NEW YORK, Oct. 12, 2007 (PRIME NEWSWIRE) -- Lazare Kaplan International Inc. (AMEX:LKI) today announced financial results for the first fiscal quarter 2008 ended August 31, 2007.
Net sales for the three months ended August 31, 2007 were $102.6 million compared to $138.9 million in the comparable prior year period. The decrease in net sales for the quarter reflects a reduction in sales from rough diamond trading partially offset by an increase in sales of polished diamonds. The decrease in rough diamond sales reflects the transfer during the second fiscal quarter 2007 of certain rough trading operations to a separately operated joint venture which the Company accounts for on the equity method.
Gross margin for the three months ended August 31, 2007 was $8.3 million compared to $5.2 million in the comparable prior year period. The increase in gross margin reflects increased gross margins earned on both rough and polished diamond sales.
Net income for the three months ended August 31, 2007 was $0.4 million or $0.05 per fully diluted share compared to a net loss of $(1.8) million or $(0.22) per fully diluted share in the comparable prior year period. Fully diluted earnings per share for the three-months ended August 31, 2007 was based on the weighted average number of shares outstanding of 8,321,797 compared to 8,197,259 in the comparable prior year period.
Lazare Kaplan International Inc. sells its diamonds and jewelry products through a worldwide distribution network. The Company is noted for its ideal cut diamonds, which it markets internationally under the brand name, Lazare Diamonds(r).
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include a softening of retailer or consumer acceptance of or demand for the Company's products, pricing pressures, adequate supply of rough diamonds and other competitive factors. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission. The information contained in this press release is accurate only as of the date issued. Investors should not assume that the statements made in these documents remain operative at a later time. Lazare Kaplan International Inc. undertakes no obligation to update any information contained in this news release.
CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except per share and per share data)
Three Months Ended
August 31, (unaudited) 2007 2006
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Net sales $ 102,593 $ 138,884
Cost of Sales 94,300 133,639
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8,293 5,245
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Selling, general and administrative expenses 6,287 6,239
Equity in income of joint ventures (75) (293)
Interest expense, net of interest income 1,503 1,722
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7,715 7,668
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Income / (loss) before income taxes 578 (2,423)
Income tax provision / (benefit) 158 (598)
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NET INCOME / (LOSS) $ 420 $ (1,825)
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EARNINGS / (LOSS) PER SHARE
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Basic earnings / (loss) per share $ 0.05 $ (0.22)
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Average number of shares outstanding during
the period 8,259,300 8,197,259
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Diluted earnings / (loss) per share $ 0.05 $ (0.22)
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Average number of shares outstanding during
the period assuming dilution 8,321,797 8,197,259
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