For the year ended December 31, 2012, the Company’s loss from operations was $11.2 million compared to $21.1 million last year. The $9.9 million year-over-year improvement is primarily due to an increase in overall gross profit of $8.9 million, offset by an increase in selling, general and administrative expense of $6.0 million. Additionally, there were two one-time charges taken in 2011 related to a lease obligation of $6.3 million and goodwill impairment of $1.2 million.

The Company is providing earnings before income taxes, interest, depreciation and amortization (“EBITDA”) and adjusted EBITDA, which excludes restructuring and stock based compensation charges. For the year ended December 31, 2012, the Company had negative EBITDA of $6.4 million compared to negative $7.9 million for the same period last year. For the year ended December 31, 2012, the Company had negative Adjusted EBITDA of $5.0 million compared to negative Adjusted EBITDA of $7.4 million for the same period last year.

Basic and diluted loss per share from continuing operations for the three months ended December 31, 2012, was $0.22, compared to a basic and diluted loss per share from continuing operations of $1.08 for the same period last year. For the year ended December, 3l, 2012, basic and diluted loss per share from continuing operations was $1.72, compared to basic and diluted loss per share from continuing operations of $3.41 last year.

On December 31, 2012, cash and cash equivalents totaled $12.5 million, compared with $25.8 million on December 31, 2011. The Company’s working capital related to continuing operations was $24.9 million at December 31, 2012 compared with $35.9 million at December 31, 2011. As of December 31, 2012, the Company had no outstanding borrowings from its credit facility with $3.1 million of availability and $12.5 million of cash and cash equivalents that is not included in the availability calculation.

About Hampshire Group

Hampshire Group, Limited ,along with its wholly-owned subsidiaries, Hampshire Brands, Inc., Rio Garment S.A. and scott james, LLC, is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points.

The Company specializes in designing and marketing men’s sportswear to department stores, chain stores and mass market retailers under licensed brands, our own proprietary brands and the private labels of our customers. The Company operates a Honduras-based apparel manufacturer, designing, sourcing and manufacturing knit tops for men, women and children.

Hampshire Group