MOVADO GROUP, INC.
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(Exact name of registrant as specified in its charter)
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New York
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(State or other jurisdiction of incorporation)
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1-16497
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13-2595932
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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650 From Road, Suite 375
Paramus, NJ
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07652-3556
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(Address of principal executive offices)
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(Zip Code)
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(201) 267-8000
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(Registrant’s Telephone Number, Including Area Code)
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NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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Exhibit No.
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Description
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MOVADO GROUP, INC.
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By:
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/s/ Timothy F. Michno
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Name: Timothy F. Michno
Title: General Counsel
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CONTACT: | ICR, Inc. |
Rachel Schacter/Allison Malkin | |
203-682-8200 |
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Net sales increased 6.1% to $110.0 million compared to $103.7 million in the first quarter of fiscal 2013 driven primarily by growth in the accessible luxury category.
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Gross profit was $59.9 million, or 54.5% of sales, compared to $59.0 million, or 56.9% of sales, in the first quarter last year. The decrease in gross margin percentage was primarily the result of channel and product mix, partially offset by the favorable impact of changes in foreign currency exchange rates.
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Operating expenses were $49.9 million as compared to $50.5 million in the first quarter last year. This decrease was primarily the result of a decrease in compensation, benefits and performance based compensation offset by an increase in the transactional impact of foreign currency exchange rates.
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Operating income increased 17.9% to $10.0 million compared to $8.5 million in the same period last year.
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The Company recorded a tax provision of $3.3 million, which equates to an effective tax rate of 28.8% as compared to an effective tax rate of 19.1% in the first quarter last year. The effective tax rate for first quarter of fiscal 2013 included the effects of the application of guidelines related to accounting for income taxes in interim periods, as well as accounting for valuation allowances.
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Net income was $8.2 million, or $0.32 per diluted share, compared to net income of $6.6 million, or $0.26 per diluted share, in the first quarter of fiscal 2013.
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EBITDA was $12.8 million compared to EBITDA of $11.5 million in the first quarter of fiscal 2013. (See attached table for reconciliation of GAAP to non-GAAP measures.)
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Three Months Ended
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April 30,
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2013
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2012
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Net sales
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$ | 110,010 | $ | 103,655 | ||||
Cost of sales
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50,091 | 44,630 | ||||||
Gross profit
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59,919 | 59,025 | ||||||
Selling, general and administrative
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49,914 | 50,537 | ||||||
Operating income
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10,005 | 8,488 | ||||||
Other income
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1,526 | - | ||||||
Interest expense
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(65 | ) | (145 | ) | ||||
Interest income
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23 | 16 | ||||||
Income before income taxes
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11,489 | 8,359 | ||||||
Provision for income taxes
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3,310 | 1,598 | ||||||
Net income
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8,179 | 6,761 | ||||||
Less: Net (loss) / income attributed to noncontrolling interests
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(31 | ) | 128 | |||||
Net income attributed to Movado Group, Inc.
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$ | 8,210 | $ | 6,633 | ||||
Per Share Information:
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Net income attributed to Movado Group, Inc.
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$ | 0.32 | $ | 0.26 | ||||
Weighted diluted average shares outstanding
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25,873 | 25,475 |
Three Months Ended
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April 30, | ||||||||
2013
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2012
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Operating income (GAAP)
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$ | 10,005 | $ | 8,488 | ||||
Depreciation and amortization
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2,756 | 3,051 | ||||||
EBITDA (non-GAAP)
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$ | 12,761 | $ | 11,539 |
April 30,
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January 31,
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April 30,
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2013
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2013
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2012
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ASSETS
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Cash and cash equivalents
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$ | 141,484 | $ | 167,889 | $ | 158,750 | ||||||
Trade receivables
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69,545 | 64,300 | 62,262 | |||||||||
Inventories
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172,266 | 164,354 | 172,041 | |||||||||
Other current assets
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36,571 | 37,556 | 27,909 | |||||||||
Total current assets
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419,866 | 434,099 | 420,962 | |||||||||
Property, plant and equipment, net
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46,289 | 44,501 | 33,567 | |||||||||
Deferred income taxes
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22,434 | 22,749 | 15,106 | |||||||||
Other non-current assets
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26,790 | 25,013 | 23,405 | |||||||||
Total assets
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$ | 515,379 | $ | 526,362 | $ | 493,040 | ||||||
LIABILITIES AND EQUITY
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Accounts payable
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$ | 24,421 | $ | 22,075 | $ | 23,130 | ||||||
Accrued liabilities
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34,358 | 51,136 | 35,834 | |||||||||
Dividends payable
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- | - | 12,570 | |||||||||
Deferred and current income taxes payable
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1,412 | 275 | 1,493 | |||||||||
Total current liabilities
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60,191 | 73,486 | 73,027 | |||||||||
Deferred and non-current income taxes payable
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5,689 | 5,637 | 6,825 | |||||||||
Other non-current liabilities
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22,626 | 21,547 | 19,497 | |||||||||
Noncontrolling interests
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1,933 | 2,002 | 2,899 | |||||||||
Shareholders' equity
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424,940 | 423,690 | 390,792 | |||||||||
Total liabilities and equity
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$ | 515,379 | $ | 526,362 | $ | 493,040 |
Three Months Ended
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April 30,
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2013
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2012
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Cash flows from operating activities:
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Net income from operations
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$ | 8,179 | $ | 6,761 | ||||
Depreciation and amortization
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2,756 | 3,051 | ||||||
Other non-cash adjustments
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(684 | ) | 840 | |||||
Changes in working capital
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(27,304 | ) | (34,835 | ) | ||||
Changes in non-current assets and liabilities
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(727 | ) | (210 | ) | ||||
Net cash (used in) operating activities
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(17,780 | ) | (24,393 | ) | ||||
Cash flows from investing activities:
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Capital expenditures
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(6,469 | ) | (837 | ) | ||||
Proceeds from sale of an asset held for sale
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2,196 | - | ||||||
Trademarks
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(86 | ) | - | |||||
Net cash (used in) investing activities
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(4,359 | ) | (837 | ) | ||||
Cash flows from financing activities:
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Dividends paid
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(1,272 | ) | (1,256 | ) | ||||
Other financing
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(1,070 | ) | 450 | |||||
Net cash (used in) financing activities
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(2,342 | ) | (806 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
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(1,924 | ) | 2,585 | |||||
Net change in cash and cash equivalents
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(26,405 | ) | (23,451 | ) | ||||
Cash and cash equivalents at beginning of period
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167,889 | 182,201 | ||||||
Cash and cash equivalents at end of period
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$ | 141,484 | $ | 158,750 |