FORSTMANN & COMPANY REPORTS FIRST QUARTER EARNINGS
FORSTMANN & COMPANY REPORTS FIRST QUARTER EARNINGS NEW YORK, March 10 /PRNewswire/ -- Forstmann & Company, Inc.
(NASDAQ: FSTM) announced today that sales increased 7.2 percent to $35.8 million for the 14-week period ended Feb. 2, 1992 (the "1992 first quarter") from $33.4 million for the 13-week period ended Jan. 27, 1991 (the "1991 first quarter").
The company also reported a $1.3 million increase in operating income with $1.0 million for the 1992 first quarter compared to an operating loss of $0.3 million for the 1991 first quarter. Chris Schaller, chairman, president and chief executive officer, commented, "The significant turnaround in operating performance in what has traditionally been the company's weakest quarter was primarily the result of a 35 percent increase in the company's gross margins, to 15.7 percent from 11.6 percent, and a 44.4 percent increase in gross profit during the same period." Order backlogs for Forstmann's core business (excluding government orders) as of March 1, 1992, showed a 26.3 percent gain over the comparable date in the prior year. The company also announced a reduction in net loss of 23.6 percent for the 1992 first quarter to $2.4 million, from $3.2 million net loss for the 1991 first quarter. Adjusting for the recent initial public offering, private placement, exchange offer, the 1-for-2,172 reverse stock split effected pursuant to the merger of an affiliate corporation with and into the company, and closing of an $85 million senior secured revolving credit facility, as if such events took place at the beginning of the applicable quarter, the pro forma net loss for the 1992 first quarter was $1.6 million (or $.28 per share) versus a pro forma net loss of $2.4 million (or $.42 per share) for the 1991 first quarter, based on 5,585,692 common shares outstanding. "The sales gains we achieved in this difficult market environment, the turnaround in operating profits and the increases we posted in order backlogs underscore the success of the company's new customer-driven business strategy and improved market position," said Schaller. "With our enhanced financial structure, management has the flexibility to continue the momentum achieved through the remainder of fiscal 1992 and beyond." Forstmann is a leading designer, marketer and manufacturer of high quality, fashionable fabrics for use in the production of brand name womenswear, menswear and outerwear. The company employs approximately 3,000 people and has four operating plants in Dublin, Milledgeville and Louisville, Ga. where it makes a wide range of fabrics for apparel, contract furnishings and various industrial markets. The company's corporate headquarters and marketing offices are located in New York. FORSTMANN & COMPANY, INC. Selected Operating Results (Unaudited) (Amounts in thousands, except per share data) Actual Pro Forma Periods 14 Weeks 13 Weeks 14 Weeks 13 Weeks Ended 2/2/92 1/27/91 2/2/92 1/27/91 Net sales $35,751 $33,350 $35,751 $33,350 Gross profit $ 5,605 $ 3,881 $ 5,605 $ 3,881 Gross margin (in pct) 15.7 11.6 15.7 11.6 Operating inc. (loss) $ 1,032 $ (298) $ 1,032 $ (298) Interest expense (A) 4,953 4,837 3,500 3,423 Net loss $(2,432) $(3,184) $(1,590) $(2,361) Loss per share applicable to common shareholders (B) $(.44) $(.57) $(.28) $(.42) Pro forma average common shares outstanding (C) 5,585,692 5,585,692 5,585,692 5,585,692 (A) -- The pro forma amounts have been adjusted to reflect the net reduction in interest expense resulting from the initial public offering, private placement, exchange offer and closing of the $85 million senior secured revolving credit facility as if such events took place at the beginning of the applicable quarter. See Amendment Number 5 to the company's registration statement on Form S-1 filed on Feb. 26, 1992, with the Securities and Exchange Commission for more detailed related information. (B) -- Actual loss per share applicable to common shareholders is computed by dividing the company's historical net loss applicable to common shareholders by the pro forma average shares outstanding (5,585,692). (C) -- The pro forma average common shares outstanding are based on the consummation of the initial public offering, private placement, exchange offer and related transactions. -0- 3/10/92 /CONTACT: Dawn Dover or Roanne Kulakoff of Kekst and Company, 212-593-2655, for Forstmann & Company/ (FSTM) CO: Forstmann & Company, Inc. ST: New York IN: TEX SU: ERN
GK-SO -- NY017 -- 6760 03/10/92 09:52 EST
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|Date:||Mar 10, 1992|
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