PICKERINGTON, Ohio, Feb. 9 /PRNewswire-FirstCall/ -- Accessory
footwear marketer R.G. Barry Corporation (NASDAQ:DFZ) today
reported a 36.0 percent increase in net earnings on a 13.8 percent
increase in net sales for its second quarter, ended January 2,
2010. For the quarter, the Company reported: -- Net earnings of
$8.2 million or $0.76 per basic share and $0.74 per diluted share
compared to $6.1 million, or $0.57 per basic share and $0.56 per
diluted share, in the second quarter of fiscal 2009; -- Net sales
of $55.6 million compared to $48.9 million reported for the
corresponding period of fiscal 2009; -- Gross profit as a percent
of net sales in the quarter was 43.1 percent versus 39.5 percent in
the comparable quarter of fiscal 2009; and -- Selling, general and
administrative expenses of $10.8 million were down fractionally as
a percentage of net sales but up $1.1 million versus the equivalent
quarter of fiscal 2009, as detailed in the management comments
portion of this news release. For the first half, the Company
reported: -- Net earnings of $10.5 million, or $0.97 per basic and
$0.96 per diluted share, versus net earnings of $7.2 million, or
$0.67 per basic and diluted share, in the comparable period one
year ago; -- Net sales for the period rose 14.0 percent to $85.0
million versus $74.5 million in the first half one year ago; --
Gross profit as a percent of net sales increased to 42.6 percent
from 39.5 percent in the comparable six months of fiscal 2009; and
-- Selling, general and administrative expenses were $19.6 million,
up $1.3 million versus the comparable period last year, but down
150 basis points as a percentage of net sales for the half, as
detailed in the management comments portion of this news release.
The balance sheet continues to reflect the benefits of the
Company's flexible business model and growth strategies. -- Cash
and short-term investments increased to $37.4 million, up $9.5
million from one year ago. -- Inventory was $16.9 million, up $1.9
million from one year ago; and -- Net shareholders' equity
increased to $57.3 million from $53.6 million at the end of the
second quarter of fiscal 2009. Management Comments "We continue
executing at a level that places us among the best in our
industry," said Greg Tunney, President and Chief Executive Officer.
"Our year-over-year, double-digit net sales increase and higher
profitability stem from the strong sell-through we experienced
across most retail channels during our first half. We take great
pride in the fact that this healthy performance is being measured
against our results from the equivalent period last year, which
were among the best reported in our sector. We view today's results
as a reaffirmation of the ability of our business model to adapt
and perform well, even during uncertain economic times." "We are
very pleased with the strength of our first-half performance,"
added Jose Ibarra, Senior Vice President Finance and Chief
Financial Officer. "The benefits of lower product costs, resulting
primarily from the increased availability of manufacturing capacity
and lower oil prices, have allowed us to achieve a first half gross
profit percentage of net sales that is above our 40 percent annual
target. "Our selling, general and administrative costs, while up on
a dollar basis, are slightly lower as a percentage of net sales for
both the quarter and half. These increased overhead dollars
principally reflect our increased investment in advertising and
marketing for the Dearfoams brand. We will offset some of this
investment spending by continuing to take advantage of operational
efficiencies elsewhere in the business," Mr. Ibarra said.
Conference Call/Webcast Today R.G. Barry Corporation senior
management will conduct a conference call for all interested
parties at 11:00 a.m. EST today. Management will discuss the
Company's performance, its plans for the future and will accept
questions from participants. To listen via the Internet, log on to
http://www.videonewswire.com/event.asp?id=65297 The conference call
will also be available at 800.860.2442 (U.S.), 866.605.3852
(Canada) and +1.412.858.4600 (international) until five minutes
before starting time. Replays of the call and a written transcript
will be posted on the Company's Website http://www.rgbarry.com/
under the "Investor Room" section. Replays will also be available
beginning approximately one hour after the call and through Friday,
February 19 at 1-877-344-7529 (U.S.) and 1-412-317-0088
(international). Ask for conference number 437084. About R.G. Barry
Corporation R.G. Barry Corporation, the Dearfoams® company, is one
of the world's leading developers and marketers of accessory
footwear. Visit us online at http://www.rgbarry.com/ to learn more
about our business. Forward-Looking Statements Some of the
statements in this news release contain forward-looking statements
that involve substantial risks and uncertainties. You can identify
these statements by forward-looking words such as "may," "will,"
"expect," "could," "should," "anticipate," "believe," "estimate,"
or words with similar meanings. Any statements that refer to
projections of our future performance, anticipated trends in our
business and other characterizations of future events or
circumstances are forward-looking statements. These statements,
which are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995, are based upon
our current plans and strategies and reflect our current assessment
of the risks and uncertainties related to our business. These risks
could include, but are not limited to, things such as: our
continuing ability to source products from third parties located
outside North America; competitive cost pressures; the loss of
retailer customers to competitors, consolidations, bankruptcies or
liquidations; shifts in consumer preferences; the impact of the
highly seasonal nature of our business upon our operations;
inaccurate forecasting of consumer demand; difficulties liquidating
excess inventory; disruption of our supply chain or distribution
networks; and our investment of excess cash in certificates of
deposit and other non-auction rate marketable securities. You
should read this news release carefully, because the
forward-looking statements contained in it (1) discuss our future
expectations; (2) contain projections of our future results of
operations or of our future financial condition; or (3) state other
"forward-looking" information. The risk factors described in this
news release, our Quarterly Report on Form 10-Q and our other
filings with the Securities and Exchange Commission, in particular
"Item 1A. Risk Factors" of Part I of our Annual Report on Form 10-K
for the fiscal year ended June 27, 2009 (the "2009 Form 10-K"),
give examples of the types of uncertainties that may cause actual
performance to differ materially from the expectations we describe
in our forward-looking statements. If the events described in "Item
1A. Risk Factors" of Part I of our 2009 Form 10-K occur, they could
have a material adverse effect on our business, operating results
and financial condition. You should also know that it is impossible
to predict or identify all risks and uncertainties related to our
business. Consequently, no one should consider any such list to be
a complete set of all potential risks and uncertainties.
Forward-looking statements speak only as of the date on which they
are made, and we undertake no obligation to update any
forward-looking statement to reflect circumstances or events that
occur after the date on which the statement is made to reflect
unanticipated events. Any further disclosures in our filings with
the Securities and Exchange Commission should also be considered.
R.G. BARRY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
INCOME (in thousands of dollars, except for per share data)
Fourteen Thirteen Twenty-seven Twenty-six weeks weeks weeks weeks
ended ended ended ended (unaudited)(unaudited) (unaudited)
(unaudited) January December % January December % 2, 27, Increase
2, 27, Increase 2010 2008 Decrease 2010 2008 Decrease ----------
-------- -------- -------- ---------- -------- Net sales $55,574
$48,853 13.8% $85,023 $74,482 14.2% Cost of Sales 31,612 29,569
6.9% 48,770 45,038 8.3% Gross profit 23,962 19,284 24.3% 36,253
29,444 23.1% Gross profit (as percent of net sales) 43.1% 39.5%
42.6% 39.5% Selling, general and administrative expenses 10,776
9,668 11.5% 19,586 18,256 7.3% ------- ------- ------- -------
Operating profit 13,186 9,616 37.1% 16,667 11,188 49.0% Interest
income, net 27 87 -69.0% 176 232 -24.1% Earnings, before income tax
expense 13,213 9,703 36.2% 16,843 11,420 47.5% Income tax expense
4,987 3,653 36.5% 6,353 4,265 49.0% Net earnings $8,226 $6,050
36.0% $10,490 $7,155 46.6% ====== ====== ======= ====== Earnings
per common share Basic $0.76 $0.57 33.3% $0.97 $0.67 44.8% ======
====== ======= ====== Diluted $0.74 $0.56 32.1% $0.96 $0.67 43.3%
====== ====== ======= ====== Average number of Common shares
outstanding Basic 10,857 10,609 10,836 10,602 Diluted 11,042 10,712
10,981 10,717 CONSOLIDATED BALANCE SHEETS (in thousands of dollars)
(unaudited) (unaudited) (audited) January 2, December 27, June 27,
2010 2008 2009 ----------- ------------ --------- ASSETS Cash &
Short term investments $37,351 $27,893 $39,236 Accounts Receivable,
net 21,394 17,056 9,503 Inventory 16,839 14,931 8,499 Prepaid
expenses and other current assets 2,117 1,651 3,344 -----------
------------ --------- Total current assets 77,701 61,531 60,582
Net property, plant and equipment 3,895 3,789 3,743 Other assets
10,825 9,065 10,758 Total Assets $92,421 $74,385 $75,083
=========== ============ ========= LIABILITIES & SHAREHOLDERS'
EQUITY Short-term notes payable 1,844 2,290 1,840 Accounts payable
7,382 4,662 3,887 Other current liabilities 6,243 2,176 3,979 Total
current liabilities 15,469 9,128 9,706 Long-term debt 49 140 97
Accrued retirement costs and other 19,565 11,556 19,372
Shareholders' equity, net 57,338 53,561 45,908 Total liabilities
& shareholders' equity $92,421 $74,385 $75,083 ===========
============ ========= DATASOURCE: R.G. Barry Corporation CONTACT:
Roy Youst, Director Investor & Corp. Communications,
+1-614-729-7275, or Jose G. Ibarra, Senior Vice President
Finance/CFO, +1-614-864-6400 Web Site: http://www.rgbarry.com/
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