Antigua Enterprises Inc. saw fiscal year 2007 sales increase 8.5% to $51.9 million from $47.9 million last year. During the fiscal year, the company added the Slazenger brand and the Dunlop brand to its portfolio. The sales growth was driven by the company's Licensed Sports and Golf divisions. The Licensed channel grew by 16% or $3.2 million in sales over fiscal year 2006. The Golf division grew by 12% or $1.5 million in sales over fiscal year 2006. Sales in both divisions have been fueled by new products and new fabrications, continuing focus on outstanding customer service and in stock inventory positions.
As a percentage of sales, income before income taxes dipped slightly in fiscal year 2007 as compared to prior periods. The decrease was primarily attributable to royalty and production costs on licensed sales as well as our investment in selling and marketing to maintain the positive momentum of the Antigua brand and to pre-launch the Slazenger and Dunlop brands. Overall profitability remains strong and the company is well positioned for future periods.
One result of our positive profitability trend line is the companys decision to reverse its valuation allowance on future tax assets as it now appears that those assets will more likely than not be utilized before expiring. The recognition of this tax benefit had a dramatic one-time impact on our net income for fiscal year 2007 and is not reflective of future results. Excluding the effect of the tax benefit the companys net income as a percentage of sales and earnings per share are consistent with prior period results.
Fiscal year 2007 was successful in sales, profits, distribution growth and brand awareness growth. Our sights are now set on new opportunities for fiscal year 2008 with three distinctive brands to design and distribute.
|ANTIGUA ENTERPRISES INC.|
Consolidated Statements of Income
|Cost of Sales||33,124,918||29,897,630|
|Selling and Marketing Expenses||10,178,050||9,484,447|
|General and Administrative Expenses||5,064,471||4,867,758|
Income before other income (expense) and provision for income taxes
|Other Income (Expense):|
Income from investment subject to significant influence
|Income Before Income Taxes||2,427,098||2,514,559|
|Benefit (provision) for income taxes||2,542,857||(134,000||)|
|Basic and diluted earnings per share:|
|Weighted Average Common Shares Outstanding:|
|Basic and diluted||42,368,236||42,839,185|