Samsonite Corporation (Nasdaq: SAMC) today reported revenue of $192.4 million, operating income of $12.1 million and net loss to common stockholders of $10.1 million, or $0.51 per share, for the quarter ended April 30, 2000. These results compare to revenue of $175.9 million, operating income of $10.0 million and net loss to common stockholders of $10.8 million, or $1.03 per share, for the first quarter of the prior year. Preferred stock dividends of $7.8 million for the first quarter and $6.8 million for the prior year are reflected in the net loss to common stockholders.

Adjusted EBITDA (earnings before interest expense, taxes, depreciation, amortization, and minority interest, adjusted for certain items management believes should be excluded in order to reflect recurring operating performance), a measure of core business cash flow, was $19.5 million for the first quarter, an increase of $1.9 million when compared with $17.6 million in the first quarter of the prior year.

Chief Executive Officer, Luc Van Nevel, stated: ``We had a very good first quarter with sales improving 9% and Adjusted EBITDA improving 11% over the prior year. The increase in sales was achieved despite the negative effect of the weak Euro currency, which depressed reported sales by $11.9 million from the first quarter of the prior year. All the major areas of the Company's operations showed improvement over the prior year: sales in the Americas improved 15%, Asian sales improved 63%, and European sales improved 14% in local currency.

``We believe that our continued focus on strategies which concentrate on long-term improvements in operating results is paying off, although we continue to face many challenges, including a very competitive environment and the declining Euro currency. A weak Euro affects not only U.S. dollar reported operating results, but also contributes to increased direct product costs in our European business which purchases many of its raw materials and vendor-produced finished goods in U.S. dollars.

``Sales in the U.S. increased by 14% over the prior year, with U.S. wholesale sales increasing by 21% and U.S. retail sales increasing by 1%. Our new Asian subsidiaries continue to grow beyond our expectations as the economies in that region continue to recover. We intend to further capitalize on our success in this region by expanding our operations geographically in Asia before year end.''

Samsonite is one of the world's largest manufacturers and distributors of luggage and markets its products primarily under the SAMSONITE®, AMERICAN TOURISTER®, and LARK® brand names.

Certain statements contained herein constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future performance to be materially different from any future estimated results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: ability to resolve customer issues within anticipated time frames; ability to achieve sufficient sales levels to yield planned production efficiencies and absorption of fixed costs; customer acceptance of new products; general economic and business conditions; industry capacity; changes in customer preferences; demographic changes; competition; changes in methods of distribution and technology; the loss of any significant customers; completion of new product developments within anticipated time frames; changes in interest rates and currency exchange rates; and other factors beyond the Company's control.

  • Samsonite Corporation Earnings Summary
  • April 30, 2000 and 1999
  • (in thousands, except per share data)

Three months ended April 30,

2000
1999
Net revenue
$192,434
175,876
Cost of goods sold
112,555
101,217
Gross profit
79,879
74,659
Selling, general and administrative expenses
66,425
63,254
Amortization of intangible assets
1,305
1,391
Operating income
12,149
10,014
Interest expense and amortization of debt issue costs and premium
(12,250)
(13,585)
Interest and other income, net
2,205
2,803
Income before income taxes and minority interest
2,104
(768)
Income tax expense
(3,488)
(3,054)
Minority interest in earnings of subsidiaries
(884)
(110)
Net loss
(2,268)
(3,932)
Senior redeemable preferred stock dividends and accretion of senior redeemable preferred stock discount
(7,811)
(6,848)
Net loss to common stockholders
$(10,079)
(10,780)
Net loss per common share - basic and assuming dilution
$(0.51)
(1.03)