Bernard Chaus Reports Third Quarter 2007 Results
Thursday May 3, 8:29 am ET
NEW YORK--(BUSINESS WIRE)--Bernard Chaus, Inc. (OTC Bulletin Board: CHBD.OB - News) 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, March 31,
2007 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
========= =========
Contact:
Bernard Chaus, Inc.
Bart Heminover, 201-863-4646
Chief Financial Officer
or
Kekst and Company
Wendi Kopsick, 212-521-4867
--------------------------------------------------------------------------------
Source: Bernard Chaus, Inc.
