RESTRUCTURING TAKES ITS TOLL AT KASPER ASL
NEW YORK — Bankrupt Kasper ASL Ltd. on Monday posted yearend results reflecting a tripling of its losses due in part to restructuring costs.
For the year ended Dec. 29, 2001, the loss was $75.7 million, or $11.13 a share, compared with the year-ago loss of $25.2 million, or $3.70. The losses in both periods include restructuring costs of $9.2 million in 2001 and $2.3 million in 2000. Sales were down 8 percent to $368.6 million from $400.1 million, while royalty income inched up 2.4 percent to $15.3 million from $15 million. For the year, cost of sales rose 1.5 percent, and after the drop-off in sales, gross profit fell 30 percent to $84.1 million from $120.6 million.
In its first four-week operating report filed with the Manhattan bankruptcy court, the company said income in February was $3.4 million on revenue of $42.7 million, compared with income of $2 million on revenue of $45.9 million in the same period last year.
John D. Idol, chairman and chief executive officer, said in a statement, “Our management team has performed a comprehensive operational review to reduce expenses and improve efficiencies which we believe will ultimately return our company to profitability. We are encouraged that our initial results are consistent with the financial plan we submitted with our reorganization filing. While one month is not necessarily indicative of the full-year results, I believe these results indicate that we are initially implementing our turnaround plan.”