MAYWOOD, NJ--(Marketwire - July 14, 2010) - Jaclyn, Inc. (
OTCQX:
JCLY) today reported
financial results for the first quarter ended May 31, 2010.
Net sales for the three-month period ended May 31, 2010 were $35,539,000
compared to $35,406,000 for the three-month period ended May 31, 2009. The
Company reported a first quarter net loss of $209,000, or $.08 per diluted
share, compared to net earnings of $372,000, or $.16 per diluted share, in
last year's comparable quarter.
Jaclyn also announced that on July 9, 2010, the Company and D.R. Mon Group,
Inc. entered into agreements for the purchase and sale of real property
(the "Real Estate Agreements") relating to the Company's former executive
office and warehouse facility, plus one additional lot, located in West New
York, New Jersey. Under the Real Estate Agreements, the properties will be
purchased for an aggregate purchase price of $4,145,588, of which
$1,474,778 is payable in cash at closing, and the remaining amounts are
payable by the delivery of a series of two-year promissory notes, which
will bear interest at a rate of 5% per annum at the times and for the
periods set forth in the notes. The maturity date of one of the notes may
be extended for up to one year under certain circumstances. The
obligations of the proposed purchaser under the agreements will be
guaranteed by the proposed purchaser's owner. The obligations of the
proposed purchaser under the promissory notes will be secured by a first
priority mortgage on a portion of the properties to be sold by the Company.
The closing of the proposed transaction and the obligations of the proposed
purchaser are subject to a number of conditions and contingencies,
including, but not limited to: completion by the proposed purchaser of
environmental due diligence; termination of all existing subtenancies at
the West New York facility; receipt by the proposed purchaser of zoning
approvals from the West New York, New Jersey Zoning Board of Adjustment for
a number of matters, including the construction and use of the properties
as residential housing; the receipt of and closing on required construction
and other financing commitments to fund the demolition of the buildings on
the West New York property and for the construction of the number of
residential housing units the proposed purchaser intends to build; as well
as a number of other contingencies and conditions. The closing of the
proposed transaction is intended to occur on or before December 31, 2010,
although if an appeal of the Zoning Board of Adjustment's approvals is
filed, the closing may be extended until March 31, 2011.
Since the completion of any sale of the property is subject to a number of
conditions and deliveries, including but not limited to those noted above,
there is no assurance that sale of the property will be concluded.
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 OPERATIONS (Unaudited)
First Quarter
Ended May 31,
------------------------
2010 2009
----------- -----------
Net Sales $35,539,000 $35,406,000
Net (Loss) Earnings $ (209,000) $ 372,000
Net (Loss) Earnings per
Common Share-Basic $ (.08) $ .16
Net (Loss) Earnings per
Common Share-Diluted $ (.08) $ .16
Weighted Average Number of
Shares Outstanding-Diluted 2,409,000 2,267,000
Contact Information: Company Contact:
Anthony Christon
Chief Financial Officer
Jaclyn, Inc.
(201) 909-6000