EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

 

Exhibit 99.1

 

Talon International, Inc. Reports 2015 First Quarter Financial Results

 

May 11, 2015 - LOS ANGELES, CA -  Talon International, Inc. (OTCQB: TALN), a leading global supplier of zippers, apparel fasteners, trim and stretch technology products, reported financial results for the first quarter ended March 31, 2015.

 

Highlights

 

 

Sales in Q1 2015 were $10.8 million, a 4.7% decrease over Q1 2014

 

 

Talon Tekfit stretch technology posted sales gains of $411,000

 

Financial Results

 

Sales for the quarter ended March 31, 2015 were $10.8 million, reflecting a decline of $535,000 or 4.7% as compared to the same period in 2014, which was consistent with the Company’s expectations. Talon Zipper sales for the quarter were $386,000 lower than the same period in 2014 and decreased by $655,000 within our mass merchandising brand customers, which was offset by a $269,000 increase in sales to our specialty retail brands customers as compared to 2014. Talon Trim revenues declined by $559,000 compared to the same period in 2014. Substantially all Talon Trim sales are to the Company’s specialty retail branded customers. Talon Tekfit sales increased by $411,000 compared to the same period in 2014, mainly due to new Talon Tekfit programs and customers.   

 

Sales during the first quarter of 2015 were negatively impacted by a fewer number of available work days throughout the Asia regions due to the timing of the Lunar New Year holidays, impacting the timing of customers’ order placements and limitations on our ability to fulfill those orders during the quarter. This timing element, along with a significantly higher volume of orders booked in the quarter, resulted in a 37% increase in open orders at the end of the first quarter of 2015 as compared to the same period of 2014.

 

"In comparison to a strong first quarter last year, we’re pleased with the overall results of the quarter, considering the challenges in the mass merchandising segment and the reduced number of work days in the Asian markets,” stated Larry Dyne, Talon's Chief Executive Officer. “As we look ahead, we’re encouraged by strong product bookings and our renewed focus on meeting the Company’s strategic objectives, including expanding our geographic footprint and working with customers to move into emerging markets and territories. Our leadership team is committed to being customer-centric, as well as creating efficiencies that will benefit the bottom line.”

 

Gross profit for the three months ended March 31, 2015 was $3.6 million (or 33.0% of sales), reflecting a reduction of $171,000 as compared to the same period in 2014. The reduction in gross profit for the quarter, as compared to the prior year, was principally attributable to lower overall sales volumes.

  

 
 

 

 

Operating expenses for the three months ended March 31, 2015 were $3.7 million, reflecting a slight increase of $117,000 as compared to the same period in 2014, driven mainly by higher sales and marketing expenses. Sales and marketing expenses for the first quarter 2015 totaled $1.6 million, an increase of $227,000 as compared to the same period in 2014, mainly due to higher compensation, travel, communications and related expenses as well as increased new product development costs. General and administrative expenses for the first quarter 2015 were lower by $110,000, mainly due to lower facilities and related expenses and lower depreciation expenses, totaling $2.1 million as compared to $2.2 million for the same period in 2014, and remained flat at 19.1% as a percentage of sales in both periods.

 

Net loss for the quarter ended March 31, 2015 was $159,000 as compared to net income of $17,000 for the same period in 2014.

 

Conference Call

 

Talon International will hold a conference call on Monday, May 11, 2015, to discuss its first quarter financial results for 2015. Talon's CEO, Larry Dyne, will host the call starting at 4:30 P.M. Eastern Time. A question and answer session will follow the presentation.

 

To participate, dial the appropriate number 5-10 minutes prior to the start time, request the Talon International conference call and provide the conference ID.

 

Date: Monday, May 11, 2015

 

Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)

 

Domestic callers: 1-888-349-0091

 

International callers: 1-412-902-4297

 

Conference ID#: TALON

 

A replay of the call will be available after 7:30 p.m. Eastern Time on the same day and until June 11, 2015. The toll-free replay call-in number is 1-877-870-5176 for domestic callers and 1-858-384-5517 for international. Pin number 10064448.

 

 
 

 

 

About Talon International, Inc.

 

Talon International, Inc. is a major supplier of custom zippers, complete trim solutions and Tekfit stretch technology products to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers worldwide. Talon develops, manufactures and distributes custom zippers exclusively under its Talon® brand (“The World’s Original Zipper Since 1893”); designs, develops, manufactures, and distributes complete apparel trim solutions and products; and provides stretch technology for specialty waistbands, shirt collars, and other items all under its trademark and world renowned brands, Talon®, and TekFit® to major apparel brands and retailers. Leading retailers worldwide recognize and use Talon products including VF Corporation, American Eagle, Abercrombie and Fitch, Polo Ralph Lauren, Kohl’s, JC Penney, FatFace, Victoria’s Secret, Wal-Mart, Phillips-Van Heusen, Levi Strauss & Co., Express and many others. The company is headquartered in the greater Los Angeles area, and has offices and facilities throughout the United States, United Kingdom, Hong Kong, China, Taiwan, Vietnam, India, Indonesia and Bangladesh.

 

Forward Looking Statements

 

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on market growth, changing trends in apparel retailing, new product introductions, expansion into new geographic markets, and the Company's ability to execute on its sales strategies, and are generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry, competition and capital requirements. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission including the Company's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

 

Contact:

Talon International, Inc.
Rayna Hernandez
Tel (818) 444-4128
raynah@talonzippers.com

 

 
 

 

 

TALON INTERNATIONAL, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

   

Three Months Ended March 31,

 
   

2015

   

2014

 

Net sales

  $ 10,808,422     $ 11,343,118  

Cost of goods sold

    7,244,515       7,608,162  

Gross profit

    3,563,907       3,734,956  

Sales and marketing expenses

    1,642,234       1,415,690  

General and administrative expenses

    2,067,492       2,177,071  

Total operating expenses

    3,709,726       3,592,761  
                 

Income (loss) from operations

    (145,819

)

    142,195  

Interest expense, net

    94,419       111,271  

Income (loss) before provision for income taxes

    (240,238

)

    30,924  

Provision for (benefit from) income taxes, net

    (81,015

)

    13,659  

Net income (loss)

  $ (159,223

)

  $ 17,265  
                 

Basic and diluted net income (loss) per share

  $ (0.00

)

  $ 0.00  
                 

Weighted average number of common shares outstanding - Basic

    92,267,831       91,804,752  
                 

Weighted average number of common shares outstanding - Diluted

    92,267,831       93,431,832  
                 

Net income (loss)

  $ (159,223

)

  $ 17,265  

Other comprehensive income from foreign currency translation

    279       1,092  

Total comprehensive income (loss)

  $ (158,944

)

  $ 18,357  

 

 
 

 

  

TALON INTERNATIONAL, INC.

 

CONSOLIDATED BALANCE SHEETS

 

   

March 31,

2015

   

December 31,

2014

 
   

(Unaudited)

         

Assets

               

Current assets:

               

Cash and cash equivalents

  $ 1,651,778     $ 2,603,138  

Accounts receivable, net

    4,317,539       3,019,749  

Inventories, net

    972,181       506,272  

Current deferred income tax assets, net

    650,512       746,370  

Prepaid expenses and other current assets

    638,774       551,775  

Total current assets

    8,230,784       7,427,304  
                 

Property and equipment, net

    733,457       584,586  

Intangible assets, net

    4,302,578       4,300,084  

Deferred income tax assets, net

    5,513,093       5,374,468  

Other assets

    447,590       416,035  

Total assets

  $ 19,227,502     $ 18,102,477  
                 

Liabilities and Stockholders’ Equity

               

Current liabilities:

               

Accounts payable

  $ 7,449,571     $ 6,191,954  

Accrued expenses

    2,364,616       2,403,563  

Revolving credit loan

    1,700,000       1,500,000  

Current portion of term loan payable

    1,716,667       1,816,667  

Total current liabilities

    13,230,854       11,912,184  
                 

Term loan payable, net of current portion

    762,500       1,016,667  

Deferred income tax liabilities

    12,242       13,961  

Other liabilities

    193,247       26,077  

Total liabilities

    14,198,843       12,968,889  
                 

Stockholders’ Equity:

               

Common Stock, $0.001 par value, 300,000,000 shares authorized; 92,267,831 shares issued and outstanding at March 31, 2015 and December 31, 2014

    92,268       92,268  

Additional paid-in capital

    64,229,269       64,175,254  

Accumulated deficit

    (59,409,332

)

    (59,250,109

)

Accumulated other comprehensive income

    116,454       116,175  

Total stockholders’ equity

    5,028,659       5,133,588  

Total liabilities and stockholders’ equity

  $ 19,227,502     $ 18,102,477