Here is the earnings report from Gargoyles. It is surprisingly better than I expected.
Gargoyles Reports First Quarter 1999 Earnings And Amendment to Credit
Agreement
Monday, May 3, 1999 06:00 AM
KENT, Wa., May 3 /PRNewswire/ -- Gargoyles, Inc. (OTC Bulletin Board: GOYL) today reported
earnings of $231,658 or $.03 per share for the quarter ended March 31, 1999 as compared to a loss of
$1.5 million or $.20 per share for the quarter ended March 31, 1998. The first quarter earnings are the
result of the Company's efforts in 1998 to reduce costs, restructure operations and restructure certain
commitments. The Company's net sales decreased $2.2 million from $11.5 million for the quarter
ended March 31, 1998 to $9.3 million for the quarter ended March 31, 1999. This decrease was
primarily due to the disposition of various unprofitable businesses.
"We are very encouraged by our first quarter earnings results," said Leo Rosenberger, the Company's
CEO and CFO. "We have a dedicated work force which has worked hard throughout the past year to
turn the Company's financial performance around, but we could not have achieved these results without
the continued support of our bank, our creditors and our customers. It has been a joint effort on
everyone's part. Although significant challenges remain, we are optimistic about our ability to realize
the Company's potential."
To give the Company additional time to address its long-term liquidity and capital requirements, the
Company's credit agreement with its bank was amended on April 30, 1999 to defer the maturity date
for all loan payments to May 28, 1999 and to revise the borrowing base to permit additional borrowings.
Gargoyles, Inc. is a designer and distributor of a broad range of sunglasses and eyewear products and
is headquartered in Kent, Washington. The Company also has operations in New York State.
This press release contains forward-looking statements concerning the Company's expectations with
respect to future operations. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, but are not limited to, factors
described in this press release and those involving business cycles and developments involving
consumer products in general and the sunglass industry in particular, the need for continued
cooperation of the Company's vendors and its bank, the Company's ability to obtain financing in a
timely manner and on acceptable terms, and other factors, including those described in the Company's
filings with the Securities and Exchange Commission. The Company undertakes no obligation to
update forward-looking statements to reflect changes in circumstances or changes in the views,
estimates or opinions of management that occur after the statements are made. Because of the
inherent uncertainty of forward-looking statements and because circumstances or management's
views, estimates and opinions may change, investors are cautioned not to place undue reliance on
forward-looking statements.
Contact Gargoyles, Inc.: Leo Rosenberger, CEO and CFO, 253-796-2752 ext. 3405 or Cynthia Pope,
VP and General Counsel, 253-796-2752 ext. 3404.
SOURCE Gargoyles, Inc.
CONTACT: Leo Rosenberger, CEO and CFO, 253-796-2752 ext. 3405, or Cynthia Pope, VP and
General Counsel, 253-796-2752 ext. 3404, both of Gargoyles, Inc. |
