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Bernard Chaus Reports Second Quarter Results
NEW YORK-(Business Wire)-January 31, 2008 - Bernard Chaus, Inc. (OTC Bulletin Board: CHBD.OB) today reported its financial results for the second quarter and first half of fiscal year 2008.
For the second quarter ended December 31, 2007, revenues were $25.4 million compared to $39.4 million in the second quarter last year. The Company's net loss for the second quarter of fiscal 2008 was $4.4 million, or $0.12 per diluted share on a weighted average of approximately 37.4 million shares outstanding, compared to net income of $1.3 million, or $0.03 per diluted share on a weighted average of approximately 38.0 million shares outstanding, in the second quarter of fiscal year 2007.
For the six months ended December 31, 2007, revenues were $60.9 million compared to $78.9 million in the same period of fiscal year 2007. The Company's net loss for the six-month period of fiscal 2008 was $4.7 million, or $0.13 per diluted share on a weighted average of approximately 37.4 million shares outstanding, compared to net income of $2.5 million, or $0.07 per diluted share on a weighted average of approximately 37.9 million shares outstanding, in the six-month period a year ago.
Josephine Chaus, Chairwoman and Chief Executive Officer, said, "The results this quarter are clearly disappointing, reflecting in part the difficult conditions across the industry, which impacted sales and profitability in most of our distribution channels. In light of the current environment, we have taken steps to reduce SG&A expenses and will look for additional opportunities to more efficiently utilize our overhead structure and reduce costs. In addition, we continue to evaluate new opportunities to leverage our strong design and sourcing capabilities to recapture revenue and develop new business."
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 under certain private labels. 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 women's sportswear under various labels.
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 Kenneth Cole licensed products, 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, 2007 and subsequent Form 10-Qs. -0- *T 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, 2007 2006 2007 2006 ——————- —————— —————— —————— Net revenue $ 25,376 $ 39,387 $ 60,922 $ 78,896 Cost of goods sold 20,096 27,552 45,247 55,030 ——————- —————— —————— —————— Gross profit 5,280 11,835 15,675 23,866 Selling, general and administrative expenses 9,396 10,236 19,826 20,666 ——————- —————— —————— —————— Income (loss) from operations (4,116) 1,599 (4,151) 3,200 Interest expense, net 258 270 527 542 ——————- —————— —————— —————— Income (loss) before income tax provision (4,374) 1,329 (4,678) 2,658 Income tax provision 15 64 65 149 ——————- —————— —————— —————— Net Income (loss) $ (4,389) $ 1,265 $ (4,743) $ 2,509 ============= ============ ============ ============ Basic earnings (loss) per share $ (0.12) $ 0.03 $ (0.13) $ 0.07 ============= ============ ============ ============ Diluted earnings (loss) per share $ (0.12) $ 0.03 $ (0.13) $ 0.07 ============= ============ ============ ============ Weighted average number of common shares outstanding - basic 37,381,000 37,509,000 37,381,000 37,513,000 ============= ============ ============ ============ Weighted average number of common and common equivalent shares outstanding - diluted 37,381,000 37,971,000 37,381,000 37,946,000 ============= ============ ============ ============ *T -0- *T BERNARD CHAUS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET DATA (Dollars in thousands) December 31, December 31, 2007 2006 ———————- ———————- Cash $ 73 $ 81 Accounts receivable, net 13,805 25,779 Inventories 8,071 10,789 Prepaid expenses and other current assets 736 850 ———————- ———————- Total current assets 22,685 37,499 Fixed and other assets, net 2,563 3,457 Goodwill and trademarks 3,257 3,257 ———————- ———————- Total assets $ 28,505 $ 44,213 =============== =============== Revolving credit borrowings $ 1,781 $ 4,856 Accounts payable and accrued expenses 9,424 13,357 Term loan - current 3,075 1,700 ———————- ———————- Total current liabilities 14,280 19,913 Term loan and other long-term liabilities 703 3,949 ———————- ———————- Total liabilities 14,983 23,862 Total stockholders' equity 13,522 20,351 ———————- ———————- Total liabilities and stockholders' equity $ 28,505 $ 44,213 =============== =============== *T
