Danier Leather Inc announced its unaudited consolidated financial results for the 13-weeks ended September 29, 2007.
As a result of the unanimous Supreme Court of Canada decision upholding the unanimous Ontario Court of Appeal ruling that dismissed the class action, the litigation provision of $18 million less future income taxes of $4.6 million was reversed in the first quarter of 2008 and net earnings were $9.8 million ($1.54 per basic share).
Excluding the reversal of the class action provision, the net loss for the first quarter of 2008 was $3.6 million(2) ($0.57 loss per basic share) compared with a net loss of $3.7 million ($0.56 loss per basic share) during the first quarter of 2007.
Sales for the first quarter increased by 1% or $0.2 million to $22.1 million from $21.9 million in the first quarter of 2007. Comparable store sales increased 5%.
Danier opened one shopping mall store in Saskatoon, Saskatchewan during the quarter and had 91 stores in operation compared with 93 stores in the same quarter last year.
Gross profit as a percentage of revenue during the first quarter of 2008 expanded by 490 basis points or 4.9% to 48.9% compared with 44.0% during the first quarter last year. The expanded gross profit as a percentage of revenue resulted in gross profit dollars increasing by 12% or $1.2 million for the first quarter.
On October 12, 2007, the Supreme Court of Canada released its unanimous decision in the matter of a class action concerning the Company's initial public offering ("IPO") in 1998. The Supreme Court upheld the unanimous 2005 Ontario Court of Appeal ruling that dismissed the class action.
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