Kasper A.S.L., Ltd. Reports First Quarter 2001 Results.Business Editors SECAUCUS, N.J.--(BUSINESS WIRE)--May 15, 2001 Kasper A.S.L., Ltd. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: KASP KASP Kansas Association of School Psychologists ) today reported financial results for the first quarter ended March 31, 2001. Revenues for the first quarter of fiscal 2001 rose 13.4% to $126.1 million from $111.2 million a year ago. Gross profit as a percent of total revenues decreased to 29.2% for the quarter from 33.8% for the comparable period of fiscal 2000. Net loss for the thirteen-week period was $717,000, or $0.11 per share, compared to net income of $1.7 million, or $0.24 per share, for the same period last year. Included in the net loss for the first quarter 2001 is a $1.4 million, or $0.20 per share charge for costs incurred in connection with the implementation of the Company's restructuring initiatives. Net income per share for the first quarter 2001 was $.09 excluding restructuring charges 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. . Arthur S. Levine, Chairman and Chief Executive Officer, commented, "Despite the difficult apparel marketplace and continued pressure on gross margins caused by the high level of promotional activity experienced in department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , we are pleased with the performance of our Kasper A.S.L. suit line, which experienced improved sell-through at our retail accounts for the first quarter 2001 compared with the same period last year. Our wholesale division continues to show signs that our business improvement and restructuring initiatives are working, as general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. have been reduced by $900,000 over the first quarter 2000, contributing to an increase in wholesale EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become before restructuring charges of $400,000." As previously announced, the Company did not make its March 31, 2001 and September 30, 2000 semi-annual interest payments of approximately $7.2 million each to holders of its 13% Senior Notes. The Company continues to be engaged in discussions with an ad hoc committee ad hoc committee A committee formed with the purpose of addressing a specific issue or issues, which theoretically is disbanded once its raison d'etre is finished of the holders of the Senior Notes for the purpose of reaching a restructuring that will allow the Company to meet its financial obligations and enhance its short- and long-term ability to pursue its strategic plans. The Company is current with all of its other payment obligations to its banks and vendors. In addition, the Company is not in compliance with certain financial covenants under its Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility, a syndicated facility led by The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. . The Company is currently in negotiations with the participating lenders under the Facility, to waive such defaults and amend certain covenants. Kasper A.S.L., Ltd. is a leading marketer and manufacturer of women's suits and sportswear, as well as career dresses. The Company's product lines are sold in over 2,000 retail locations throughout 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. , Europe, the Middle East, Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. and Canada, and the Company's retail outlet retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → stores. The Company currently distributes its products under the KASPER A.S.L.(R), ANNE KLEIN Anne Klein (August 3, 1923 - March 19, 1974) was an American fashion designer whose label was continued by designer Donna Karan after Anne Klein's death. Anne Klein was born as Hannah Golofski in New York City on August 3, 1923. (R), ANNE KLEIN2(TM), A LINE ANNE KLEIN(TM), LeSUIT(R), and ALBERT NIPON(R) labels. The Company also licenses its ANNE KLEIN(R), ANNE KLEIN2(TM), KASPER(R) and ALBERT NIPON(R) labels for various men's and women's products. 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. within the meaning of the U.S. federal securities laws. Such forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. For a discussion of those risks and uncertainties, please see "Disclosure Regarding Forward-Looking Information" in Kasper's Annual Report on Form 10-Q Form 10-Q See 10-Q. , filed with the U.S. Securities and Exchange Commission on May 15, 2001. The Company undertakes no obligation to release publicly the results of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.
KASPER A.S.L., LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Thirteen Weeks Thirteen Weeks
Ended Ended
March 31, April 1,
2001 2000
(Unaudited) (Unaudited)
Net sales $ 122,681 $ 107,589
Royalty income 3,434 3,579
Cost of sales 89,303 73,640
Gross profit 36,812 37,528
Operating Expenses:
Selling, general and
administrative expenses 25,881 26,163
EBITDAR 10,931 11,365
Depreciation and amortization 2,883 2,682
Restructuring charges 1,361 --
Total operating expenses 30,125 28,845
Operating income 6,687 8,683
Interest and financing costs 7,054 5,838
(Loss) income before
provision for income taxes (367) 2,845
Provision for income taxes 350 1,195
Net (loss) income $ (717) $ 1,650
Basic (loss) earnings
per common share (.11) .24
Diluted (loss) earnings
per common share (.11) .24
Weighted average number
of shares used in computing
Basic (loss) earnings
per common share 6,800,000 6,800,000
Weighted average number
of shares used in computing
Diluted (loss) earnings
per common share 6,800,000 6,800,000
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