Chaus (CHS) reports strong earnings for the quarter and year-
(BSNS WIRE) Bernard Chaus Reports Strong Results for Fourth Quarter and
Bernard Chaus Reports Strong Results for Fourth Quarter and Fiscal 1999 -- Net
Income More Than Doubled to $10.8 Million in Fiscal 1999
Business Editors
NEW YORK--(BUSINESS WIRE)--August 31, 1999--Bernard Chaus, Inc.
(NYSE: CHS) today announced financial results for its fiscal fourth
quarter and year ended June 30, 1999.
Fourth Quarter Results
For the fourth quarter of fiscal 1999, net income rose more than
four-fold to $2.5 million, or $0.09 per diluted share on a weighted
average of 27.3 million shares outstanding, from $546,000, or $0.02
per diluted share on a weighted average of 28.1 million shares
outstanding, in the fourth quarter last year.
Net sales increased 15.8% to $41.4 million in the fiscal 1999
fourth quarter from $35.8 million in the fourth quarter of fiscal
1998. Excluding sales of the Company's Nautica licensed brand, which
was terminated in October 1998, net sales of the Company's core Chaus
brand products increased 23.2% in the fourth quarter of fiscal 1999 as
compared to last year.
Fiscal 1999 Results
For fiscal year 1999, net income more than doubled to $10.8
million from $4.3 million in fiscal 1998. On a per share basis,
earnings per diluted share rose to $0.40 on a weighted average of 27.2
million shares outstanding in fiscal 1999, up from $0.28 on a weighted
average of 15.3 million shares outstanding last year. Had there been
27.2 million shares outstanding, earnings per share for fiscal year
1998 would have been $0.16.
Net sales in fiscal 1999 were $187.9 million compared to $191.5
million in fiscal 1998. Excluding sales from the Company's outlet
stores, all but one of which were closed in the second quarter of
fiscal 1998, and the decrease in sales from its terminated Nautica
licensed business, net sales of the Company's core Chaus brand
increased 10.8% in fiscal 1999.
Josephine Chaus, Chairwoman and Chief Executive Officer,
commented, "Chaus' strong performance continued for the fourth quarter
and fiscal year. The results were driven by the continued growth of
the Chaus brand, including the successful introduction of our two new
lines, Josephine Chaus Essentials and Josephine Chaus Studio, both of
which offer fresh new approaches to career dressing. Our earnings also
benefited from lower interest expense, reflecting our improved balance
sheet, and our continued cost control efforts.
"With our financial restructuring now behind us and our exit from
the Nautica business complete, we are fully focused on building our
core Chaus business and maximizing its potential. Toward that end, in
February 1999, we expanded our product offerings to include four
distinct lines, each addressing a particular segment of women's
wardrobe needs. We launched a new branding campaign, including a new
logo incorporating the Josephine Chaus name, and we are moving forward
with the development of a targeted advertising and marketing program.
These initiatives will be instrumental in fostering greater consumer
awareness of the Chaus brand and will complement our ongoing efforts
to increase our square footage in leading department stores. In fact,
our two new lines are serving as important catalysts in enabling us to
expand our presence in the retail marketplace.
"Our team is confident we have laid a solid foundation for Chaus'
future. Our strong momentum is continuing and we believe we can
achieve sustained earnings growth going forward. Overall, we are
optimistic about Chaus' potential as a lifestyle brand serving the
dressing needs of women today," Mrs. Chaus said.
Bernard Chaus, Inc., designs, sources and markets an extensive
range of women's career and casual sportswear, principally under the
Josephine Chaus Collection, Josephine Chaus Studio, Josephine Chaus
Essentials and Josephine Chaus Sport trademarks. The Company's
products are sold nationwide through department store chains,
specialty retailers and other outlets.
This press release contains forward-looking statements which are based
upon current expectations and involve a number of uncertainties,
including retail market conditions, acceptance of the Company's new
product line, and the continuation of the current favorable trend in
sales. Further information on potential factors which could affect the
Company's financial results are included in the Company's Form 10-K/A
for the year ended June 30, 1998 and Form 10-Q for the periods ended
December 31, 1998, September 30, 1998 and March 31, 1999.
-0-
*T
BERNARD CHAUS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except number of shares and per share amounts)
For the Quarter For the Year
Ended June 30, Ended June 30,
1999 1998 1999 1998
Net Sales $ 41,404 $ 35,768 $ 187,875 $ 191,546
Cost of goods sold 29,417 25,829 137,958 142,175
Gross profit 11,987 9,939 49,917 49,371
Selling, general and
administrative expenses 8,976 8,751 36,512 38,462
Income from operations 3,011 1,188 13,405 10,909
Interest expense, net 480 567 2,360 6,353
Income before provision
for income taxes 2,531 621 11,045 4,556
Provision for income taxes 27 75 200 245
Net income $ 2,504 $ 546 $ 10,845 $ 4,311
Basic earnings
per share $ 0.09 $ 0.02 $ 0.40 $ 0.28
Diluted earnings
per share $ 0.09 $ 0.02 $ 0.40 $ 0.28
Weighted average
number of common
shares outstanding(a)
- basic 27,116,000 27,116,000 27,116,000 15,296,000
Weighted average
number of common
and common equivalent
shares outstanding (a)
- diluted 27,262,000 28,069,000 27,191,000 15,296,000
(a) All share and per share data reflects the one-for-ten reverse
split which was effected December 9, 1997.
BERNARD CHAUS, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Dollars in thousands)
June 30, 1999 June 30, 1998
Cash and cash equivalents $ 6,208 $ 2,039
Accounts receivable, net 26,756 17,289
Inventories 18,806 17,486
Prepaid expenses 684 362
Total current assets 52,454 37,176
Fixed assets and other assets, net 1,030 1,836
Total assets $ 53,484 $ 39,012
Accounts payable and
accrued expenses $ 22,124 $ 17,497
Term loan - current 1,000 1,000
Total current liabilities 23,124 18,497
Term loan 12,500 13,500
Total liabilities 35,624 31,997
Total stockholders' equity 17,860 7,015
Total liabilities and
stockholders' equity $ 53,484 $ 39,012
*T
--30--cf/ny*
CONTACT: Bernard Chaus, Inc.
Stuart S. Levy
Chief Financial Officer
(201) 863-4646
or
Wendi Kopsick/Molly Morse
Kekst and Company
(212) 521-4800
|
