LOS ANGELES, Nov. 16, 1998 (PRIMEZONE) -- Jalate, Ltd. (AMEX:JLT) reported net income for third quarter ended September 30, 1998 of $121,000, or $0.03 per share, on net sales of $10,599,000, reversing a year ago loss for the comparable period of ($380,000), or ($0.11) per share, on net sales of $13,167,000.
For the nine months ended September 30, 1998, the company reported net income of $104,000, or $0.03 per share, on net sales of $36,222,000, compared with a net loss a year earlier of ($1,916,000), or ($0.56) per share, on net sales of $41,732,000.
Vinton W. Bacon, President and Chief Executive Officer, said "Though we are pleased with the progress we have made toward returning Jalate to profitability, we certainly are not satisfied. We remain cautiously optimistic that the continued implementation of our current strategy will allow us to achieve our goal of returning the company to profitability."
Jalate, Ltd. designs, develops and markets children's and junior knit sportswear and dresses at moderate prices for the fashion-conscious young woman who desires to continually update her wardrobe. The Company develops basic styles that are fashionable and easy to produce, enabling the company to respond more quickly to fashion trends, reduce delivery time to the retailer and facilitate a consistently high-quality product. Jalate's products are found in major department stores, retail chain stores and specialty stores, including JC Penney, Sears, Dillard's, The Federated Department Stores and The May Companies.
JALATE, LTD.
Condensed Statements of Operations
(In thousands except net earnings (loss) per share
and weighted average shares outstanding)
(Unaudited)
9 Mos. ended Sept. 30, 3 Mos. ended Sept. 30,
_____________________ ______________________
1998 1997 1998 1997
_________ _________ _________ _________
Net sales $ 36,222 $ 41,732 $ 10,599 $ 13,167
Cost of goods sold 26,575 32,049 7,522 10,169
_________ _________ _________ _________
Gross profit 9,647 9,683 3,077 2,998
Operating expenses 8,810 11,462 2,846 3,255
_________ _________ _________ _________
Earnings (loss) from operations 837 (1,779) 231 (257)
Other (income) expense:
Interest expense 766 568 242 226
Equity in (income) of
unconsolidated subsidiaries (32) (427) (132) (100)
Other (income) (1) (6) -- (5)
_________ _________ _________ _________
Total other expense 733 135 110 121
_________ _________ _________ _________
Earnings (loss) before income taxes 104 (1,914) 121 (378)
Income taxes -- 2 -- 2
Net earnings (loss) $ 104 $ (1,916) $ 121 $ (380)
Net earnings (loss) per share:
Basic $ 0.03 $ (0.56) $ 0.03 $ (0.11)
Diluted 0.03 (0.56) 0.03 (0.11)
_________ _________ _________ _________
Weighted average shares outstanding:
Basic 3,403,000 3,403,000 3,403,000 3,403,000
Diluted 3,403,000 3,403,000 3,403,000 3,403,000
_________ _________ _________ _________
See accompanying notes to condensed financial statements.
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