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Steep rise in seamless apparel sales – Tefron
25 Nov '11
5 min read
Operating loss for the first nine-months of 2011 declined by 58.2% and totaled $3.7 million, compared to an operating loss of $8.9 million in the same period last year. The strong decline in the operating loss was attributed to the achieved results of the turnaround plan and the increase in sales, as well as a significant decrease in depreciation expenses.
EBITDA during the first nine months of 2011 rose by $3.4 million dollars turning a negative $1.7 million EBITDA for the first nine-months of 2010 into a positive EBITDA of $1.7 million for the first nine months of 2011.
The improvement in EBITDA is also a result of the improvement in sales and the successful implementation of the turnaround plan which directly contributed to greater efficiencies and less wastage in production, a resulting shortening of the manufacturing process and a fall in manufacturing costs, as well as reduced the lead time to customers. This improvement was achieved despite the increase in cost of part of the raw materials used by the company.
Cash flow - In the first nine months, Tefron had cash used for operating activities of $7.1 million, in the first nine-months of 2011 compared to cash flow used for operating activities of $3.4 million in the same period last year. The increase in cash flow used in operating activities is primarily a result of the investment in working capital, mainly increased customers and inventory, in order to finance the increased activity of the company.
Net loss in the first nine-months of 2011 was reduced to $4.6 million, compared with a net loss of $8.3 million during the same period last year.
Third quarter results 2011
Sales in the third quarter of 2011 totaled $30.1 million, a 67.4% increase compared with sales of $18.0 million in the third quarter of 2010. Most notably, the company recorded an increase of 75% in sales of "seamless" apparel, compared with same quarter last year. Most of the increase in sales was attributed to higher sales in the intimate apparel and active wear product lines.
Gross profit for the third quarter of 2011 totaled $4.6 million (15.2% of sales), compared to gross profit of $0.6 million (3.6% of sales) in the third quarter of 2010.
Third quarter operating loss for 2011 declined by 82% and totaled $0.5 million, compared to an operating loss of $3.1 million in the same period last year.
EBITDA for the third quarter improved by $1.5 million to $883 thousand, compared with negative EBITDA of $589 thousand dollars for the same period last year.
In the third quarter of 2011, Tefron recorded positive cash flow derived from operating activities of $2.1 million, compared to $0.8 million in the same period last year. The significant improvement in cash flow in the third quarter of 2011 was mainly due to the reduction in losses.
The third quarter net loss for 2011 amounted to $0.5 million, compared with a net loss of $3.1 million in the equivalent quarter of 2010.
EBITDA during the first nine months of 2011 rose by $3.4 million dollars turning a negative $1.7 million EBITDA for the first nine-months of 2010 into a positive EBITDA of $1.7 million for the first nine months of 2011.
The improvement in EBITDA is also a result of the improvement in sales and the successful implementation of the turnaround plan which directly contributed to greater efficiencies and less wastage in production, a resulting shortening of the manufacturing process and a fall in manufacturing costs, as well as reduced the lead time to customers. This improvement was achieved despite the increase in cost of part of the raw materials used by the company.
Cash flow - In the first nine months, Tefron had cash used for operating activities of $7.1 million, in the first nine-months of 2011 compared to cash flow used for operating activities of $3.4 million in the same period last year. The increase in cash flow used in operating activities is primarily a result of the investment in working capital, mainly increased customers and inventory, in order to finance the increased activity of the company.
Net loss in the first nine-months of 2011 was reduced to $4.6 million, compared with a net loss of $8.3 million during the same period last year.
Third quarter results 2011
Sales in the third quarter of 2011 totaled $30.1 million, a 67.4% increase compared with sales of $18.0 million in the third quarter of 2010. Most notably, the company recorded an increase of 75% in sales of "seamless" apparel, compared with same quarter last year. Most of the increase in sales was attributed to higher sales in the intimate apparel and active wear product lines.
Gross profit for the third quarter of 2011 totaled $4.6 million (15.2% of sales), compared to gross profit of $0.6 million (3.6% of sales) in the third quarter of 2010.
Third quarter operating loss for 2011 declined by 82% and totaled $0.5 million, compared to an operating loss of $3.1 million in the same period last year.
EBITDA for the third quarter improved by $1.5 million to $883 thousand, compared with negative EBITDA of $589 thousand dollars for the same period last year.
In the third quarter of 2011, Tefron recorded positive cash flow derived from operating activities of $2.1 million, compared to $0.8 million in the same period last year. The significant improvement in cash flow in the third quarter of 2011 was mainly due to the reduction in losses.
The third quarter net loss for 2011 amounted to $0.5 million, compared with a net loss of $3.1 million in the equivalent quarter of 2010.
Tefron Ltd
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