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8-K - FORM 8-K - G III APPAREL GROUP LTD /DE/ | y04928e8vk.htm |
Exhibit 99.1
G-III APPAREL GROUP, LTD.
For: | G-III Apparel Group, Ltd. |
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Contact: Investor Relations James Palczynski (203) 682-8229 |
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G-III Apparel Group, Ltd. Wayne S. Miller, Chief Operating Officer (212) 403-0500 |
G-III APPAREL GROUP, LTD. ANNOUNCES FIRST QUARTER
FISCAL 2012 RESULTS
FISCAL 2012 RESULTS
Net Sales Increase 28% to $197 million
Net Loss per Share Lowered to $(0.03) from $(0.07) Last Year
Reiterates Full Year Fiscal 2012 Net Sales and Earnings Guidance
Net Loss per Share Lowered to $(0.03) from $(0.07) Last Year
Reiterates Full Year Fiscal 2012 Net Sales and Earnings Guidance
New York, New York June 6, 2011 G-III Apparel Group, Ltd. (NasdaqGS: GIII) today
announced operating results for the first quarter of fiscal 2012.
For the quarter ended April 30, 2011, G-III reported that net sales increased by 28% to $196.9
million from $154.3 million in the year-ago period. The Companys net loss for the first quarter
was $0.5 million, or $0.03 per share, compared to a net loss of $1.4 million, or $0.07 per share,
in the prior years comparable period.
Morris Goldfarb, G-IIIs Chairman and Chief Executive Officer, said, We continue to be
pleased with the growth and health of our core businesses and with the handbag and luggage
opportunities we have for the upcoming Fall season.
Mr. Goldfarb continued, We have achieved our booking targets, built the capability to launch
a significant and compelling business in the handbag and luggage categories, and continued to
improve our ability to execute more effectively and efficiently through expansion and enhancement
of our operating infrastructure.
Mr. Goldfarb concluded, We believe that our diversification by category will drive our
long-term growth. The development of our business is well supported by a strong balance sheet,
strategic partnerships, and a highly capable management team. We look forward to demonstrating our
ability to drive value to our stakeholders.
Outlook
The Company today reiterated its prior guidance for the full fiscal year ending January 31,
2012 and continues to forecast net sales of approximately $1.2 billion and net income of between
$64.5 million and $66.5 million, or a range of $3.15 and $3.25 per diluted share. The
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Company also continues to project EBITDA for fiscal 2012 to increase approximately 14% to 18%
to approximately $117 million to $121 million. EBITDA should be evaluated in light of the
Companys financial results prepared in accordance with US GAAP. A reconciliation of EBITDA to net
income in accordance with US GAAP is included in a table accompanying the condensed financial
statements in this release.
For its second fiscal quarter ending July 31, 2011, the Company is forecasting net sales of
approximately $215 million compared to $189.0 million in the comparable quarter last year. The
Company is also forecasting net income for the second fiscal quarter between $3.7 million and $4.5
million, or between $0.18 and $0.22 per diluted share, compared to net income of $3.0 million, or
$0.15 per diluted share, in last years second quarter.
About G-III Apparel Group, Ltd.
G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear and womens
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, Levis 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 retail outlet stores under our
Wilsons Leather name and is a party to a joint venture that operates retail outlet stores under the
Vince Camuto name.
Statements concerning G-IIIs 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-IIIs 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
CONSOLIDATED STATEMENTS OF OPERATIONS AND
SELECTED BALANCE SHEET DATA
(In thousands, except per share amounts)
First Quarter Ended April 30, | ||||||||
(Unaudited) | ||||||||
2011 | 2010 | |||||||
Net sales |
$ | 196,871 | $ | 154,278 | ||||
Cost of sales |
137,416 | 105,241 | ||||||
Gross profit |
59,455 | 49,037 | ||||||
Selling, general and administrative expenses |
57,925 | 49,682 | ||||||
Depreciation and amortization |
1,524 | 1,280 | ||||||
Operating profit (loss) |
6 | (1,925 | ) | |||||
Equity in loss of joint venture |
99 | | ||||||
Interest and financing charges, net |
759 | 362 | ||||||
Loss before income taxes |
(852 | ) | (2,287 | ) | ||||
Income tax benefit |
(332 | ) | (915 | ) | ||||
Net loss |
$ | (520 | ) | $ | (1,372 | ) | ||
Net loss per common share: |
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Basic and Diluted |
$ | (0.03 | ) | $ | (0.07 | ) | ||
Weighted average shares outstanding (Basic and Diluted) |
19,719 | 18,903 |
At April 30, | ||||||||
2011 | 2010 | |||||||
Balance Sheet Data (in thousands): |
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Cash |
$ | 12,701 | $ | 17,869 | ||||
Working Capital |
239,907 | 173,816 | ||||||
Inventory |
167,751 | 100,006 | ||||||
Total Assets |
420,844 | 300,370 | ||||||
Short-term Revolving Debt |
35,000 | 17 | ||||||
Total Stockholders Equity |
306,092 | 235,176 |
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G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO ACTUAL AND FORECASTED NET INCOME
RECONCILIATION OF EBITDA TO ACTUAL AND FORECASTED NET INCOME
(In thousands)
(Unaudited)
(Unaudited)
Forecasted | Actual | |||||||
Twelve Months Ending | Twelve Months Ended | |||||||
January 31, 2012 | January 31, 2011 | |||||||
EBITDA, as defined |
$ | 117,000 - $121,000 | $ | 102,665 | ||||
Depreciation and amortization |
8,400 | 5,733 | ||||||
Interest and financing charges, net |
4,300 | 4,027 | ||||||
Income tax expense |
39,800 - 41,800 | 36,223 | ||||||
Net income |
$ | 64,500 - $66,500 | $ | 56,682 | ||||
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 Companys operating performance, or as an alternative to cash
flows from operating activities as a measure of the Companys liquidity, as determined in
accordance with generally accepted accounting principles.
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