Cutter & Buck Inc (Nasdaq:CBUK) today reported record results for the fiscal year ended April 30, 2000. Operating highlights are as follows:

FY 2000 HIGHLIGHTS:

  • Net sales totaled $152.5 million, 42% ahead of last year's $107.3 million
  • Net income grew to $10.6 million, up 33% from $8.0 million in FY 1999
  • Net income per diluted share totaled $1.06 compared to $0.94 last year (a)
  • Percentage growth in inventory was less than 70% of annual sales growth
  • Gross margins were 44.3%, 120 basis points ahead of FY 1999

FOURTH QUARTER HIGHLIGHTS:

  • Net sales grew 35% to $54.6 million from $40.4 million in the same quarter last year
  • Net income increased 27% to $5.8 million from $4.6 million reported for the same quarter last year
  • Net income per diluted share was $0.55 compared to $0.53 in the same quarter last year (a)
  • Gross margins were 44.6%, 60 basis points ahead of last year's fourth quarter
  • (a) Current year per share information includes a 24% increase
  • (1,955,000 shares) in the number of shares outstanding as a result of the company's follow-on stock offering last summer.

``I am pleased with the company's ability to leverage our prestigious position in the worldwide golf market. Over the past few years, we have expanded our specialty retail division and strategically placed company-owned retail stores around the country. Both channels showcase our fashion collections in a very powerful manner and we have achieved outstanding growth in each,'' said Harvey Jones, chairman and chief executive officer. ``Benefiting from our growing brand awareness, our corporate channel continues to produce very strong results with sales growing 73% over last year.''

``We have started to take orders for our Fall Season merchandise and total bookings are 24% ahead of last year at this same date,'' stated Marty Marks, president and chief operating officer. ``We are realizing the greatest growth in our corporate and specialty store channels, at 67% and 56% respectively. With these promising indications, we are not backing away from our revenue and earnings goals for fiscal year 2001, even though bookings growth slowed in the golf channel for the fall season as we had anticipated. Our multi-channel distribution strategy should enable us to grow earnings at the 25%-30% range we had indicated previously.''

``On another note, Jeff Buchman, vice president of marketing and communications, has returned to his teaching position at the Fashion Institute of Technology and Phil Davis, vice president of operations, has left to pursue other opportunities,'' added Jones. ``We thank them for their contributions.''

``Looking into the new year, the brand extension initiatives we launched last year - particularly our women's line and retail effort - have added momentum to our brand and we anticipate another strong year,'' concluded Jones.

Cutter & Buck's FY 2000 year-end conference call is available live and on-demand at www.streetfusion.com.

Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Those factors include, but are not limited to, style changes and product acceptance, relations with suppliers and independent sales representatives, the ability of the Company to control costs and expenses, the ability of the Company to carry out successful design and planned product and brand messaging/extension activities and to penetrate its chosen distribution channels, competition, foreign currency risks, risks associated with opening and operating retail locations, the ability of the Company to timely implement the new warehouse management system, technological change, political and trade relations and general economic conditions. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission filings. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.

Cutter and Buck designs and markets upscale sportswear and outerwear under the Cutter & Buck brand. The Company sells its products primarily through golf pro shops and resorts, corporate sales accounts and better specialty stores. Cutter & Buck products feature distinctive, comfortable designs, high quality materials and manufacturing and rich detailing.

FINANCIAL HIGHLIGHTS
(audited, unless otherwise stated)
($ in thousands, except per share data)

Consolidated Statements of Income

Three months ended
Year ended
April 30,
April 30,
(unaudited)
(unaudited)
2000
1999
2000
1999
Net sales
$ 54,587
$ 40,382
$ 152,453
$ 107,286
Cost of sales
30,245
22,597
84,943
61,058
Gross profit
24,342
17,785
67,510
46,228
Operating expenses
15,312
10,494
50,730
33,719
Operating income
9,030
7,291
16,780
12,509
Other income (expense)
22
(129)
(172)
7
Income before income taxes
9,052
7,162
16,608
12,516
Income taxes
3,259
2,581
5,979
4,508
Net income
$ 5,793
$ 4,581
$ 10,629
$ 8,008
Basic earnings per share
$ 0.56
$ 0.55
$ 1.08
$ 0.98
Diluted earnings per share
$ 0.55
$ 0.53
$ 1.06
$ 0.94
Shares used in computation of:
Basic earnings per share
10,345
8,301
9,839
8,212
Diluted earnings per share
10,445
8,615
10,021
8,562
 
 

Consolidated Balance Sheets

April 30, 2000
April 30, 1999
ASSETS
Current assets:
Cash
$ 7,367
$ 4,760
Accounts receivable
50,463
32,519
Inventories
36,740
28,621
Other current assets
5,626
4,785
Total current assets
100,196
70,685
Furniture and equipment, net
17,813
9,478
Other assets
538
425
Total assets
$118,547
$ 80,588
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings
$ 3,037
$ 12,085
Accounts payable
12,086
6,807
Accrued liabilities
6,553
6,661
Current portion of long-term debt
1,419
220
Total current liabilities
23,095
25,773
Long-term debt, net of current portion
6,545
5,907
Total shareholders' equity
88,907
48,908
Total liabilities and shareholders' equity
$118,547
$ 80,588
 
 
SUMMARY OF SPRING BOOKINGS (in thousands)

Spring 2000

Spring 1999

Percentage change
Difference
FY 2000
FY 1999
(as of 5/30/00)
(as of 6/16/99)
GOLF
$35,094
$29,329
19.7%
$ 5,765
SPECIALTY STORE
9,777
6,116
59.9%
3,661
CORPORATE ACCOUNTS
33,466
17,859
87.4%
15,607
OTHER
4,369
2,580
69.3%
1,789
TOTAL DOMESTIC SPRING BOOKINGS
82,706
55,884
48.0%
26,822
TOTAL INTERNATIONAL SPRING BOOKINGS
6,987
4,437
57.5%
2,550
TOTAL SPRING BOOKINGS
$89,693
$60,321
48.7%
$29,372
 
 
SUMMARY OF FALL BOOKINGS (in thousands)

Fall 2000

Fall 1999

Percentage change
Difference
FY 2000
FY 1999
(as of 6/20/00)
(as of 6/20/99)
GOLF
$24,378
$23,769
2.6%
$ 609
SPECIALTY STORE
9,513
6,098
56.0%
3,415
CORPORATE ACCOUNTS
11,793
7,049
67.3%
4,744
OTHER
1,184
1,207
-1.9%
(23)
TOTAL DOMESTIC FALL BOOKINGS
46,868
38,123
22.9%
8,745
TOTAL INTERNATIONAL FALL BOOKINGS
3,543
2,465
43.7%
1,078
TOTAL FALL BOOKINGS
$50,411
$40,588
24.2%
$ 9,823
 
 
SUMMARY OF NET SALES - FOURTH QUARTER (in thousands)

Fall 2000

Fall 1999

Percentage change
Difference
FY 2000
FY 1999
GOLF
$ 19,729
$ 20,711
-4.7%
$ (982)
SPECIALTY STORE
4,712
2,884
63.4%
1,828
CORPORATE ACCOUNTS
22,088
11,607
90.3%
10,481
OTHER
3,693
1,537
140.3%
2,156
TOTAL DOMESTIC SALES
50,222
36,739
36.7%
13,483
TOTAL INTERNATIONAL SALES
4,365
3,642
19.9%
723
TOTAL SALES
$ 54,587
$ 40,381
35.2%
$ 14,206
 
 
SUMMARY OF NET SALES - YEAR TO DATE (in thousands)

Fall 2000

Fall 1999

Percentage change
Difference
FY 2000
FY 1999
GOLF
$ 59,053
$ 50,964
15.9%
$ 8,089
SPECIALTY STORE
16,073
10,763
49.3%
5,310
CORPORATE ACCOUNTS
56,369
32,670
72.5%
23,699
OTHER
10,164
4,897
107.6%
5,267
TOTAL DOMESTIC SALES
141,659
99,294
42.7%
42,365
TOTAL INTERNATIONAL SALES
10,793
7,991
35.1%
2,802
TOTAL SALES
$152,452
$107,285
42.1%
$ 45,167