Cygne Designs (MM) (NASDAQ:CYDS)
Historical Stock Chart
From May 2019 to May 2024
Cygne Designs, Inc. (NASDAQ: CYDS) today announced results of operations
for the year ended January 31, 2008.
For the year ended January 31, 2008, net sales decreased by $23.1
million, or 19.4%, to $95.7 million compared to $118.8 million for the
prior year. This decrease in sales was mainly attributed to a decrease
in sales of our branded jeans of $21.5 million.
Gross profit for the year ended January 31, 2008 decreased to $15.9
million compared to $25.4 million for the prior year, a decrease of $9.5
million or 37.5%. The decrease in gross profit was attributable to three
factors: $4.9 million to the decrease in sales, $2.4 million to the
one-time inventory loss, and the balance of the decrease to lower gross
margins in 2007 than 2006.
As a result of the Company’s annual assessment
of its goodwill and intangible assets, the Company recorded the
impairment loss of goodwill and intangible assets of $61.9 million
primarily caused by the loss of two customers in 2007 which accounted
for 49% of our 2007 sales and a substantial decrease in demand for our
branded jeans and our non-denim private label products.
The Company recorded a net loss of $63.9 million or $2.00 loss per share
on a basic and diluted share basis for the year ended January 31, 2008
as compared to a net loss of $158,000 or $0.01 per share on a basic and
diluted share basis for the prior year.
Cygne and its lender use EBITDA as a supplemental financial measure to
assess the financial performance of its assets without regard to
financing methods and capital structure. EBITDA should not be considered
an alternative to net income, operating income and cash flow from
operating activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. EBITDA excludes some items
that affect net income and operating income. In the year ended January
31, 2008, the impairment loss of goodwill and intangible assets of $61.9
million has been included in the EBITDA reconciliation and Cygne refers
to the reconciliation as Adjusted EBITDA. Since these items may vary
among other companies, Adjusted EBITDA as presented below may not be
comparable to similarly titled measures of other companies. A
reconciliation of the net (loss) to Adjusted EBITDA is shown in the
table below.
Reconciliation of Adjusted EBITDA
Year Ended January 31
(In thousands)
2008
2007
Net (loss)
($63,860)
($158)
Loss on impairment of goodwill and intangible assets
61,850
--
Depreciation and amortization of intangible assets
2,022
2,070
Interest expense, net
5,341
5,033
(Benefit) provision for income taxes
(2,041)
1,910
Gross EBITDA
3,312
8,855
Less, gain on extinguishment of debt
1,733
--
Adjusted EBITDA
$1,579
$8,855
Cygne Designs, Inc. is a designer, merchandiser, manufacturer and
distributor of branded and private label women’s
denim, casual and career apparel with sales to retailers located in the
United States.
Statements contained in this press release, which are not historical
facts, are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. All forward-looking
statements are subject to risks and uncertainties, which could cause
actual results to differ from those projected. Such risks and
uncertainties are discussed more fully in the Company’s
Annual Report on Form 10-K for the year ended January 31, 2008 and the
Company’s other filings with the Securities
and Exchange Commission.
(Financial table to follow)
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Quarters Ended
Twelve Months Ended
January 31
January 31
January 31
January 31
2008
2007
2008
2007
Net sales
$18,796
$19,825
$95,753
$118,816
Cost of goods sold
19,068
15,670
79,826
93,342
Gross profit
(272)
4,155
15,927
25,474
Selling, general and administrative expenses
3,297
3,706
14,348
16,619
Loss on impairment of goodwill and intangible assets
61,850
--
61,850
--
Loss (gain) on extinguishment of debt
453
--
(1,733)
--
Depreciation and amortization
494
756
2,022
2,070
(Loss) Income from operations before interest and income taxes
(66,366)
(307)
(60,560)
6,785
Interest expense, net
2,305
1,014
5,341
5,033
(Loss) income from operations before income taxes
(68,671)
(1,321)
(65,901)
1,752
(Benefit) provision for income taxes
(3,895)
616
(2,041)
1,910
Net loss
($64,776)
($1,937)
($63,860)
($158)
Net loss per share-basic and diluted
($1.71)
($0.07)
($2.00)
($0.01)
Weighted average common shares outstanding:
Basic
37,935
26,462
32,007
25,913
Diluted
37,935
26,462
32,007
25,913