LAS VEGAS, March 28, 2014 (GLOBE NEWSWIRE) -- Tatyana Designs, Inc. (the "Company") (OTC Pink:TATD), a growing designer, manufacturer and retailer of vintage inspired contemporary designs, today posted financial results for 2013.
For the year ended December 31, 2013:
- Net sales increased 43% in 2013 to $14.7 million from $10.25 million in 2012. Sales in 2012 increased 42% over 2011.
- Boutique sales increased 67% and comparable boutique sales increased 5% during 2013 compared to 2012.
- E-commerce sales increased 9% to $1.1 million in 2013.
- Adjusted EBITDA for 2013 was $242,000 (see discussion below and accompanying table for non-GAAP measures) and the Company generated $524,000 in cash from operating activities.
- The number of Company owned Boutiques increased from eleven at December 31, 2012 to seventeen at December 31, 2013.
- Selling, general and administrative costs increased in 2013 due to the increase in the national scope of operations with seventeen boutiques located in twelve states.
The Company ended the year 2013 with $683,000 cash, working capital of $1.96 million and inventory and inventory deposits of $2.8 million. The Company financed its growth during 2013 primarily from internal operations. The Company restated 2012 results to reflect additional income as a result of capitalized freight and deferred and other tax timing differences with no change in cash flows from operations or cash for the year.
"We are very pleased with the organic financed growth achieved in 2013. We increased comparable boutique sales and increased e-commerce revenues during a year focused on building infrastructure to a national scale," said Jan Glaser, co-CEO and treasurer of Tatyana Designs, Inc. "We absorbed significant new boutique startup expenses including a $359,000 increase in non-cash deferred rent. While we reported a net loss in 2013 primarily as a result of our investment in growth, we generated positive cash from operations and we are optimistic about our prospects.
"During the last two months of 2013 and the first quarter of 2014 we faced severe weather challenges resulting in sporadic daily boutique closings and reduced traffic that negatively impacted revenues, margins and operating costs," added Glaser. "We also recently announced a rebranding of our boutiques as 'Tatyana®', to reflect the inspiration of our founding fashion designer Tatyana Khomyakova whose designs have been capturing women from all walks of life since 2007. While it is too early to estimate the impact of the above challenges on 2014 results, we believe we have a national scale of boutique and e-commerce operations to leverage for 2014."
Non-GAAP Information - This press release includes non-GAAP EBITDA and Adjusted EBITDA (adjusted for non-cash deferred rent) each a non-GAAP financial measure. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in tables accompanying this release. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company's business as it grows. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. The Company has provided this information as a means to evaluate the results of its ongoing operations. Other companies in the Company's industry may calculate these items differently than it does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
About the Company - Based in Las Vegas, Nevada, Tatyana Designs, Inc. is a growing retailer specializing in contemporary designs inspired by the 1940's and 50's – the "Golden Age" of fashion. The Company owns significant trademark and license rights. The merchandise offered through the boutiques, e-commerce and wholesale divisions offer a diverse mix of high-quality and attractively priced apparel, jewelry, accessories and gifts. The Company's boutiques and e-commerce target the 18-35 year-old, fashion conscious female customer, but women of all ages are attracted to the unique retro inspired, yet modern, look. New product styles are presented monthly. For more information on the company please visit the Web site at www.tatyanadesigns.com .
Cautionary note on forward-looking statements:
Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: the costs and effects of rebranding and related disputes including current litigation; possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brands; possible inability to successfully implement our growth strategies or manage our growing business; possible inability to successfully open new boutiques and expand e-commerce business as planned; and possible inability to sustain levels of comparable-boutique sales. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to the Company's most recent public corporate documents and risk factors discussed therein ( www.otcmarkets.com/stock/TATD/filings ). We undertake no obligation to publicly update or revise any forward-looking statement. Future results may differ materially from the Company's current expectations.
| Tatyana Designs, Inc. | ||
| Condensed Consolidated Balance Sheets | ||
| (000's omitted except per share amount) | ||
| December 31, | ||
| 2013 | 2012 | |
| $ | $ | |
| (as restated) | ||
| ASSETS | ||
| Current | ||
| Cash | 683 | 608 |
| Inventories | 2,576 | 2,768 |
| Receivables and other | 338 | 410 |
| Total current assets | 3,597 | 3,786 |
| Property and equipment, net | 698 | 491 |
| Deferred income taxes | 409 | 243 |
| Deposits | 443 | 364 |
| Total assets | 5,147 | 4,884 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current | ||
| Accounts payable and accruals | 1,061 | 913 |
| Bank debt | 202 | 272 |
| Due stockholder | 376 | 541 |
| Total current liabilities | 1,639 | 1,726 |
| Deferred rent | 1,080 | 721 |
| Bank debt - long term | 472 | 305 |
| 6% Convertible notes | 300 | 300 |
| Stockholder debt - long-term | -- | 500 |
| Total liabilities | 3,491 | 3,552 |
| Stockholders' equity | 1,656 | 1,332 |
| Total liabilities and stockholders' equity | 5,147 | 4,884 |
| Tatyana Designs, Inc. | ||
| Condensed Consolidated Statements of Operations | ||
| (000's omitted except per share amount) | ||
| Year Ended | ||
| December 31, | ||
| 2013 | 2012 | |
| $ | $ | |
| (as restated) | ||
| Net sales | 14,690 | 10,251 |
| Cost of revenues | 4,992 | 3,116 |
| Gross profit | 9,698 | 7,135 |
| Selling, general and administrative | 10,085 | 6,287 |
| (Loss) income from operations | (387) | 848 |
| Other expenses | 19 | 72 |
| (Loss) income before income tax | (406) | 776 |
| Income tax benefit | 146 | 206 |
| Net (loss) income | (260) | 982 |
| Basic and diluted (loss) earnings per common share | ($0.02) | $0.09 |
| Weighted average shares outstanding: | ||
| Basic shares | 11,955 | 10,771 |
| Diluted shares | 11,955 | 10,879 |
| Pro forma net income data: | ||
| Income before income tax expense | 776 | |
| Pro forma adjustments for income tax expense | 312 | |
| Pro forma net income | 464 | |
| Pro forma basic and diluted earnings per common share | $0.04 | |
| Tatyana Designs, Inc. | ||
| GAAP to Non-GAAP Reconciliations | ||
| (000's omitted) | ||
| (unaudited) | ||
| Year Ended | ||
| December 31, | ||
| 2013 | 2012 | |
| $ | $ | |
| (as restated) | ||
| Reconciliation of net (loss) income to EBITDA: | ||
| Net (loss) income | (260) | 982 |
| Adjustments: | ||
| Interest | 30 | 100 |
| Depreciation | 174 | 109 |
| Tax benefit | (146) | (206) |
| EBITDA | (202) | 985 |
| Reconciliation of net (loss) income to Adjusted EBITDA: | ||
| Net income (loss) | (260) | 982 |
| Adjustments: | ||
| Interest | 30 | 100 |
| Depreciation | 174 | 109 |
| Tax benefit | (146) | (206) |
| Stock-based compensation | 85 | 42 |
| Non-cash increase deferred rent | 359 | 425 |
| Adjusted EBITDA | 242 | 1,452 |
Jan Glaser 702.458.1632 Ext 5
