Bernard Chaus, Inc. (OTC Bulletin Board: CHBD.OB) today reported its financial results for the third quarter and first nine months of fiscal 2007.
For the third quarter ended March 31, 2007, revenues were $38.2 million compared to $39.7 million in the third quarter of fiscal 2006. Net income for the third quarter of fiscal 2007 was $563,000, or $0.01 per diluted share on a weighted average of 38.0 million shares outstanding, compared to net income of $951,000, or $0.03 per diluted share on a weighted average of 38.0 million shares outstanding, in the third quarter last year.
For the nine-month period ended March 31, 2007, revenues increased by approximately 16.6% to $117.1 million from $100.5 million in the same period a year ago. Net income for the first nine months of fiscal 2007 was $3.1 million, or $0.08 per diluted share on a weighted average of 38.0 million shares outstanding, compared to a net loss in the year-ago period of $3.8 million, or a loss of $0.10 per diluted share on a weighted average of 36.8 million shares outstanding.
Josephine Chaus, Chairwoman and Chief Executive Officer, said, “The Company achieved significantly improved results for the year-to-date period reflecting higher revenue and lower costs as a percentage of sales. We continue to focus on our three-pronged strategy of growing our branded, private label and licensed businesses.”
Bernard Chaus, Inc., designs, sources and markets an extensive range of women’s career and casual sportswear, principally under the Josephine Chaus, Chaus, Cynthia Steffe and Cynthia Cynthia Steffe trademarks, as well as private label. The Company’s products are sold nationwide through department store chains, specialty retailers and other outlets. The Company also has a license agreement with Kenneth Cole Productions, Inc. for the manufacture and sale of a women’s sportswear line under the Kenneth Cole Reaction label.
This press release contains forward-looking statements that are based upon current expectations and involve a number of uncertainties including retail market conditions, success of new initiatives, the Company’s ability to effectively execute its business plan, consumer acceptance of the Company’s products, including the new Kenneth Cole Reaction label, and the ability to achieve anticipated profit margins. 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, 2006 and subsequent Form 10-Qs.
–Tables Follow – | ||||||||||||
BERNARD CHAUS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except number of shares and per share amounts) | ||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||
| March 31, | March 31, | March 31, | March 31, | |||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||
| Net revenue | $ | 38,243 | $ | 39,731 | $ | 117,139 | $ | 100,451 | ||||
| Cost of goods sold | 26,685 | 27,342 | 81,715 | 72,704 | ||||||||
| Gross profit | 11,558 | 12,389 | 35,424 | 27,747 | ||||||||
| Selling, general and administrative expenses | 10,626 | 11,104 | 31,292 | 30,738 | ||||||||
| Income (loss) from operations | 932 | 1,285 | 4,132 | (2 ,991) | ||||||||
| Interest expense, net | 334 | 297 | 876 | 721 | ||||||||
| Income (loss) before income tax provision | 598 | 988 | 3,256 | (3,712) | ||||||||
| Income tax provision | 35 | 37 | 184 | 112 | ||||||||
| Net income (loss) | $ | 563 | $ | 951 | $ | 3,072 | $ | (3,824) | ||||
| Basic earnings (loss) per share | $ | 0.02 | $ | 0.03 | $ | 0.08 | $ | (0.10) | ||||
| Diluted earnings (loss) per share | $ | 0.01 | $ | 0.03 | $ | 0.08 | $ | (0.10) | ||||
| Weighted average number of common shares outstanding – basic | ||||||||||||
| 37,510,000 | 37,530,000 | 37,512,000 | 36,847,000 | |||||||||
| Weighted average number of common and common equivalent shares outstanding – diluted | ||||||||||||
| 38,042,000 | 38,030,000 | 37,966,000 | 36,847,000 | |||||||||
BERNARD CHAUS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET DATA (Dollars in thousands) | ||||||
March 31, 2007 |
March 31,
2006 | |||||
| Cash | $ | 57 | $ | 47 | ||
| Accounts receivable, net | 28,019 | 29,699 | ||||
| Inventories | 8,497 | 9,255 | ||||
| Prepaid expenses and other current assets | 547 | 677 | ||||
| Total current assets | 37,120 | 39,678 | ||||
| Fixed and other assets, net | 3,296 | 3,630 | ||||
| Goodwill and trademarks | 3,257 | 3,257 | ||||
| Total assets | $ | 43,673 | $ | 46,565 | ||
| Revolving credit borrowings | $ | 6,122 | $ | 9,065 | ||
| Accounts payable and accrued expenses | 11,534 | 11,706 | ||||
| Term loan – current | 1,700 | 1,700 | ||||
| Total current liabilities | 19,356 | 22,471 | ||||
| Term loan and other long-term liabilities | 3,550 | 5,483 | ||||
| Total liabilities | 22,906 | 27,954 | ||||
| Total stockholders’ equity | 20,767 | 18,611 | ||||
| Total liabilities and stockholders’ equity | $ | 43,673 | $ | 46,565 | ||
