NEW YORK, April 16, 2007 (PRIME NEWSWIRE) -- Lazare Kaplan International Inc. (AMEX:LKI) today announced financial results for the third fiscal quarter of fiscal 2007 ended February 28, 2007.
Net sales for the three and nine month periods ended February 28, 2007 were $104.3 million and $337.6 million, compared to $157.9 million and $393.0 million in the respective prior year periods. Gross margin for the three and nine months ended February 28, 2007 was 7.0% and 5.2%, respectively compared to 5.6% and 6.1% in the comparable prior year periods.
The decrease in sales for the three and nine month periods 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 three and nine month periods ended February 28, 2007 was $0.1 million, or $0.01 per share, and $(3.1) million, or $(0.38) per share, compared to $0.5 million, or $0.06 per share, and $1.0 million, or $0.12 per share, in the respective prior year periods. Fully diluted earnings per share for the three and nine month periods ended February 28, 2007 are based on the weighted average number of shares outstanding of 8,390,159 and 8,197,484, as compared to 8,392,567 and 8,651,136 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except per share and per share data)
Three Months Ended Nine Months Ended
February 28, (unaudited) 2007 2006 2007 2006
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Net sales $ 104,257 $ 157,912 $ 337,552 $ 393,043
Cost of Sales 96,980 149,003 320,101 369,098
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7,277 8,909 17,451 23,945
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Selling, general and
administrative expenses 5,777 7,080 18,847 20,196
Equity in income of
joint ventures (361) -- (1,561) --
Interest expense,
net of interest income 1,754 1,070 5,024 2,314
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7,170 8,150 22,310 22,510
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Income/(loss) before
income taxes 107 759 (4,859) 1,435
Income tax provision /
(benefit) 49 249 (1,729) 424
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NET INCOME/(LOSS) $ 58 $ 510 $ (3,130) $ 1,011
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EARNINGS/(LOSS) PER SHARE
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Basic earnings/(loss)
per share $ 0.01 $ 0.06 $ (0.38) $ 0.12
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Average number of shares
outstanding during the
period 8,197,634 8,265,208 8,197,484 8,319,697
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Diluted earnings /
(loss) per share $ 0.01 $ 0.06 $ (0.38) $ 0.12
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Average number of shares
outstanding during the
period assuming
dilution 8,390,159 8,392,567 8,197,484 8,651,136
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