UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 6, 2005
G-III Apparel Group, Ltd.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-18183 41-1590959
(Commission File Number) (IRS Employer Identification No.)
512 Seventh Avenue
New York, NY 10018
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (212) 403-0500
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On December 6, 2005, the Company announced its results of operations
for the third fiscal quarter ended October 31, 2005. A copy of the
press release issued by the Company relating thereto is furnished
herewith as Exhibit 99.1.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of Businesses Acquired.
None.
(b) Pro Forma Financial Information.
None.
(c) Shell Company Transactions.
None.
(d) Exhibits
99.1. Press Release of G-III Apparel Group, Ltd. (the "Company")
issued on December 6, 2005 relating to its third quarter
fiscal 2006 results.
Limitation on Incorporation by Reference
In accordance with General Instruction B.2 of Form 8-K, the
information reported under Item 2.02 shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, nor
shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934, except
as shall be expressly set forth by specific reference in such a
filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
G-III Apparel Group, Ltd.
By: /s/ Neal S. Nackman
Neal S. Nackman
Chief Financial Officer
Dated: December 6, 2005
G-III APPAREL GROUP, LTD.
For: G-III Apparel Group, Ltd.
Contact: Investor Relations
James Palczynski
(203) 222-9013
G-III Apparel Group, Ltd.
Wayne S. Miller, Chief Operating Officer
(212) 403-0500
G-III APPAREL GROUP, LTD. ANNOUNCES THIRD QUARTER FISCAL 2006 RESULTS
-- NET SALES INCREASE BY 61.7% --
-- OPERATING PROFIT INCREASES 55.1% TO $27.8 MILLION --
-- NET INCOME PER DILUTED SHARE INCREASES 30.0% TO $1.73 --
-- ACHIEVES STRONG PERFORMANCE FROM RECENT ACQUISITIONS --
New York, New York - December 6, 2005 -- G-III Apparel Group, Ltd. (Nasdaq:
GIII) today announced operating results for the third quarter of fiscal 2006.
For the three-month period ended October 31, 2005, G-III reported that net
sales increased by 61.7% to $186.6 million and net income per diluted share
increased by 30.0% to $1.73. This compares to net sales of $115.4 million and
net income per diluted share of $1.33 during the comparable period last year.
Weighted average shares outstanding used in the diluted share calculation were
8,553,000 for the three months ended October 31, 2005 compared to 7,429,000 for
the comparable period last year.
For the nine-month period ended October 31, 2005, G-III reported net sales
of $254.9 million and net income per diluted share of $1.23, compared to net
sales of $175.9 million and net income per diluted share of $0.46 during the
comparable period last year. Weighted average shares outstanding used in the
diluted share calculation were 7,995,000 for the nine months ended October 31,
2005 compared to 7,480,000 for the comparable period last year.
The Company's results of operations for the three and nine months ended
October 31, 2005 include the results of the Company's Marvin Richards and Winlit
divisions from July 11, 2005, the date the Company acquired the stock of Marvin
Richards and certain assets from Winlit. The increases in net sales and net
income per share during both periods were primarily due to including these two
new divisions in the Company's results of operations. The three and nine-month
results this year include an after-tax non-cash compensation charge of
approximately
$920,000, or $0.11 per share, related to the vesting of restricted shares of
common stock previously granted to key management.
The prior year's nine-month results include a non-cash charge of $882,000,
equal to $0.12 per share, associated with the Company's sale of its joint
venture interest in a factory in China.
Morris Goldfarb, G-III's Chief Executive Officer, said, "We are pleased to
be on plan to achieve our anticipated full-year financial performance and
continue to make excellent progress with respect to integrating our recent
acquisitions. In particular, our Calvin Klein outerwear continues to experience
strong demand at retail."
Mr. Goldfarb continued, "Our recent acquisitions have not only enabled us
to improve the strength and depth of our management team, but have also
re-energized our organization. We intend to capitalize on the improved strategic
and operational position of our business and are focused on taking advantage of
our position to grow our business."
Mr. Goldfarb concluded, "We have begun a thorough process of identifying
and implementing an updated set of best practices across our organization. We
will continue to seek synergies and benefits from our recent acquisitions."
With respect to guidance for the fiscal year ending January 31, 2006, the
Company reiterates its forecast of net sales in the range of $330 to $340
million. Due to the non-cash compensation charge in connection with the vesting
of restricted shares of common stock, equal to $0.11 per share on an after-tax
basis, the Company is now forecasting net income per diluted share in the range
of $0.85 to $0.90.
ABOUT G-III APPAREL GROUP, LTD.
G-III Apparel Group, Ltd. is a leading manufacturer and distributor of
outerwear and sportswear under licensed labels, our own labels and private
labels. The Company has fashion licenses, among others, for Calvin Klein,
Kenneth Cole, Nine West, Cole Haan, Guess?, Jones Apparel, Sean John, Cece Cord,
Izod, St. John Knits, House of Dereon, Ellen Tracy, Tommy Hilfiger, BCBG by Max
Azria and Donald Trump, and sports licenses with the National Football League,
National Basketball Association, Major League Baseball, National Hockey League,
Louisville Slugger, NASCAR, World Poker Tour and more than 60 universities
nationwide. Company-owned labels include, among others, Marvin Richards, Black
Rivet, Winlit, LNR, La Nouvelle Renaissance, Colebrook and Siena Studio.
Statements concerning the Company's business outlook or future economic
performance, anticipated revenues, expenses or other financial items; product
introductions and plans and objectives related
thereto; and statements concerning assumptions made or expectations as to any
future events, conditions, performance or other matters are "forward-looking
statements" as that term is defined under the Federal Securities laws.
Forward-looking statements are subject to risks, uncertainties and factors
include, but are not limited to, reliance on licensed product, reliance on
foreign manufacturers, the nature of the apparel industry, including changing
customer demand and tastes, seasonality, customer acceptance of new products,
the impact of competitive products and pricing, dependence on existing
management, possible disruption from acquisitions, general economic conditions,
as well as other risks detailed in the Company's filings with the Securities and
Exchange Commission. The Company assumes no obligation to update the information
in this release.
(Financial Table to Follow)
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
(NASDAQ:GIII)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
10/31/05 10/31/04 10/31/05 10/31/04
-------- -------- -------- --------
Net sales $186,621 $115,406 $254,941 $175,878
Cost of sales 131,503 81,358 186,159 129,471
----------- ------------ ---------- -------------
Gross profit 55,118 34,048 68,782 46,407
Selling general and administrative expenses 27,337 16,135 49,040 38,058
Write down of equity investment 882
----------- ------------ ---------- -------------
Operating profit 27,781 17,913 19,742 7,467
Interest and financing charges, net 2,241 550 2,771 820
----------- ------------ ---------- -------------
Income before income taxes 25,540 17,363 16,971 6,647
Income tax expense 10,727 7,466 7,128 3,237
----------- ------------ ---------- -------------
Net income $14,813 $ 9,897 $9,843 $ 3,410
=========== ============ ========== =============
Basic net income per common share $ 1.87 $ 1.38 $ 1.31 $ 0.48
=========== ============ ========== =============
Diluted net income per common share $ 1.73 $ 1.33 $ 1.23 $ 0.46
=========== ============ ========== =============
Weighted average shares outstanding:
Basic 7,927,000 7,190,000 7,538,000 7,158,000
Diluted 8,553,000 7,429,000 7,995,000 7,480,000
BALANCE SHEET DATA (IN THOUSANDS): At Oct. 31, At Oct. 31,
----------- -----------
2005 2004
Working Capital $ 70,102 $ 62,359
Inventory 52,123 37,010
Total Assets 243,672 137,413
Outstanding Borrowings 119,511 36,211
Total Shareholders' Equity $ 84,381 $ 69,115
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