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EW YORK--(BUSINESS WIRE)--April 28, 1998--Bernard Chaus, Inc. (NYSE: CHS) today
reported results for the third fiscal quarter and nine months ended March 31, 1998. Net sales for
the third quarter of fiscal 1998 rose 16.0% to $49.8 million compared to $42.9 million for the
third quarter last year. The Company reported net income of $3.1 million for the third quarter of
fiscal 1998 compared with a net loss of $3.2 million for the third quarter last year.
For the nine month period ended March 31, 1998, net sales increased by 20.7% to $155.8
million, compared with $129.0 million in the corresponding period last year. The Company
reported net income of $3.8 million for this period, with the bulk of the increase posted in the
third quarter, as compared to a loss of $7.1 million in the comparable period last year.
Josephine Chaus, the Company's Chairwoman, said, "The growth and net gains announced today
are the result of the financial restructuring and streamlining of operations we previously
implemented, along with the strong position and performance of the Chaus product lines."
Andrew Grossman, the Company's Chief Executive Officer, added, "Today's positive results
show that we are accomplishing what we set out to do. Through restructuring and streamlining
of operations, we were able to significantly reduce the cost of goods sold and SG&A as a
percentage of sales, while returning to profitability through strong sales and earnings growth.
Looking ahead, we fully expect to meet our year-end targets and are excited about future
opportunities for the Company."
Mr. Grossman also noted that the boost in net sales for the third quarter came in spite of the
closing of all but one of Chaus's retail outlets during the second quarter of 1998. Sales of Chaus
products, excluding those from the retail outlets that have since been closed, therefore increased
approximately $10 million or 25% for the third quarter over the same period last year.
This press release contains forward-looking statements which are based upon current
expectations and involve a number of uncertainties, including retail market conditions, and the
continuation of the current favorable trend in sales. Further information on potential factors
which could affect the Company's financial results are included in the Company's Form 10-K for
the year ended June 30, 1997 and Form 10-Q for the periods ended September 30, 1997 and
December 31, 1997, and the Company's rights offering prospectus dated December 10, 1997.
Bernard Chaus, Inc. designs, arranges for the manufacture of and markets an extensive range of
women's career and casual sportswear which are marketed principally under the CHAUS(R),
CHAUS SPORT(R) and NAUTICA(R) trademarks. The Company's products are sold
nationwide through department store chains, specialty retailers and other retail outlets.
BERNARD CHAUS, INC.
STATEMENT OF OPERATING DATA
(in thousands, except number of shares and per share amounts)
For the Quarter Ended For the Nine Months Ended
March 31, March 31, March 31, March 31,
1998 1997 1998 1997
--------------------- ----------------------
(Unaudited) (Unaudited)
Net Sales $ 49,827 $ 42,946 $ 155,778 $ 129,040
Cost of Sales 36,105 33,562 116,346 99,308
-------- -------- -------- -------
Gross profit 13,722 9,384 39,432 29,732
Selling, general
and administrative
expenses 9,480 10,618 29,711 31,046
-------- -------- -------- -------
Income (loss) from
operations 4,242 (1,234) 9,721 (1,314)
Interest and
other income, net 4 44 49 85
Interest expense (1,096) (2,028) (5,835) (5,860)
-------- -------- -------- -------
Income (loss) before
income taxes 3,150 (3,218) 3,935 (7,089)
Income taxes 75 7 170 43
-------- --------- -------- -------
Net income (loss) $3,075 ($3,225) $3,765 ($7,132)
========= ========= ======== =======
Basic earnings
(loss) per share $ 0.15 $ (0.48) $ 0.33 $ (1.07)
========= ========= ======== =======
Diluted earnings
(loss) per share $ 0.14 $ (0.48) $ 0.33 $ (1.07)
========= ========= ======== =======
Weighted average
number of
common shares
outstanding (a) 21,074,000 6,687,000 11,371,000 6,687,000
========== ========= =========== ==========
Weighted average
number of
common and common
equivalent shares
outstanding (a) 21,389,000 6,687,000 11,371,000 6,687,000
=========== ========== =========== ==========
(a) All share and per share data reflects the 1 for 10 reverse stock
split which was effected December 9, 1997.
SELECTED BALANCE SHEET DATA
(Dollars in thousands)
March 31, March 31,
1998 1997
------------ ------------
Cash and cash equivalents $ 162 $ 118
Accounts receivable, net 36,972 27,627
Inventory 16,757 20,299
Working capital (deficiency) 18,525 (24,254)
Total assets 56,068 50,670
Total liabilities 49,599 98,399
Stockholders' equity (deficiency) 6,469 (47,729)
CONTACT: Andrew Grossman
Bernard Chaus, Inc.
212/354-1280 |
