Bernard Chaus Reports First Quarter 2007 Results
Bernard Chaus, Inc. (OTC Bulletin Board: CHBD) today reported its financial results for the first quarter of fiscal 2007.
For the first quarter ended September 30, 2006, revenues increased by approximately 4.7% to $39.5 million from $37.7 million in the same period last year. The Company reported a net profit for the first quarter 2007 of $1.2 million, or $0.03 per diluted share on a weighted average of 37.9 million shares outstanding. This compares to a net profit of $96,000, or breakeven on a per share basis on a weighted average of 37.7 million shares outstanding, in the first quarter a year ago.
Josephine Chaus, Chairwoman and Chief Executive Officer, said, "We are pleased that fiscal 2007 has gotten off to a positive start. We look forward to building on the initial results of our women's Kenneth Cole Reaction line, launched during Spring 2006, in addition to pursuing opportunities across our Chaus, Cynthia Steffe and private label 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.
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BERNARD CHAUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except number of shares and per share amounts)
(Unaudited)
For the Quarter Ended
September 30, September 30,
2006 2005
------------- -------------
Net revenue $ 39,509 $ 37,718
Cost of goods sold 27,478 27,134
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Gross profit 12,031 10,584
Selling, general and administrative
expenses 10,430 10,229
------------- -------------
Income from operations 1,601 355
Interest expense, net 272 230
------------- -------------
Income before provision for income taxes 1,329 125
Income tax provision 85 29
------------- -------------
Net income $ 1,244 $ 96
============= =============
Basic earnings per share $ 0.03 $ -
============= =============
Diluted earnings per share $ 0.03 $ -
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Weighted average number of common shares
outstanding - basic 37,516,000 36,002,000
============= =============
Weighted average number of common and
common equivalent shares outstanding -
diluted 37,924,000 37,688,000
============= =============
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BERNARD CHAUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
September 30, September 30,
2006 2005
---------------- ---------------
Cash $ 56 $ 92
Accounts receivable, net 27,138 28,217
Inventories 11,303 8,942
Prepaid expenses and other current
assets 695 866
---------------- ---------------
Total current assets 39,192 38,117
Fixed and other assets, net 3,515 3,802
Goodwill and trademarks 3,257 3,257
---------------- ---------------
Total assets $ 45,964 $ 45,176
================ ===============
Revolving credit borrowings $ 5,973 $ 2,846
Accounts payable and accrued expenses 14,805 12,487
Term Loan - current 1,700 1,700
---------------- ---------------
Total current liabilities 22,478 17,033
Term loan and other long-term
liabilities 4,412 6,289
---------------- ---------------
Total liabilities 26,890 23,322
Total stockholders' equity 19,074 21,854
---------------- ---------------
Total liabilities and stockholders'
equity $ 45,964 $ 45,176
================ ===============
Bernard Chaus, Inc.
Bart Heminover, Chief Financial Officer
201-863-4646
or
Kekst and Company
Wendi Kopsick/Blake Kohn
212-521-4800
Source: Business Wire (November 2, 2006 - 5:34 AM EST)
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