SOURCE: Sport-Haley, Inc.

October 13, 2008 15:47 ET

Sport-Haley, Inc. Reports Fourth Quarter Unaudited Results

DENVER, CO--(Marketwire - October 13, 2008) - Sport-Haley, Inc. (NASDAQ: SPOR) (the "Company") today announced results of operations for the fourth quarter of its 2008 fiscal year. The Company reported net income of $10,000 for the fourth quarter of its fiscal year ended June 30, 2008, or $0.00 per share, as compared with net loss of ($515,000), or ($0.23) per share, in the fourth quarter of the previous fiscal year.

For the quarter ended June 30, 2008, net sales decreased by 7%, or $330,000, to $4,427,000 from $4,757,000 in the same period in the prior fiscal year. Gross profit decreased by 1%, or $10,000, to $1,706,000 from $1,716,000.

The comparative decrease in net sales for our fourth quarter relate to correspondingly higher net sales of SPORT HALEY® women's apparel that were more than offset by correspondingly lower sales of Ben Hogan® men's apparel. Net sales of SPORT HALEY® women's apparel were $2,225,000 for the quarter ended June 30, 2008, an increase of $337,000, or 18%, from net sales of $1,888,000 for the same period in the prior fiscal year. Net sales of Ben Hogan® men's apparel were $2,044,000 for the quarter ended June 30, 2008, a decrease of $639,000, or 24%, from net sales of $2,683,000 for the same period in the prior fiscal year. The remainder of our net sales for the comparative periods were comprised of embroidery and shipping revenues.

For further information regarding our 2008 fiscal year, including the fourth fiscal quarter thereof, refer to our annual report on Form 10-K for the fiscal year ended June 30, 2008, which we plan to submit to the Securities and Exchange Commission on October 14, 2008.

Sport-Haley, Inc. designs, purchases, contracts for the manufacture of and markets women's and men's fashion golf apparel and outerwear under the SPORT HALEY® and Ben Hogan® labels. The fashion golf apparel collections, known for their innovative designs, quality fabrics, generous fits and classic styles, are primarily marketed in the premium and mid-priced markets, through a network of independent sales representatives and distributors, to golf professional shops, country clubs, resorts and exclusive department stores within the United States and by certain distributors within international markets. Ben Hogan® fashion apparel is distributed pursuant to a licensing agreement with Callaway Golf Company, which we consider to be a key component of our business strategies. Reserve Apparel Group LLC, a wholly owned subsidiary of Sport-Haley, Inc., formerly designed, purchased, contracted for the manufacture of, marketed and distributed branded golf apparel and outerwear under the Top-Flite® label to mass retailers and other big-box type high sales volume retail stores. Top-Flite® branded apparel was distributed until November 2007 pursuant to a licensing agreement with Callaway Golf Company, which was amended to remove the Top-Flite® brand effective January 1, 2008.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: When used in this release, the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," "believe," and similar expressions, variations or the negative of these words, and any statement regarding possible or assumed future results of operations of our business, the markets for our products, anticipated expenditures, regulatory developments or competition, or other statements regarding matters that are not historical facts, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. The reader should be aware that our actual results could differ materially from those contained in forward-looking statements. Our financial condition and the results of our operations will depend on a number of factors, including, but not limited to, the following: successfully anticipating fashion trends, designing favorably accepted fashion golf apparel, effectively advertising and communicating within the marketplace, and penetrating our chosen distribution channels; competition within golf apparel markets; business conditions and growth in the fashion golf apparel market and the general economy; our ability to successfully forecast sales and optimize inventory levels; our ability to successfully manage risks associated with the trend of a high relative percentage of sales with respect to licensed apparel, such as the Ben Hogan® apparel collections; loss of certain third party suppliers, and/or delays in receiving garments from third party suppliers caused by various factors, including lost or reduced manufacturing capacity or significant suppliers, labor shortages, timely performance of third parties, transportation difficulties, and others; significant delays in deliveries from third party suppliers; unsatisfactory recourse with regard to nonconforming goods received from foreign suppliers; political and international trade relations; changes in international trade quota systems for apparel; significant reliance upon several individual foreign suppliers; reliance upon a certain foreign person responsible for maintaining relationships with and monitoring the performance of certain of our significant foreign suppliers; consumer spending on golf apparel; general global economic and political conditions resulting from threats or acts of war or terrorism and responses thereto; access to capital; maintaining satisfactory relationships with commercial banking institutions; establishing controls with regard to and maintaining the integrity of technology and information systems; and, reliance upon executive officers and key employees. Additional information on these and other factors that could affect our financial results is included in our Form 10-K for the year ended June 30, 2008. There may be other factors not mentioned above or included in our Securities and Exchange Commission filings that may cause actual results to differ materially from any forward-looking statement. The reader should not place undue reliance on any forward-looking statement. Neither the Company nor any of its corporate officers or key employees assumes any obligation to update any forward-looking statement as a result of new information, future event or development, except as required by securities laws.

                            SPORT-HALEY, INC.
                    Unaudited Financial Information


                        Three Months Ended          Fiscal Year Ended
                             June 30,                    June 30,
                    --------------------------  --------------------------
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------
Statements of Income
 Data

Net sales           $  4,427,000  $  4,757,000  $ 17,117,000  $ 18,893,000

Gross profit           1,706,000     1,716,000     6,354,000     6,549,000

Total other operating
 costs                 1,661,000     2,357,000     7,380,000     8,274,000

Income (loss) from
 operations               45,000      (641,000)   (1,026,000)   (1,725,000)

Net income (loss)         10,000      (515,000)     (794,000) $ (1,440,000)

Basic earnings (loss)
 per common share   $       0.00  $      (0.23) $      (0.35) $      (0.56)

Basic average
 weighted shares
 outstanding           2,284,000     2,284,000     2,284,000     2,580,000




                                                       June 30,
                                           -------------------------------
                                                2008             2007
                                           --------------   --------------
Balance Sheets Data

Current assets                             $   12,032,000   $   13,619,000

Total assets                                   12,232,000       14,021,000

Current liabilities                             1,968,000        2,865,000

Contingent liabilities                             80,000          178,000

Long-term liabilities                                   -                -

Stockholders' equity                           10,184,000       10,978,000

Contact Information

  • CONTACT:

    Donald W. Jewell
    Chief Executive Officer
    and President
    (303) 320-8800

    Patrick W. Hurley
    Chief Financial Officer,
    Secretary and Treasurer
    (303) 320-8800