A noncash charge pulled I.C. Isaacs & Co. Inc. to a wider third-quarter loss.
For the three months ended Sept. 30, the net loss was $545,000, or 5 cents a diluted share, compared with a loss of $510,000, or 7 cents, in the year-ago quarter. Results suffered from a $415,000 non-cash charge from the sale of land that the company was not using for its operations. The cash proceeds from the sale were used to reduce amounts owed on the firm’s revolving line of credit.
The firm reported operating income of $152,000 versus a year-ago operating loss of $392,000.
Sales in the quarter were essentially flat, creeping up 0.2 percent to $16.4 million from $16.3 million.
Staffan Ahrenberg, chairman, said in a statement that the company continued to make progress in its ongoing efforts to reduce operating expenses and to restore profit margins to expected levels.
“The Girbaud brand continues to be well received in the market and the company successfully continues to implement its plan to be more efficient in delivering its product to the marketplace,” he said, noting that gross profit as a percentage of sales increased to 36.6 percent compared with 27.9 percent and 35.2 percent for the first and second quarters, respectively.
While the retail environment continues to be challenging, the company’s backlog significantly more than doubled to $22 million at Oct. 31, 2003, versus $10.5 million last year.
For the nine months, the loss was $716,000, or 6 cents a diluted share, against income of $1.4 million, or 13 cents, last year. Sales fell by 8.1 percent to $49.1 million from $53.5 million.