Movado Group, Inc. Announces First Quarter Results
First Quarter Fiscal 2013 Results
- Net sales in the first quarter of fiscal 2013 increased 15.4% to
$103.7 million compared to$89.9 million in the first quarter of fiscal 2012 driven primarily by growth in the accessible luxury and licensed brand categories. On a constant dollar basis, net sales increased 16.6% compared to the prior year period. - Gross profit in the first quarter of fiscal 2013 was
$59.0 million , or 56.9% of sales, compared to$48.6 million , or 54.1% of sales, in the first quarter last year. The increase in gross margin percentage was primarily the result of channel and product mix, as well as leverage gained on fixed costs due to higher sales. - Operating expenses increased
$3.5 million , or 7.4%, to$50.5 million in the first quarter of fiscal 2013 from$47.0 million in the first quarter last year. This increase was primarily the result of higher employee compensation and benefits expense and higher marketing expense, partially offset by the favorable effect of fluctuations in foreign currency exchange rates. - Operating income increased to
$8.5 million in the first quarter of fiscal 2013 compared to$1.6 million in the same period last year. - The Company recorded a tax provision of
$1.6 million in the first quarter of fiscal 2013, which equates to an effective tax rate of 19.1% as compared to 58.3% in the first quarter last year. The effective tax rate for both periods includes the effects of the application of guidelines related to accounting for income taxes in interim periods. - Net income was
$6.6 million , or$0.26 per diluted share, in the first quarter of fiscal 2013 compared to net income of$0.5 million , or$0.02 per diluted share, in the first quarter of fiscal 2012. - EBITDA for the first quarter of fiscal 2013 was
$11.5 million compared to EBITDA of$4.5 million in the first quarter of fiscal 2012. (See attached table for reconciliation of GAAP to non-GAAP measures.)
Fiscal 2013 Guidance
As reported in the Company's business update issued on
Quarterly Dividend
The Company also announced that on
Conference Call
The Company's management will host a conference call and audio webcast to discuss its results today,
In this release, the Company presents certain adjusted financial measures that are not calculated according to generally accepted accounting principles in
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "expects," "anticipates," "believes," "targets," "goals," "projects," "intends," "plans," "seeks," "estimates," "may," "will," "should" and similar expressions. Similarly, statements in this press release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements and levels of future dividends to differ materially from those expressed in, or implied by, these statements. These risks and uncertainties may include, but are not limited to general economic and business conditions which may impact disposable income of consumers in
(Tables to follow)
|
||||||||
MOVADO GROUP, INC. |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(In thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
||||||||
April 30, |
||||||||
2012 |
2011 |
|||||||
Net sales |
$103,655 |
$89,854 |
||||||
Cost of sales |
44,630 |
41,231 |
||||||
Gross profit |
59,025 |
48,623 |
||||||
Selling, general and administrative |
50,537 |
47,043 |
||||||
Operating income |
8,488 |
1,580 |
||||||
Interest expense |
(145) |
(383) |
||||||
Interest income |
16 |
29 |
||||||
Income before income taxes |
8,359 |
1,226 |
||||||
Provision for income taxes |
1,598 |
715 |
||||||
Net income |
6,761 |
511 |
||||||
Less: Net income attributed to noncontrolling interests |
128 |
20 |
||||||
Net income attributed to Movado Group, Inc. |
$6,633 |
$491 |
||||||
Per Share Information: |
||||||||
Net income attributed to Movado Group, Inc. |
$0.26 |
$0.02 |
||||||
Weighted diluted average shares outstanding |
25,475 |
25,078 |
MOVADO GROUP, INC. |
|||||||||
RECONCILIATION TABLES |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
|||||||||
April 30, |
|||||||||
2012 |
2011 |
||||||||
Operating income (GAAP) |
$8,488 |
$1,580 |
|||||||
Depreciation and amortization |
3,051 |
2,943 |
|||||||
EBITDA (non-GAAP) |
$11,539 |
$4,523 |
MOVADO GROUP, INC. |
||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
April 30, |
January 31, |
April 30, |
||||||||
2012 |
2012 |
2011 |
||||||||
ASSETS |
||||||||||
Cash and cash equivalents |
$158,750 |
$182,201 |
$109,256 |
|||||||
Trade receivables |
62,262 |
61,235 |
60,610 |
|||||||
Inventories |
172,041 |
163,680 |
185,885 |
|||||||
Other current assets |
27,909 |
25,516 |
35,222 |
|||||||
Total current assets |
420,962 |
432,632 |
390,973 |
|||||||
Property, plant and equipment, net |
33,567 |
36,290 |
37,642 |
|||||||
Deferred income taxes |
15,106 |
14,959 |
8,282 |
|||||||
Other non-current assets |
23,405 |
22,162 |
23,120 |
|||||||
Total assets |
$493,040 |
$506,043 |
$460,017 |
|||||||
LIABILITIES AND EQUITY |
||||||||||
Accounts payable |
$23,130 |
$33,080 |
$21,168 |
|||||||
Accrued liabilities |
35,834 |
52,298 |
38,731 |
|||||||
Dividends payable |
12,570 |
- |
- |
|||||||
Deferred and current income taxes payable |
1,493 |
1,015 |
410 |
|||||||
Total current liabilities |
73,027 |
86,393 |
60,309 |
|||||||
Deferred and non-current income taxes payable |
6,825 |
7,291 |
7,174 |
|||||||
Other non-current liabilities |
19,497 |
18,285 |
18,618 |
|||||||
Noncontrolling interests |
2,899 |
2,708 |
2,455 |
|||||||
Shareholders' equity |
390,792 |
391,366 |
371,461 |
|||||||
Total liabilities and equity |
$493,040 |
$506,043 |
$460,017 |
|||||||
MOVADO GROUP, INC. |
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
|||||||||
April 30, |
|||||||||
2012 |
2011 |
||||||||
Cash flows from operating activities: |
|||||||||
Income from operations |
$6,761 |
$511 |
|||||||
Depreciation and amortization |
3,051 |
2,943 |
|||||||
Other non-cash adjustments |
527 |
539 |
|||||||
Changes in working capital |
(34,520) |
(657) |
|||||||
Changes in non-current assets and liabilities |
(210) |
268 |
|||||||
Net cash (used in) / provided by operating activities from continuing operations |
(24,391) |
3,604 |
|||||||
Net cash (used in) operating activities from discontinued operations |
(2) |
(19) |
|||||||
Net cash (used in) / provided by operating activities |
(24,393) |
3,585 |
|||||||
Cash flows from investing activities: |
|||||||||
Capital expenditures |
(837) |
(1,622) |
|||||||
Trademarks |
- |
(24) |
|||||||
Net cash (used in) investing activities |
(837) |
(1,646) |
|||||||
Cash flows from financing activities: |
|||||||||
Dividends paid |
(1,256) |
(746) |
|||||||
Other financing |
450 |
(71) |
|||||||
Net cash (used in) financing activities |
(806) |
(817) |
|||||||
Effect of exchange rate changes on cash and cash equivalents |
2,585 |
5,118 |
|||||||
Net change in cash and cash equivalents |
(23,451) |
6,240 |
|||||||
Cash and cash equivalents at beginning of period |
182,201 |
103,016 |
|||||||
Cash and cash equivalents at end of period |
$158,750 |
$109,256 |
|||||||
SOURCE
FTI Consulting: Leigh Parrish/Jennifer Milan, +1-212-850-5600