Hyde Announces First Quarter Results.PEABODY Peabody (pē`bədē, –bädē), city (1990 pop. 47,039), Essex co., NE Mass., a suburb of Boston, on the Danvers River; settled c.1633, inc. as South Danvers 1855, name changed 1868. , Mass.--(BUSINESS WIRE)--May 1, 1998-- -0-
-- First quarter income of $974,000 or $0.16 per diluted share
-- Record first quarter net sales of $29,624,000, up 17.5% over
first quarter 1997
-- Strong Saucony domestic sales for both inline and special make-up
footwear
-- Projected second quarter 1998 net sales growth of 9-12% over
second quarter 1997
-- Projected second quarter 1998 earnings per diluted share of
$0.06-$0.09
-0- Hyde Hyde, town (1991 pop. 33,657), Tameside metropolitan district, NW England, in the Greater Manchester metropolitan area. It has iron foundries and factories that produce cotton, machinery, rubber, paper, and hats. Athletic Industries, Inc. (NASDAQ NASDAQ 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 :HYDEA)(NASDAQ:HYDEB) announced today fiscal results for its first quarter ended April 3, 1998. 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 for the fiscal first quarter of 1998 increased to $29,624,000, or 17.5% over the comparable period in 1997. The Company reported income from continuing operations for the fiscal first quarter of 1998 of $974,000, or $0.16 per 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, compared with net income from continuing operations of $570,000, or $0.10 per diluted share, in the fiscal first quarter of 1997. John H. Fisher, Chairman and Chief Executive Officer commented, "This first quarter of 1998 was one of the most exciting in our Company's history. The revenue growth was broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased , with Saucony Domestic leading the way at 27.3%. This was due in part to the increased market demand for running shoes and an increasing fragmentation (1) Storing data in non-contiguous areas on disk. As files are updated, new data are stored in available free space, which may not be contiguous. Fragmented files cause extra head movement, slowing disk accesses. A defragger program is used to rewrite and reorder all the files. of the athletic footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). industry. Saucony's international sales were up 8.1% in the first quarter of 1998. Sales of the Company's foreign subsidiaries continued their upward growth in the first quarter of 1998, offset in part by the softness of demand for Saucony products in the Far East as a result of the Asian flu Asian Flu may refer to:
"We believe that our first quarter success will continue into the second quarter of 1998. We are projecting that net sales will increase by 9% to 12% over the second quarter of 1997 level and earnings per diluted share from continuing operations will be in the range of $0.06 to $0.09, compared to a loss of $0.02 in the second quarter of fiscal 1997. As a result of our strong first quarter performance and second quarter expectations, we believe that we are on target to achieve our previously stated 1998 annual goals of 15% to 20% net sales growth over the 1997 level and $0.40 to $0.50 earnings per diluted share." Net sales of the Company's Saucony products increased 21.6% to $25,851,000 in the first quarter of fiscal 1998 from $21,266,000 in the first quarter of fiscal 1997. Saucony domestic net sales increased 27.3% to $18,988,000 in the first quarter of fiscal 1998 due to both increased unit volumes and higher average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. . Saucony foreign net sales increased 8.1% to $6,863,000 in the same period, primarily due to increased unit volume and strong apparel sales. Net sales of other products decreased by 4.5% to $3,773,000 in the first quarter of fiscal 1998. Domestic net sales of other products increased 85.7% in the first quarter of 1998. This increase was due to increased sales of Quintana Roo Quintana Roo (kēntä`nä rō`ō), state (1990 pop. 493,277), 19,630 sq mi (50,842 sq km), SE Mexico, on the Caribbean. Chetumal is the capital. products and the introduction of Hind hind 1. emanating from or pertaining to hindlimb. 2. adult female deer, especially red and other large species. blue hind a hind which has not borne young. and Merlin Merlin, in Arthurian legend, magician, seer, and teacher at the court of King Vortigern and later at the court of King Arthur. He was a bard and culture hero in early Celtic folklore. In Arthurian legend he is famous as a magician and as the counselor of King Arthur. products, which were not offered by Hyde in the first quarter of 1997. International net sales of other products decreased 59.7% due to reduced sales of non-Hyde products at the Company's Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. subsidiary. Other income increased by $227,000 for the first quarter of fiscal 1998 primarily due to the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of foreign currency exchange rates. The Company's gross profit increased by 16.2% for the first quarter of 1998 to $9,973,000. The Company's gross margin percent decreased slightly to 33.7% in the first quarter of 1998 from 34.0% in the first quarter of 1997. Domestically, this was due to the sale in fiscal 1998 of a greater proportion of Saucony s lower-margin special make-up Make-up The amount of deficiency when a cash flow or capital item is deficient. For example, an interest make-up relates to the interest amount above a ceiling percentage. footwear compared to the first quarter of fiscal 1997. Internationally, this was due to a greater amount of close-out sales combined with the continued negative impact of the strong US dollar. Selling, general and administrative expenses as a percentage of sales decreased to 26.8% in the first quarter of fiscal 1998 from 28.5% in the first quarter of fiscal 1997. The amount of selling, general and administrative expenses increased by $735,000 to $7,933,000 in the first quarter of fiscal 1998. This increase was primarily due to increases in selling commissions, corporate payroll and expenses related to the new Hind and Merlin businesses. The Company's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at April 3, 1998 decreased by 7% over the prior comparable period. -0- Hyde Athletic Industries, Inc. designs, develops, manufactures and markets (i) a broad line of performance-oriented athletic shoes An athletic shoe is a generic name for a shoe designed for sporting and physical activities, and is different in style and build than a dress shoe. Originally known as sporting apparel, today they are known as casual footwear. for adults under the Saucony(R) brand name, (ii) high-quality bicycles and bicycle frames | A bicycle frame is the main component of a bicycle, onto which wheels and other components are fitted. The modern and most common frame design for an upright bicycle is based on the safety bicycle, and is made of two triangles, a main triangle and a paired rear triangle. under the Quintana Roo(R) and Merlin(R) names, (iii) athletic apparel under the Hind(R) brand name and (iv) shoes for coaches and officials under the Spot-Bilt(R) name. -0- This press release contains 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. that involve a number of risks and uncertainties. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words believes, anticipates, plans expects, intends and similar expressions are intended to identify forward-looking statements. Similarly, references to the Company's goals are forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the Company'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. under Item 7 Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations Certain Factors that May Affect Future Results ("Certain Factors") filed by Hyde Athletic Industries, Inc., with the Securities and Exchange Commission on April 2, 1998, which Certain Factors discussion is incorporated herein by this reference. Without limiting the foregoing, there can be no assurance as to the level of revenues or net income that will be achieved by the Company because such revenues and net income are materially dependent upon the condition of the domestic and world economies, competition from third parties and consumer preferences. -0-
HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
Assets
(in thousands)
April 3, 1998 January 2, 1998
Current assets:
Cash and cash equivalents $ 2,118 $ 4,432
Marketable securities 173 148
Accounts receivable 27,605 18,730
Inventories 23,126 23,471
Prepaid expenses and other
current assets 4,361 3,514
Total current assets 57,383 50,295
Property, plant and equipment, net 8,114 8,135
Other assets 3,257 3,194
Total assets $ 68,754 $ 61,624
Liabilities and Stockholders Equity
Current liabilities:
Notes payable $ 8,735 $ 2,885
Current maturities of long-term debt 2,320 3,639
Accounts payable 3,589 3,881
Accrued expenses and other
current liabilities 4,909 2,910
Total current liabilities 19,553 13,315
Long-term obligations:
Long-term debt 688 771
Deferred income taxes 1,919 1,921
Other long-term obligations 147 144
Total long-term obligations 2,754 2,836
Minority interest in consolidated
subsidiaries 219 195
Stockholders Equity
Common stock, $.33 1/3 par value 2,150 2,150
Additional paid in capital 15,652 15,652
Retained earnings 29,961 28,987
Accumulated translation (449) (417)
Total 47,314 46,372
Less: Common stock held in treasury,
at cost (1,054) (1,054)
Unearned compensation (32) (40)
46,228 45,278
Total liabilities and stockholders
equity $ 68,754 $ 61,62
-0-
HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share data)
Thirteen Weeks Thirteen Weeks
Ended Ended
April 3, 1998 April 4, 1997
Net sales $ 29,624 $ 25,217
Other income (expense) 76 (151)
Total revenue 29,700 25,066
Costs and expenses
Cost of sales 19,651 16,632
Selling expenses 4,423 3,964
General and administrative expenses 3,510 3,234
Interest expense 221 249
Total costs and expenses 27,805 24,079
Income from continuing operations before
income taxes and minority interest 1,895 987
Provision for income taxes 898 382
Minority interest in income of
consolidated subsidiaries 23 35
Income from continuing operations 974 570
Discontinued operations:
Loss from discontinued operation (net of tax
benefit of $190) 0 (287)
Net income $ 974 $ 283
Per share amounts:
Earnings per common share - basic:
Net income from continuing operations $ 0.16 $ 0.10
Loss from discontinued operation 0.00 (0.05)
Net income per common share - basic $ 0.16 $ 0.05
Earnings per common share - diluted:
Net income from continuing operations $ 0.16 $ 0.10
Loss from discontinued operation 0.00 (0.05)
Net income per common share - diluted $ 0.16 $ 0.05
Weighted average common shares and
equivalents outstanding 6,293 6,270
-0-
Net Sales
(Unaudited)
(in thousands)
First Quarter 1998 vs. 1997
1998 % 1997 %
Saucony $25,851 87.3% $21,266 84.3%
Other 3,773 12.7% 3,951 15.7%
Total $29,624 100.0% $25,217 100.0%
-0- CONTACT: Hyde Athletic Industries, Inc. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by Gottesman Gottesman is a fairly uncommon surname originating in Europe. Gottesman is of Germanic origin meaning man of God. Gottesman may refer to the following people:
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