Tatyana Designs Announces Full Year 2012 Financial Results
March 25 2013 - 9:00AM
Tatyana Designs, Inc. (the "Company") (OTC
Pink:TATD), a growing retailer specializing in contemporary designs
inspired by the iconic Bettie Page, today announced financial
results for the year ended December 31, 2012.
Year Ended December 31, 2012 Financial Results
- Net sales increased 41.7% to $10.25 million from $7.24 million
for the prior year.
- Comparable boutique sales increased 17%.
- Wholesale sales increased 46.7% to $2.3 million.
- E-commerce sales increased 23.1% to $1.0 million.
- Gross profit remained steady at just over 70% of net
sales.
- SG&A expense increased 61.8% to $6.5 million from $4.0
million in the prior year, and as a percentage of net sales
increased to 63.6% from 55.6% in the prior year. The increase
primarily reflects the opening and operating of 5 new branded
boutiques in 2012 almost doubling the boutique count to 11 at
December 31, 2012. The Company incurred non-cash deferred rent
increase of $425,398 of net sales related to the opening of the new
boutiques in 2012.
- Income from operations was $684,000 or 6.6% of net sales
compared to $1.0 million for the prior year and reflects the effect
of SG&A increase primarily attributable to opening new
boutiques.
- Other income and expense was $71,832 including interest expense
of $100,306. Interest expense for the prior year was $63,757.
- As a result of the Company's August 2012 merger, it became a
taxable entity and reported an income tax benefit of $107,000 for
the year resulting in net income of $719,571 or $0.07 per basic and
diluted share. On a pro forma basis assuming the Company had been
taxable for both full years of 2012 and 2011, net income would have
been $376,571 or $0.03 per basic and diluted share and $636,608 or
$0.06 per basic and diluted share, respectively.
Balance Sheet and Liquidity
Cash was $608,000 and working capital was $1.8 million at
December 31, 2012.
Inventories were $2.5 million at December 31, 2012 an increase
of 125% from $1.1 million for the prior year reflecting levels
required to support an 83% increase in boutiques and rapid growth
of wholesale and e-commerce revenues.
Total debt increased from $965,000 to $3.6 million as the
Company financed its 2012 growth primarily from stockholder and
bank debt.
Total stockholders' equity of $1.0 million remained comparable
to 2011.
Cash used in operating activities of $100,000 was primarily the
result of the Company's investment in inventories of $1.4
million.
The Company invested $201,000 in property and equipment mostly
associated with new boutiques and obtained $551,000 from various
financing activities.
Management Comments
"The 2012 year was full of milestones. We exceeded $10.25
million in net sales, expanded our boutiques from six at the end of
2011 to eleven at the end of 2012 including premier eastern
locations in Philadelphia, Boston and New York City. We maintained
margins while dramatically increasing comparable boutique sales,
wholesale sales and e-commerce sales," stated Jan Glaser, co-CEO
and treasurer of Tatyana Designs, Inc. "We expect continued strong
results in 2013 as we already opened two new boutiques in Portland
and Ft. Lauderdale and have two more scheduled to open by Q2
marking a total of fifteen company owned boutiques. We expect
strong Q1 results and continued profitability in 2013 while we keep
investing in growth."
The Company expects to post its audited financial results for
2012 in its annual report by the end of the month. The annual
report will be available at the OTC Markets web site:
www.otcmarkets.com/stock/TATD/filings.
About the Company - Based in Las Vegas, Nevada,
Tatyana Designs, Inc. is a growing retailer specializing in
contemporary designs inspired by the 50's and the iconic Bettie
Page. The merchandise offered through twelve boutiques and active
e-commerce and wholesale divisions is a diverse mix of high-quality
and attractively priced apparel, jewelry, accessories and gifts.
Bettie Page collections target the 18-35 year-old, fashion
conscious, female customer, but women of all ages are attracted to
the unique retro look. New product styles are presented monthly.
For more information on the company please visit the Web site at
www.tatyanadesigns.com.
The Tatyana Designs, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=15348
Trademark Information: Bettie Page is a trademark registered to
Bettie Page, LLC (www.BettiePage.com) and licensed for use by the
Company. All other trade names are either trademarks or registered
trademarks of their respective holders.
Cautionary note on forward-looking statements:
Certain statements in this release are "forward-looking
statements" made pursuant to the safe-harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements reflect the Company's current
expectations or beliefs concerning future events and are subject to
various risks and uncertainties that may cause actual results to
differ materially from those that we expected, including: possible
adverse changes in general economic conditions and their impact on
consumer confidence and spending; possible inability to predict and
respond in a timely manner to changes in consumer demand; possible
loss of key management or inability to attract and retain the
talent required for our business; possible inability to maintain
and enhance our brand; possible inability to successfully implement
our growth strategies or manage our growing business; possible
inability to successfully open new boutiques as planned; and
possible inability to sustain levels of comparable-boutique sales.
For a discussion of these and other risks and uncertainties
that could cause actual results to differ materially from those
contained in our forward-looking statements, please refer to the
Company's most recent public corporate documents and risk factors
discussed therein (www.otcmarkets.com/stock/TATD/filings). We
undertake no obligation to publicly update or revise any
forward-looking statement. Future results may differ materially
from the Company's current expectations. Financial schedules are
attached to this release.
Tatyana Designs, Inc.
and Affiliates |
Condensed Consolidated
Balance Sheets |
(000's omitted except
per share amount) |
(unaudited) |
|
December 31, |
December 31, |
|
2012 |
2011 |
|
$ |
$ |
ASSETS |
|
|
Current |
|
|
Cash |
608 |
359 |
Inventories |
2,553 |
1,133 |
Receivables and other |
410 |
72 |
Total current
assets |
3,571 |
1,564 |
Property and equipment,
net |
491 |
399 |
Deferred income
taxes |
179 |
-- |
Deposits |
364 |
126 |
Total
assets |
4,605 |
2,089 |
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
Current |
|
|
Accounts payable and
accruals |
948 |
169 |
Bank debt |
272 |
-- |
Due stockholder |
541 |
500 |
Total current
liabilities |
1,761 |
669 |
Deferred rent |
721 |
295 |
Bank debt - long term |
305 |
-- |
6% Convertible notes |
300 |
-- |
Stockholder debt -
long-term |
500 |
-- |
Total
liabilities |
3,587 |
964 |
Stockholders'
equity |
1,018 |
1,125 |
Total liabilities and
stockholders' equity |
4,605 |
2,089 |
|
|
|
Tatyana Designs, Inc.
and Affiliates |
Condensed Consolidated
Statements of Operations |
(000's omitted except
per share amount) |
(unaudited) |
|
|
|
|
Year |
Year |
|
Ended |
Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
|
$ |
$ |
Net sales |
10,251 |
7,236 |
Cost of revenues |
3,050 |
2,135 |
Gross profit |
7,201 |
5,101 |
Selling, general and
administrative |
6,516 |
4,026 |
Income from operations |
685 |
1,075 |
Other expenses |
72 |
64 |
Income before income
tax |
613 |
1,011 |
Income tax benefit |
(107) |
-- |
Net income |
720 |
1,011 |
|
|
|
Basic and diluted earnings per common
share |
$0.07 |
$0.10 |
|
|
|
Weighted average shares outstanding: |
|
|
Basic shares |
10,771 |
10,000 |
Diluted shares |
10,879 |
10,000 |
|
|
|
Pro forma net income
data: |
|
|
Income before income tax
expense |
613 |
1,011 |
Pro forma adjustments for
income tax expense |
236 |
374 |
Pro forma net income |
377 |
637 |
|
|
|
Pro forma basic and diluted earnings per
common share |
$0.03 |
$0.06 |
CONTACT: Jan Glaser
702.458.1632 Ext 5
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