--Net Sales Increase 16.5% to $229.4 million--
--Reiterates Full Year Fiscal 2013 Net Sales and Earnings Guidance--
NEW YORK--(BUSINESS WIRE)--
G-III Apparel Group, Ltd. (NasdaqGS: GIII) today announced operating
results for the first quarter of fiscal 2013.
For the quarter ended April 30, 2012, G-III reported that net sales
increased by 16.5% to $229.4 million, a record for its first fiscal
quarter, from $196.9 million in the year-ago period. The Company's net
loss for the first quarter was $847,000, or $0.04 per share, compared to
a net loss of $520,000, or $0.03 per share, in the prior year's
comparable period.
Morris Goldfarb, G-III's Chairman and Chief Executive Officer, said,
"Our first quarter results met our expectations. We anticipate improved
profitability for the full year as we expect input costs will moderate
compared to prior year levels. Early booking trends for fall are good
and give us confidence in our outlook for the full year."
Mr. Goldfarb continued, "We believe we have a clear strategic advantage
for us that our major growth initiatives, across a variety of
categories, are underpinned by some of the best brands in the world. We
are building significant businesses in a number of important categories.
We are creating several platforms that are expected to show operating
margin improvements as we increase in sales volume. In addition, we plan
to layer on additional brands to these platforms."
Mr. Goldfarb concluded, "We have successfully diversified our
operations, aligned ourselves with powerful brands, and continued to
drive efficiency. As a result of this strategy, we believe we have
enhanced our ability to generate long-term value for our shareholders."
Outlook
The Company today reiterated its prior guidance for the full fiscal year
ending January 31, 2013 and continues to forecast net sales of
approximately $1.35 billion and net income of between $54.0 million and
$56.0 million, or a range of $2.62 and $2.72 per diluted share. The
Company also continues to project EBITDA for fiscal 2013 to increase
approximately between 11% and 15% to approximately $102.5 million to
$106.0 million. EBITDA should be evaluated in light of the Company's
financial results prepared in accordance with U.S. GAAP. A
reconciliation of EBITDA to net income in accordance with U.S. GAAP is
included in a table accompanying the condensed financial statements in
this release.
For its second fiscal quarter ending July 31, 2012, the Company is
forecasting net sales of approximately $250.0 million compared to $230.0
million in the comparable quarter last year. The Company is also
forecasting net income for the second fiscal quarter between $800,000
and $1.6 million, or between $0.04 and $0.08 per diluted share, compared
to net income of $1.6 million, or $0.08 per diluted share, in last
year's second quarter.
About G-III Apparel Group, Ltd.
G-III is a leading manufacturer and distributor of outerwear, dresses,
sportswear and women's suits, as well as handbags and luggage, under
licensed brands, our own brands and private label brands. G-III sells
outerwear and dresses under our own Andrew Marc, Marc New York and Marc
Moto brands and has licensed these brands to select third parties in
certain product categories. G-III has fashion licenses under the Calvin
Klein, Sean John, Kenneth Cole, Cole Haan, Guess?, Jones New York,
Jessica Simpson, Vince Camuto, Nine West, Ellen Tracy, Tommy Hilfiger,
Kensie, Mac & Jac, Levi's and Dockers brands and sports licenses with
the National Football League, National Basketball Association, Major
League Baseball, National Hockey League, Touch by Alyssa Milano and more
than 100 U.S. colleges and universities. Our other owned brands include
Jessica Howard, Eliza J, Black Rivet, G-III, G-III Sports by Carl Banks
and Winlit. G-III also operates outlet stores under our Wilsons Leather
and Andrew Marc names, is a party to a joint venture that operates
outlet stores under the Vince Camuto name and operates retail stores
under the Calvin Klein Performance name.
Statements concerning G-III's business outlook or future economic
performance, anticipated revenues, expenses or other financial items;
product introductions and plans and objectives related thereto; and
statements concerning assumptions made or expectations as to any future
events, conditions, performance or other matters are "forward-looking
statements" as that term is defined under the Federal Securities laws.
Forward-looking statements are subject to risks, uncertainties and
factors which include, but are not limited to, reliance on licensed
product, reliance on foreign manufacturers, risks of doing business
abroad, the current economic and credit environment, the nature of the
apparel industry, including changing customer demand and tastes,
customer concentration, seasonality, risks of operating a retail
business, customer acceptance of new products, the impact of competitive
products and pricing, dependence on existing management, possible
disruption from acquisitions and general economic conditions, as well as
other risks detailed in G-III's filings with the Securities and Exchange
Commission. G-III assumes no obligation to update the information in
this release.
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G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
(NASDAQGS: GIII)
CONSOLIDATED STATEMENTS OF OPERATIONS AND
SELECTED BALANCE SHEET DATA
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(In thousands, except per share amounts)
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First Quarter Ended April 30,
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(Unaudited)
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2012
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2011
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Net sales
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$
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229,449
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$
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196,871
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Cost of sales
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160,759
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137,416
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Gross profit
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68,690
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59,455
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Selling, general and administrative expenses
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66,614
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|
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57,925
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Depreciation and amortization
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2,053
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1,524
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Operating profit
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23
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6
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Equity loss in joint venture
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286
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99
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Interest and financing charges, net
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1,104
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759
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Loss before income taxes
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(1,367
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)
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(852
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)
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Income tax benefit
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(520
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)
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(332
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)
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Net loss
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$
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(847
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)
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$
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(520
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)
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Net loss per common share:
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Basic and Diluted
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$
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(0.04
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)
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$
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(0.03
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)
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Weighted average shares outstanding
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19,860
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19,719
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At April 30,
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Selected Balance Sheet Data (in thousands):
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2012
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2011
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Cash
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$
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38,336
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$
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12,701
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Working Capital
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291,481
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239,907
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Inventory
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208,755
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167,751
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Total Assets
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532,273
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412,362
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Short-term Revolving Debt
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83,073
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35,000
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Total Stockholders' Equity
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360,472
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306,092
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G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO ACTUAL AND FORECASTED NET INCOME
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(In thousands)
(Unaudited)
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Forecasted
Twelve Months Ending
January 31, 2013
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Actual
Twelve Months Ended
January 31, 2012
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EBITDA, as defined
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$102,500 - $106,000 |
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$92,426 |
Depreciation and amortization
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9,000
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7,473
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Interest and financing charges, net
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6,700
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5,713
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Income tax expense
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32,800 — 34,300
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29,620
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Net income
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$ 54,000 - $ 56,000 |
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$49,620 |
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EBITDA is a "non-GAAP financial measure" which represents earnings
before depreciation and amortization, interest and financing charges,
net, and income tax expense. EBITDA is being presented as a supplemental
disclosure because management believes that it is a common measure of
operating performance in the apparel industry. EBITDA should not be
construed as an alternative to net income as an indicator of the
Company's operating performance, or as an alternative to cash flows from
operating activities as a measure of the Company's liquidity, as
determined in accordance with generally accepted accounting principles.
For G-III Apparel Group, Ltd.
Investor Relations:
James
Palczynski, 203-682-8229
or
G-III Apparel Group, Ltd.
Wayne
S. Miller, 212-403-0500
Chief Operating Officer
Source: G-III Apparel Group, Ltd.
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