Attached files
file | filename |
---|---|
8-K - FORM 8-K - G III APPAREL GROUP LTD /DE/ | y05147e8vk.htm |
Exhibit 99.1
G-III APPAREL GROUP, LTD.
For: G-III Apparel Group, Ltd. | ||
Contact: Investor Relations | ||
James Palczynski | ||
(203) 682-8229 | ||
Wayne S. Miller, Chief Operating Officer | ||
G-III Apparel Group, Ltd. | ||
(212) 403-0500 |
G-III APPAREL GROUP, LTD. ANNOUNCES SECOND QUARTER
FISCAL 2012 RESULTS
FISCAL 2012 RESULTS
Net Sales for Second Quarter Increase 21.7% to $230 million
Reports Diluted Net Income per Share for Second Quarter of $0.08 versus Prior Years $0.15
Reports Diluted Net Income per Share for Second Quarter of $0.08 versus Prior Years $0.15
New York, New York September 7, 2011 G-III Apparel Group, Ltd. (NasdaqGS: GIII)
today announced operating results for the second quarter of fiscal 2012.
For the quarter ended July 31, 2011, G-III reported that net sales increased by 21.7% to $230
million from $189 million in the year-ago period. The Company reported net income for the second
quarter of $1.6 million, or $0.08 per diluted share, compared to net income of $3.0 million, or
$0.15 per diluted share, in the prior years comparable period.
Morris Goldfarb, G-IIIs Chairman and Chief Executive Officer, said, We had a strong second
quarter from a revenue perspective, but some softness in the market prompted us to provide higher
levels of support and discounts to our customers. While this affected our gross margin in the
quarter, we have done a good job of stimulating demand and keeping inventories current for us and
our retail partners.
Mr. Goldfarb concluded, We are shipping on a solid pace as we enter our key selling season.
We believe that we are positioned properly for a strong second half. Our designs are trend-right
across our suite of brands and product categories for fall and holiday and we have a compelling
price and value relationship to show consumers. We continue to have a wide range of growth
opportunities by brand, by category and by channel. We believe that we can continue to build our
business both organically and through strategic acquisitions.
Outlook
The Company today revised its prior guidance for the full fiscal year ending January 31, 2012.
The Company is now forecasting net sales of approximately $1.25 billion and net income between
$62.5 million and $64.5 million, or a range of $3.05 and $3.15 per diluted share compared to its
previous guidance of net sales of approximately $1.2 billion and net income between $64.5 million
and $66.5 million, or a range of $3.15 and $3.25 per diluted share. The Company is now projecting
EBITDA for fiscal 2012 to increase approximately 12% to 15% to between $115 million and $118 million
compared to its previous guidance of between approximately $117 million and $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 third fiscal quarter ending October 31, 2011, the Company is forecasting net sales of
approximately $500 million compared to $450 million in the comparable quarter last year. The
Company is also forecasting net income for the third fiscal quarter between $46.2 million and $47.8
million, or between $2.25 and $2.35 per diluted share, compared to net income of $42.7 million, or
$2.16 per diluted share in last years third 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 outlet stores under our Wilsons
Leather name and is a party to a joint venture that operates outlet stores under the Vince Camuto
name.
2
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.
3
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
(NASDAQGSM: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)
(Unaudited)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 229,975 | $ | 188,960 | $ | 426,846 | $ | 343,237 | ||||||||
Cost of sales |
164,404 | 128,206 | 301,820 | 233,447 | ||||||||||||
Gross profit |
65,571 | 60,754 | 125,026 | 109,790 | ||||||||||||
Selling, general and administrative
expenses |
59,826 | 53,844 | 117,751 | 103,525 | ||||||||||||
Depreciation and amortization |
1,852 | 1,277 | 3,376 | 2,557 | ||||||||||||
Operating profit |
3,893 | 5,633 | 3,899 | 3,708 | ||||||||||||
Equity in joint venture |
376 | | 475 | |||||||||||||
Interest and financing charges, net |
952 | 634 | 1,711 | 996 | ||||||||||||
Income before taxes |
2,565 | 4,999 | 1,713 | 2,712 | ||||||||||||
Income tax expense |
1,000 | 2,000 | 668 | 1,085 | ||||||||||||
Net income |
$ | 1,565 | $ | 2,999 | $ | 1,045 | $ | 1,627 | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.08 | $ | 0.16 | $ | 0.05 | $ | 0.09 | ||||||||
Diluted |
$ | 0.08 | $ | 0.15 | $ | 0.05 | $ | 0.08 | ||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
19,848 | 19,126 | 19,784 | 19,016 | ||||||||||||
Diluted |
20,253 | 19,652 | 20,221 | 19,540 |
At July 31, | At July 31, | |||||||||||||||
Balance Sheet Data (in thousands): | 2011 | 2010 | ||||||||||||||
Cash |
$ | 8,566 | $ | 6,147 | ||||||||||||
Working Capital |
240,431 | 175,877 | ||||||||||||||
Inventory |
322,387 | 223,543 | ||||||||||||||
Total Assets |
626,877 | 457,329 | ||||||||||||||
Short-term Revolving Debt |
141,974 | 77,411 | ||||||||||||||
Total Stockholders Equity |
309,679 | 239,709 |
4
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 |
$ | 115,200 - 118,200 | $ | 102,665 | ||||
Depreciation and amortization |
8,000 | 5,733 | ||||||
Interest and financing charges, net |
5,500 | 4,027 | ||||||
Income tax expense |
39,200 - 40,200 | 36,223 | ||||||
Net income |
$ | 62,500 - $64,500 | $ | 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.
5