Bernard Chaus, Inc. (OTC Bulletin Board: CHBD.OB) today reported its financial results for the fourth quarter and fiscal year 2007.
For the fourth quarter ended June 30, 2007, revenues were $29.6 million compared to $36.4 million in the fourth quarter of fiscal 2006. The Company reported a net loss for the 2007 fourth quarter of $2.6 million, or $0.07 per diluted share on a weighted average of approximately 37.4 million shares outstanding, compared to a net loss of $1.1 million, or $0.03 per diluted share on a weighted average of approximately 37.5 million shares outstanding, in the fourth quarter the year before.
For the full fiscal 2007 year, revenues increased by approximately 7.3% to $146.8 million from $136.8 million the previous year. The Company’s net income for the fiscal year was $522,000, or $0.01 per diluted share on a weighted average of approximately 37.9 million shares outstanding, compared to a net loss of $4.9 million, or a loss of $0.13 per diluted share on a weighted average of approximately 37.0 million shares outstanding, in fiscal 2006.
Josephine Chaus, Chairwoman and Chief Executive Officer, said, “The climate is a difficult one for our business and the industry in general. While our performance for the fourth quarter did not meet expectations, we are quite pleased with the year as a whole, as sales increased and gross margin percentage improved. By focusing on our three-pronged strategy of growing our branded, private label and licensed businesses, we continued to turn around the business and returned to profitability.”
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.
BERNARD CHAUS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except number of shares and per share amounts) | ||||||||||||||||
| For the Quarter Ended | For the Year Ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Net revenue | $ | 29,633 | $ | 36,376 | $ | 146,772 | $ | 136,827 | ||||||||
| Cost of goods sold | 22,361 | 26,993 | 104,076 | 99,697 | ||||||||||||
| Gross profit | 7,272 | 9,383 | 42,696 | 37,130 | ||||||||||||
| Selling, general and administrative expenses | 9,731 | 10,129 | 41,023 | 40,867 | ||||||||||||
| Income (loss) from operations | (2,459 | ) | (746 | ) | 1,673 | (3,737 | ) | |||||||||
| Interest expense, net | 200 | 193 | 1,076 | 914 | ||||||||||||
| Income (loss) before income tax provision (benefit) | (2,659 | ) | (939 | ) | 597 | (4,651 | ) | |||||||||
| Income tax provision (benefit) | (109 | ) | 111 | 75 | 223 | |||||||||||
| Net income (loss) | $ | (2,550 | ) | $ | (1,050 | ) | $ | 522 | $ | (4,874 | ) | |||||
| Basic earnings (loss) per share | $ | (0.07 | ) | $ | (0.03 | ) | $ | 0.01 | $ | (0.13 | ) | |||||
| Diluted earnings (loss) per share | $ | (0.07 | ) | $ | (0.03 | ) | $ | 0.01 | $ | (0.13 | ) | |||||
Weighted average number of common shares outstanding – basic | 37,381,000 | 37,520,000 | 37,479,000 | 37,017,000 | ||||||||||||
Weighted average number of common shares outstanding – diluted | 37,381,000 | 37,520,000 | 37,930,000 | 37,017,000 | ||||||||||||
BERNARD CHAUS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET DATA (Dollars in thousands) | ||||||
June 30, 2007 |
June 30,
2006 | |||||
| Cash and cash equivalents | $ | 3,377 | $ | 120 | ||
| Accounts receivable, net | 18,243 | 23,254 | ||||
| Inventories, net | 8,876 | 9,139 | ||||
| Prepaid expenses and other current assets | 462 | 643 | ||||
| Total current assets | 30,958 | 33,156 | ||||
| Fixed and other assets, net | 3,276 | 3,501 | ||||
| Goodwill and trademarks | 3,257 | 3,257 | ||||
| Total assets | $ | 37,491 | $ | 39,914 | ||
| Revolving credit borrowings | $ | - | $ | 2,379 | ||
| Accounts payable and accrued expenses | 14,594 | 13,145 | ||||
| Term loan – current | 1,700 | 1,700 | ||||
| Total current liabilities | 16,294 | 17,224 | ||||
| Term loan and other long-term liabilities | 2,945 | 4,867 | ||||
| Total liabilities | 19,239 | 22,091 | ||||
| Total stockholders’ equity | 18,252 | 17,823 | ||||
| Total liabilities and stockholders’ equity | $ | 37,491 | $ | 39,914 | ||
Contacts:
Bart Heminover, 201-863-4646
Chief
Financial Officer
or
Kekst and Company
John Patteson /
Jim Fingeroth, 212-521-4800
