Mikasa, Inc. Reports First Quarter Financial Results.
SECAUCUS, NJ--(BUSINESS WIRE)--April 27, 2000
Mikasa, Inc. (NYSE:MKS) today announced financial results for the first quarter ended March 31, 2000.
Operating income increased to $1.4 million for the first quarter ended March 31, 2000, compared to an operating loss of $0.4 million in the first quarter of 1999. Net income for the first quarter was break even, compared to a net loss of $1.2 million, or $0.07 per diluted share for the first quarter of 1999. Net sales were $80.3 million for both the first quarters ended March 31, 2000 and 1999. Sales to retail accounts decreased 4.0%, from the first quarter of 1999, while comparable store sales decreased 5.7% over the prior year period. International sales increased 31% for the quarter. Gross profit for the first quarter increased 2.7% to $37.9 million, compared to $36.9 million for the prior year, gross margins expanding 120 basis points to 47.2%. Selling, general and administrative expenses for the quarter decreased to 45.5% of sales, versus 46.4% of sales in the first quarter of 1999.
"Despite the fact that sales for the quarter were flat, we are pleased with our continuing improved financial performance for the quarter," commented Raymond B. Dingman, President and Chief Executive Officer. "Comparable store sales for the first quarter were hampered by the timing of the Easter Holiday, given the fact that many of our locations are in tourist and vacation destinations. Our gross profit margin significantly improved 120 basis points to 47.2%. Our overall international sales performance continued on its successful track with a 31% increase in net sales for the firstquarter over the prior period. We are encouraged that we have been able to continue to improve our operating efficiencies and have successfully reduced selling, general and administrative expenses by 90 basis points during the quarter."
Mr. Dingman concluded, "As we look ahead, we remain confident regarding our future prospects. With our overall expenses showing nice improvement, we plan to expand our efforts in branded advertising during the latter part of the year. We fully expect that the strength of the Mikasa brand name, as well as the infrastructure, operating and growth strategies we have in place will continue to fuel our growth going forward and continue to generate improved profitability and efficiencies."
Mikasa, Inc. is a leading designer, developer and marketer of quality tabletop products. The Company markets its products to retail accounts, including department stores, specialty retail stores and mass merchants, and through Company operated retail stores.
With the exception of the historical information contained in this press release, the matters described herein contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties and other factors beyond the Company's control, which may cause material differences in actual results, performance or other expectations. Those factors include risks and uncertainties relating to the Company's ability to open new stores within planned parameters, the success of new product introductions and the continued success of existing products, our ability to enhance margins through future gains in efficiency, the capabilities of our distribution system to handle increased volume and the general business risks associated with a consumer products company. These and other factors are detailed in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission.
MIKASA, INC. AND SUBSIDIARIES (In thousands, except per share data) (Unaudited) For The Three Months Ended March 31, 2000 1999 Net sales by channel of distribution: Direct to consumers $ 44,689 $ 45,667 Retail accounts 26,837 27,952 International 8,819 6,716 Total 80,345 80,335 Cost of sales 42,404 43,390 Gross profit 37,941 36,945 Selling, general and administrative expenses 36,533 37,305 Income (loss) from operations 1,408 (360) Interest expense, net 1,464 1,567 Income (loss) before income taxes (56) (1,927) Income tax provision (benefit) (22) (756) Net income (loss) $ (34) $(1,171) Basic and diluted net income (loss) per share of common stock $ (0.00) $ (0.07) Weighted average number of shares of common stock outstanding and dilutive securities 17,121 17,816 Cash dividend per share of common stock $ 0.05 $ 0.05 As Of March 31, 2000 1999 Consolidated Balance Sheet Data Highlights: Cash and cash equivalents $26,746 $29,931 Accounts receivable trade, net 30,521 31,408 Inventories 155,752 147,801 Current assets 220,896 218,368 Total assets 352,343 351,701 Current liabilities 46,089 50,752 Long-term liabilities 95,977 104,397 Stockholders' equity 210,277 196,552