SPNT Shopnet.Com Reports Record 3rd Quarter Sales and Earnings; Company Anticipates Accelerated Growth Due to Popularity of New Swim Wear Lines
NEW YORK, May 21, 2002 (BUSINESS WIRE) -- Shopnet.Com Inc. (OTCBB: SPNT), a manufacturer and distributor of girl's swim wear for major retail chains, department stores and specialty stores, today announced record sales and
earnings for the third quarter ended March 31, 2002.
Net income for the quarter rose 158% to $535,000, or $0.07 per share, compared with $208,000, or $0.03 per share, in the year-ago period. Sales increased 27% to $4,600,000 compared with $3,600,000 in the 2001 quarter.
For the nine months, the Company reported a net loss of ($13,000), or nil per
share, compared with a net loss of ($496,000), or (0.07) per share, in the
year-ago period. Sales for the nine months were $6,300,000 compared with
$5,700,000 from a year ago.
"The growing popularity of our new Coral Cove swim wear line and the expansion
of our sales staff fueled record sales and earnings in the third quarter of our
2002 fiscal year," stated Harold Rashbaum, President and Chief Executive Officer
of Shopnet.Com. "We anticipate continued acceleration in sales and earnings,
based on internal growth and expansion of our product line beyond swimwear." The
Company is also considering potential acquisitions.
Shopnet.Com's high-end and moderate-priced lines of swim wear are enabling the
Company to target multiple markets. "We have increased the number of accounts
that we are selling to by 25% over last year," Mr. Rashbaum said. "We recently
added Dillard's, Marshall Field and J.C. Penney, among others, to our expanding
list of retailers."
Mr. Rashbaum stated that in addition to expanding markets, certain cost-cutting
measures that were introduced by the Company contributed to the increase in
revenue and earnings. Several of these measures included the consolidation of
corporate office space as well as a significant reduction in general and
administrative expenses.
About Shopnet.com Inc.
Shopnet.com Inc., through its wholly owned Breaking Waves, Inc.. apparel
subsidiary, designs, manufacturers and distributes to major retailers more than
200 different styles of swim wear for girls from toddlers to teens. Breaking
Waves, a licensed distributor of Gottex swim wear for children and its own Coral
Cove brand, sells directly to retailers through its showroom in New York City
and through its field sales force. Major clients buying different branded lines
include Federated Stores, Saks Group, Sears and Wal-Mart.
This press release contains "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements can be identified but are not limited to terminology
such as "may," "should," "expects to" and "anticipates." Actual events or
performance and involve risks and uncertainties that may differ materially from
those anticipated in such forward-looking statements. Factors that could cause
actual results to differ materially from those projected in forward-looking
statements are detailed in the Company's filings with the U.S. Securities and
Exchange Commission.
SHOPNET.COM INC.
Consolidated Statement of Operations
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2002 2001 2002 2001
Sales $4,600,000 $3,600,000 $6,300,000 $5,700,000
Net Income $ 535,000 $ 208,000 $ (13,000) $ (496,000)
Net Income per Common
Share - Basic and
Diluted $ 0.07 $ 0.03 $ nil $ (0.07)
Common Shares Used in
Computing Per Share
Amounts - Basic and
Diluted 7,472,000 7,472,000 7,472,000 7,472,000
CONTACT: Shopnet.Com Inc., New York
Harold Rashbaum, 212/967-8303
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SOURCE:
Shopnet.Com
Inc.
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