REPEATING/Bolle Inc. Announces First Quarter 1998 Results.RYE, NY--(BUSINESS WIRE)--May 6, 1998--Bolle Inc. (Nasdaq: BEYE), today reported financial results for the first quarter ended March 31, 1998. For the first quarter, 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 increased 112% to $10.7 million, compared to $5.1 million during the same period in fiscal 1997. The Company reported net income of $25,000, or breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations per basic and diluted share in 1998, after accounting for preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , compared to a net loss of $331,000, or ($3,310) per basic and diluted share for the same period in 1997. Only first quarter 1998 results include the operations of Bolle France which was acquired in July 1997. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, assuming Bolle France was included in both periods, net sales were $10.7 million, compared to pro forma net sales of $12.9 million in 1997, and the pro forma net income was $158,000, or $19,000 after accounting for preferred dividends, compared to pro forma net income of $30,000, in 1997. On a pro forma basis, 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 (earnings before interest, taxes, and depreciation Earnings before interest, taxes, and depreciation (EBITD) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. , and amortization) was $1.2 million in both periods. Martin E. Franklin, Chairman of Bolle Inc., commented, "First quarter results were in-line with our expectations. 1998 is a transitional year for Bolle Inc. as the Company moves towards an integrated global operation, dedicated to promoting the quality, style and functionality synonymous with synonymous with adjective equivalent to, the same as, identical to, similar to, identified with, equal to, tantamount to, interchangeable with, one and the same as Bolle branded products. From a strategic standpoint, the first quarter marked an important milestone for our Company as it included Bolle Inc.'s entry into the public market, a result of the spinoff in March 1998 from BEC Group, Inc. This spinoff has allowed Bolle to operate as a pure play Company, focused on building a strong active lifestyle brand." Mr. Gary Kiedaisch, Chief Executive Officer of Bolle Inc., noted, "In an effort to heighten Bolle's brand name worldwide, we have focused heavily on the vertical integration and brand unification component of our operating strategy. This is evidenced by our purchase of Bolle Canada and the upcoming completion of our acquisitions of 75% of Bolle Australia, and all of Bolle Asia and Bolle Sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses in the UK. These acquisitions are an integral component of our overall operating strategy as they allow management further control over the brand's distribution." Mr. Kiedaisch concluded, "There have been a number of exciting events that convince us that our strategy is starting to work. Most notably, Sunglass Hut International Sunglass Hut International is North America's largest retailer of sunglasses. The company was founded in 1971 and acquired by Luxottica in 2001. History The Start of SGH Sunglass Hut was founded in 1971 by Sanford Ziff in Miami, Florida. , Inc. recently identified Bolle Inc. as one of a select number of preferred vendors. We are very pleased with this preferred status recognition, and look forward to growing our business with them through prime store locations, cooperative marketing, and chainwide distribution of products." Bolle Inc. (Nasdaq: BEYE), is a vertically integrated designer, manufacturer and marketer of Bolle. branded eyewear, including Bolle. premium sunglasses, goggles goggles, n the protective eyewear worn by dental personnel and patients during dental procedures. goggles see periocular leukotrichia. , and tactical and safety eyewear. Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Bolle Inc.'s actual results could differ materially from those expressed or indicated by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in fashion trends, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the retail industry, use of contract manufacturing and foreign sourcing, import restrictions, competition, seasonality and other factors. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. -0-
Bolle INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except share and per share information)
Quarter ended March 31,
1998 1997
NET SALES $ 10,728 $ 5,058
COST OF SALES 5,288 2,778
GROSS PROFIT 5,440 2,280
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 5,430 3,034
INTEREST EXPENSE 484 21
OTHER INCOME (515) (288)
INCOME (LOSS) BEFORE
INCOME TAXES 41 (487)
PROVISION FOR (BENEFIT FROM)
INCOME TAXES 16 (156)
NET INCOME (LOSS) $ 25 $ (331)
PREFERRED DIVIDEND 29 -
NET LOSS ATTRIBUTABLE
TO COMMON STOCK $ (4) $ (331)
WEIGHTED AVERAGE
SHARES OUTSTANDING
BASIC 1,476,351 100
DILUTED 1,566,124 100
EARNINGS PER SHARE
BASIC ($0.00) ($3,310)
DILUTED ($0.00) ($3,310)
CONTACT: Martin E. Franklin, Chairman Ian Ashken, Chief Financial Officer 914-967-9475 Gary Kiedaisch Chief Executive Officer 303-321-4300 Investor Relations Investor relations The process by which the corporation communicates with its investors. : Gordon McCoun\Shannon Moody Press: Michael McMullan Morgen-Walke Associates 212-850-5600 |
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