SOURCE: Jaclyn, Inc.

February 11, 2010 17:03 ET

Jaclyn Reports Second Quarter Financial Results

MAYWOOD, NJ--(Marketwire - February 11, 2010) - Jaclyn, Inc. (OTCQX: JCLY) today reported financial results for the second quarter ended December 31, 2009.

Net sales for the three-month period ended December 31, 2009 were $43,597,000 compared to $49,769,000 a year earlier. The Company reported a second quarter net loss of $153,000, or $.06 per diluted share compared to net earnings of $1,357,000, or $.59 per diluted share, in the second quarter of fiscal 2009. Financial results for this year's second quarter included stock-based compensation expense totaling $1,623,000 before income taxes ($974,000 after tax, or $.41 per diluted share), relating to a previously announced stock award granted by the Company to one of its executive officers. The net cash impact to the Company of this stock-based compensation was approximately $62,000, after related income tax benefits.

Net sales for the six-month period ended December 31, 2009 were $83,168,000 compared to $81,139,000 for the same period last year. Net earnings for the six-month period ended December 31, 2009 were $186,000, or $.08 per diluted share, compared to net earnings of $862,000, or $.37 per diluted share, in the same six-month period last year. Financial results for this year's six-month period also included the stock-based compensation noted above ($974,000 after tax, or $.41 per diluted share).

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: jaclyninc.com

                    JACLYN, INC. AND SUBSIDIARIES

     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)



                           Second Quarter                Six Months
                          Ended December 31,          Ended December 31,

                        2009             2008        2009           2008
                     -----------     ----------- -----------    -----------

Net Sales            $43,597,000     $49,769,000 $83,168,000    $81,139,000

(Loss) Earnings
 before Income Taxes $  (285,000)(1) $ 2,349,000 $   310,000(1) $ 1,470,000

Net (Loss) Earnings  $  (153,000)(1) $ 1,357,000 $   186,000(1) $   862,000

Net (Loss) Earnings
 per Common Share -
 Basic               $      (.06)(1) $       .60 $      .08 (1) $       .38

Net (Loss) Earnings
 per Common Share -
 Diluted             $      (.06)(1) $       .59 $      .08 (1) $       .37

Weighted Average
 Number of Shares
 Outstanding -
 Diluted               2,402,000       2,313,000     2,334,000    2,319,000

(1) Note: Includes stock-based compensation to one executive officer of the Company totaling $1,623,000 before income taxes ($974,000 after taxes, or $.41 per diluted share), consisting of approximately $912,000 of non-cash compensation and approximately $711,000 of cash compensation for related payroll taxes. The net cash impact to the Company of this stock-based compensation was approximately $62,000, after related income tax benefits of approximately $649,000.

Contact Information

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