LAS VEGAS, Nov. 27, 2012 (GLOBE NEWSWIRE) -- Tatyana Designs, Inc. (the "Company") (OTC Pink:TATD), a growing retailer specializing in contemporary designs inspired by the iconic Bettie Page, today posted financial results for the nine months ended September 30, 2012. Represents first financial report following reverse capitalization completed in August 2012.
For the nine months ended September 30, 2012:
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Net sales increased 35% to $7.2 million from the $5.3 million during the comparable nine months of 2011. Nine-month 2012 sales exceeded total sales for the twelve months of 2011.
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Boutique sales increased 36%.
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Comparable boutique sales increased 7.5%.
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The number of Company owned boutiques increased from six to nine. The tenth boutique opened in Boston in October and the first New York City boutique opens this week.
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Wholesale sales to other boutiques increased 43% to $1.67 million.
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E-commerce sales increased 15% to $662,000.
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Gross profit remains steady at 70% of sales.
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Income from operations was $561,000 – during which Company absorbed startup expenses for four new boutiques.
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Generated $230,000 in cash from operating activities -- increased inventories by $622,000 to support boutique openings and wholesale and e-commerce growth.
- Net income was $677,000 or $0.07 per share. Included a deferred tax benefit of $159,000 upon becoming a corporate taxable entity in August 2012.
The Company ended the nine months at September 30, 2012 with $743,000 cash, working capital of $1.2 million and inventory of $1.6 million. The Company financed its growth during the period from operations along with $560,000 of working capital bank financing and $150,000 cash from the reverse capitalization. A total of $600,000 due the Company's majority stockholder for taxes prior to reverse capitalization has been retained to help finance growth.
"We are delivering on our announced growth strategy of expanding our boutique base, managing comparable boutique sales and growing our wholesale and e-commerce divisions," stated Jan Glaser, Co-CEO and Treasurer of Tatyana Designs. "We increased sales and maintained profitability for the nine months, while absorbing new boutique startup expenses, including a $212,000 non-cash increase in deferred rent. The performance of our new boutiques in the East is proving the success of our retro-themed contemporary design business model. We believe there are many prime 'street' or up-scale mall locations for boutique growth and we are focused on delivering against that opportunity while maintaining profitability."
About the Company - Based in Las Vegas, Nevada, Tatyana Designs, Inc. is a growing retailer specializing in contemporary designs inspired by the 50's and the iconic Bettie Page. The merchandise offered through ten boutiques and active e-commerce and wholesale divisions is a diverse mix of high-quality and attractively priced apparel, jewelry, accessories and gifts. Bettie Page collections target the 18-35 year-old, fashion conscious, female customer, but women of all ages are attracted to the unique retro look. New product styles are presented monthly. For more information on the company please visit the Web site at www.tatyanadesigns.com.
Trademark Information: Bettie Page is a trademark registered to Mark A. Roesler, dba Bettie Page LLC (www.BettiePage.com) and licensed for use by the Company. All other trade names are either trademarks or registered trademarks of their respective holders.
The Tatyana Designs, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15348
Cautionary note on forward-looking statements:
This press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements relating to future transactions, performance and developments that may affect future results and the future viability of the company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of risks, uncertainties and other factors identified and discussed in the Company's most recent public corporate documents (www.otcmarkets.com/stock/TATD/filings). These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from the Company's current expectations.
| Tatyana Designs, Inc. and Affiliates | ||
| Condensed Consolidated Balance Sheets | ||
| (000's omitted except per share amount) | ||
| (unaudited) | ||
| September 30, | December 31, | |
| 2012 | 2011 | |
| $ | $ | |
| ASSETS | ||
| Current | ||
| Cash | 743 | 359 |
| Inventories | 1,686 | 1,064 |
| Other | 422 | 73 |
| Total current assets | 2,851 | 1,496 |
| Property and equipment, net | 490 | 421 |
| Deferred income taxes | 217 | -- |
| Deposits | 317 | 126 |
| Licenses and trademarks, net | 50 | 53 |
| Total assets | 3,925 | 2,096 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current | ||
| Accounts payable and accruals | 809 | 169 |
| Bank debt | 234 | -- |
| Due stockholder | 600 | 500 |
| Total current liabilities | 1,643 | 669 |
| Deferred rent | 507 | 295 |
| Bank debt - long term | 323 | -- |
| Stockhoder debt - long-term | 500 | -- |
| Total liabilties | 2,973 | 964 |
| Stockholders' equity | 952 | 1,132 |
| Total liabilities and stockholders' equity | 3,925 | 2,096 |
| Tatyana Designs, Inc. and Affiliates | ||
| Condensed Consolidated Statements of Operations | ||
| (000's omitted except per share amount) | ||
| (unaudited) | ||
| Nine Months | Year | |
| Ended | Ended | |
| September 30, | December 31, | |
| 2012 | 2011 | |
| $ | $ | |
| Net sales | 7,248 | 7,236 |
| Cost of revenues | 2,158 | 2,204 |
| Gross profit | 5,090 | 5,032 |
| Selling, general and administrative | 4,529 | 4,009 |
| Income from operatons | 561 | 1,023 |
| Other expenses | 42 | 64 |
| Income before income tax | 519 | 959 |
| Income tax benefit | (159) | -- |
| Net income | 678 | 959 |
| Basic and diluted earnings per common share | $0.07 | $0.10 |
| Weighted average shares outstanding: | ||
| Basic shares | 10,381 | 10,000 |
| Diluted shares | 10,412 | 10,000 |
| Pro forma net income data: | ||
| Income before income tax expense | 519 | 959 |
| Pro forma adjustments for income tax expense | 203 | 355 |
| Pro forma net income | 316 | 604 |
| Pro forma basic and diluted earnings per common share | $0.03 | $0.06 |