Tatyana Designs Reports Third Quarter 2013 Results
November 06 2013 - 9:00AM
Tatyana Designs, Inc. (the "Company") (OTC
Pink:TATD), a growing designer, manufacturer and retailer of
vintage inspired contemporary designs, today posted financial
results for the third quarter of 2013. The Company owns significant
trademarks and license rights, the most prominent being the
exclusive license for dresses and retail stores carrying the
moniker of the iconic Bettie Page.
For the three and nine months ended September 30, 2013:
- Net sales increased in Q3 by 50% to $4.3 million from $2.8
million during Q3 of 2012. Net sales for the nine months ended
September 30, 2013 increased 54% to $11.1 million.
- Bettie Page Boutique sales increased 63% in Q3 and 73% in the
first nine months of 2013. Comparable boutique sales increased 14%
during the first nine months of 2013.
- E-commerce sales increased 44% to $951,000 in the first nine
months of 2013.
- Adjusted EBITDA for the first nine months of 2013 was $480,000
(see discussion below and accompanying table for non-GAAP measures)
and the Company generated $535,000 in cash from operating
activities.
- Selling, general and administrative costs increased due to the
significant increase in the national scope of operations with
boutiques in twelve states. Results for 2013 included officer
salaries whereas the prior year had no comparable officer salaries
prior to August 2012 as prior year results to that date were
taxable to the member and treated as distributions.
- The number of Company owned Bettie Page Boutiques increased
from eleven at December 31, 2012 to sixteen at September 30,
2013.
The Company ended the quarter at September 30, 2013 with
$825,000 cash, working capital of $1.6 million and inventory and
inventory and deposits of $2.9 million. The Company financed its
growth during 2013 from operations along with $196,000 of working
capital bank financing.
"We continue to see strong growth and positive financial
performance from an expanded boutique base, growing comparable
boutique sales and growth in our e-commerce division," said Jan
Glaser, co-CEO and treasurer of Tatyana Designs, Inc. "We absorbed
significant new boutique startup expenses including a $326,000
non-cash increase in deferred rent. We also expanded our
infrastructure to prepare for additional growth in 2014. We are
generating cash from operations to support growth and we are
optimistic about the balance of the year and 2014."
Non-GAAP Information - This press release
includes non-GAAP EBITDA and Adjusted EBITDA (adjusted for non-cash
deferred rent) each a non-GAAP financial measure. The Company
has reconciled these non-GAAP financial measures with the most
directly comparable GAAP financial measures in tables accompanying
this release. The Company believes that these non-GAAP
financial measures not only provide its management with comparable
financial data for internal financial analysis but also provide
meaningful supplemental information to investors. Specifically,
these non-GAAP financial measures allow investors to better
understand the performance of the Company's business as it grows.
The Company's presentation of non-GAAP financial measures should
not be construed to imply that its future results will be
unaffected by any such adjustments. The Company has provided
this information as a means to evaluate the results of its ongoing
operations. Other companies in the Company's industry may calculate
these items differently than it does. Each of these measures
is not a measure of performance under GAAP and should not be
considered as a substitute for the most directly comparable
financial measures prepared in accordance with GAAP. Non-GAAP
financial measures have limitations as analytical tools, and
investors should not consider them in isolation or as a substitute
for analysis of the Company's results as reported under GAAP.
About the Company - Based in Las Vegas, Nevada,
Tatyana Designs, Inc. is a growing retailer specializing in
contemporary designs inspired by the 1940's and 50's – the "Golden
Age" of fashion. The Company owns significant trademark and
license rights, the most prominent being the exclusive license for
dresses and retail stores carrying the moniker of the iconic Bettie
Page. The merchandise offered through the boutiques, e-commerce and
wholesale divisions offer a diverse mix of high-quality and
attractively priced apparel, jewelry, accessories and gifts. Bettie
Page Boutiques and e-commerce target the 18-35 year-old, fashion
conscious female customer, but women of all ages are attracted to
the unique retro inspired, yet modern, look. New product styles are
presented monthly. For more information on the company please visit
the Web site at www.tatyanadesigns.com.
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.
|
|
Tatyana Designs,
Inc. |
Condensed Consolidated
Balance Sheets |
(000's omitted except
per share amount) |
(unaudited) |
|
|
|
|
September 30, |
December 31, |
|
2013 |
2012 |
|
$ |
$ |
ASSETS |
|
|
Current |
|
|
Cash |
825 |
608 |
Inventories |
2,576 |
2,553 |
Receivables and other |
529 |
410 |
Total current
assets |
3,930 |
3,571 |
Property and equipment,
net |
738 |
491 |
Deferred income
taxes |
295 |
179 |
Deposits |
427 |
364 |
Total assets |
5,390 |
4,605 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current |
|
|
Accounts payable and accruals |
1,323 |
948 |
Bank debt |
520 |
272 |
Due stockholder |
457 |
541 |
Total current
liabilities |
2,300 |
1,761 |
Deferred rent |
1,047 |
721 |
Bank debt - long term |
185 |
305 |
6% Convertible notes |
300 |
300 |
Stockholder debt - long-term |
500 |
500 |
Total liabilities |
4,332 |
3,587 |
Stockholders'
equity |
1,058 |
1,018 |
Total liabilities and
stockholders' equity |
5,390 |
4,605 |
|
|
|
Tatyana Designs,
Inc. |
Condensed Consolidated
Statements of Operations |
(000's omitted except
per share amount) |
(unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2013 |
2012 |
2013 |
2012 |
|
$ |
$ |
$ |
$ |
Net sales |
4,255 |
2,827 |
11,144 |
7,248 |
Cost of revenues |
1,496 |
838 |
3,183 |
2,114 |
Gross profit |
2,759 |
1,989 |
7,961 |
5,134 |
Selling, general and
administrative |
2,848 |
1,958 |
7,934 |
4,525 |
Income (loss) from
operations |
(89) |
31 |
27 |
609 |
Other expenses |
9 |
4 |
53 |
42 |
Income before income
tax |
(98) |
27 |
(26) |
567 |
Income tax expense
(benefit) |
(30) |
(159) |
3 |
(159) |
Net income (loss) |
(68) |
186 |
(29) |
726 |
|
|
|
|
|
Basic and diluted earnings per common
share |
($0.01) |
$0.02 |
($0.00) |
$0.07 |
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
Basic and diluted shares |
11,935 |
11,146 |
11,935 |
10,381 |
|
|
|
|
|
Pro forma net income
data: |
|
|
|
|
Income before income tax expense |
|
|
|
567 |
Pro forma adjustments for income tax
expense |
|
|
|
203 |
Pro forma net income |
|
|
|
364 |
|
|
|
|
|
Pro forma basic and diluted earnings per
common share |
|
|
|
$0.03 |
|
|
|
Tatyana Designs,
Inc. |
GAAP to
Non-GAAP Reconciliations |
|
|
|
|
(000's
omitted) |
(unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2013 |
2012 |
2013 |
2012 |
|
$ |
$ |
$ |
$ |
Reconciliation of net income (loss)
to EBITDA: |
|
|
|
|
Net income (loss) |
(68) |
186 |
(29) |
726 |
Adjustments: |
|
|
|
|
Interest |
9 |
28 |
65 |
66 |
Depreciation |
45 |
26 |
115 |
62 |
Taxes |
(30) |
(159) |
3 |
(159) |
EBITDA |
(44) |
81 |
154 |
695 |
|
|
|
|
|
Reconciliation of net income (loss)
to Adjusted EBITDA: |
|
|
|
|
Net income (loss) |
(68) |
186 |
(29) |
726 |
Adjustments: |
|
|
|
|
Interest |
9 |
28 |
65 |
66 |
Depreciation |
45 |
26 |
115 |
62 |
Taxes |
(30) |
(159) |
3 |
(159) |
Non-cash increase deferred rent |
89 |
135 |
326 |
212 |
Adjusted EBITDA |
45 |
216 |
480 |
907 |
CONTACT: Jan Glaser
702.458.1632 Ext 5
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