Hyde announces third 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)--Nov. 5, 1996--Hyde Athletic Industries announced today record third quarter sales of $27,714,000, an 8.0% increase over 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 the third quarter of 1995 of $25,649,000. Net income for the 1996 fiscal third quarter was $603,000, or $.10 per share, compared with $319,000, or $.05, in the third quarter of 1995. Net sales for the thirty-nine week period ended October October: see month. 4, 1996 were $88,646,000 with net income of $.23 per share, compared with net sales of $81,301,000 with net income of $.29 per share in the comparable 1995 period. John H. Fisher, Chairman and Chief Executive Officer, commented, "I am very pleased with the third quarter results and the increasing momentum of our Saucony brand in a highly competitive global marketplace. We believe our focus on cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). and biomechanical Biomechanical may refer to:
By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. share and broaden its distribution. In regard to the Brookfield Company, the market oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies of roller skates roller skates npl → patines mpl de rueda roller skates roll npl → patins mpl à roulettes roller skates roll npl and in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. roller roller, common name for brightly colored Old World birds noted for performing somersaults in flight. They include the rollers proper (subfamily Coraciinae) and ground rollers (subfamily Brachypteraciinae products at the retail level has resulted in disappointing performances in the third quarter and for the nine months." The third quarter of 1996 saw Saucony brand worldwide net sales increase by more than 11% over the comparable 1995 period. This increase reflected an 8% increase in domestic sales and an increase of 17% in foreign sales. These increases reflect both an increase in average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. as well as an increase in foreign unit volume. Brookfield worldwide sales decreased by 13% in the third quarter of 1996, in comparison with the 1995 third quarter, reflecting a domestic sales reduction of 50%, offset in part by a foreign sales increase of 107%. The reduction in domestic sales was affected by more conservative credit risk management with some major accounts and the inability to place new product introductions into the marketplace because of continuing excessive inventory levels at retail. The increases overseas came primarily through the sale of Spalding licensed products into Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and increased sales of Barbie Barbie in full Barbara Millicent Roberts A plastic doll, 11.5 in. (29 cm) tall, with the figure of an adult woman that was introduced in 1959 by Mattel, Inc., a southern California toy company. roller skates and related accessories. Net sales of other products, including the Company's 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. , Spot-bilt, 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. and non-corporate brands, increased by 65% in the third fiscal quarter of 1996, over the comparable period in 1995. Total 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. as of November 1, 1996 was 11.4% greater than at October 27, 1995, reflecting a backlog increase of 5.4% at Saucony, a decrease of 17.6% at Brookfield and 130% for other product categories. Gross margin for the third quarter of 1996 decreased to 31.8% versus 31.9% for the comparable 1995 period. Similarly, gross margin decreased to 29.7% in the thirty-nine weeks ended October 4, 1996, from 32.1% in the comparable 1995 thirty-nine week period. Gross margin of Saucony products improved both domestically and overseas in the third fiscal quarter of 1996 in comparison with the third fiscal quarter of 1995. Brookfield domestic margins were reduced while overseas margins were strengthened in the third fiscal quarter of 1996 in comparison with the third fiscal quarter of 1995. Selling, general and administrative expenses were reduced by $241,000 in the third quarter of 1996 compared with the third fiscal quarter of 1995 and were reduced as a percentage of net sales from 30.3% in the 1995 period to 27.2% in the 1996 period, primarily because of a lower level of marketing and selling expenses. Selling, general and administrative expenses decreased by $174,000 for the comparable thirty-nine week period due primarily to decreases in corporate selling expenses offset in part by increases in advertising and promotion. Selling, general and administrative expenses declined as a percentage of net sales in the comparative thirty-nine week period from 29.1% in 1995 to 26.5% in 1996. The Company's other income was lower in the third fiscal quarter of 1996 compared with the third quarter of fiscal 1995, due primarily to lower foreign currency transaction income on U.S. dollar denominated obligations held by the Company's foreign subsidiaries. As of October 4, 1996 the Company's cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has were $5,423,000, a decrease of $6,553,000 from January 5, 1996. The decrease was primarily the result of significant increases in the Company's accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , reflecting higher sales levels for the quarter and for the nine months of 1996 versus the fourth quarter of 1995 and trade selling programs providing for longer than normal payment terms offset in part by a decrease in the Company's inventory. -0- Hyde Athletic Industries, Inc. designs, develops, manufactures and markets a broad line of performance oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. 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). products for adults under the Saucony and Spot-bilt brand names and outdoor recreational products for children and young adults under licensed names, such as Barbie, Playskool and Franklin, as well as Brookfield and other proprietary names of the Company. The Company's Saucony products include running, walking, cross training, and outdoor trail shoes. The Company's Spot-bilt products include footwear for coaches and officials. The principal Brookfield products are roller skates and roller hockey roller hockey n. Hockey played on a hard surface in which two opposing teams of roller skaters, using curved sticks, try to drive a ball into the opponents' goal. skates Skates may refer to:
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. Important factors that could cause actual results to differ materially from those indicated by such forward- looking statements are set forth in Exhibit 99.1 to the Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed by Hyde Athletic Industries, Inc. with the Securities and Exchange Commission on March 20, 1996, which is incorporated herein by this reference. Without limiting the foregoing, there can be no assurance as to the level of revenues that will be achieved by the Company because such revenues are materially dependent upon the condition of the domestic and world economies, competition from third parties and consumer preferences. -0-
HYDE ATHLETIC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
ASSETS
October 4, January 5,
1996 1996
CURRENT ASSETS
Cash and cash equivalents $ 5,225,522 $ 11,668,316
Marketable securities 197,115 307,500
Accounts receivable 27,165,524 17,361,195
Inventories 24,276,239 26,831,600
Prepaid expenses and other
current assets 2,591,786 3,021,479
TOTAL CURRENT ASSETS 59,456,186 59,190,090
PROPERTY, PLANT, AND EQUIPMENT, NET 9,197,181 8,122,937
OTHER ASSETS
Investments in limited
partnerships 753,433 753,433
Other assets 1,282,503 1,404,829
TOTAL OTHER ASSET 2,035,936 2,158,262
TOTAL ASSETS $ 70,689,303 $ 69,471,289
-0-
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Notes payable $ 3,896,027 $ 4,336,940
Accounts payable 4,891,063 5,055,967
Accrued expenses and other
current liabilities 3,542,479 3,136,653
Current maturities of long
term debt 2,440,724 2,199,225
TOTAL CURRENT LIABILITIES 14,770,293 14,728,785
LONG TERM DEBT 3,350,321 4,205,568
DEFERRED INCOME TAXES 1,929,192 2,001,655
MINORITY INTEREST 583,223 170,227
STOCKHOLDERS EQUITY
Common stock,
$.33 1/3 par value 2,145,095 2,138,514
Additional paid in capital 15,584,382 15,521,470
Retained earnings 33,666,647 32,210,867
Accumulated translation (188,272) (257,694)
Total 51,207,852 49,613,157
Less: Unearned compensation 97,788 194,313
Treasury stock 1,053,790 1,053,790
TOTAL STOCKHOLDERS EQUITY 50,056,274 48,365,054
TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY $ 70,689,303 $ 69,471,289
-0-
HYDE ATHLETIC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEKS AND THIRTY-NINE WEEKS ENDED OCTOBER 4, 1996 AND
SEPTEMBER 29, 1995
(Unaudited)
13 Weeks 13 Weeks 39 Weeks 39 Weeks
Ended Ended Ended Ended
Oct. 4, Sept. 29, Oct. 4, Sept. 29,
1996 1995 1996 1995
------- ------ ------- -------
Net sales $27,713,518 $25,649,266 $88,646,401 $81,300,904
Other income 95,914 383,692 713,161 1,369,781
Total revenue 27,809,432 26,032,958 89,359,562 82,670,685
Costs and Expenses
Cost of sales 18,903,001 17,464,091 62,339,454 55,220,901
Selling, general and
administrative
expenses 7,534,441 7,775,764 23,475,907 23,649,529
Interest expense 230,660 228,306 732,905 974,937
Total Costs and
Expenses 26,668,102 25,468,161 86,548,266 79,845,367
Income before income
taxes and minority
interest 1,141,330 564,797 2,811,296 2,825,318
Provision for
income taxes 392,183 220,581 980,110 1,098,528
Minority interest in
income (loss) of
consolidated
subsidiaries 146,529 24,808 375,406 (60,594)
Net income $ 602,618 $ 319,408 $1,455,780 $1,787,384
Per share amounts:
Net income $0.10 $0.05 $0.23 $0.29
Weighted average common
shares and equivalents
outstanding 6,268,925 6,231,606 6,246,370 6,243,411
Cash dividends per share
of common stock $ 0 $ 0 $ 0 $ 0
-0-
Net Sales
Third Quarter 1996 vs. 1995
1996 % 1995 %
Saucony $ 17,214,426 62.1% $ 15,445,919 60.3%
Brookfield 7,104,459 25.7% 8,145,009 31.8%
Other 3,394,633 12.2% 2,058,338 8.0%
Total $ 27,713,518 100.0% $ 25,649,266 100.0%
YTD 1996 vs. YTD 1995
1996 % 1995 %
Saucony $ 64,100,395 72.3% $ 57,291,987 70.6%
Brookfield 15,002,899 16.9% 17,983,631 22.1%
Other 9,543,107 10.8% 6,025,286 7.4%
Total $ 88,646,401 100.0% $ 81,300,900 100.0%
CONTACT: Charles A. Gottesman 508/532-9000 |
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