great numbers
PremiumWear, Inc. Announces 24% Revenue Growth for 1999's Fourth Quarter
1999 Diluted EPS Advances to $0.96 Versus 1998's $0.62,
Excluding Special Items
MINNETONKA, Minn., Feb. 24 /PRNewswire/ -- PremiumWear, Inc.
(Nasdaq: WEAR) today reported improved financial results for the fourth
quarter and full year ended January 1, 2000.
Fourth-quarter earnings were $522,000, or $0.20 per share, after charges
for restructuring of $298,000 before tax, or approximately $183,000 ($0.07 per
share) after tax, for the startup of the Company's new embroidery and
distribution operations in Clarksville, Tenn. Excluding special charges,
fourth-quarter net income advanced 44% to $705,000, or $0.27 per share, from
the $489,000, or $0.20 per share, for 1998. For this comparison, 1998's
results exclude a $472,000 pre-tax asset impairment charge and $398,000 gain
on the sale of trademarks, the net effect of which was a $45,000, or $0.02 per
share, after-tax charge against earnings.
For 1999's fourth quarter, revenues increased 24% to $11.7 million from
$9.4 million for the year-ago quarter.
For 1999, net income was $1.4 million, or $0.56 per share, after a special
charge of $1.7 million before tax, or approximately $1.1 million ($0.40 per
share) after tax, for the transfer of embroidery and distribution operations
from the closed Fairmont, N.C., facility to a new, leased facility in
Clarksville, Tenn. Excluding the special items, net income increased 69% to
$2.5 million, or $0.96 per share, over the $1.5 million, or $0.62 per share,
in net income recorded for 1998.
1999 revenues were $47.0 million, an 11% increase from last year's $42.4
million.
David E. Berg, President and CEO, said, "We are very pleased with our
fourth-quarter and year-end results. Excluding special charges, 1999 gross
margin and operating income, as a percent of revenues, both improved several
percentage points to 32.6% and 8.7%, respectively, compared with 25.4% and
5.6% last year. This improvement is the result of implementing several
strategies, including: acquiring in early 1999 Klouda-Lenz, which had served
as our independent sales agency; further developing Page & Tuttle(R) as an
upscale brand; closing our domestic manufacturing in favor of completely
outsourcing to lower-cost offshore manufacturers; and moving the Company's
embroidery and distribution operations to our new, more efficient and more
centrally located Clarksville, Tennessee, facility.
"We believe that these factors will continue to enhance PremiumWear's
profitability in 2000. In addition, management has been hard at work
targeting potential acquisitions and business partnerships, such as our recent
marketing agreements with CROAKIES(R) and SOFTSPIKES(R), to complement our
internal sales growth, which will be driven in large part by Page & Tuttle(R).
Besides augmenting sales growth, we expect acquisitions and partnerships to
increase the breadth of brands and products we offer to the ASI/PPAI markets,"
Berg commented. |
