Hampshire Group Limited announced that it has filed its annual report on Form 10-K for the year ended December 31, 2006 with the United States Securities and Exchange Commission. This press release should be read in conjunction with the filed annual report referred to in this release.
Results for the Twelve Months Ended December 31, 2006:
Net sales for the year ended December 31, 2006 were $347.9 million compared with $324.3 million for the prior year.
Net sales for 2006 included $64.8 million of incremental net sales attributed to David Brooks, Shane Hunter, and Marisa Christina, which were businesses that were acquired in late 2005 and 2006.
Excluding acquisitions, net sales declined $41.2 million, primarily due to a decline in 2006 shipments to several customers of the private label business of the women's related separates division.
Income from operations for the year ended December 31, 2006 was $4.5 million compared with $20.4 million in income from operations for the prior year.
The 2006 income from operations includes a $1.8 million operating loss from the acquired businesses and $6.2 million in expenses associated with the previously announced Audit Committee investigation. Operating income for 2005 includes a $6.0 million one time recovery from two former employees for improper payments made to them by a third party vendor.
At December 31, 2006, cash and short term investments totaled $70.2 million compared with $75.8 million at December 31, 2005.