-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VEiNaUbzfcCCzft4hLizgCQQ/iRyjfaR10ed49dh0oStZ8PUEmz33/TnBzm9xgtO 6ahWEXQRmaToZ9HsnlTNQg== 0000891554-96-000345.txt : 19960617 0000891554-96-000345.hdr.sgml : 19960617 ACCESSION NUMBER: 0000891554-96-000345 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960614 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CANDIES INC CENTRAL INDEX KEY: 0000857737 STANDARD INDUSTRIAL CLASSIFICATION: FOOTWEAR, (NO RUBBER) [3140] IRS NUMBER: 112481930 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-10593 FILM NUMBER: 96581384 BUSINESS ADDRESS: STREET 1: 2975 WESTCHESTER AVE CITY: PURCHASE STATE: NY ZIP: 10577 BUSINESS PHONE: 9146948600 MAIL ADDRESS: STREET 1: 2975 WESTCHESTER AVE CITY: PURCHASE STATE: NY ZIP: 10577 FORMER COMPANY: FORMER CONFORMED NAME: MILLFELD TRADING CO INC DATE OF NAME CHANGE: 19920703 10QSB 1 CANDIE'S QUARTERLY REPORT U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) X Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended April 30, 1996 Transition Report pursuant to Section 13 or 15(d) of the Exchange Act For the transition period from ___________________ to ___________________ Commission file Number 0-10593 CANDIE'S, INC. (Exact name of small business issuer as specified in its charter) Delaware 11-2481903 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2975 Westchester Avenue, Purchase, New York 10577 (Address of principal executive offices) (914)694-8600 (Issuer's telephone number, including area code) - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ________ APPLICABLE ONLY TO CORPORATE ISSUERS As of July 15, 1996, 9,817,939 shares of Common Stock, par value $.001 per share were outstanding. Transitional small business disclosure format (check one): YES _______ NO X CANDIE'S, INC. AND SUBSIDIARIES INDEX TO FORM 10-QSB FOR THE PERIOD ENDED APRIL 30, 1996 PAGE ---- PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements Condensed Consolidated Balance Sheets at April 30, 1996 3-4 and January 31, 1996 (unaudited) Condensed Consolidated Statements of Operations for the 5 Three Months Ended April 30, 1996 and 1995 (unaudited) Condensed Consolidated Statements of Stockholders Equity 6 for the Three Months Ended April 30, 1996 (unaudited) Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 30, 1996 and 1995 (unaudited) 7-8 Notes to Condensed Consolidated Financial Statements 9-14 ITEM 2. Management's Discussion and Analysis of Financial 15-16 Condition and Results of Operations PART II. OTHER INFORMATION 17 SIGNATURES 18 2 Candie's, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) PART I. ITEM 1. April 30, January 31, 1996 1996 -------------------------- Assets Current assets: Cash and cash equivalents $ 133,877 $ 204,996 Accounts receivable, net of allowances of $97,000 (April) and $64,000 (January) 807,853 1,228,812 Inventories 4,559,278 3,999,946 Prepaid expenses 694,315 534,909 -------------------------- Total current assets 6,195,323 5,968,663 -------------------------- Property and equipment -net 157,204 121,068 -------------------------- Other assets: Noncompetition agreements 364,524 374.466 Trademark 4,760,762 4,831,466 Other 440,964 450.150 -------------------------- Total other assets 5,566,250 5,656,082 -------------------------- Total assets $11,918,777 $11,745,813 ========================== See accompanying notes to consolidated financial statements. 3 Candie's, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited)
April 30, January 31, 1996 1996 ---------------------------- Liabilities and stockholders' equity Current liabilities: Accounts payable-trade $ 3,233,784 $ 1,874,412 Due to factor 778,135 1,299,096 Accrued expenses 890,143 1,183,515 Accounts payable-trade, expected to be refinanced with common stock (Note 12) 1,680,000 1,680,000 ---------------------------- Total current liabilities 6,582,062 6,037,023 Long-term liabilities 123,748 122,436 ---------------------------- Total liabilities 6,705,810 6,159,459 ---------------------------- Commitments, contingencies and other matters Stockholders' equity: Preferred stock, $.01 par value--shares authorized 5,000,000; none issued or outstanding Common stock, $.001 par value--shares authorized 30,000,000; shares issued: 8,767,939 and 8,745,738 at April 30, 1996 and January 31, 1996 8,768 8,746 Additional paid-in capital 10,093,230 10,043,301 Deficit, since February 28, 1993, (deficit eliminated $27,696,007) (4,889,031) (4,465,693) ---------------------------- Total stockholders' equity 5,212,967 5,586,354 ---------------------------- Total liabilities and stockholders' equity $ 11,918,777 $ 11,745,813 ============================
4 Candie's, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)
Three Months Ended April 30, April 30, 1996 1995 -------------------------- Net revenues $ 6,258,373 $ 5,752,603 Cost of goods sold 4,627,699 4,241,435 -------------------------- Gross profit 1,630,674 1,511,168 -------------------------- Operating expenses: Selling expenses 1,142,328 1,163,203 General and administrative expenses 771,791 802,516 -------------------------- 1,914,119 1,965,719 -------------------------- Operating loss (283,445) (454,551) Other deductions: Interest expense - net (139,893) (174,447) -------------------------- (139,893) (174,447) Loss before provision for income taxes (423,338) (628,998) Provision for income taxes -- 721 -------------------------- Net loss $ (423,338) $ (629,719) ========================== Net loss per share $ (.05) $ (.07) ========================== Weighted average number of common shares outstanding 8,750,424 8,531,205 ==========================
See accompanying notes to consolidated financial statements. 5 Candie's, Inc. and Subsidiaries Consolidated Statements of Stockholders' Equity April 30, 1996 (unaudited)
Additional Common Stock Paid-In Retained Shares Amount Capital Deficit Total ------------------------------------------------------------------------------- Balance at January 31, 1996 8,745,738 $ 8,746 $10,043,301 $(4,465,693) $ 5,586,354 Issuance of common stock in connection with retirement plan 22,201 22 49,929 -- 49,951 Net loss for the period ended April 30, 1996 -- -- -- (423,338) (423,338) ------------------------------------------------------------------------------- Balance at April 30, 1996 8,767,939 $ 8,768 $10,093,230 $(4,889,031) $ 5,212,967 ===============================================================================
See accompanying notes to consolidated financial statements. 6 Candie's, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) Three Months Ended April 30, April 30, 1996 1995 --------------------------- Cash flows from operating activities: Net loss $ (423,338) $ (629,719) Items in net loss affecting cash: Depreciation and amortization 103,718 104,795 Provision for allowances and bad debts expense 198 -- Changes in operating assets and liabilities: Accounts receivable 420,761 170,514 Inventories (559,332) (680,325) Prepaid expenses (159,406) (348,597) Other assets -- (57,247) Due to factor (520.961) 1,280,837 Accounts payable - trade 1,409,323 231,472 Accrued expenses (293,372) (341,271) Long term liabilities 1,312 (51,047) --------------------------- Net cash used in operating activities (21,097) (320,588) --------------------------- See accompanying notes to consolidated financial statements. 7 Candie's, Inc. and Subsidiaries Consolidated Statements of Cash Flows (continued) (unaudited) Three Months Ended April 30, April 30, 1996 1995 ---------------------- Cash flows used in investing activities: Capital expenditures $ (50,022) $ (2,811) ---------------------- Net cash used in investing activities (50,022) (2,811) ---------------------- Cash flows from financing activities: Proceeds from notes payable -- 598,763 ---------------------- Net cash provided by financing activities -- 598,763 ---------------------- Net (decrease) increase in cash and cash equivalents (71,119) 275,364 Cash and cash equivalents, beginning of year 204,996 -- ---------------------- Cash and cash equivalents, end of year $ 133,877 $ 275,364 ====================== Supplemental cash flow information: Cash paid during the period for interest $ 139,893 $ 160,273 ====================== Cash paid during the period for income taxes $ 42,301 $ 41,421 ====================== Supplemental disclosures of non cash activities: Issuance of 22,201 shares of common stock for the three months ended April 30, 1996 as a matching contribution in connection with the Company's retirement plan. The matching contribution of $49,951 was accrued at January 31, 1996. 8 Candie's, Inc. and Subsidiaries Notes to Consolidated Financial Statements April 30, 1996 1. Basis of Presentation and Description of Business Candie's, Inc., the Registrant, together with its subsidiaries is referred to herein as Candie's or the "Company." The condensed consolidated financial statements included herein are unaudited and include all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the results of operations of the interim period pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included under generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures in such financial statements are adequate to make the information presented not misleading. These condensed consolidated statements should be read in conjunction with the Company's financial statement and the notes thereto included in the Company's Annual Report on Form 10-KSB for the fiscal year ended January 31, 1996. The consolidated financial statements include the accounts of Candie's, Inc. and its wholly owned subsidiaries, Bright Star Footwear, Inc. ("Bright Star"), Ponca, Ltd. ("Ponca"), Yulong Co., Ltd. ("Yulong"), and the Company's 60% owned subsidiary Intercontinental Trading Group, Inc. ("ITG"), (collectively, the "Company"). Yulong was formed on July 21, 1995. Ponca was formed March 15, 1994. All intercompany transactions and balances have been eliminated from the consolidated financial statements for all periods presented. The Company designs, markets, imports and distributes a variety of moderately-priced, leisure and fashion footwear for women and girls under the trademarks CANDIE'S(R), BONGO(R), ASPEN(R) and certain others. The Company is a licensee of the BONGO and ASPEN trademarks. The Company's product line also includes a wide variety of workboots, hiking shoes and men's leisure shoes designed, marketed and distributed by Bright Star. The Company sells to retailers throughout the United States. 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Inventories Inventories, which consist entirely of finished goods, are valued at the lower of cost or market. Cost is determined by the first-in, first-out ("FIFO") method. Property, Equipment and Depreciation Property and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the assets (5-10 years) using accelerated methods. 9 Candie's, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 2. Summary of Significant Accounting Policies (continued) Goodwill and Candies Trademark Goodwill in the amount of $551,093, represents the excess amount paid over the fair value of assets acquired related to the acquisition of Bright Star and is being amortized over fifteen years. Accumulated amortization at April 30, 1996 and January 31, 1996 was approximately $217,186 and $208,000, respectively. The Candie's trademark is stated at cost, net of amortization, as determined by its fair value relative to other assets and liabilities at the time of a quasi reorganization. The quasi reorganization was approved by the Company's stockholders effective February 28, 1993. In connection with the quasi reorganization, the Company's assets, liabilities and capital accounts were adjusted to eliminate the stockholders' deficiency. The trademark is being amortized over twenty years. The Company believes that the goodwill and trademark have continuing value, as evidenced by sales and expected profitability of the related products, which will be realized over the course of its useful life. Revenue Recognition Revenue, which include product sales and commissions, on an agency basis, is recognized when the related goods have been shipped and legal title has passed to the customer. Commissions received amounted to $476,834 and $375,353 for the three months ended April 30, 1996 and 1995 respectively. Stock-Based Compensation In October 1995, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 123, " Accounting for Stock-Based Compensation" ("SFAS 123"). SFAS 123 is effective for fiscal years beginning after December 31, 1995 and prescribes accounting and reporting standards for all stock-based compensation plans, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights. 10 Candie's, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 2. Summary of Significant Accounting Policies (continued) Stock-Based Compensation (continued) SFAS 123 requires compensation expense to be recorded (i) using the new fair value method or (ii) using existing accounting rules prescribed by Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB 25") and related interpretations with pro forma disclosure of what net income and earnings per share would have been had the Company adopted the new fair value method. The Company continues to account for its stock based compensation plans in accordance with the provisions of APB 25. Taxes on Income The Company uses the liability method of accounting for income taxes under Financial Accounting Statement No. 109 "Accounting for Income Taxes" ("FASB 109"). Earnings Per Share Net income (loss) per common share is computed on the basis of the weighted average number of shares of common stock and common stock equivalents outstanding during each year, retroactively adjusted to give effect to all stock splits. Common stock equivalents include stock options and warrants and the computation of net income (loss) per common share includes the dilutive effect of stock options and warrants, as appropriate, adjusted for treasury shares assumed to be purchased from the proceeds using the modified treasury stock method. Fully diluted net income (loss) per common share is not materially different from primary net income (loss) per common share. Reclassifications Certain amounts from the April 30, 1995 financial statements have been reclassified to conform to the current year's presentation. Cash Flows For purposes of the Statements of Cash Flows, the Company considers all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. 3. Acquisition of Bright Star Footwear, Inc. In connection with the acquisition of Bright Star in 1991, the Company entered into noncompete agreements with Bright Star's former Chairman and President whereby the Company paid $1,225,000 and issued $2,275,000 of notes to such individuals. At February 23, 1993, in connection with a quasi-reorganization, the Company wrote down this asset by $1,718,000. The agreements are being amortized over their respective terms. Accumulated amortization related to these agreements was $1,418,000 and $1,408,000 at April 30, 1996 and January 31, 1996, respectively. 11 Candie's, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 4. Prepaid Expenses Prepaid expenses consist of the following: April 30, January 31, 1996 1996 -------- -------- Advertising and marketing $383,071 $236,087 Royalties 64,118 113,185 Trade shows 154,022 94,340 Other 93,104 91,297 -------- -------- Totals $694,315 $534,909 ======== ======== The Company records national advertising campaign costs as an expense upon the first showing of the related advertising and other advertising costs when incurred. Advertising expenses for the three months ended April 30, 1996 and 1995 amounted to $188,000 and $129,000, respectively. 5. Property and Equipment Major classes of property and equipment consist of the following: April 30, January 31, 1996 1996 -------- -------- Furniture, fixtures and equipment $857,897 $807,875 Transportation equipment 20,750 20,750 -------- -------- 878,647 828,625 Less: accumulated depreciation 721,443 707,557 -------- -------- Net property and equipment $157,204 $121,068 ======== ======== 6. Factor Agreement On April 2, 1993, the Company entered into an accounts receivable factoring agreement. The agreement provides the Company with the ability to borrow funds from the factor, limited to 80% of eligible accounts receivable and 50% of eligible finished goods inventory (to a maximum of $6 million in inventory) in which the factor has a security interest. The agreement also provides for the opening of documentary letters of credit (up to a maximum of $2.5 million) to suppliers, on behalf of the Company. The total credit facility is limited to $10 million. The factor requires a deposit equal to 43% of the amount of the letter of credit to be opened. Borrowings bear interest at the rate of one and one-half percent (1-1/2%) over the existing prime rate established by the Philadelphia National Bank. The Company's President has personally guaranteed any and all borrowings with the factor. 12 Candie's, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 6. Factor Agreement (continued) Due to factor is comprised as follows: April 30, January 31, 1996 1996 ---------------------------- Accounts receivable assigned $4,962,321 $4,804,121 Outstanding advances 5,740,456 6,103,217 ---------------------------- Due to Factor $ 778,135 $1,299,096 ============================ Although the Company obtains credit insurance on the majority of its customers, the Company may incur losses on accounts receivable as a result of customer chargebacks and disputes. 7. Long-Term Liabilities At April 30, 1996 maturities of long term liabilities (principally deferred rents) are as follows: $19,677 (1998); $47,663 (1999); $52,470 (2000); $3,938 (2001). 8. Related Party Transactions The Company entered into a Services Allocation Agreement with New Retail Concepts, Inc. ("NRC"), (a significant shareholder of the Company, and an entity whose principal shareholder is the Company's President) pursuant to which the Company will provide NRC with financial, marketing, sales and other business services for which NRC will be charged an allocation of the Company's expenses, including employees' salaries associated with such services. Pursuant to such agreement, NRC paid the Company $12,500 during the three months ended April 30, 1996 and 1995, respectively. 9. Leases In August 1994, the Company entered into a new lease agreement and relocated its corporate headquarters to Purchase, NY. Rent expense was approximately $59,000 for the three months ended April 30, 1996 and 1995, respectively. As of April 30, 1996, future net minimum lease payments under noncancelable operating lease agreements are as follows: 1997 $ 173,000 1998 255,000 1999 283,000 2000 289,000 2001 48,000 ------------ $1,048,000 ============ 13 Candie's, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 10. Retirement Plans The Company sponsors a 401(k) Savings Plan (the "Savings Plan") which covers all eligible full-time employees. Participants may elect to make pretax contributions subject to applicable limits. At its discretion, the Company may contribute additional amounts to the Savings Plan. 11. Other On April 3, 1996 the Company entered into an agreement (the "Vendor Agreement") with Redwood Shoe Co., a principal supplier of footwear products (the "Vendor") to satisfy in full, certain trade payables (the "Payables") amounting to $1,680,000. Under the terms of the Vendor Agreement, the Company agreed to; (i) issue 1,050,000 shares of the Company's Common Stock (the "Vendor Shares") with certain registration rights; (ii) issue an option to purchase 75,000 shares of the Company's Common Stock at $1.75 per share; and (iii) make a future payment of $50,000. The Company has agreed to file a registration statement (the "Registration") covering the Vendor Shares. The Company's payables will be released by the Vendor upon the earlier of the date the Registration is declared effective, the date the Vendor sells all the Vendor Shares or the Vendor receives an opinion of counsel that the Vendor Shares may be sold under rule 144(k). The Company has issued the Vendor Shares. 14 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations The following table reflects the results of operations for the periods indicated. FINANCIAL HIGHLIGHTS (in thousands except per share data) Three Months Ended April 30, -------------------------------- 1996 1995 Net Revenues $ 6,258 $ 5,753 Gross Profit 1,631 1,511 Operating loss (283) (455) Net loss (423) (630) Net loss per share (.05) (.07) Total assets $ 11,919 $ 11,379 Long-term debt 124 192 Stockholders' equity 5,213 3,762 Three Months Ended April 30, 1996 compared to April 30, 1995 Net revenues increased by $505,770 (8.79%) for the three months ended April 30, 1996 compared with the three months ended April 30, 1995. The increase was primarily due to the Company's sales and marketing efforts, including the Company's decision to emphasize sales of casual and fashion footwear while de-emphasizing sales of outdoor footwear products. Additionally, strong sales increases occurred in the Company's licensed brand, BONGO. The increase in BONGO sales continues to reflect the continued acceptance of these products in the marketplace. Gross margins were 26.05% in 1996 compared with 26.26% in 1995. Although pricing pressures continue at the wholesale level and cost increases on products occurred during the 1996 period, the Company was able to maintain margins as a result of increased selling prices to customers. Selling expenses were $1,142,328 in 1996 compared to $1,163,203 in 1995, a decrease of 1.79%. General and administrative expenses were $771,791 in 1996 compared with $802,516 in 1995, a decrease of 3.82%. Operating expenses decreased principally due to management's efforts to reduce overhead costs through, among others, a decrease in payroll costs due to a reduction in commissions paid and certain staff reductions. Interest expense of $139,893 was down in 1996 from the $174,447 reported in the 1995 period. The reduction resulted from reduced average borrowings during the year and more favorable interest rates. 15 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) As a result of the foregoing, the Company's net loss for the three months ended April 30, 1996 decreased to $423,338 from $629,719 for the corresponding period ended April 30, 1995. Liquidity and Capital Resources The Company relies primarily upon cash flow from operations and borrowings under its credit facility with its factor to finance its operations. For the three months ended April 30, 1996, net cash used in operating activities was $21,097 as compared with $320,588 during the same period in the prior year. At April 30, 1996, the Company had a working capital deficiency of $386,739 versus a working capital deficiency of $68,360 at January 31, 1996. The decrease in working capital reflects the Company's investment in inventory for the peak Fall/back-to- school season. In May 1996 the Company entered into a lease for retail store space located in the Galleria Mall in White Plains, New York where the Company intends to open its first retail store by the end of Summer. The Company anticipates that the cost to open the store will aggregate approximately $200,000. Management anticipates it will be able to satisfy its ongoing cash requirements for the foreseeable future, including the cost required to open the Company's first retail store, primarily with cash flow from operations, borrowings under its credit facility and if necessary, funds generated from the sale of securities. Seasonality Demand for the Company's footwear has historically peaked during the months of June through August (the Fall/back-to-school season). As a result, shipment of the Company's products have been heavily concentrated in the second and third fiscal quarters. Therefore, the Company's results of operations typically fluctuate significantly from quarter to quarter. The Company has sought to reduce fluctuations in its quarterly operating results by marketing additional footwear categories during other selling seasons. However, there can be no assurance that the Company will be able to achieve consistent quarterly operating results in the future by implementing this strategy. The success of this strategy depends upon market acceptance of the additional products offered during selling seasons other than the peak season, of which there can be no assurance. Accordingly, operating results may continue to fluctuate in the future. Inflation The Company believes that the relatively moderate rate of inflation over the past few years has not had a significant impact on the Company's revenues or profitability. 16 PART II. Other Information Page Item 1. Legal Proceedings None Items 2-5 Other None Item 6. Exhibits and Reports Exhibit 10 Agreement dated as of April 3, 1996 between the Company and Redwood Shoe Corp. (incorporated by reference to the comparable exhibit filed with the Company's annual report on Form 10-KSB for the fiscal year ended January 31, 1996. Exhibit 11 Computations of Earnings Per Share 19 Exhibit 27 Financial Data Schedule 20 17 SIGNATURES In accordance with Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CANDIE'S, INC. By: /s/ Neil Cole ----------------------------- Neil Cole, President, (Principal Executive and Accounting Officer) Dated: June 15, 1996 18 EX-11 2 COMPUTATIONS OF EARNINGS PER SHARE EXHIBIT 11 CANDIE'S, INC. AND SUBSIDIARIES COMPUTATIONS OF EARNINGS PER SHARE For the Three Months Ended April 30, 1996 1995 ---- ---- TOTAL EPS LOSS $ (423,338) $ (629,719) =========== =========== Weighted average number of shares outstanding 8,750,424 8,531,205 =========== =========== NET LOSS PER SHARE $ (.05) $ 0.07 =========== =========== No additional income (earnings from investing the excess proceeds upon the exercise of common stock equivalents) nor common stock equivalents were included in the calculation of net loss per common share. The results would have been antidilutive. EX-27 3 ART. 5 FDS FOR 1ST QUARTER 10-QSB
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB AT APRIL 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE FINANCIAL STATEMENTS INCLUDED IN SUCH FORM 10-QSB. 3-MOS JAN-31-1997 APR-30-1996 133,877 0 807,853 97,000 4,559,278 6,195,323 878,647 721,443 11,918,777 6,582,062 0 0 0 8,768 5,204,199 11,918,777 6,258,373 6,258,373 4,627,699 4,627,699 0 0 139,893 (423,338) 0 (423,338) 0 0 0 (423,338) (.05) (.05)
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