Hampshire publishes summary of restatement results for Q1 2006
10 Aug '07
5 min read
Hampshire Group Limited announced that it has filed an amended quarterly report on Form 10-Q/A for the period ended April 1, 2006 and filed quarterly reports on Form 10-Q for the periods ended July 1, 2006 and September 30, 2006 with the United States Securities and Exchange Commission.
This press release should be read in conjunction with the filed quarterly reports referred to in this release and with the amended annual report on Form 10-K/A including its restated financial statements for the three year period ended December 31, 2005 that was filed on May 31, 2007.
The restatement of results for the three months ended April 1, 2006 were comprised of adjustments to the Company's sales allowances, allowance for doubtful accounts, inventory, payroll and income tax liabilities, other accrued liabilities, and acquisition accounting.
With the filing of Form10-Q for the second quarter of 2006, the Company reported results for the three and six month periods ended July 1, 2006 and restated its financial statements for the comparable periods of the prior year to reflect the results of the Audit Committee investigation.
Net sales for the three months ended July 1, 2006 were $49.4 million compared to $38.6 million for the same period of the prior year. Net sales for the current period included $17.6 million of net sales attributed to David Brooks, Shane Hunter, and Marisa Christina, which were businesses that were acquired subsequent to thecomparable quarter of the prior year.
The majority of the $6.8 million decrease in the Company's existing business net sales resulted from a decline in 2006 shipments to several customers primarily of the private label business of the women's related separates division. The women's related separates division annual net sales in 2006 will be lower, when reported, than 2005 due to such decline.
Net sales for the six months ended July 1, 2006 were $116.9 million compared to $96.7 million for the same period of the prior year. Net sales for the first six months of 2006 included $36.6 million of net sales attributed to the acquired businesses. The majority of the $16.4 million decrease in the Company's existing business net sales resulted from a decline in 2006 shipments to the customers discussed above.
The loss from operations for the three months ended July 1, 2006 was $6.1 million compared to $789,000 in income from operations for the same period of the prior year. The 2006 loss from operations includes a $554,000 operating loss from the acquired businesses and $421,000 in expenses associated with the Audit Committee investigation. Operating income for the same period of 2005 includes a $6.0 million one time recovery from two former employees for improper payments made to them by a third party vendor.