SOURCE: Jaclyn, Inc.

May 24, 2010 17:26 ET

Jaclyn Reports Financial Results for Eight-Month Transition Period Ended February 28, 2010

MAYWOOD, NJ--(Marketwire - May 24, 2010) - Jaclyn, Inc. (OTCQX: JCLY) today reported financial results for the eight-month transition period ended February 28, 2010. As previously announced, Jaclyn changed its fiscal year from a June 30th year end to a fiscal year ending on the last day of February.

Net sales for the eight-month period ended February 28, 2010 were $106,167,000 compared to $104,890,000 (unaudited) in the prior comparable eight-month period. The Company had net earnings of $71,000, or $.03 per diluted share, compared to net earnings of $270,000, or $.12 per diluted share (unaudited) in the comparable prior eight-month fiscal period. Financial results for this year's eight-month period included stock-based compensation expense totaling $1,958,000 before income taxes ($1,138,000 after tax, or $.48 per diluted share), relating to previously announced stock awards granted by the Company to one of its executive officers. The net cash impact to the Company of this stock-based compensation was approximately $73,000, after related income tax benefits. All financial information for the eight-month period ended February 28, 2009 set forth in this press release is unaudited and is presented for comparative purposes only.

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, premium incentives and related accessories. Website: www.jaclyninc.com

                      JACLYN, INC. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

        For the Eight-Month Fiscal Period ended February 28, 2010
        With comparisons to the unaudited eight-month period ended
                            February 28, 2009

Year Ended June 30,                           2010                 2009

                                                               (Unaudited)
                                                               ------------
Net Sales                                 $106,167,000         $104,890,000

Earnings before Income Taxes              $    136,000(1)      $    514,000

Net Earnings                              $     71,000(1)      $    270,000

Net Earnings per Common Share - Basic     $        .03(1)      $        .12

Weighted average shares
 outstanding - basic                         2,343,000            2,245,000


Net Earnings per Common Share - Diluted   $        .03(1)      $        .12

Weighted average shares
 outstanding - diluted                       2,358,000            2,313,000

(1) Note: Includes stock-based compensation to one executive officer of the Company totaling $1,958,000 before income taxes ($1,138,000 after taxes, or $.48 per diluted share), consisting of approximately $1,102,000 of non-cash compensation and approximately $856,000 of cash compensation for related payroll taxes. The net cash impact to the Company of this stock-based compensation was approximately $73,000, after related income tax benefits.

Contact Information

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