Zipper & Trim product sales up at Talon
Talon International Inc, a leading global supplier of zippers, apparel fasteners, trim and interlining products, reported financial results for the fourth quarter and year ended December 31, 2008.
• Sales for the full year 2008 totaled $48.2 million, vs. $40.5 million in 2007.
• Zipper product sales up 13% in Q4 2008 vs. Q4 2007; up 34% in FY2008 vs. FY2007.
• Net loss totaled $8.4 million in 2008, vs. $4.9 million in 2007.
• $5.4 million in certain significant charges in 2008 vs. $1.2 million in 2007.
Sales for the full year 2008 totaled $48.2 million, an increase of $7.6 million from 2007 or 19%. Sales for the fourth quarter of 2008 totaled $8.4 million, a decrease of $467,000, or 5% from the same period in 2007. The increase in sales for the full year reflected a 34% increase in Talon zipper sales to $28.4 million in 2008 compared to $21.2 million in 2007. For all of 2008 the Company reported Trim product sales of $19.5 million, an increase of $849,000 or 4.5% over 2007, and Tekfit product sales of $205,000, a decline of $476,000 from 2007.
The increase in Zipper and Trim product sales for the year is primarily attributable to the Company's expanded presence within the global apparel industry and the approval of Talon products by new brands and retailers. The decline in Tekfit product sales for the year was primarily attributable to lower sales as the Company rebuilds this product's acceptance following the expiration of revenues from an exclusive sales contract.
Sales for the quarter ended December 31, 2008 reflect an increase in zipper product sales of $481,000 or 13% over the same period in 2007, and an increase in waistband product sales of $65,000. The sales increases were offset by a decline in Trim product sales of $1.0 million. The increase in zipper product sales for the quarter is a reflection of the expanded brand approvals gained during the year, while the decline of Trim product sales represents program reductions by major retailers in response to the global economic decline in the fourth quarter of 2008.
For the full year 2008 a net loss of $8.4 million or ($0.41) per share was reported by the Company, as compared to a net loss of $4.9 million or ($0.24) per share in 2007. For the fourth quarter of 2008, a net loss of $4.7 million was reported, as compared to a net loss of $935,000 in same period of 2007.
"Fiscal year 2008 was a year of significant improvements for the company," said Lonnie Schnell, Talon's CEO, "partially eclipsed by a severe economic downturn in the fourth quarter of 2008 and its effect on our operations. The overall financial results for the year were disappointing, as we saw the economic decline late in the year severely impact our on-going efforts to secure the maximum value from several of our legacy assets. Consequently, we absorbed several unexpected charges during the year.
"Despite the severe economic decline late in 2008, before consideration of several significant charges that were recorded in the year, the Company's overall performance for the fourth quarter and the full year of 2008 showed improvements over 2007."