Tag Archives: Hampshire Brands

Business, Finance, Occupation & Industry

Hampshire Reports Fourth Quarter and Fiscal Year 2012 Results

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

Hampshire Reports Fourth Quarter and Fiscal Year 2012 Results

NEW YORK–(BUSINESS WIRE)– Hampshire Group, Limited (OTC Markets: HAMP) today announced its results for the fiscal year ended December 31, 2012 and filed its annual report on Form 10-K. This press release should be read in conjunction with the filed annual report.

Paul Buxbaum was named CEO of Hampshire Group on January 15, 2013. Commenting on year-end results, Mr. Buxbaum stated, “Prior management began the transition of our business. Throughout 2012, we completed the wind down of two legacy licenses and focused our resources towards the Dockers® and Panama Jack® licenses as well as our Rio Garment business. As a result of this transition, we operate a very different business today than we have in recent years, and must organize accordingly. In 2013, we will focus our efforts on reorganizing internal operations to more efficiently support our current business and create a stable operating platform to best enable future growth. As a result of this re-engineering, the Company is not able to provide details about future performance to shareholders at this time.”

Buxbaum continued, “Moving forward, while we complete the necessary improvements to our internal systems, we will continue to identify additional growth opportunities that leverage our operating platform and drive incremental profitability.”

Results of Continuing Operations

Net sales were $40.5 million for the three months ended December 31, 2012 as compared to $45.7 million for the same period last year. The decline in net sales was due to lower sales at Rio and the final quarter of two legacy licenses at Hampshire Brands. For the year ended December 31, 2012, net sales increased by 36.5% to $117.6 million from $86.1 million last year. The increase in net sales for the full year primarily resulted from the inclusion of Rio’s sales for a full year.

Gross profit for the three months ended December 31, 2012 decreased 0.7% over same period last year and increased 13.2% sequentially from the third quarter of 2012. The gross margin for the fourth quarter was 20.1%, and an increase over the 18.0% in the fourth quarter of 2011 and the 19.9% in the sequential third quarter. Gross profit for the year ended December 31, 2012 was $23.5 million compared with $14.6 million for the same period last year, which reflected a full year of operations for Rio in 2012. Cost of goods sold increased to $94.1 million for the year ended December 31, 2012 …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Hampshire Announces Protocol for Investors to Protect Valuable Tax Assets

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

Hampshire Announces Protocol for Investors to Protect Valuable Tax Assets

NEW YORK–(BUSINESS WIRE)– Hampshire Group, Limited (OTC Markets: HAMP) would like to inform current and prospective investors that the Company is approaching a triggering event as defined by Section 382 of the Internal Revenue Code of 1986 (“IRC Section 382”). Under IRC Section 382, the use of the Company’s net operating loss and other carryforwards would be significantly limited in the event of an “ownership change,” which is defined as a cumulative change of more than 50% during any three-year period by shareholders of the Company’s common stock.

This event can be triggered by any current or future shareholder who purchases or sells any amount of shares, prior to August 31, 2014, that would create an “ownership shift” significant enough to trigger the IRC Section 382 limit. Before this date, even small fluctuations in the ownership of shareholders owning 5% or more of the Company’s stock, or new shareholders acquiring 5% or more of the Company’s stock, could trigger the IRC Section 382 limit. Provided there has not been an “ownership change” before August 31, 2014, the consequences of such actions will be less critical to the Company.

At December 31, 2012, Hampshire Group had total federal and state net operating loss carryforwards of approximately $122.1 million and unless otherwise restricted, the Company may utilize these tax attributes to offset future U.S. and state taxable income. If the Section 382 limitation is triggered, this may dramatically decrease the after-tax cash flow generated from Company profits.

Any shareholder or prospective shareholder who may be close to crossing the 5% ownership threshold or any current 5% or more shareholder is urged to contact Hampshire Group at investors@hamp.com or the Company’s Chief Financial Officer, Maura Langley, at (864) 622-0822 prior to consummating such trades, to further discuss the implications of such actions to the Company’s net operating loss carryforwards.

About Hampshire Group

Hampshire Group, Limited (www.hamp.com), along with its wholly-owned subsidiaries, Hampshire Brands, Inc., Rio Garment S.A. and scott james, LLC, is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points. The Company specializes in designing and marketing men’s sportswear to department stores, chain stores and mass market retailers under licensed brands, our own proprietary brands and the private labels of our customers. The Company operates a Honduras-based apparel manufacturer, designing, sourcing …read more
Source: FULL ARTICLE at DailyFinance