-----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, CKPHcHps5e/LMUUBw+FBt2E9npS3tSCh5sY5bnDT1QhA3bcaFgh/CBgkUbZiO1Tx 43xZkNcTqTfP7CyCOE8ezQ== 0000929624-00-000566.txt : 20000425 0000929624-00-000566.hdr.sgml : 20000425 ACCESSION NUMBER: 0000929624-00-000566 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000424 FILED AS OF DATE: 20000424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DSG INTERNATIONAL LTD CENTRAL INDEX KEY: 0000883230 STANDARD INDUSTRIAL CLASSIFICATION: CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670] IRS NUMBER: 000000000 STATE OF INCORPORATION: D8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 000-19804 FILM NUMBER: 607606 BUSINESS ADDRESS: STREET 1: 17/F WATSON CENTRE STREET 2: 16-22 KUNG YIP ST CITY: KWAI CHUNG HONG KONG STATE: K3 BUSINESS PHONE: 8524276951 MAIL ADDRESS: STREET 1: 17/F WATSON CENTRE STREET 2: 16-22 KUNG YIP ST CITY: KWAI CHUNG HONG KONG STATE: K3 6-K 1 FOURTH QUARTER REPORT 1999 FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2000 DSG International Limited ------------------------- (Translation of registrant's name into English) 17/F Watson Centre, 16-22 Kung Yip Street, ------------------------------------------ Kwai Chung, Hong Kong --------------------- Tel No. 852-2427-6951 --------------------- (Address of principal executive offices) [Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.] Form 20-F x Form 40-F ----- ----- [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.] Yes No x ----- ----- [If "yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b), 82-________.] SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DSG International Limited ----------------------------- (Registrant) Date: April 24, 2000 -------------- By /s/ Peter Chang ------------------- Peter Chang Vice President REVIEW OF OPERATIONS FOURTH QUARTER 1999 AND YEAR ENDED DECEMBER 31, 1999 To our Shareholders: We are pleased to announce our fourth quarter ended December 31, 1999 results. Fourth Quarter ended December 31, 1999 compared to Fourth Quarter ended December 31, 1998 The Company's net sales for the three-month ended December 31, 1999 were $53.2 million compared with net sales of $56.7 million for the same period in 1998. Net income for the fourth quarter of 1999 was $1.8 million compared with $3.8 million for the same period in 1998. The decrease in the Company's net sales by 6.1% in the fourth quarter of 1999 compared with the same period in 1998 was primarily due to the sale of private label business of the Company's operation in Switzerland. The net sales in other geographical locations in the fourth quarter of 1999 maintained the same level as the corresponding period in 1998. Gross profit as a percentage of net sales was 33.4% in the fourth quarter of 1999 compared with 31.8% for the same period in 1998. The higher margin was attributable to the sale of unprofitable business in Switzerland. Selling, general and administrative expenses for the fourth quarter of 1999 increased to $15.9 million compared with $12.2 million in the fourth quarter of 1998, primarily due to higher expenditure on advertising and promotion activities and additional administrative expenses in the newly commenced operations in Asian region and a $1.5 million reversal of previous accrued executive compensation in 1998. The other income of $0.7 million in the fourth quarter was due to a reclassification of gain on sales of asset in Switzerland from selling, general and administrative expense. Year ended December 31, 1999 compared to Year ended December 31, 1998 The Company's net sales for the year 1999 were $205.8 million compared with $207.9 million in 1998. Net income for the year 1999 increased significantly to $4.4 million compared with $1.6 million in 1998. The Company's net sales in 1999 was slightly lower than last year by 1.0%. The Company's sales in North America, Australia and Asia increased in 1999 despite of the intense competition in the regions and the lost of sales due to the sale of Switzerland private label business in the first quarter of 1999. Gross profit margin in 1999 was higher than 1998 by 4.1% due to the improvement of production efficiency in all regional segments and the implementation of go local and go direct strategy in Asian operations. Selling, general and administrative expenses increased by $6.0 million to $61.3 million in 1999 due to the stepping up of advertising and promotion activities in Asian and Australian regions and a reduction of $2.0 million in executive compensation in 1998. The gain on disposals of property, plant and equipment of $1.0 million in 1999 was mainly due to the sales of property and equipment in Singapore and Switzerland operations. The Company's other income in 1999 included gain on sale of assets in Switzerland operation. Brandon Wang, the Chairman of the Company, said: "1999 was a challenging year for DSG since a series of strategic plans were implemented in American, Asian and European regions. The gross profit margin, operating income were greatly improved and the results were proved successful and encouraging. In the adult incontinence area, the Company continues to record a double digit growth of the business in 1999. In year 2000, we are aiming to increase the Company's profitability and shareholder value through product feature improvement and assimiliation of information technology to enhance the Company future earning potential in the information technology era." DSG International Limited and its predecessors have been in the business of manufacturing and distributing disposable diapers since 1973. With manufacturing plants in Georgia and Wisconsin, the Company also maintains manufacturing operations in Hong Kong, Australia, Great Britain, Switzerland, China, Thailand, Indonesia and Malaysia. Additionally, the Company distributes its products throughout Asia, Australia, North America and Europe. The Company produces private label disposable diapers, adult incontinence products and training pants at certain of its operations. Its best selling brands include "Fitti(R)", "Pet Pet(R)", "Cosies(R)", "Cosifits(R)", "Baby Love(R)", "Babyjoy (R)", "Togs(R)", "Cares(R)", "Vlesi(R)", "Dispo 123(TM)", "Certainty(R)", "Handy(TM)" and "Merit(R)". March 27, 2000 STATEMENTS OF OPERATIONS AND BALANCE SHEET DATA The Statements of Operations for the three-month period and year ending December 31, 1999 and 1998, and the Balance Sheet information as of December 31, 1999, are derived from unaudited financial statements which, in the opinion of the management, include all necessary adjustments, consisting only of normally recurring adjustments, for a fair presentation of the results of operations for these time frames. The results for the periods, however, are not necessarily indicative of the results for the full year. STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts)
Three months ended Year ended December 31, December 31, 1999 1998 1999 1998 Net sales $53,237 $56,724 $205,842 $207,925 ======= ======= ======== ======== Gross profit 17,761 18,035 67,722 59,928 Gain on disposals of property, plant and equipment 102 42 1,034 42 Selling, general & administrative expenses (15,871) (12,226) (61,321) (55,318) Restructuring costs - (897) - (897) -------- -------- --------- --------- Operating income 1,922 4,954 7,435 3,755 Interest expense (470) (721) (2,208) (2,511) Exchange loss (307) (309) (997) (311) Other income 757 72 1,314 945 --------- -------- --------- --------- Income before income taxes 1,970 3,996 5,544 1,878 Provision for income taxes (397) 519 (987) (253) Minority interest 243 (679) (122) (3) --------- -------- --------- --------- Net income $ 1,816 $ 3,836 $ 4,435 $ 1,622 ======== ======== ========= ========= Earnings per share $ 0.27 $ 0.57 $ 0.66 $ 0.24 ======== ======== ========= ========= Weighted average number of shares outstanding 6,675 6,675 6,675 6,675 ======== ======= ========= =========
STATEMENTS OF COMPREHENSIVE INCOME (Dollars in thousands)
Three months ended Year ended December 31, December 31, 1999 1998 1999 1998 Net income $ 1,816 $ 3,836 $ 4,435 $ 1,622 Other comprehensive income before tax Foreign currency translation adjustments 1,040 2,478 665 1,613 ------- ------- ------- ------ Comprehensive income $ 2,856 $ 6,314 $ 5,100 3,235 ======= ======= ======= ======
The Company adopted the statement of Financial Accounting Standards ("SFAS") No. 130 Reporting Comprehensive Income, issued by the Financial Accounting Standards Board. SFAS No. 130 requires the reporting of comprehensive income in addition to net income from operations. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The inclusion represents all changes in equity except those resulting from investments by, and distributions to owners. BALANCE SHEET DATA (Dollars in thousands, unaudited) December 31, December 31, 1999 1998 Working capital $ 35,999 $ 30,091 Total assets 121,847 133,909 Long-term debt 11,893 20,957 Shareholders' equity 70,302 68,013 At December 31, 1999 the Company had cash and cash equivalents of $14.4 million. -----END PRIVACY-ENHANCED MESSAGE-----