NEW YORK, Aug. 29, 2007 (PRIME NEWSWIRE) -- Lazare Kaplan International Inc. (AMEX:LKI) today announced financial results for the fourth fiscal quarter and year ended May 31, 2007.
For the fourth quarter and fiscal year ended May 31, 2007, net sales were $96.9 million and $434.4 million, respectively as compared to $135.0 million and $528.0 million for the comparable prior year periods. Gross margin for the fourth quarter and fiscal year ended May 31, 2007 was 5.6% and 5.3% respectively, compared to 4.4% and 5.7% in the comparable prior year periods.
The decrease in sales for the fourth quarter and fiscal year 2007 primarily reflects the transfer during the second fiscal quarter 2007 of certain rough trading operations to a separately operated joint venture which the Company accounts for on the equity method.
Net income / (loss) for the fourth quarter and fiscal year ended May 31, 2007 was $0.2 million, or $0.02 per share, and $(3.0) million, or $(0.36) per share, compared to $0.5 million, or $0.06 per share, and $1.5 million, or $0.18 per share, in the respective prior year periods. Fully diluted earnings per share for the fourth quarter and fiscal year ended May 31, 2007 are based on the weighted average number of shares outstanding of 8,315,210 and 8,207,006, as compared to 8,317,251 and 8,569,661 in 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.
FINANCIAL HIGHLIGHTS
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(In thousands, except share and per share data)
Three Months Ended Twelve Months Ended
May 31, 2007 2006 2007 2006
--------------------- --------- --------- --------- ---------
Net sales $ 96,854 $ 135,002 $ 434,406 $ 528,045
Cost of Sales 91,422 129,099 411,523 498,197
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5,432 5,903 22,883 29,848
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Selling, general and
administrative expenses 6,844 4,563 25,691 24,759
Equity in (income)/loss
of joint ventures (2,352) 537 (3,913) 537
Interest expense, net of
interest income 832 1,472 5,856 3,786
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5,324 6,572 27,634 29,082
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Income/(loss) before
income taxes 108 (669) (4,751) 766
Income tax provision/
(benefit) (46) (1,186) (1,775) (762)
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NET INCOME/(LOSS) $ 154 $ 517 $ (2,976) $ 1,528
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EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss)
per share $ 0.02 $ 0.06 $ (0.36) $ 0.18
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Average number of shares
outstanding during the
period 8,228,467 8,198,578 8,207,006 8,291,413
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Diluted earnings/(loss)
per share $ 0.02 $ 0.06 $ (0.36) $ 0.18
--------- --------- --------- ---------
Average number of shares
outstanding during the
period assuming
dilution 8,315,210 8,317,251 8,207,006 8,569,661
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