NEW YORK, Aug. 18, 2006 (PRIMEZONE) -- Lazare Kaplan International Inc. (AMEX:LKI) today announced financial results for the fourth quarter and fiscal year ended May 31, 2006.
For the fiscal year and fourth quarter ended May 31, 2006, net sales were $528.0 million and $135.0 million, an increase of 25% and 4%, respectively, compared to the same periods last year. The increase in net sales for the fiscal year and fourth quarter 2006 reflects increased sourcing and distribution of rough diamonds partially offset by lower sales of polished diamonds.
Polished diamond gross margin for the fiscal year and fourth quarter ended May 31, 2006 was 13.8% and 11.3%, respectively, compared to 16.2% and 15.9% for the comparable prior year periods.
Rough diamond gross margin for the fiscal year and fourth quarter ended May 31, 2006 was 2.4% and 2.1% compared to 3.5% and 2.3% for the same periods in the prior year.
Net income for the fiscal year and fourth quarter ended May 31, 2006 was $1.5 million, or $0.18 per diluted share and $0.5 million, or $0.06 per diluted share, compared to $5.2 million, or $0.60 per diluted share and $0.6 million, or $0.07 per diluted share in the comparable periods last year. Fully diluted earnings per share for the fiscal year and fourth quarter ended May 31, 2006 are based on the weighted average number of shares outstanding of 8,569,661 and 8,317,251, respectively, compared to 8,653,222 and 8,642,414 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.
FINANCIAL HIGHLIGHTS
---------------------------------------------------------------------
(In thousands, except share and per share data)
Three Months Ended Twelve Months Ended
May 31, 2006 2005 2006 2005
-------------------- ---------------------- ----------------------
Net sales $ 135,002 $ 129,890 $ 528,045 $ 421,411
Cost of Sales 129,099 120,922 498,197 386,677
-------------------- ---------------------- ----------------------
5,903 8,968 29,848 34,734
-------------------- ---------------------- ----------------------
Selling, general and
administrative
expenses 4,563 7,215 24,759 24,475
Interest expense, net
of interest income 1,472 717 3,786 2,389
Equity in (income)/
loss of joint
ventures 537 -- 537 --
-------------------- ---------------------- ----------------------
6,572 7,932 29,082 26,864
-------------------- ---------------------- ----------------------
Income before income
taxes (669) 1,036 766 7,870
Income tax provision (1,186) 454 (762) 2,640
-------------------- ---------------------- ----------------------
NET INCOME $ 517 $ 582 $ 1,528 $ 5,230
==================== ====================== ======================
EARNINGS PER SHARE
==================== ====================== ======================
Basic earnings
per share $ 0.06 $ 0.07 $ 0.18 $ 0.62
==================== ====================== ======================
Average number of
shares outstanding
during the period 8,198,578 8,499,009 8,291,413 8,448,704
==================== ====================== ======================
Diluted earnings
per share $ 0.06 $ 0.07 $ 0.18 $ 0.60
==================== ====================== ======================
Average number of
shares outstanding
during the period
assuming dilution 8,317,251 8,642,414 8,569,661 8,653,222
==================== ====================== ======================