CAND earnings
FA thoughts please. looks real good to me, why is this stock selling off lately?
To print this story
Candie's, Inc. Reports Record Revenues and Pre-Tax Income for Fourth Quarter and Fiscal Year Ended 1998
PR Newswire - April 21, 1998 11:39
CAND %REA %ERN V%PRN P%PRN
--------------------------------------------------------------------------------
Fiscal Year 1998 Revenues More Than Double to $93 Million
Operating Income Increases Sevenfold to $7 Million in Fiscal 1998
Diluted Earnings Per Share Increase 182% to $.31 Per Share
Backlog Increases 53% to Approximately $75 Million
PURCHASE, N.Y., April 21 /PRNewswire/ -- Candie's, Inc. (Nasdaq-NNM: CAND)
today announced record financial results for the fourth quarter and for the
fiscal year ended January 31, 1998.
FISCAL YEAR-END OPERATING RESULTS
For the fiscal year ended January 31, 1998, net revenues increased
approximately 107% to $92,976,416 from $45,005,416 in the prior year. Gross
profit margins increased to 26.0% from 21.9% in the prior year. Operating
income increased sevenfold to $6,960,539 from $965,972 in the prior year.
Income before income taxes increased to $5,732,985, from $135,315 in the
prior year. Net income was $4,535,926, or $.31 per diluted share, compared
to net income of $1,145,315, or $.11 per diluted share, in the prior fiscal
year.
Net income for fiscal 1998 and 1997 includes the recognition of tax
benefits of $1,290,718 and $1,100,000, respectively, resulting from a
reduction in the valuation allowance of net deferred tax assets.
FOURTH QUARTER OPERATING RESULTS
For the fourth quarter ended January 31, 1998, net revenues increased by
approximately 77% to $22,609,162 from $12,742,870 in the comparable period of
the prior year. Gross profit margins increased to 28.1% from 26.6% in the
prior year's fourth quarter. Operating income for the fiscal 1998 fourth
quarter more than doubled to $1,296,965 compared to $598,165 in the same
period last year.
Income before income taxes increased to $1,000,688, from $287,042 in the
prior year. Net income for the fourth quarter was $709,144, or $.05 per
diluted share, compared to $1,297,042, or $.11 per diluted share, for the same
quarter last year.
Net income for the fourth quarter of fiscal 1998 and 1997 included tax
benefits of $390,718 and $1,100,000, respectively, resulting from a reduction
in the valuation allowance of net deferred tax assets.
In commenting on the fiscal year results, Neil Cole, Chairman and CEO
stated, "We are very pleased with the continued success of our strategic plan
which has allowed us to achieve these record results. We have finished a very
exciting year in our Company's evolution. Our solid open order position and
our recent brand initiatives are laying the foundation for Candie's to build a
'Mega-Brand'.
The new year brings many challenges and exciting opportunities. We
believe the Company is poised for continued growth and increased shareholder
value," Mr. Cole concluded.
Candie's, Inc. designs, markets, imports and distributes a variety of
fashion and leisure footwear and accessories under the CANDIES(R) and BONGO(R)
trademarks, as well as several other trademarks.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. The statements which are not historical facts contained in this
press release are forward-looking statements that involve a number of known
and unknown risks uncertainties and other factors which may cause the actual
results, performance or achievements of Candie's to be materially different
from my future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, but are not limited
to, uncertainty regarding continued market acceptance of current products and
the ability to successfully develop and market new products particularly in
light of rapidly changing fashion trends, the impact of supply and
manufacturing constraints or difficulties particularly in light of Candie's
dependence on foreign manufacturers, uncertainties relating to customer plans
and commitments, competition, uncertainties relating to economic conditions in
the markets in which Candie's operates, the ability to hire and retain key
personnel, the ability to obtain additional capital if required, the risks of
uncertainty of trademark protection and other risks detailed in Candie's
Securities and Exchange Commission filings.
Candie's, Inc.
Condensed Consolidated Statements of Income
Year Ended Three Months Ended
January 31 January 31
1998 1997 1998 1997
Net Revenues $ 92,976,416 $ 45,005,416 $ 22,609,162 $ 12,742,870
Cost of goods
sold 68,799,226 35,149,271 16,264,516 9,354,962
Gross profit 24,177,190 9,856,145 6,344,646 3,387,908
Operating
Expenses 17,216,651 8,890,173 5,047,681 2,789,743
Operating income 6,960,539 965,972 1,296,965 598,165
Other expenses:
Interest
expense - net 1,129,554 755,657 296,277 186,123
Other 98,000 75,000 -- 125,000
1,227,554 830,657 296,277 311,123
Income before
income taxes 5,732,985 135,315 1,000,688 287,042
Provision(benefit)
for income
taxes 1,197,059(a) (1,010,000)(a) 291,544(b) (1,010,000)
(b)
Net Income $ 4,535,926 $ 1,145,315 $ 709,144 $ 1,297,042
Net income
per share (c)
-Basic $ 0.40 $0.13 $ 0.06 $ 0.13
-Diluted $ 0.31 $0.11 $ 0.05 $ 0.11
Weighted average
# of common shares
-Basic 11,375,374 9,142,598 12,370,021 9,640,000
-Diluted 14,644,067 10,483,810 15,521,417 11,510,814
(a) Includes recognition of a tax benefit of $1,290,718 in 1998 and
$1,100,000 in 1997, resulting from a reduction in the valuation
allowance of net deferred tax assets.
(b) Includes a recognition of a tax benefit of $390,718 in 1998 and
$1,100,000 in 1997, resulting from a reduction in the valuation
allowance of net deferred tax assets.
(c) Earnings per share data of prior years is restated to reflect
the Company's adoption of Statement of Financial Accounting
Standards No. 128 "Earnings Per Share".
Selected Balance Sheet Data 1/31/98 1/31/97
Current Assets $ 23,121,739 $ 9,039,203
Total Current
Liabilities $ 5,945,174 $ 5,992,434
Total Shareholders'
equity $ 24,680,518 $ 8,607,911
Working Capital $ 17,176,565 $ 3,045,769
Current Ratio 3.89 : 1 1.51 : 1
SOURCE Candie's, Inc.
/CONTACT: David Golden, Senior VP & CFO, 914-694-8600, or David Conn,
Director, Marketing, 914-694-8600, both of Candie's/
(CAND)
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