WEST NEW YORK, NJ -- (MARKET WIRE) -- February 14, 2007 -- Jaclyn, Inc. (
AMEX:
JLN) today reported
financial results for the second quarter ended December 31, 2006.
Net sales for the three-month period ended December 31, 2006 were
$47,584,000 compared to $35,514,000 a year earlier. The Company reported
second quarter net earnings of $1,716,000, or $.68 per diluted share,
compared to net earnings of $931,000 in the fiscal 2006 second quarter, or
$.37 per diluted share.
Net sales for the six-month period ended December 31, 2006 were $88,208,000
compared to $64,762,000 for the same period last year. Net earnings for
the six-month period ended December 31, 2006 were $2,179,000, or $.86 per
diluted share, compared to net earnings of $1,077,000, or $.42 per diluted
share, in the same period last year.
Commenting on the financial results, Allan Ginsburg, Chairman of the Board,
stated that "We are obviously pleased with the substantial increases in net
sales and net earnings for the quarter and year-to-date periods in light of
a challenging and competitive business environment. Net sales increases in
our children's apparel, women's sleepwear, and premium incentive divisions,
as well as in our general handbag business, primarily accounted for the
improved financial results." He added, though, that "Our business is
subject to substantial seasonal variations, with our first and second
fiscal quarters typically being among our strongest periods. Favorable
financial results for the first half of our fiscal year do not necessarily
translate into similar results for the second half, which is customarily a
slower period for us."
Jaclyn also reported that during the second half of the fiscal year, it
expects to make a final settlement distribution to participants of the
Company's pension plan which, as previously disclosed, was terminated
effective January 31, 2006, and as to which the Company recently received a
favorable IRS determination letter. At the time of settlement, the Company
will be required to record a one-time charge to earnings before income
taxes of approximately $3,091,000, consisting of a final cash payment of
approximately $904,000 to fully fund the pension plan, and a non-cash
charge of approximately $2,187,000 consisting of prepaid pension costs. In
addition, due primarily to this one-time charge and the related loss of
certain net operating loss carry-forwards and other tax benefits, the
Company expects a significant increase in its effective tax rate for fiscal
2007. The combination of the one-time charge and the tax rate increase is
expected to have a material adverse effect on the Company's net earnings
for the 2007 full fiscal year.
Note: This press release may contain forward-looking statements that are
being made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The Company's actual performance and
results may vary as a result of a number of risks, uncertainties and other
factors, both foreseen and unforeseen, including general economic and
business conditions, competition in the accessories and apparel markets,
continuing favorable sales patterns, pricing and consumer buying trends.
Additional uncertainty exists for the potential negative impact any
widespread health hazards may have on our business relative to production
in the Far East and other countries in which we operate.
Jaclyn, Inc. is a designer, manufacturer and marketer of apparel, women's
sleepwear, infants' and children's apparel, handbags, premium incentives
and related accessories. Website:
www.jaclyninc.com
JACLYN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Second Quarter Six Months
Ended December 31, Ended December 31,
------------------ ------------------
2006 2005 2006 2005
---- ---- ---- ----
Net Sales $47,584,000 $35,514,000 $88,208,000 $64,762,000
Earnings before
income taxes $ 2,842,000 $ 1,689,000 $ 3,608,000 $ 1,961,000
Net Earnings $ 1,716,000 $ 931,000 $ 2,179,000 $ 1,077,000
Net Earnings per
Common Share - Basic $ .69 $ .38 $ .88 $ .43
Net Earnings per
Common Share - Diluted $ .68 $ .37 $ .86 $ .42
Weighted Average Number
of Shares Outstanding
- Diluted 2,541,000 2,550,000 2,544,000 2,594,000
Contact Information: Company Contact:
Anthony Christon
Chief Financial Officer
Jaclyn, Inc.
(201) 868-9400