Tatyana Designs Reports 2013 Financial Results
March 28 2014 - 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 2013.
For the year ended December 31, 2013:
- Net sales increased 43% in 2013 to $14.7 million from $10.25
million in 2012. Sales in 2012 increased 42% over 2011.
- Boutique sales increased 67% and comparable boutique sales
increased 5% during 2013 compared to 2012.
- E-commerce sales increased 9% to $1.1 million in 2013.
- Adjusted EBITDA for 2013 was $242,000 (see discussion below and
accompanying table for non-GAAP measures) and the Company generated
$524,000 in cash from operating activities.
- The number of Company owned Boutiques increased from eleven at
December 31, 2012 to seventeen at December 31, 2013.
- Selling, general and administrative costs increased in 2013 due
to the increase in the national scope of operations with seventeen
boutiques located in twelve states.
The Company ended the year 2013 with $683,000 cash, working
capital of $1.96 million and inventory and inventory deposits of
$2.8 million. The Company financed its growth during 2013 primarily
from internal operations. The Company restated 2012 results to
reflect additional income as a result of capitalized freight and
deferred and other tax timing differences with no change in cash
flows from operations or cash for the year.
"We are very pleased with the organic financed growth achieved
in 2013. We increased comparable boutique sales and increased
e-commerce revenues during a year focused on building
infrastructure to a national scale," said Jan Glaser, co-CEO and
treasurer of Tatyana Designs, Inc. "We absorbed significant new
boutique startup expenses including a $359,000 increase in non-cash
deferred rent. While we reported a net loss in 2013 primarily as a
result of our investment in growth, we generated positive cash from
operations and we are optimistic about our prospects.
"During the last two months of 2013 and the first quarter of
2014 we faced severe weather challenges resulting in sporadic daily
boutique closings and reduced traffic that negatively impacted
revenues, margins and operating costs," added Glaser. "We also
recently announced a rebranding of our boutiques as 'Tatyana®', to
reflect the inspiration of our founding fashion designer Tatyana
Khomyakova whose designs have been capturing women from all walks
of life since 2007. While it is too early to estimate the impact of
the above challenges on 2014 results, we believe we have a national
scale of boutique and e-commerce operations to leverage for
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 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. The
Company's 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.
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: the costs and effects of rebranding and
related disputes including current litigation; 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 brands; possible inability to successfully implement
our growth strategies or manage our growing business; possible
inability to successfully open new boutiques and expand e-commerce
business 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) |
|
|
December
31, |
|
2013 |
2012 |
|
$ |
$ |
|
|
(as restated) |
|
|
|
ASSETS |
|
|
Current |
|
|
Cash |
683 |
608 |
Inventories |
2,576 |
2,768 |
Receivables and other |
338 |
410 |
Total current
assets |
3,597 |
3,786 |
Property and equipment,
net |
698 |
491 |
Deferred income
taxes |
409 |
243 |
Deposits |
443 |
364 |
Total assets |
5,147 |
4,884 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current |
|
|
Accounts payable and accruals |
1,061 |
913 |
Bank debt |
202 |
272 |
Due stockholder |
376 |
541 |
Total current
liabilities |
1,639 |
1,726 |
Deferred rent |
1,080 |
721 |
Bank debt - long term |
472 |
305 |
6% Convertible notes |
300 |
300 |
Stockholder debt - long-term |
-- |
500 |
Total liabilities |
3,491 |
3,552 |
Stockholders'
equity |
1,656 |
1,332 |
Total liabilities and
stockholders' equity |
5,147 |
4,884 |
|
|
Tatyana Designs,
Inc. |
Condensed Consolidated
Statements of Operations |
(000's omitted except
per share amount) |
|
|
Year
Ended |
|
December
31, |
|
2013 |
2012 |
|
$ |
$ |
|
|
(as restated) |
Net sales |
14,690 |
10,251 |
Cost of revenues |
4,992 |
3,116 |
Gross profit |
9,698 |
7,135 |
Selling, general and
administrative |
10,085 |
6,287 |
(Loss) income from
operations |
(387) |
848 |
Other expenses |
19 |
72 |
(Loss) income before income
tax |
(406) |
776 |
Income tax benefit |
146 |
206 |
Net (loss) income |
(260) |
982 |
|
|
|
Basic and diluted (loss) earnings per common
share |
($0.02) |
$0.09 |
|
|
|
Weighted average shares outstanding: |
|
|
Basic shares |
11,955 |
10,771 |
Diluted shares |
11,955 |
10,879 |
|
|
|
Pro forma net income
data: |
|
|
Income before income tax expense |
|
776 |
Pro forma adjustments for income tax
expense |
|
312 |
Pro forma net income |
|
464 |
|
|
|
Pro forma basic and diluted earnings per
common share |
|
$0.04 |
|
|
Tatyana Designs,
Inc. |
GAAP to Non-GAAP
Reconciliations |
(000's
omitted) |
(unaudited) |
|
|
Year
Ended |
|
December
31, |
|
2013 |
2012 |
|
$ |
$ |
|
|
(as restated) |
Reconciliation of net (loss) income
to EBITDA: |
|
|
Net (loss) income |
(260) |
982 |
Adjustments: |
|
|
Interest |
30 |
100 |
Depreciation |
174 |
109 |
Tax benefit |
(146) |
(206) |
EBITDA |
(202) |
985 |
|
|
|
Reconciliation of net (loss) income
to Adjusted EBITDA: |
|
|
Net income (loss) |
(260) |
982 |
Adjustments: |
|
|
Interest |
30 |
100 |
Depreciation |
174 |
109 |
Tax benefit |
(146) |
(206) |
Stock-based compensation |
85 |
42 |
Non-cash increase deferred rent |
359 |
425 |
Adjusted EBITDA |
242 |
1,452 |
CONTACT: Jan Glaser
702.458.1632 Ext 5
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