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Tefron Q4 loss narrows, sales up 23.4%
08 Mar '06
4 min read
Tefron Ltd, a leading producer of seamless intimate apparel and engineered-for-performance (EFPTM) active wear, has announced financial results for the fourth quarter and full year 2005.
As announced on December 22nd 2005, Tefron's management has authorized the exercise by Tefron of its option to require AlbaHealth to purchase Tefron's ownership interest in AlbaHealth.
Management currently expects that the transaction will close by the end of the first quarter of 2006, although there can be no assurance that the transaction will be completed within that time period, or at all. Upon completion of the transaction, it will cease to consolidate the financial results of AlbaHealth.
The pro-forma results exclude the results of AlbaHealth, as well as an additional $5.6 million, almost all of which are non-cash expenses and $1.0 million of tax liability, that were recorded in the fourth quarter of 2005 as a result of the anticipated AlbaHealth transaction.
Fourth quarter sales reached $55.1 million, representing a 23.4 percent growth over the same period of last year. On a pro-forma basis, sales for the quarter reached $46.0 million representing a 26.7 percent increase over the fourth quarter of 2004.
Pro-forma gross margin in the fourth quarter increased to 22.8 percent from 2.7 percent in the fourth quarter of 2004. Pro-forma operating income grew to $7.0 million (15.3 percent of revenues) compared to an operating loss of $3.1 million in the fourth quarter of 2004.
As announced on December 22nd 2005, Tefron's management has authorized the exercise by Tefron of its option to require AlbaHealth to purchase Tefron's ownership interest in AlbaHealth.
Management currently expects that the transaction will close by the end of the first quarter of 2006, although there can be no assurance that the transaction will be completed within that time period, or at all. Upon completion of the transaction, it will cease to consolidate the financial results of AlbaHealth.
The pro-forma results exclude the results of AlbaHealth, as well as an additional $5.6 million, almost all of which are non-cash expenses and $1.0 million of tax liability, that were recorded in the fourth quarter of 2005 as a result of the anticipated AlbaHealth transaction.
Fourth quarter sales reached $55.1 million, representing a 23.4 percent growth over the same period of last year. On a pro-forma basis, sales for the quarter reached $46.0 million representing a 26.7 percent increase over the fourth quarter of 2004.
Pro-forma gross margin in the fourth quarter increased to 22.8 percent from 2.7 percent in the fourth quarter of 2004. Pro-forma operating income grew to $7.0 million (15.3 percent of revenues) compared to an operating loss of $3.1 million in the fourth quarter of 2004.
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