NEW YORK, Aug. 16, 2005 (PRIMEZONE) -- Lazare Kaplan International Inc. (AMEX:LKI) today announced financial results for the fourth quarter and fiscal year ended May 31, 2005.
For the fourth quarter and fiscal year ended May 31, 2005, net sales were $129.9 million and $421.4 million, an increase of 101% and 79%, respectively, compared to the same periods last year. The increase in net sales for the fourth fiscal quarter and fiscal year 2005 reflect increased sales of both rough and polished diamonds.
Polished diamond gross margin for the fourth quarter and fiscal year ended May 31, 2005 was 15.9% and 16.2%, respectively, compared to 15.3% for both the fourth quarter and fiscal year ended May 31, 2004.
Rough diamond gross margin for the fourth quarter and fiscal year ended May 31, 2005, was 2.3% and 3.5%, compared to 5.5% and 4.6% for the same periods in the prior year.
Net income for the fourth quarter and fiscal year ended May 31, 2005, was $0.6 million, or $0.07 per diluted share, and $5.2 million, or $0.60 per diluted share, compared to $1.2 million, or $0.14 per diluted share, and $2.4 million, or $0.28 per diluted share, in the comparable periods last year. Fully diluted earnings per share for the fourth quarter and fiscal year ended May 31, 2005, are based on the weighted average number of shares outstanding of 8,642,414 and 8,653,222, respectively, compared to 8,652,147 and 8,599,954 for the comparable prior year periods.
Lazare Kaplan International Inc. sells its diamond and jewelry products through a worldwide distribution network. The Company is noted for its ideal cut diamonds which it markets internationally under the brand name, Lazare Diamonds(r).
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include a softening of retailer or consumer acceptance of or demand for the Company's products, pricing pressures, adequate supply of rough diamonds and other competitive factors. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission. The information contained in this press release is accurate only as of the date issued. Investors should not assume that the statements made in these documents remain operative at a later time. Lazare Kaplan International Inc. undertakes no obligation to update any information contained in this news release.
LAZARE KAPLAN INTERNATIONAL INC. (AMEX: LKI)
FINANCIAL HIGHLIGHTS
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(In thousands, except share and per share data)
Three Months Ended Twelve Months Ended
(Unaudited) (Audited)
May 31, 2005 2004 2005 2004
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Net sales $ 129,890 $ 64,477 $ 421,411 $ 235,775
Cost of sales 120,922 57,157 386,677 209,631
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8,968 7,320 34,734 26,144
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Selling, general
and administrative
expenses 7,215 5,510 24,475 21,971
Interest expense,
net of interest
income 717 318 2,389 900
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7,932 5,828 26,864 22,871
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Income before
income taxes 1,036 1,492 7,870 3,273
Income tax
provision 454 323 2,640 874
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NET INCOME $ 582 $ 1,169 $ 5,230 $ 2,399
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EARNINGS PER SHARE
------------------- ----------------------- -----------------------
Basic earnings per
share $ 0.07 $ 0.14 $ 0.62 $ 0.28
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Average number of
shares outstanding
during the period 8,404,469 8,499,009 8,448,704 8,513,687
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Diluted earnings
per share $ 0.07 $ 0.14 $ 0.60 $ 0.28
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Average number of
shares outstanding
during the period
assuming dilution 8,642,414 8,652,147 8,653,222 8,599,954
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