-----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, UaG/CXfj+wbOy5SAymhjuuuaFJxxeHzUi3+0wi5jp9ZuQp201ES5C7X5olODhbdC Qi6Sm2IDzfr1iG8MXdY24Q== 0000929624-98-001055.txt : 19980529 0000929624-98-001055.hdr.sgml : 19980529 ACCESSION NUMBER: 0000929624-98-001055 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980527 FILED AS OF DATE: 19980528 SROS: NASD 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: 98633009 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 FORM 6-K 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 May, 1998 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 and 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- .] ------------- [LETTERHEAD OF DSG INTERNATIONAL LTD.] For Immediate Release DSG INTERNATIONAL LIMITED FIRST QUARTER 1998 OPERATION RESULTS Hong Kong, May 27, 1998 - DSG International Limited (NASDAQ: DSGIF) The Company's net sales were $52.7 million in the first quarter ended March 31, 1998, a 7.2% decrease from $56.8 million in the corresponding period in 1997. Net loss for the period ended March 31, 1998 was $1.1 million compared to net income of $1.5 million for the corresponding period in 1997. The Company's net sales continued to be affected by the currency turmoil in the Asia Pacific region. The exchange rate impacted negatively the Company's reported net sales by $4.2 million. Gross profit margin as a percentage of net sales decreased to 27.1% in the first quarter of 1998 from 36.2% in the corresponding period in 1997. This decrease is primarily due to lower unit selling prices in North America and the adverse impact of higher costs of imported raw materials in the Asia Pacific region. Selling, general and administrative expenses as a percentage of net sales decreased to 28.7% for the first quarter of 1998 from 30.3% for the same period in 1997, attributable primarily to reduced promotional expenditure in favor of lower selling prices in North America and the closing of manufacturing operations in California, Canada and Singapore. Interest expense for the first quarter of 1998 was $0.6 million, the same as the first quarter of 1997. The Company reported an exchange gain of $0.2 million, in the first quarter of 1998, primarily due to the slight recovery of certain Asian currencies from the end of 1997. Other income for the first quarter of 1998 decreased to $0.2 million from $0.5 million for the same period in 1997 due to lower interest income. Brandon Wang, the Chairman of the Company said, "although the company continued to be impacted by the currency crisis in Asia Pacific, I am encouraged to see the volume improvement in the North American operation, after we implemented the new pricing strategy last Quarter. In addition, we have also added several new customers in Europe for disposable baby diapers". The Chairman further commented, "with regard to the recent political instability in Indonesia, we have decided to delay the start-up of the manufacturing operation until things settle down". [LETTERHEAD OF DSG INTERNATIONAL LTD.] 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 and Thailand. Additionally, the Company distributes its products throughout Asia, Australia, North America and Europe. The Company produces private label disposable diapers, adult incontinence products, feminine napkins 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), Togs (R), Cares (R), Viesi (R), Dispo 123 (TM), Certainty (R) and Handy (TM). This press release contains forward-looking statements that involve assumptions and uncertainties. The Company's actual results could differ materially from what is projected here; in fact, some of the more consequential factors that could cause or contribute to such differences are noted within the Company's various reports filed with the Securities and Exchange Commission and include, but are not limited to, general economic factors, competitive pricing pressures, costs of raw materials, lack of acceptance of new products, currency fluctuations and economic conditions in international markets. STATEMENT OF RESULTS AND BALANCE SHEET DATA STATEMENT OF RESULTS (in thousands, except earnings per share, unaudited) Three months ended March 31 1998, 1998 1997 Net sales $52,705 $56,768 ------- ------- Gross profit 14,279 20,532 Selling, general & administrative expenses 15,124 17,213 ------ ------ Operating income (loss) (845) 3,319 Interest expense (599) (603) Exchange gain (loss) 244 (644) Other income 178 501 ------- ------- Income (loss) before income taxes (1,042) 2,573 Provision for income taxes (197) (1,120) Minority interest in losses 158 -- ------- Net income (loss) $(1,081) $ 1,453 ------- ------- Earnings (loss) per share $ (0.16) $ 0.22 ------- ------- Weighted average number of shares outstanding 6,675 8,875 ------- ------- BALANCE SHEET DATA March 31, 1998 December 31, 1997 (in thousands, unaudited) Working capital $ 30,997 $ 30,823 Total assets 127,804 130,273 Long-term debt 20,315 21,281 (including deferred purchase consideration) Shareholders' equity 63,706 84,778 On March 31, 1998, the Company had cash and cash equivalents of $16.3 million. -----END PRIVACY-ENHANCED MESSAGE-----