K-Swiss Inc. reported that the net loss for the third quarter was $15.4 million, or 43 cents per diluted share, compared with a net loss of $28.3 million, or 80 cents per diluted share, for the prior-year period.
The operations of FORM Athletics are accounted for as a discontinued
operation in the company’s financial results and are excluded from
futures orders data for the prior-year periods.
For the third quarter of 2011, total worldwide revenues increased 30.8 percent to $80.5 million from $61.5 million in the prior-year period. Domestic revenues increased 21.0 percent to $32.7 million in the third quarter, and international revenues increased 38.6 percent to $47.8 million for the same period.
Futures Orders
Worldwide futures orders with start ship dates from October 2011 through March 2012 decreased 4.2 percent to $76.6 million at September 30, 2011. Domestic futures orders decreased 24.1 percent to $26.5 milion at September 30, 2011, from $34.9 million the previous year. International futures orders increased 11.3 percent to $50.1 million at September 30, 2011, from $45.0 million the previous year.
Steven Nichols, chairman of the board and president, stated, “Our performance category and international operations continue to strengthen, but our domestic business, in total, needs more work to restore us to profitability.”
2011 Guidance
For 2011, the company expects full year consolidated revenues to be approximately $260 million. Consolidated gross margin is expected to be approximately 36.5 percent of sales, compared to 39.2 percent in 2010. Selling, general and administrative expenses are expected to be $153 million to $155 million.
|
KSwiss Inc. Consolidated Statements of Loss
|
|||||||||||
|
(In thousands, except earnings per share data)
|
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
September 30, |
September 30, |
||||||||||
2011 |
2010 |
2011 |
2010 |
||||||||
Revenues |
$ |
80,456 |
$ |
61,491 |
$ |
218,194 |
$ |
174,192 |
|||
Cost of goods sold |
51,631 |
36,458 |
138,413 |
102,987 |
|||||||
Gross profit |
28,825 |
25,033 |
79,781 |
71,205 |
|||||||
Selling, general and administrative expenses |
42,357 |
38,685 |
120,620 |
106,988 |
|||||||
Operating loss |
(13,532 |
) |
(13,652 |
) |
(40,839 |
) |
(35,783 |
||||
Other income/(expense) |
– |
– |
3,000 |
(3,320 |
|||||||
Interest income/(expense), net |
242 |
(197 |
) |
95 |
170 |
||||||
Loss before income taxes and discontinued operations |
(13,290 |
) |
(13,849 |
) |
(37,744 |
) |
(38,933 |
||||
Income tax expense |
342 |
13,993 |
1,904 |
8,152 |
|||||||
Loss from continuing operations |
(13,632 |
) |
(27,842 |
) |
(39,648 |
) |
(47,085 |
||||
Loss from discontinued operations, less applicable income tax |
(1,786 |
) |
(492 |
) |
(5,638 |
) |
(492 |
||||
Net loss |
$ |
(15,418 |
) |
$ |
(28,334 |
) |
$ |
(45,286 |
) |
$ |
(47,577 |
Basic loss per share |
$ |
(0.43 |
) |
$ |
(0.80 |
) |
$ |
||||
