Signature Eyewear, Inc. reports 8.5% increase in net income
Signature Eyewear, Inc. (OTCBB:SEYE) reported an 8.5% increase in net income from $622,000 in its fiscal year ended October 31, 2008 to $675,000 in fiscal year 2009 on net sales of $23.3 million in fiscal year 2009, down 4.9% from $24.5 million in fiscal year 2008. The company has been profitable for five consecutive years.
The increase in net income was due primarily to a substantial reduction in general and administrative expenses and to a lesser extent a reduction in selling and interest expenses.
The decrease in net sales in fiscal 2009 was primarily due to decreases in international sales, as a result of the weak global economy, the acquisition of major international customers by competitors and deep discounting in many international markets. Signature maintained domestic sales relatively constant between the years despite the economic downturn and weak optical frame market.
“In light of the continuing adverse economic conditions, during the year we continued our efforts to improve our balance sheet. We reduced inventories from $5.6 million at October 31, 2008 to $3.8 million at October 31, 2009, which greatly reduced our financing requirements. As a result, we were able to reduce our accounts payable and accrued expenses by $1.8 million and our long-term debt (including current portion) decreased $700,000 to $4.2 million at October 31, 2009,” explained Michael Prince, CEO of Signature.
About Signature Eyewear
Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally recognized brand names, including: bebe, Carmen Marc Valvo, Cutter and Buck, Dakota Smith, Hart Schaffner Marx,
The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including increasing market interest rates. Actual results may differ materially from those indicated by such forward-looking statements. For additional information, please consult the Company’s most recent public filings and Form 10-K for the year ended October 31, 2009. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.
The Blaine Group
Devon Blaine, 310-360-1499