Everlast achieves 83% rise in operating income for Q1
28 Apr '06
3 min read
The Company achieved an 83 percent increase in operating income to $1.5 million, while earnings from continuing operations and before interest, taxes, depreciation and amortization (EBITDA), adjusted for non-cash stock based compensation and warrant issuance costs, improved 27 percent to $1.7 million, as compared with $1.3 million reported in the same period a year ago.
The increase in operating income and EBITDA was largely a result of increased net revenues and resulting gross margin dollars, along with a reduction in our operating expense ratio of 30 percent compared with 38.6 percent in the 2005 comparable period.
Lower general and administrative expenses along with a reduction in non-cash equity awards and amortization expense primarily achieved the operating expense decrease. In the first quarter of 2006, the Company was required to adopt SFAS 123 (R), Stock-Based Compensation, which resulted in a non-cash expense of $84,000.
Reported net income from continuing operations available to common stockholders was $2.5 million, or $0.69 per basic share and $0.64 per diluted share, as compared to a net loss of $(94,000), or $(0.03) loss per basic and diluted share, in the 2005 comparable period.
The 2006 first quarter results herein include the effects from the $2 million gain on the redemption of our Series A Preferred Stock and prepayment of related notes payable previously disclosed on February 8, 2006, that benefited our resultsof operations by $0.57 per basic share and $0.52 per diluted share.
Sporting goods and apparel maker & licensor firm Everlast Worldwide Inc also markets their products under the Everlast brand name. Since 1910, Everlast has been the top brand in the world of boxing and is among the most dominant brands in the overall sporting goods and apparel industries.
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