great qtr
PremiumWear, Inc. Announces 71% Earnings Increase On 51% Revenue Growth For 2000's First Quarter
First-Quarter Diluted EPS Advances to $0.19 from $0.12
MINNETONKA, Minn., April 19 /PRNewswire/ -- PremiumWear, Inc.
(Nasdaq: WEAR) today announced financial results for 2000's first quarter,
which ended April 1, 2000. The financial results for the quarter were marked
by substantial improvements in revenues and profitability.
First-quarter revenues advanced 51% to $13.7 million from $9.0 million for
last year. During the first quarter, PremiumWear experienced a strong
increase in order rates for its Munsingwear(R) corporate apparel for the
promotional products/advertising specialty industry. The Company also
benefited from a full quarter of commission income from Klouda-Lenz, Inc.,
which was acquired toward the end of last year's first quarter.
Net income for 2000's first quarter increased 71% to $497,000, or $0.19
per share, from the $290,000, or $0.12 per share, reported for last year's
first quarter. Last year's first-quarter results included an operations
restructuring charge of $100,000 pretax (or approximately $60,000, or $0.02
per share, after tax) related to the shutdown of the Company's North Carolina
facility.
David E. Berg, President and CEO, said, "Our first-quarter financial
results mark a powerful start to 2000. The dramatic revenue growth is due to
the market's reaction to our unique line of in-stock, quick-response product.
There has been an industrywide surge in demand for promotional products,
especially apparel. However, we have clearly outpaced the market and
continued to gain market share."
"In the first quarter, operating margin as a percent of revenue improved
to 6.5% compared with 5.0% for last year's first quarter, primarily the result
of increased revenues and higher gross margins. During the year, we expect
additional expansion in operating margin as our new distribution facility in
Clarksville, Tennessee, gains operating experience."
"Credit for our improved results also belongs to our entire team of
employees. Because of their hard work and dedication, we recorded one of our
best quarters since refocusing our business on promotional products. We
expect this trend to continue through fiscal 2000 and beyond," Berg concluded.
PremiumWear, Inc., based in Minnetonka, Minn., designs, sources and
markets knit and woven shirts and other apparel and accessories to the
promotional products/advertising specialty industry (PPAI/ASI) and to golf pro
and resort shops. PremiumWear's products are marketed under its Page &
Tuttle(R) brand and the licensed Munsingwear(R) brand. The Company markets on
a commission basis additional, complementary branded products to the
promotional products/advertising specialty industry. These branded product
lines include: California Outerwear, Burk's Bay(TM) leather outerwear and
accessories, Winona Knitting Mills sweaters, CROAKIES(R) eyewear restraints
and other accessories, and Softspikes(R) golf accessories. |
