Bernard Chaus Reports Second Quarter 2007 Results
Wednesday January 31, 4:05 pm ET
NEW YORK--(BUSINESS WIRE)--Bernard Chaus, Inc. (OTC Bulletin Board: CHBD.OB - News) today reported its financial results for the second quarter and first six months of fiscal 2007.
For the second quarter ended December 31, 2006, revenues increased by approximately 71.2% to $39.4 million from $23.0 million in the second quarter last year. The Company reported net income for the second quarter of 2007 of $1.3 million, or $0.03 per diluted share on a weighted average of 38.0 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 37.0 million shares outstanding, in the second quarter of fiscal 2006.
For the six-month period ended December 31, 2006, revenues grew by approximately 29.9% to $78.9 million, up from $60.7 million in the same period last year. Net income for the first half of fiscal 2007 was $2.5 million, or $0.07 per diluted share on a weighted average of 37.9 million shares outstanding, compared to a net loss in the year-ago period of $4.8 million, or a loss of $0.13 per diluted share on a weighted average of 36.5 million shares outstanding.
Josephine Chaus, Chairwoman and Chief Executive Officer, said, "We are very pleased with the increases achieved in both revenue and income for the quarter. The gains were driven by higher revenues across our branded, private label and licensed product lines."
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 Three Months Ended For the Six Months Ended
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
------------- ------------ ------------ ------------
Net revenue $ 39,387 $ 23,002 $ 78,896 $ 60,720
Cost of goods
sold 27,552 18,228 55,030 45,362
------------- ------------ ------------ ------------
Gross profit 11,835 4,774 23,866 15,358
Selling, general
and
administrative
expenses 10,236 9,405 20,666 19,634
------------- ------------ ------------ ------------
Income (loss)
from operations 1,599 (4,631) 3,200 (4,276)
Interest expense,
net 270 194 542 424
------------- ------------ ------------ ------------
Income (loss)
before for
income tax
provision 1,329 (4,825) 2,658 (4,700)
Income tax
provision 64 46 149 75
------------- ------------ ------------ ------------
Net Income (loss) $ 1,265 $ (4,871) $ 2,509 $ (4,775)
============= ============ ============ ============
Basic earnings
(loss) per share $ 0.03 $ (0.13) $ 0.07 $ (0.13)
============= ============ ============ ============
Diluted earnings
(loss) per share $ 0.03 $ (0.13) $ 0.07 $ (0.13)
============= ============ ============ ============
Weighted average
number of common
shares
outstanding -
basic 37,509,000 37,025,000 37,513,000 36,513,000
============= ============ ============ ============
Weighted average
number of common
and common
equivalent
shares
outstanding -
diluted 37,971,000 37,025,000 37,946,000 36,513,000
============= ============ ============ ============
BERNARD CHAUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Dollars in thousands)
December 31, December 31,
2006 2005
--------------- ----------------
Cash and cash equivalents $ 81 $ 3,626
Accounts receivable, net 25,779 14,900
Inventories 10,789 10,932
Prepaid expenses and other current
assets 850 641
--------------- ----------------
Total current assets 37,499 30,099
Fixed and other assets, net 3,457 3,639
Goodwill and trademarks 3,257 3,257
--------------- ----------------
Total assets $ 44,213 $ 36,995
=============== ================
Revolving credit borrowings $ 4,856 $ -
Accounts payable and accrued expenses 13,357 11,802
Term loan - current 1,700 1,700
--------------- ----------------
Total current liabilities 19,913 13,502
Term loan and other long-term
liabilities 3,949 5,882
--------------- ----------------
Total liabilities 23,862 19,384
Total stockholders' equity 20,351 17,611
--------------- ----------------
Total liabilities and stockholders'
equity $ 44,213 $ 36,995
=============== ================
Contact:
Bernard Chaus, Inc.
Bart Heminover, 201-863-4646
Chief Financial Officer
or
Kekst and Company
Wendi Kopsick, 212-521-4867
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Source: Bernard Chaus, Inc.
