K•Swiss Inc. (NASDAQ: KSWS) today announced results for the
third quarter ended September 30, 2012. The operations of FORM
Athletics are accounted for as a discontinued operation in the
Company’s financial results and are excluded from futures orders
data for the prior-year periods.
Financial Results
Net loss for the third quarter of 2012 was $1,926,000, or $0.05
per diluted share, compared with a net loss of $15,418,000, or
$0.43 per diluted share, for the prior-year period. Net loss for
the nine months ended September 30, 2012, was $20,263,000, or $0.57
per diluted share, compared with a net loss of $45,286,000, or
$1.28 per diluted share, for the nine months ended September 30,
2011.
For the third quarter of 2012, total worldwide revenues
decreased 16.0% to $67,551,000 compared with $80,456,000 in the
prior-year period. Domestic revenues decreased 31.8% to $22,301,000
in the third quarter, and international revenues decreased 5.3% to
$45,250,000 for the same period. Total worldwide revenues for the
first nine months of 2012 decreased 16.8% to $181,621,000 from
$218,194,000 for the first nine months of 2011. Domestic revenues
decreased 35.8% to $61,861,000 in the first nine months of 2012,
and international revenues decreased 1.7% to $119,760,000.
Futures Orders
Worldwide futures orders with start ship dates from October 2012
through March 2013 decreased 8.6% to $70,003,000 at September 30,
2012, from $76,598,000 the previous year. Domestic futures orders
decreased 18.6% to $21,556,000 at September 30, 2012, from
$26,494,000 the previous year. International futures orders
decreased 3.3% to $48,447,000 at September 30, 2012, from
$50,104,000 the previous year.
Steven Nichols, Chairman of the Board and President, stated,
“The third quarter results benefitted from the positive
contribution from our Palladium brand as well as disciplined
expense and inventory controls. While we continue to gain momentum
and demonstrate product innovation with the K•Swiss brand, we have
yet to convert these efforts into a sustainable futures order
trend.”
2012 Guidance
For 2012, the Company is presently forecasting full year
consolidated revenues to be approximately $221 million to $223
million. Consolidated gross margin is expected to be approximately
35% to 36%. Selling, general and administrative expenses are
expected to be about $105 to $107 million.
Investor Conference Call and Web Simulcast
K•Swiss will conduct a conference call on its third quarter 2012
results today, at 11:00 a.m. ET. The number to call for this
interactive teleconference is (212) 231-2901. A replay of this
conference call will be available until November 8, 2012, by
dialing (402) 977-9140 and entering the passcode,
21575277.
The Company will also provide an online Web simulcast and
rebroadcast of this conference call. The live broadcast of K•Swiss’
quarterly conference call will be available online at
www.streetevents.com and www.earnings.com today, beginning at 11:00
a.m. ET. The online replay will follow shortly after the call and
continue through November 8, 2012.
Founded more than forty years ago in Van Nuys, California,
K•Swiss introduced the first all-leather tennis shoe, the K•Swiss
“Classic” in 1966. Since its inception, K•Swiss has rooted itself
in California Sport with an aim to be the most inspiring and
innovative sports brand in the market. Today the Company offers
performance and lifestyle footwear and apparel for several
categories under its California Sports umbrella including Tennis
Heritage, California Fit (Running, Triathlon and Fitness) and
California Youth. K•Swiss also designs, develops and markets
footwear under the Palladium brand. For more information about
K•Swiss, visit www.kswiss.com.
Certain matters discussed in this press release are subject to
certain risks and uncertainties that could cause actual results to
differ materially, including, but not limited to: non-achievement
of the assumptions discussed herein, general and regional economic
conditions, and the Company’s ability to reduce the Company’s
operating losses and inventory levels, industry trends, merchandise
trends, including market acceptance of the Company’s product
offerings, customer demand, competition, the impact of terrorism
and/or a potential global conflict on the worldwide economy,
dependence on large customers and credit concentrations and order
cancellations and reduced sales resulting from a deepening of the
current worldwide recession. A complete description of these
factors, as well as others which could affect the Company's
business concerns related to the Company’s liquidity is set forth
in the Company's periodic filings, including its Form 10-Q for the
quarter ended September 30, 2012, which is currently on file with
the SEC. Futures orders as of any date, represents orders scheduled
to be shipped within the next six months. Futures orders as of a
certain date do not include orders scheduled to be shipped on or
prior to that date. The mix of “futures” and “at-once” orders can
vary significantly from quarter to quarter and year to year and,
therefore, “futures” are not necessarily indicative of revenues for
subsequent periods.
K•Swiss Inc. Consolidated Statements of Loss (In
thousands, except loss per share data)
Three Months Ended Nine Months Ended September
30 September 30 2012 2011 2012
2011 (unaudited) (unaudited) Revenues
$
67,551 $ 80,456
$ 181,621 $ 218,194 Cost of
goods sold
43,509 51,631
117,777 138,413 Gross profit
24,042 28,825
63,844 79,781 Selling, general and
administrative expenses
25,805 42,357
82,031 120,620 Operating
loss
(1,763 ) (13,532 )
(18,187 )
(40,839 ) Other income
- -
- 3,000 Interest
(expense)/income, net
(19 ) 242
(62 ) 95
Loss before income taxes and discontinued
operations
(1,782 ) (13,290 )
(18,249 ) (37,744 )
Income tax expense
144 342
2,014 1,904 Loss from continuing
operations
(1,926 ) (13,632 )
(20,263 )
(39,648 ) Loss from discontinued operations, less applicable income
tax
- (1,786 )
-
(5,638 ) Net loss
$ (1,926 ) $ (15,418
)
$ (20,263 ) $ (45,286 ) Basic loss per share
$ (0.05 ) $ (0.43 )
$ (0.57
) $ (1.28 ) Diluted loss per share
$ (0.05
) $ (0.43 )
$ (0.57 ) $ (1.28 )
Weighted average number of shares outstanding Basic
35,601
35,572
35,601 35,480 Diluted
35,601 35,572
35,601 35,480
K•Swiss Inc. Condensed
Balance Sheets (In thousands)
September 30
2012 2011 ASSETS
(unaudited) CURRENT ASSETS
Cash and cash equivalents
$ 39,851 $ 37,419
Restricted cash and cash equivalents and restricted investments
available for sale
200 22,702 Investments available for sale
- 6,228 Accounts receivable, net
39,066 43,298
Inventories, net
65,870 93,700 Prepaid expenses and other
current assets
3,671 10,181
Total current assets
148,658 213,528 PROPERTY, PLANT AND
EQUIPMENT, NET
18,096 20,122 OTHER ASSETS Intangible assets
11,500 14,575 Deferred income taxes
2,043 3,853 Other
4,966 4,719 Total other assets
18,509 23,147
$
185,263 $ 256,797 LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES Bank lines of credit
$ 5,323 $ 15,060 Current portion of long-term debt
148 284 Current portion of long-term capital leases
82 - Trade accounts payable
11,606 14,822 Accrued
income taxes payable
44 - Current portion of contingent
purchase price
1,909 - Accrued liabilities
11,762 22,612 Total current liabilities
30,874 52,778 OTHER LIABILITIES Long-term debt
- 155
Long-term capital leases
139 - Contingent purchase price
- 3,886 Other liabilities
8,549
7,610 Total other liabilities
8,688 11,651
STOCKHOLDERS' EQUITY
145,701 192,368
$ 185,263 $ 256,797
K Swiss (NASDAQ:KSWS)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
K Swiss (NASDAQ:KSWS)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024