Wednesday August 27 9:18 AM EDT
Company Press Release
Cable & Co. Worldwide Inc. announces results for six months and second quarter ending June 30, 1997
NEW YORK--(BUSINESS WIRE)--August 27, 1997--
Second quarter-gross margin up by 94.6% - net loss decreased by 49.4% over last year Six months ended 6/30 - sales up by 14.6% - net loss decreased by 76.4% over last year
Cable & Co. Worldwide Inc. (the ''Company'') (NASDAQ:CCWW - news) today reported information on revenues and net income (loss) for the six month period and the three month period ended June 30, 1997.
Revenues for the six month period ending June 30, 1997 rose by 14.6% to $7,279,041 from $6,349,497 for the comparable period last year. Gross profit margin rose to 37.0% from 28.5% for the comparable period in 1996 and the net loss decreased to $1,094,079 or 14 cents per share from $4,638,801 or $2.39 per share for the same period last year.
Revenues for the second quarter decreased by 3.3% to $2,584,481 from $2,672,915 for the comparable period last year. Net loss for the period however decreased by 49.4% over the same period last year, from $1,771,313 or 85 cents per share last year to $896,616 or 9 cents per share for the current period. Gross profit margin nearly doubled from 18.6% for last year's second quarter to 36.2% for the current period.
Shares outstanding at June 30, 1997 and June 30, 1996 respectively were 16,482,997 and 2,762,206.
Commenting on these results, Alan Kandall, the company's president and chief executive officer said, ''In our industry the acceptable gross margin range is 35% to 40%, and substantial sums of money must be spent to create brand recognition and infrastructure to serve the customer base. Because of these factors a critical mass threshold to profitability exists at about the $20 million sales level. In that context, we are greatly encouraged that the results for the six month period ended 6/30/97 show substantial improvement in every category; sales, gross margin and net income. Given the fact that the second quarter is traditionally the slowest quarter in our business, we are also very pleased with these results. We are ahead of plan for this quarter. The slight drop in sales is misleading in that last year's sales included over $485,000, which resulted from a special promotion based on a highly discounted price structure and this year the company, being in a stronger position, did not offer this discount program. It is especially encouraging that our gross margin has almost doubled from 18.6% to 36.2% from last year's second quarter.''
He continued, ''The output of our new Italian factory continues to be excellent in terms of volume, quality, timeliness and profitability. Our neckwear line of Italian made ties is on target to be in stores for the 1997 holiday season.''
Kandall concluded, ''Based on our current backlog and sales forecasts, our third quarter looks very promising. Most importantly, we continue to be on track for our sales and profitability plan for the calendar year 1997.''
Cable & Co. Worldwide Inc. designs, manufactures, imports and markets an upscale range of men's footwear bearing the ''CABLE & CO.'' and ''BACCO BUCCI'' trademark. The company markets its products to approximately 1,500 department and speciality store locations throughout the United States.
This press release contains statements of a forward-looking nature relating to future
events. Shareholders are cautioned that such statements are predictions and that actual
events or results may differ significantly.
This release is available on the KCSA Public Relations website at www.kcsa.com .
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Contact:
KCSA
Bob Giordano, Joe Mansi,
212/682-6300 ext. 289/215 |
