EVERLAST LOSES IN QUARTER, BUT YEARLY NET UP 75.2%
NEW YORK — Despite growing pains that led to a fourth-quarter loss, Everlast Worldwide said 2000 was a knockout year for the firm, formerly know as Active Apparel Group.
Net loss for the quarter was $4,000, or 1 cent a share. This compares to earnings of $120,000, or 5 cents, a year ago. The most recent quarter included expenses of $197,000 for amortization and $348,000 for cost of sales related to acquisitions.
On an operating basis, income for the quarter more than doubled to $422,000 from $209,000 a year ago. Revenues jumped 64.6 percent for the period ended Dec. 31 to $11.6 million from $7.1 million a year ago.
George Horowitz, chairman and chief executive, in a statement described 2000 as “perhaps the most significant year in our company’s history as we concluded the acquisition of Everlast in October, renaming the company in the process to reflect the expanded scope of our operations.”
As reported, Everlast was acquired in a cash-and-stock deal valued at approximately $60 million.
For the year, earnings jumped 75.2 percent to $1.4 million, or 52 cents a share, from $816,000, or 31 cents, a year ago. Revenues for the 12 months were up 50.1 percent to $36.9 million against $24.5 million a year ago.
During 2000, Horowitz said the firm grew its men’s and women’s activewear lines and started adding new licensees to rejuvenate its sporting goods business. In 2001, the New York-based firm will grow its activewear lines, with the introduction of new items, and promote them through expanded in-store merchandising efforts and athletic endorsements.