Joe’s Jeans Inc. (the “Company”) (NASDAQ: JOEZ) today announced
financial results for the fourth quarter ended November 30, 2013.
Highlights were:
- Consolidated fourth quarter net sales
increased 50% to $50.5 million;
- Excluding transaction and amortization
expenses associated with the purchase of Hudson Clothing Holdings,
Inc. (“Hudson”), adjusted operating income was up 105% to $6.5
million dollars for the fourth quarter of fiscal 2013;
- Wholesale net sales increased 60%;
and
- Retail store net sales increased
11%.
For the fourth quarter ended November 30, 2013, overall net
sales were $50.5 million compared to $33.7 million in the prior
year comparative period, or a 50% increase. We completed our
acquisition of Hudson on September 30, 2013 and our results for the
fourth quarter of fiscal 2013 reflect the operation for two months
of Hudson as one of our subsidiaries.
Our overall gross profit for the quarter increased to $21.7
million from $15.7 million in the prior year comparative period, or
a 38% increase. Our overall gross margin in the fourth quarter of
fiscal 2013 was 43% compared to 47% in the fourth quarter of fiscal
2012. Impacting our gross profit and gross margins for the quarter
was a non-cash charge of approximately $2.0 million related to the
fair value step up of inventory acquired in connection with the
acquisition of Hudson that was subsequently sold in October and
November 2013. Excluding this charge, our gross margin for the
fourth quarter of fiscal 2013 would have been comparable at 47%.
Operating expense in the fourth quarter of fiscal 2013 was $20.2
million compared to $12.5 million a year ago. Operating expense
includes approximately $3.0 million in transaction expenses
associated with the acquisition of Hudson. Excluding the
transaction expenses, our operating expense would have been $17.2
million for the fourth quarter of fiscal 2013. Our operating income
was $1.5 million compared to $3.2 million in the prior year
comparative period and we had a net loss of $1.8 million compared
to net income of $2.0 million in the prior year period. As a
result, our fully diluted loss per share was $0.03 for the fourth
quarter of fiscal 2013 compared to earnings per share of $0.03 in
same period a year ago.
Excluding transaction expenses and the charge related to the
acquired inventory, our operating income would have been $6.5
million, our net income would have been $2.4 million and our fully
diluted earnings per share would have been $0.03 for the quarter.
We refer you to our reconciliation of these non-GAAP financial
measures at the end of this release.
Marc Crossman, President and Chief Executive Officer, commented,
“With just two months of our Hudson subsidiary included in our
fourth quarter results, we are pleased to report record
consolidated revenues and gross profits. Excluding the transaction
expenses and inventory charge, our operating income would have
doubled from the prior year period.”
Wholesale
Net sales for our wholesale segment in the fourth quarter of
fiscal 2013 increased 60% to $42.8 million compared to $26.8
million in the year ago period, including net sales for two months
of Hudson® in fiscal 2013. In addition, within our wholesale
business, our men’s Joe’s® sales channels experienced growth and we
benefited from sales from our else™ brand. Gross margins for our
wholesale segment were 39% for the fourth quarter of fiscal 2013
compared to 41% in the prior year comparable quarter and were
impacted by the charge related to the fair value step up of Hudson
inventory. Excluding this charge, our gross margins would have been
44%. For the fourth quarter, wholesale operating expense increased
to $4.8 million compared to $3.7 million in the year ago period.
Our wholesale operating income increased to $11.9 million in the
fourth quarter of fiscal 2013 compared to $7.3 million in the prior
year comparative period.
Mr. Crossman commented, “With the addition of $15.6 million in
net sales from Hudson, our wholesale division experienced
tremendous growth for the quarter.” Crossman continued, “Excluding
the inventory charge and without the addition of Hudson, our Joe’s
and else™ combined gross margins would have been improved to 42%
compared to 41% in the year ago period. With the acquisition
completed, we are now focused on implementing operational
integrations and growing the two businesses for 2014.”
Retail
Net sales from our retail segment in the fourth quarter
increased 11% to $7.7 million compared to $7.0 million in the prior
year comparative period. The growth in retail sales was driven by
revenue contribution from growing our store base from 28 to 34
stores in the comparative periods. Gross margins for our retail
segment decreased to 64% from 68% in the year ago period and were
impacted by heavier promotional activity in the retail channel as
our competitors were more promotional. Retail operating expense
increased as a result of additional expenses associated with
expanding our store base compared to the prior year period.
Overall, for the fourth quarter, we had an operating loss of
$421,000 compared to operating income of $526,000 a year ago for
our retail segment.
Mr. Crossman commented, “Our retail store base grew by six
stores from the fourth quarter of fiscal 2012 to 2013 and we faced
tough comparisons from strong holiday sales in the year ago period.
In addition, we were more promotional this quarter than the
comparable quarter in order to keep pace with our competitors,
which impacted our overall retail operations. With that said, we
are seeing improvement in our retail same store sales for the first
quarter of fiscal 2014.”
Corporate and Other
For the fourth quarter of fiscal 2013, our corporate and other
expenses were $9.9 million compared to $4.7 million in the fourth
quarter a year ago. Corporate and other expenses increased due to
transaction related expenses in connection with the acquisition of
Hudson in the fourth quarter of fiscal 2013. Excluding the
transaction expenses and expenses associated with Hudson’s
corporate operations, our corporate expenses would have decreased
by approximately $1 million.
The Company will host a conference call on Thursday, February
13, 2014 at 4:30 p.m. Eastern Time with the Company’s Chief
Executive Officer, Marc Crossman, and its Chief Financial Officer,
Hamish Sandhu, to discuss financial results for the fourth quarter
and fiscal year ended November 30, 2013.
To access the live call, please dial 1(800) 264-7882 (U.S.) or
(847) 413-3708 (International). The conference ID number and
participant passcode is 36518765 and is titled the “Q4 2013 Joe’s
Jeans Inc. Earnings Conference Call.” The information provided on
the teleconference is only accurate at the time of the conference
call, and the Company will take no responsibility for providing
updated information. A telephone replay of the conference call will
be available beginning at 7:00 p.m. Eastern Time on February 13,
2014 until 11:59 p.m. Eastern Time on February 20, 2014 by dialing
1(888) 843-7419 (U.S.) or 1(630) 652-3042 (International) and using
the conference passcode 36518765#. In addition, the conference call
will be archived for two weeks on the Company’s website at
www.joesjeans.com.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for
earnings that exclude the effect of transaction expenses and an
amortization charge related to the fair value step up of inventory
in connection with the acquisition of Hudson. Generally, a non-GAAP
financial measure is a numerical measure of a company’s historical
or future financial performance, financial position, or cash flows
that either excludes or includes amounts that are not normally
excluded or included in the most directly comparable measure
calculated and presented in accordance with accounting principles
generally accepted in the United States (GAAP). Management used
these non-GAAP financial measures to internally evaluate the
performance of its business and make operating decisions. We
believe that providing the non-GAAP measures is useful to investors
for a number of reasons. The non-GAAP measures provide a consistent
basis for investors to understand our financial performance in
comparison to historical periods, and it allows investors to
evaluate our performance using the same methodology and information
as that used by management. However, investors need to be aware
that non-GAAP measures are subject to inherent limitations because
they do not include all of the expenses included under GAAP and
they involve the exercise of judgment of which charges are excluded
from the non-GAAP financial measure. These non-GAAP financial
measures are intended to complement, and not considered as an
alternative to, the most directly comparable GAAP financial
measure.
We have provided a reconciliation table of the non-GAAP measure
to the equivalent GAAP measure.
JOE’S JEANS INC. AND
SUBSIDIARIES
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME
AND COMPREHENSIVE (LOSS) INCOME (in thousands, except per
share data) Three months
ended November 30,
November 30,
2013
2012
(unaudited) GAAP net (loss) income and
comprehensive (loss) income $ (1,812 ) $ 1,963
Transaction expenses and amortization of
inventory fair value step up, net of tax
4,167 -
Non-GAAP net income and comprehensive
income, excluding transaction expenses and amortization of
inventory fair value step up
$ 2,355 $
1,963 GAAP (loss) earnings per common
share - basic
$ (0.03 )
$ 0.03
Non-GAAP earnings per common share -
basic
$ 0.03 $
0.03 GAAP (loss) earnings per common share -
diluted
$ (0.03 )
$ 0.03
Non-GAAP earnings per common share -
diluted
$ 0.03 $
0.03 Adjusted weighted average shares
outstanding: Basic 67,541 66,010 Diluted 68,675 67,175
JOE’S JEANS INC. AND
SUBSIDIARIES
NON-GAAP OPERATING INCOME AND SEGMENT RESULTS (in
thousands) Three months
ended November 30,
November 30,
2013
2012
(unaudited)
GAAP operating income
$ 1,508 $ 3,169 Transaction expenses and amortization of inventory
fair value step up
4,997
- Non-GAAP operating income, excluding
transaction expenses and amortization of inventory fair value step
up
$ 6,505 $
3,169
Non-GAAP operating income:
Wholesale, excluding amortization of inventory fair value step up $
13,865 $ 7,296 Retail (421 ) 526 Corporate and other, excluding
transaction expenses
(6,939 )
(4,653 ) Non-GAAP operating
income, excluding transaction expenses and amortization of
inventory fair value step up
$ 6,505
$ 3,169
JOE’S JEANS INC. AND
SUBSIDIARIES
NON-GAAP SEGMENT OPERATING EXPENSES (in thousands)
Three months
ended November 30, November 30,
2013
2012
(unaudited) GAAP operating expenses: Wholesale $
4,826 $ 3,686 Retail 5,404 4,200 Corporate and other
9,936 4,653 GAAP operating
expenses
$ 20,166 $
12,539 Non- GAAP operating expenses: Wholesale
$ 4,826 $ 3,686 Retail 5,404 4,200 Corporate and other, excluding
transaction expenses
6,939
4,653 Non-GAAP operating expenses, excluding
transaction expenses
$ 17,169
$ 12,539
JOE’S JEANS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME AND
COMPREHENSIVE (LOSS) INCOME (in thousands, except per share
data) Three months
ended November 30,
November 30, 2013 2012 (unaudited) Net
sales $ 50,494 $ 33,736 Cost of goods sold
28,820 18,028 Gross profit
21,674 15,708 Operating expenses Selling, general and
administrative 19,180 12,062 Depreciation and amortization
986 477
20,166 12,539 Operating
(loss) income 1,508 3,169 Interest expense 2,249 99 Other expense
209 - (Loss) income
before provision for taxes (950 ) 3,070
Income tax expense
862 1,107 Net (loss)
income and comprehensive (loss) income
$
(1,812 ) $
1,963 (Loss) earnings per common share - basic
$ (0.03 ) $
0.03 (Loss) earnings per common share - diluted
$ (0.03 ) $
0.03 Weighted average shares outstanding: Basic
67,541 66,010 Diluted 67,541 67,175
The following table sets forth certain segment information for
the three months ended November 30, 2013 and 2012,
respectively:
JOE’S JEANS INC. AND
SUBSIDIARIES
SEGMENT RESULTS (in thousands)
Three months ended November 30,
November 30, 2013 2012
(unaudited) Net sales: Wholesale $ 42,763 $ 26,783 Retail
7,731 6,953
$ 50,494 $
33,736 Gross profit: Wholesale $ 16,691
$ 10,982 Retail
4,983
4,726 $ 21,674
$ 15,708 Operating income
(loss): Wholesale $ 11,865 $ 7,296 Retail (421 ) 526 Corporate and
other
(9,936 )
(4,653 ) $
1,508 $ 3,169
About Joe’s Jeans Inc.
Joe’s Jeans Inc. designs, produces and sells apparel and
apparel-related products to the retail and premium markets under
the Joe’s® brand and related trademarks. In the fourth quarter of
fiscal 2013, the Company acquired Hudson Clothing Holdings, Inc., a
leading global designer and marketer of women’s and men’s premium
branded denim apparel, as a wholly owned subsidiary of Joe’s Jeans.
Visit: joesjeans.com or facebook.com/joesjeans and hudsonjeans.com
or facebook.com/HudsonJeans.
This release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended. The matters discussed in
this document involved estimates, projections, goals, forecasts,
assumptions, risks and uncertainties that could cause actual
results or outcomes to differ materially from those expressed in
the forward-looking statements. All statements in this news release
that are not purely historical facts are forward-looking
statements, including statements containing the words “intend,”
“believe,” “estimate,” “project,” “expect” or similar expressions.
Any forward-looking statement inherently involves risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to: our
ability to successfully integrate the business of Hudson Clothing
Holdings, Inc., or Hudson, and realize cost savings and any other
synergies; unexpected costs or unexpected liabilities that may
arise from the transaction; the inability to retain key personnel;
the diversion of management’s time and attention from our ongoing
business during this time period, the impact of the acquisition on
our stock price, the anticipated benefits of the acquisition on our
financial results, business performance and product offerings, the
risk that the credit ratings of the combined company or its
subsidiaries may be different from what the companies expect,
continued acceptance of our product, product demand, competition,
capital adequacy, general economic conditions and the potential
inability to raise additional capital, if required, the risk that
the Company will be unsuccessful in gauging fashion trends and
changing customer preferences; the risk that changes in general
economic conditions, consumer confidence, or consumer spending
patterns will have a negative impact on the Company’s financial
performance or strategies; the highly competitive nature of the
Company’s business in the United States and internationally and its
dependence on consumer spending patterns, which are influenced by
numerous other factors; the Company’s ability to respond to the
business environment and fashion trends; continued acceptance of
the Company’s brands in the marketplace; the ability to generate
positive cash flow from operations; competitive factors, including
the possibility of major customers sourcing product overseas in
competition with our products; the risk that acts or omissions by
the Company’s first party vendors could have a negative impact on
the Company’s reputation; a possible oversupply of denim in the
marketplace; and other risks. The Company discusses certain of
these factors more fully in its additional filings with the SEC,
including its last annual report on Form 10-K filed with the SEC,
and this release should be read in conjunction with that annual
report together with all of the Company’s other filings made with
the SEC through the date of this release. The Company urges you to
consider all of these risks, uncertainties and other factors
carefully in evaluating the forward-looking statements contained in
this release.
Any forward-looking statement is based on information current as
of the date of this document and speaks only as of the date on
which such statement is made, and the Company undertakes no
obligation to update these statements to reflect events or
circumstances after the date on which such statement is made.
Readers are cautioned not to place undue reliance on
forward-looking statements.
Joe’s Jeans Inc.Hamish Sandhu, 323-837-3700 x 304(Investor
Relations)orAlejandra Dibos,
323-837-3700alejandra@joesjeans.com(Press)
Differential Brands Group Inc. (NASDAQ:DFBG)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Differential Brands Group Inc. (NASDAQ:DFBG)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024