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 company’s 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 company’s 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.




Consolidated Statements of Income
For the Years Ended April 30, 2007 and December 31, 2005,
and the Four Months Ended April 30, 2006
(in U.S. dollars)


Year Ended
April 30, 2007


Year Ended
April 30, 2006

Sales   $ 51,958,926     $ 47,896,142  
Cost of Sales     33,124,918       29,897,630  
Gross profit     18,834,008       17,998,512  
Selling and Marketing Expenses     10,178,050       9,484,447  
General and Administrative Expenses     5,064,471       4,867,758  
      15,242,521       14,352,205  

Income before other income (expense) and provision for income taxes

    3,591,487       3,646,307  
Other Income (Expense):                
Interest expense     (1,404,095 )     (1,424,598 )

Income from investment subject to significant influence

    144,977       211,760  
Other     94,729       81,090  
      (1,164,389 )     (1,131,748 )
Income Before Income Taxes     2,427,098       2,514,559  
Benefit (provision) for income taxes     2,542,857       (134,000 )
Net Income   $ 4,969,955     $ 2,380,559  
Basic and diluted earnings per share:                
Net Income   $ 0.12     $ 0.06  
Weighted Average Common Shares Outstanding:                
Basic and diluted     42,368,236       42,839,185