -------- ---------
NET INCOME (LOSS) ($ 291) ($ 523) $537 ($ 1,772)
======== ======== ======== =========
INCOME (LOSS) PER SHARE:
BASIC:
Income (loss) from continuing
operations ($ 0.09) ($ 0.06) $0.01 ($ 0.26)
Income from discontinued
operations $ 0.05 ($ 0.00) $0.05 $ 0.05
-------- -------- -------- ---------
Net income (loss) ($ 0.04) ($ 0.06) $0.06 ($ 0.21)
======== ======== ======== =========
DILUTED:
Income (loss) from continuing
operations ($ 0.07) ($ 0.06) $0.01 ($ 0.26)
Income (Loss) from discontinued
operations $ 0.05 $ 0.00 $0.05 $ 0.05
-------- -------- -------- ---------
Net income (loss) ($ 0.02) ($ 0.06) $0.06 ($ 0.21)
======== ======== ======== =========
WEIGHTED AVERAGE NUMBER OF SHARES
IN THE CALCULATION OF EARNINGS
(LOSS) PER SHARE
Basic 8,487 8,330 8,481 8,351
======== ======== ======== =========
Diluted 9,623 8,330 9,617 8,351
======== ======== ======== =========
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