LAS VEGAS, March 25, 2013 (GLOBE NEWSWIRE) -- Tatyana Designs, Inc. (the "Company") (OTC Pink:TATD), a growing retailer specializing in contemporary designs inspired by the iconic Bettie Page, today announced financial results for the year ended December 31, 2012.
Year Ended December 31, 2012 Financial Results
- Net sales increased 41.7% to $10.25 million from $7.24 million for the prior year.
- Comparable boutique sales increased 17%.
- Wholesale sales increased 46.7% to $2.3 million.
- E-commerce sales increased 23.1% to $1.0 million.
- Gross profit remained steady at just over 70% of net sales.
- SG&A expense increased 61.8% to $6.5 million from $4.0 million in the prior year, and as a percentage of net sales increased to 63.6% from 55.6% in the prior year. The increase primarily reflects the opening and operating of 5 new branded boutiques in 2012 almost doubling the boutique count to 11 at December 31, 2012. The Company incurred non-cash deferred rent increase of $425,398 of net sales related to the opening of the new boutiques in 2012.
- Income from operations was $684,000 or 6.6% of net sales compared to $1.0 million for the prior year and reflects the effect of SG&A increase primarily attributable to opening new boutiques.
- Other income and expense was $71,832 including interest expense of $100,306. Interest expense for the prior year was $63,757.
- As a result of the Company's August 2012 merger, it became a taxable entity and reported an income tax benefit of $107,000 for the year resulting in net income of $719,571 or $0.07 per basic and diluted share. On a pro forma basis assuming the Company had been taxable for both full years of 2012 and 2011, net income would have been $376,571 or $0.03 per basic and diluted share and $636,608 or $0.06 per basic and diluted share, respectively.
Balance Sheet and Liquidity
Cash was $608,000 and working capital was $1.8 million at December 31, 2012.
Inventories were $2.5 million at December 31, 2012 an increase of 125% from $1.1 million for the prior year reflecting levels required to support an 83% increase in boutiques and rapid growth of wholesale and e-commerce revenues.
Total debt increased from $965,000 to $3.6 million as the Company financed its 2012 growth primarily from stockholder and bank debt.
Total stockholders' equity of $1.0 million remained comparable to 2011.
Cash used in operating activities of $100,000 was primarily the result of the Company's investment in inventories of $1.4 million.
The Company invested $201,000 in property and equipment mostly associated with new boutiques and obtained $551,000 from various financing activities.
Management Comments
"The 2012 year was full of milestones. We exceeded $10.25 million in net sales, expanded our boutiques from six at the end of 2011 to eleven at the end of 2012 including premier eastern locations in Philadelphia, Boston and New York City. We maintained margins while dramatically increasing comparable boutique sales, wholesale sales and e-commerce sales," stated Jan Glaser, co-CEO and treasurer of Tatyana Designs, Inc. "We expect continued strong results in 2013 as we already opened two new boutiques in Portland and Ft. Lauderdale and have two more scheduled to open by Q2 marking a total of fifteen company owned boutiques. We expect strong Q1 results and continued profitability in 2013 while we keep investing in growth."
The Company expects to post its audited financial results for 2012 in its annual report by the end of the month. The annual report will be available at the OTC Markets web site: www.otcmarkets.com/stock/TATD/filings.
About the Company - Based in Las Vegas, Nevada, Tatyana Designs, Inc. is a growing retailer specializing in contemporary designs inspired by the 50's and the iconic Bettie Page. The merchandise offered through twelve boutiques and active e-commerce and wholesale divisions is a diverse mix of high-quality and attractively priced apparel, jewelry, accessories and gifts. Bettie Page collections target the 18-35 year-old, fashion conscious, female customer, but women of all ages are attracted to the unique retro look. New product styles are presented monthly. For more information on the company please visit the Web site at www.tatyanadesigns.com.
The Tatyana Designs, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15348
Trademark Information: Bettie Page is a trademark registered to Bettie Page, LLC (www.BettiePage.com) and licensed for use by the Company. All other trade names are either trademarks or registered trademarks of their respective holders.
Cautionary note on forward-looking statements:
Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brand; possible inability to successfully implement our growth strategies or manage our growing business; possible inability to successfully open new boutiques as planned; and possible inability to sustain levels of comparable-boutique sales. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to the Company's most recent public corporate documents and risk factors discussed therein (www.otcmarkets.com/stock/TATD/filings). We undertake no obligation to publicly update or revise any forward-looking statement. Future results may differ materially from the Company's current expectations. Financial schedules are attached to this release.
| Tatyana Designs, Inc. and Affiliates | ||
| Condensed Consolidated Balance Sheets | ||
| (000's omitted except per share amount) | ||
| (unaudited) | ||
| December 31, | December 31, | |
| 2012 | 2011 | |
| $ | $ | |
| ASSETS | ||
| Current | ||
| Cash | 608 | 359 |
| Inventories | 2,553 | 1,133 |
| Receivables and other | 410 | 72 |
| Total current assets | 3,571 | 1,564 |
| Property and equipment, net | 491 | 399 |
| Deferred income taxes | 179 | -- |
| Deposits | 364 | 126 |
| Total assets | 4,605 | 2,089 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current | ||
| Accounts payable and accruals | 948 | 169 |
| Bank debt | 272 | -- |
| Due stockholder | 541 | 500 |
| Total current liabilities | 1,761 | 669 |
| Deferred rent | 721 | 295 |
| Bank debt - long term | 305 | -- |
| 6% Convertible notes | 300 | -- |
| Stockholder debt - long-term | 500 | -- |
| Total liabilities | 3,587 | 964 |
| Stockholders' equity | 1,018 | 1,125 |
| Total liabilities and stockholders' equity | 4,605 | 2,089 |
| Tatyana Designs, Inc. and Affiliates | ||
| Condensed Consolidated Statements of Operations | ||
| (000's omitted except per share amount) | ||
| (unaudited) | ||
| Year | Year | |
| Ended | Ended | |
| December 31, | December 31, | |
| 2012 | 2011 | |
| $ | $ | |
| Net sales | 10,251 | 7,236 |
| Cost of revenues | 3,050 | 2,135 |
| Gross profit | 7,201 | 5,101 |
| Selling, general and administrative | 6,516 | 4,026 |
| Income from operations | 685 | 1,075 |
| Other expenses | 72 | 64 |
| Income before income tax | 613 | 1,011 |
| Income tax benefit | (107) | -- |
| Net income | 720 | 1,011 |
| Basic and diluted earnings per common share | $0.07 | $0.10 |
| Weighted average shares outstanding: | ||
| Basic shares | 10,771 | 10,000 |
| Diluted shares | 10,879 | 10,000 |
| Pro forma net income data: | ||
| Income before income tax expense | 613 | 1,011 |
| Pro forma adjustments for income tax expense | 236 | 374 |
| Pro forma net income | 377 | 637 |
| Pro forma basic and diluted earnings per common share | $0.03 | $0.06 |