SALT LAKE CITY, Aug. 14 -- Marker International
(Nasdaq: MRKR) today announced results for the first quarter ended June 30,
for its fiscal year which ends March 31, 1998.
Net sales for the first quarter were $2.3 million, compared to $1.6 million
for the comparable quarter of the prior fiscal year. The Company's sales,
as well as those of the winter sports industry in general, are seasonal in
nature and as such, the Company has historically recorded less than 2% of
its annual net sales in its first fiscal quarter. Sales recorded during this
period are not necessarily representative of expected annual amounts.
The net loss for the first quarter was $5.1 million, or $0.45 per share,
compared to a loss of $4.0 million, or $0.46 per share, for the corresponding
period of the prior year. The increase in net loss for the first quarter
of fiscal 1998, compared to the same period of fiscal 1997, is primarily
the result of seasonal losses from the consolidation of DNR Sportsystem,
Ltd. which was not consolidated in the first quarter of fiscal 1997. DNR's
loss for the first quarter of fiscal 1998 includes significant nonrecurring
legal fees."
Marker's President and Chief Executive Officer, Hank Tauber, commented, "The
seasonal nature of our business results in little revenue activity during
our first quarter. Subsequent to the end of the first quarter, in July, we
were pleased to announce a collaborative agreement with NIKE to research,
design and develop winter sport products, including snowboards, snowboard
boots and snowboard bindings. We look forward to working with NIKE on the
development of these new products."
Marker International, through its subsidiaries in the United States, Germany,
Japan, Switzerland, Austria and Canada, is a leading designer, manufacturer
and marketer of alpine ski bindings, snowboards and related products. Marker
Ltd., the Company's soft goods subsidiary in the United States, designs,
distributes and markets outerwear, luggage and gloves. Marker Ltd. is also
an exclusive licensee of the Salt Lake City Olympic Committee for the 2002
Olympic Winter Games and of the United States Olympic Committee for the 1998
Olympic Winter Games in Nagano, Japan.
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties which may cause
the Company's actual results in future periods to differ materially from
forecasted results. Those risks include a softening of retailer or consumer
acceptance of the Company's products, pricing pressures and other competitive
factors. These and other risks are more fully described in the Company's
filings with the Securities and Exchange Commission.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
MARKER INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
June 30, June 30,
1997 1996
NET SALES $ 2,271 $ 1,624
COST OF SALES 2,088 843
GROSS PROFIT 183 781
OPERATING EXPENSES:
Selling 2,859 2,341
General & administrative 3,059 2,537
Research & development 992 661
Warehousing & shipping 439 314
Amortization of goodwill
and intangibles 227 --
Total operating expenses 7,576 5,853
OPERATING LOSS (7,393) (5,072)
OTHER INCOME (EXPENSES):
Interest expense (1,114) (1,021)
Equity in losses of
unconsolidated subsidiary -- (80)
Other, net 384 (14)
(730) (1,115)
LOSS BEFORE TAXES
AND MINORITY INTEREST (8,123) (6,187)
BENEFIT FOR INCOME TAXES 2,844 2,227
MINORITY INTEREST 224 --
NET LOSS $ (5,055) $ (3,960)
NET LOSS PER COMMON
SHARE $ (0.45) $ (0.46)
WEIGHTED AVERAGE SHARES
OUTSTANDING 11,129,127 8, 563,207
MARKER INTERNATIONAL AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
June 30, '97 March 31, '97
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 5,560 $ 13,532
Accounts receivable, net 23,488 26,279
Inventories 47,408 33,849
Prepaid & other
current assets 7,232 4,611
Total current assets 83,688 78,271
PROPERTY, PLANT & EQUIPMENT
Property, plant & equipment 31,347 38,219
Less accumulated
depreciation and
amortization (14,552) (18,941)
Net property,
plant & equipment 16,795 19,278
INTANGIBLE ASSETS, net 17,131 17,475
OTHER ASSETS 2,156 2,116
TOTAL ASSETS $ 119,770 $ 117,140
LIABILITIES
CURRENT LIABILITIES
Notes payable to banks $ 50,244 $ 38,930
Current portion of
long-term debt 3,024 3,038
Accounts payable 5,955 5,393
Other current liabilities 7,052 9,785
Total current liabilities 66,275 57,146
LONG-TERM DEBT, net
of current portion 15,975 16,487
SERIES A BONDS 10,000 10,000
MINORITY INTEREST 1,572 1,810
SHAREHOLDERS' EQUITY
Series A preferred stock -- --
Common stock 111 111
Additional paid-in capital 36,293 36,293
Retained earnings (deficit) (4,197) 858
Cumulative foreign currency
translation adjustments (6,259) (5,565)
Total shareholders' equity 25,948 31,697
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $ 119,770 $ 117,140
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