SOURCE: Jaclyn, Inc.

November 14, 2008 12:14 ET

Jaclyn, Inc. Announces First Quarter Results and New Agreement for the Sale of Office and Warehouse Facility

MAYWOOD, NJ--(Marketwire - November 14, 2008) - Jaclyn, Inc. (OTCQX: JCLY) today reported financial results for the first quarter ended September 30, 2008.

Net sales for the three-month period ended September 30, 2008 were $31,370,000 compared to $37,453,000 a year earlier. The Company reported a first quarter net loss of $495,000, or $.21 per diluted share, compared to fiscal 2008 first quarter net earnings of $300,000, or $.12 per diluted share.

Jaclyn also announced today that it entered into an agreement with 5901 Jefferson Street Associates, LLC for the sale of the Company's former executive office and warehouse facility, as well as two adjacent lots, located in West New York, New Jersey.

The proposed purchase price is $6,100,000, the substantial portion of which is payable at closing. The closing of the sale is scheduled to be held on or before April 20, 2009. However, until March 4, 2009, the proposed purchaser has the right in its sole discretion to terminate the agreement for any reason as a result of its due diligence investigation.

The Company has also granted the proposed purchaser an option to purchase additional vacant property in West New York provided the proposed purchaser closes on the Company's former executive office and warehouse facility, as well as the two adjacent lots mentioned above. The proposed purchase price for the property subject to the option is $1,000,000. If the proposed purchaser exercises this option, the property subject to the option would be sold at the closing scheduled for the executive office and warehouse facility and two adjacent lots. All of other terms and requirements of the agreement are applicable to the property subject to the option.

The Company noted that since the proposed purchaser has the absolute right to terminate the agreement and not to purchase the West New York property, and the completion of any sale of the property is subject to a number of other conditions and deliveries, there is no assurance that sale of the property will be concluded.

Forward Looking Statements

Note: This press release contains information concerning, among other things, our future plans and objectives that are or may be deemed to be forward-looking statements. However, forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause our actual results, trends, performance or achievements, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward-looking statements. Those risks and uncertainties may include, but are not limited to, general economic and business conditions (including the ongoing financial downturn and disruptions in credit markets); competition; potential changes in customer spending; acceptance of our product offerings and designs; the variability of consumer spending resulting from changes in domestic economic activity; a highly promotional retail environment; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates as well as other significant accounting estimates made in the preparation of our financial statements; and the impact of current and potential hostilities in the Middle East and in other geographic areas; as well as other geopolitical concerns. You are urged to consider all such factors. In light of the uncertainty inherent in such forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. We assume no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

Jaclyn, Inc. is a designer, manufacturer and marketer of apparel, women's sleepwear, infants' and children's apparel, handbags, premiums and related accessories. Our web site is at www.jaclyninc.com.

                      JACLYN, INC. AND SUBSIDIARIES

        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)



                                                     First Quarter ended
                                                        September 30,
                                                 --------------------------
                                                     2008          2007
                                                 ------------  ------------

Net Sales                                        $ 31,370,000  $ 37,453,000

Net (Loss) Earnings                              $   (495,000) $    300,000

Net (Loss) Earnings per Common Share – Basic     $       (.22) $        .12

Net (Loss) Earnings per Common Share – Diluted   $       (.21) $        .12

Weighted Average Number of
 Shares Outstanding – Diluted                       2,319,000     2,498,000

Contact Information

  • Company Contact:
    Anthony Christon
    Chief Financial Officer
    Jaclyn, Inc.
    (201) 909-6000