Health & Fitness
Health and Fitness
Health and Fitness
Tue, February 17, 2009
Mon, February 16, 2009
Fri, February 13, 2009 Signature Eyewear Reports Net Income for 2008
LOS ANGELES--([ BUSINESS WIRE ])--Signature Eyewear, Inc. (OTCBB: SEYE) reported net income of $622,000 on net sales of $24.5 million for the fiscal year ended October 31, 2008. The Company has achieved four consecutive years of profitability.
In fiscal 2007, Signature recorded net income of $2.7 million on net sales of $25.0 million. In fiscal 2007, the Company recognized a net tax benefit of $2.1 million due primarily to a reduction in the valuation allowance on the Company's deferred tax asset. In fiscal 2008, the Company did not record a net tax benefit.
Income before taxes increased from $572,000 in fiscal 2007 to $630,000 in fiscal 2008. The increase in income before taxes was principally due to a $209,000 decrease in interest expense resulting primarily from lower interest rates and a reduction in depreciation expense.
Net income in fiscal 2008 was positively affected by an increase in gross margin from 63.9% in fiscal 2007 to 64.2% in fiscal 2008. This increase was due primarily to increasing sales of higher margin products to the independent optical retailers. General and administrative expenses remained constant at $5.8 million in each fiscal year.
The 2% decrease in net sales in fiscal 2008 was primarily due to a decrease in international sales as a result of the ongoing acquisitions of major international customers by vertically integrated competitors and deep discounting in many international markets. Domestic sales remained relatively constant between the years.
"We are very pleased to report another profitable year, particularly in light of the great recession and continued weakness in the optical frame market," stated Michael Prince, Chief Executive Officer of Signature.
"We have recently launched our newest line, Michael Stars Eyewear, and expanded our Signature Collection with the release of our Caligraphy collection," Mr. Prince continued. "These collections broaden our product lines and allow us to go deeper with our customers. We believe these value-priced lines will be more attractive to consumers and are more likely to be covered by optical insurance programs."
The Company's long-term debt continued to decline during the year, from $5.1 million at October 31, 2007 to $4.9 million at October 31, 2008.
About Signature Eyewear
Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally-recognized brand names, including bebe eyes, Cutter & Buck Eyewear, Carmen Marc Valvo Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer Eyegear, Laura Ashley Eyewear, Michael Stars Eyewear and Nicole Miller Eyewear. Signature Eyewear's products are sold worldwide to opticians, optometrists and ophthalmologists and to major retail chains. For information about Signature Eyewear, visit the Company's website at [ http://www.seye.com ].
The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including increasing market interest rates. Actual results may differ materially from those indicated by such forward-looking statements. For additional information, please consult the Company's most recent public filings and Form 10-K for the year ended October 31, 2008. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.
