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Operational efficiency up from 60% to 85%, Tefron
19 Aug '10
5 min read
Results for Q2/2010
Company sales amounted to $24.9M as compared to $25.3M for the corresponding period last year.
Operating losses amounted to approximately $2.3M, as compared to losses of $5.6M for the corresponding period last year. This decline is mainly due to the improvement in On Time Delivery to customers and reduction in production waste, which led to increased efficiency while improving the production capacity and, due to significant savings on fixed costs.
The Company reports positive EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) of about $12K, as compared to a negative EBITDA of about $3.3M for the corresponding period last year.
Financial expenses amounted to $370K, as compared to $434K for the corresponding quarter last year.
Net loss amounted to approximately $2M, as compared with $4.6M net loss for the corresponding quarter last year.
Company's Financials as on 30 June, 2010:
Current assets totaled to $36.0M as compared with $39.9M on 31 December, 2009. The 9.8% decline was derived mainly of a $1.5M decline in cash, which were used to finance the Company losses, and of a $1.3M decline in inventory due to the seasonality of the swimwear products.
Current liabilities total about $23.0M, as compared to $46.6M on 31 December, 2009. The $26.6M decline is derived mainly of bank credits. The agreement signed with the banks on 2 March, 2010 included a restructure for the Company's credit facilities. As part of this reorganization, the main part of the bank credit become long term debts and as such, classified as non-current liabilities.
Non-current liabilities total about $22.5M, as compared to approximately $5.6M on 31 December, 2009. The $16.9M increase is derived mainly of the abovementioned restructuring and of the $1.8M offset of the balance for deferred taxes, net.
Company equity totals about $45.9M, comprising approximately 50.2% of the entire balance sheet, as compared to about $47.0M, which comprised 47.4% of the total balance sheet as on 31 December, 2009. The decline in equity as compared to 31 December, 2009 was derived mainly of the $5.2M loss recorded during the reporting period and the offset of the $4M capital investment in the Company under the Company's rights offering and private equity issuances.
Company net loss, for the first half ending on 30 June, 2010, amounted to about $5.2M, as compared to a net loss of approximately $4.5M for the corresponding period last year.
Tefron is a market leader in the field of apparel, serving customers in the U.S. and Europe. Tefron focuses on developing, producing, marketing and selling undergarments, athletic wear, beach and swimwear. Tefron activities are divided into two business sectors: "Seamless" design, development, production and sale of undergarments and athletic apparel; and "Cut & Sew" design, development, production and sale of undergarments, swimsuits and athletic apparel.
Company sales amounted to $24.9M as compared to $25.3M for the corresponding period last year.
Operating losses amounted to approximately $2.3M, as compared to losses of $5.6M for the corresponding period last year. This decline is mainly due to the improvement in On Time Delivery to customers and reduction in production waste, which led to increased efficiency while improving the production capacity and, due to significant savings on fixed costs.
The Company reports positive EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) of about $12K, as compared to a negative EBITDA of about $3.3M for the corresponding period last year.
Financial expenses amounted to $370K, as compared to $434K for the corresponding quarter last year.
Net loss amounted to approximately $2M, as compared with $4.6M net loss for the corresponding quarter last year.
Company's Financials as on 30 June, 2010:
Current assets totaled to $36.0M as compared with $39.9M on 31 December, 2009. The 9.8% decline was derived mainly of a $1.5M decline in cash, which were used to finance the Company losses, and of a $1.3M decline in inventory due to the seasonality of the swimwear products.
Current liabilities total about $23.0M, as compared to $46.6M on 31 December, 2009. The $26.6M decline is derived mainly of bank credits. The agreement signed with the banks on 2 March, 2010 included a restructure for the Company's credit facilities. As part of this reorganization, the main part of the bank credit become long term debts and as such, classified as non-current liabilities.
Non-current liabilities total about $22.5M, as compared to approximately $5.6M on 31 December, 2009. The $16.9M increase is derived mainly of the abovementioned restructuring and of the $1.8M offset of the balance for deferred taxes, net.
Company equity totals about $45.9M, comprising approximately 50.2% of the entire balance sheet, as compared to about $47.0M, which comprised 47.4% of the total balance sheet as on 31 December, 2009. The decline in equity as compared to 31 December, 2009 was derived mainly of the $5.2M loss recorded during the reporting period and the offset of the $4M capital investment in the Company under the Company's rights offering and private equity issuances.
Company net loss, for the first half ending on 30 June, 2010, amounted to about $5.2M, as compared to a net loss of approximately $4.5M for the corresponding period last year.
Tefron is a market leader in the field of apparel, serving customers in the U.S. and Europe. Tefron focuses on developing, producing, marketing and selling undergarments, athletic wear, beach and swimwear. Tefron activities are divided into two business sectors: "Seamless" design, development, production and sale of undergarments and athletic apparel; and "Cut & Sew" design, development, production and sale of undergarments, swimsuits and athletic apparel.
Tefron Ltd
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