NEW YORK, April 7, 2006 (PRIMEZONE) -- Lazare Kaplan International Inc. (AMEX:LKI) today announced financial results for the third quarter of fiscal 2006 ended February 28, 2006.
Net sales for the three months ended February 28, 2006 were $157.9 million, as compared to $120.0 million in the comparable prior year period. For the nine months ended February 28, 2006 net sales were $393.0 million, an increase of $101.5 million or 35% over the comparable prior year period.
Gross margin during the three months ended February 28, 2006 was $8.9 million compared to $7.8 million in the prior year period. Gross margin for the nine months ended February 28, 2006 was $23.9 million compared to $25.8 million in the prior year period.
Increased year-to-date sales and gross margin for the three months ended February 28, 2006 reflect the Company's continued success expanding its global sourcing, manufacturing and distribution strategy.
Net income for the three and nine month periods ended February 28, 2006 was $0.5 million or $0.06 per fully diluted share and $1.0 million, or $0.12 per fully diluted share, respectively, compared to $1.1 million or $0.12 per fully diluted share and $4.6 million, or $0.54 per fully diluted share in the comparable prior year period. Fully diluted earnings per share for the three and nine month periods ended February 28, 2006 are based on the weighted average number of shares outstanding of 8,392,567 and 8,651,136, respectively compared to 8,683,248 and 8,655,335 in the comparable prior year periods.
Lazare Kaplan International Inc. sells its diamonds 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.
(Financial table to Follow)
CONSOLIDATED INCOME STATEMENTS
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(In thousands, except per share and per share data)
Three Months Nine Months
Ended Ended
February 28, (unaudited) 2006 2005 2006 2005
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Net sales $ 157,912 $ 120,013 $ 393,043 $ 291,521
Cost of Sales 149,003 112,204 369,098 265,755
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8,909 7,809 23,945 25,766
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Selling, general and
administrative expenses 7,080 5,868 20,196 17,260
Interest expense, net
of interest income 1,070 573 2,314 1,672
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8,150 6,441 22,510 18,932
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Income before
income taxes 759 1,368 1,435 6,834
Income tax provision 249 288 424 2,186
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NET INCOME $ 510 $ 1,080 $ 1,011 $ 4,648
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EARNINGS PER SHARE
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Basic earnings
per share $ 0.06 $ 0.13 $ 0.12 $ 0.55
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Average number of
shares outstanding
during the period 8,265,208 8,423,481 8,319,697 8,461,959
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Diluted earnings
per share $ 0.06 $ 0.12 $ 0.12 $ 0.54
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Average number of shares
outstanding during
the period assuming
dilution 8,392,567 8,683,248 8,651,136 8,655,335
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