Earnings are out....
Oakley reports 1997 first quarter financial results
Thursday, April 17, 1997 8:45 AM
IRVINE, Calif.,--(BUSINESS WIRE)--April 17, 1997--Oakley Inc. (NYSE:OO) Thursday announced net income for the first quarter ended March 31, 1997 of $0.5 million, or $0.01 per share, compared with net income of $11.0 million, or $0.15 per share, for the comparable 1996 period.
The company reported net sales for the first quarter of $34.4 million vs. $48.7 million for the prior-year period. Domestic net sales for the first quarter totaled $17.6 million and international net sales were $16.8 million, compared with $30.5 million and $18.2 million, respectively, for the comparable 1996 period.
The company reported a gross margin of 57.1% vs. 69.9% for the prior-year period. The decrease is attributable to a number of factors related to lower sales and production levels experienced during the quarter.
"The expected residual impact of Sunglass Hut's higher inventory levels, along with sluggish sales to our remaining retailer base, contributed to a disappointing quarter," said Link Newcomb, Oakley's chief operating officer. "As we enter into the spring and summer months, we remain optimistic that the improvement in business with Sunglass Hut and new product introductions will help to invigorate sales and provide the necessary leverage to improve our bottom line."
In February, Oakley released limited quantities of Romeo, the first product in its X Metal sunglass line, to selected high-end optical dealers. The reception of Romeo in the market has been strong and the company expects to expand the roll out of Romeo in the second quarter. In addition, Oakley plans to introduce by early May a new product line, Fives, which features a smaller, sleek frame design that the company believes will have particular appeal to women and younger consumers. Oakley also expects to introduce several other new products during the year.
Oakley is an innovation-driven designer, manufacturer and distributor of high-performance eyewear. -0-
This news release contains certain statements that are forward- looking. Such statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to the dependence on sales to Sunglass Hut; the acceptance in the marketplace of new products; the ability to source raw materials at favorable prices to the company; currency fluctuation; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended Dec. 31, 1996. The company undertakes no obligation to update this forward-looking information. -0- *T
OAKLEY INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Three Months Ended
March 31,
1997 1996 Net sales $34,403 $48,706 Cost of goods sold 14,747 14,642
Gross profit 19,656 34,064
Operating expenses:
Research and development 551 949
Selling 12,010 10,091
Shipping and warehousing 1,253 1,423
General and administrative 5,007 3,948
Total operating expenses 18,821 16,411
Operating income 835 17,653
Interest (income) expense, net (58) (189) Income before provision for income taxes 893 17,842
Provision for income taxes 343 6,869 Net income $550 $10,973
Earnings per share $0.01 $0.15
Weighted average shares outstanding 70,669 71,832
-0-
March 31,
1997 1996 Other Operating Data: (dollars in thousands)
Sunglasses:
Units 628,428 990,353
Sales before discounts(1) $30,045 $47,581
Net sales:
Domestic $17,613 $30,470
International $16,790 $18,236
Backlog $8,416 $18,660
(1) Does not reflect returns relating to defective product. -0-
March 31,
1997 1996 Selected Balance Sheet Data: (in thousands)
Cash and cash equivalents $2,382 $16,879 Inventories 28,773 22,548 Accounts receivable less
allowance for doubtful accounts 22,362 24,775 Accounts payable and accrued liabilities 16,105 14,587
Total debt 31,000 -- *T
Sam |
