Strong Yuan & rising prices affect R.G. Barry's Q3 results

14 May '07

3 min read

Accessories footwear marketer R.G. Barry Corporation, the Dearfoams company, reversed its traditional pattern of operating losses in the first three months of the calendar year by reporting modest earnings and increased sales for the third quarter ended March 31, 2007.

Operating Results:
For the quarter, the Company reported:
• net sales of $19.2 million, an approximate 12.0 percent increase over the $17.2 million reported in the comparable period one year ago; and
• net earnings of $208,000, or $0.02 net earnings per basic share and diluted share compared to a net loss of $111,000, or $0.01 loss per basic and diluted share, in the comparable three months of 2006.

For the nine months, the Company recorded:
• net sales of $97.6 million, up approximately 9.1 percent from $89.4 million in the comparable period one year ago; and
• net earnings of $26.8 million, or $2.67 net earnings per basic share and $2.58 net earnings per diluted share, which included a net benefit of approximately $13.0 million from the reversal of the Company's deferred tax asset valuation allowance and from an $878,000 gain on the sale of 4.4 acres of land adjacent to the Company's corporate headquarters. In the equivalent period one year ago, the Company reported net earnings of $9.0 million, or $0.90 net earnings per basic share and $0.87 net earnings per diluted share.

The deferred tax asset valuation allowance, which was reversed during the second quarter of the current fiscal year, originally was recorded at the end of fiscal 2003 when it was deemed more likely than not that the Company would not realize the benefit of its deferred tax assets due to its multi-year pattern of continuing losses at that time.

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