Welcome!

News Feed Item

Talon International, Inc. Reports Second Quarter and Six Months Financial Results for 2014

LOS ANGELES, CA -- (Marketwired) -- 08/11/14 -- Talon International, Inc. (OTCQB: TALN), a leading global supplier of zippers, apparel fasteners, trim and stretch technology products, reported financial results for the second quarter and six months ended June 30, 2014.

Financial Highlights

  • Sales for the second quarter were $16.0 million; a decline of 4.1% from the same period in 2013.
  • Operating Income for the second quarter was $1.5 million; as compared to $1.6 million for the same period in 2013.

Total sales for the quarter ended June 30, 2014 were $16.0 million, reflecting a 4.1% decrease as compared to the same period in 2013. Sales for the second quarter of 2014 included Talon Zipper sales of $8.6 million, down 9.3% from the second quarter of 2013, while Talon Trim sales were $7.3 million, up 2.7% from the prior year period. In addition, sales of the Company's advanced fabric technology TekFit® increased 207% over the same period last year, albeit off a small base. Sales for the six months ended June 30, 2014 were $27.3 million, an increase of 1.9% from the same period in 2013.

"While we experienced some sales softness in the second quarter, we remain confident in our business strength, our premium products and our long-term growth strategy," noted Lonnie Schnell, Talon's Chief Executive Officer. "The weakness within the retail industry during the first quarter of this year carried over excess inventories at retail, contributing to weaker demand for our apparel accessories during the second quarter. We believe as inventories are rebalanced at the retail level, we will continue to see increasing demand for our products as we have in the last few years," Schnell noted.

Gross profit for the second quarter of 2014 was $5.4 million, or 33.9% of sales, as compared to $5.6 million, or 33.4% of sales, for the same quarter in 2013. The lower gross profit in the quarter was primarily attributable to lower sales volumes offset by continued improvements in product mix, and lower manufacturing overhead, freight and duty costs. Gross profit for the first six months of 2014 was $9.1 million, or 33.5% of sales, as compared to $8.7 million for the same period in 2013.

Operating expenses for the second quarter of 2014 were $3.9 million, or 24.6% of sales, as compared to $4.0 million, or 23.8% of sales, in the second quarter of 2013. Sales and marketing expenses of $1.7 million increased 11.1% from the same quarter in 2013, mainly due to investments in new product development including particular emphasis on growing our TekFit product category. General and administrative expenses for the period totaled $2.2 million; lower by 8.6% from the second quarter in 2013, mainly due to lower professional services fees, lower depreciation expenses and other cost reductions. Operating expenses for the six months ended June 30, 2014 were $7.5 million or 27.5% of sales, as compared to $6.9 million, or 25.9% of sales, in the first half of 2013. Sales and marketing expenses for the six months ended June 30, 2014 of $3.1 million increased 11.5% from the same period in 2013. General and administrative expenses for the six months ended June 30, 2014 totaled $4.4 million, an increase of 6.4% from the prior year period that included the benefit of a one-time settlement receipt of a $350,000 from a legal dispute regarding intellectual property rights.

Operating income for the second quarter ended June 30, 2014 was $1.5 million, 9.3% of sales, as compared to $1.6 million, 9.6% of sales, for the same period in 2013. Operating income for the six months ended June 30, 2014 was $1.6 million as compared to $1.8 million for the same period in 2013. Net income for the quarter ended June 30, 2014 was $814,000 as compared to net income of $1.3 million for the same quarter in 2013. Net income for the six months ended June 30, 2014 was $832,000, a decrease from $1.5 million in the same period in 2013. Net income applicable for common stockholders for the quarter ended June 30, 2014 was $814,000 as compared to net income of $363,000 for the same quarter in 2013 (including liquidation preference increase of $899,000); and for the six months ended June 30, 2014 net income (loss) applicable to common stockholders was $832,000 as compared to a loss of ($255,000) in the same period in 2013 (including liquidation preference increase of $1,798,000), which upon elimination of the Series B Preferred Stock in July 2013 is now available to the common stockholders.

Forward Looking Statements
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on market growth, changing trends in apparel retailing, new product introductions, and the Company's ability to execute on its sales strategies, and are generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry, competition and capital requirements. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission including the Company's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Conference Call

Talon International will hold a conference call on Monday, August 11, 2014, to discuss its second quarter and first six months financial results for 2014. Talon's CEO Lonnie D. Schnell will host the call starting at 4:30 P.M. Eastern Time. A question and answer session will follow the presentation.

To participate, dial the appropriate number 5-10 minutes prior to the start time, request the Talon International conference call and provide the conference ID.

Date: Monday, August 11, 2014

Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)

Domestic callers: 1-877-300-8521

International callers: 1-412-317-6026

Conference ID#: TALON

A replay of the call will be available after 7:30 p.m. Eastern Time on the same day and until September 11, 2014. The toll-free replay call-in number is 1-877-870-5176 for domestic callers and 1-858-384-5517 for international. Pin number 10050597.

About Talon International, Inc.

Talon International, Inc. is a major supplier of custom zippers, complete trim solutions and stretch technology products to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers worldwide. Talon develops, manufactures and distributes custom zippers exclusively under its Talon® brand ("The World's Original Zipper Since 1893"); designs, develops, manufactures, and distributes complete apparel trim solutions and products; and provides stretch technology for specialty waistbands, shirt collars, and other items all under its trademark and world renowned brands, Talon®, and TekFit® to major apparel brands and retailers. Leading retailers worldwide recognize and use Talon products including Abercrombie and Fitch, Polo Ralph Lauren, Kohl's, J.C. Penney, FatFace, Victoria's Secret, Wal-Mart, Tom Tailor, Phillips-Van Heusen, Levi Strauss & Co., Juicy Couture, and many others. The company is headquartered in the greater Los Angeles area, and has offices and facilities throughout the United States, United Kingdom, Hong Kong, China, Taiwan, India, Indonesia and Bangladesh.



                         TALON INTERNATIONAL, INC.
       CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                (Unaudited)

                     Three Months Ended June 30,   Six Months Ended June 30
                     ---------------------------  -------------------------
                          2014          2013          2014         2013
                     ------------- -------------  ------------ ------------
Net sales            $  15,959,169 $  16,640,964  $ 27,302,287 $ 26,780,714
Cost of goods sold      10,553,709    11,089,124    18,161,871   18,052,796
                     ------------- -------------  ------------ ------------
  Gross profit           5,405,460     5,551,840     9,140,416    8,727,918
Sales and marketing
 expenses                1,702,274     1,532,493     3,117,964    2,796,485
General and
 administrative
 expenses                2,221,622     2,430,748     4,398,693    4,133,957
                     ------------- -------------  ------------ ------------
  Total operating
   expenses              3,923,896     3,963,241     7,516,657    6,930,442
                     ------------- -------------  ------------ ------------

Income from
 operations              1,481,564     1,588,599     1,623,759    1,797,476
Interest expense
 (income), net             109,614          (197)      220,885          575
                     ------------- -------------  ------------ ------------
Income before
 provision for
 income taxes            1,371,950     1,588,796     1,402,874    1,796,901
Provision for income
 taxes, net                557,475       326,081       571,134      253,833
                     ------------- -------------  ------------ ------------
Net income           $     814,475 $   1,262,715  $    831,740 $  1,543,068

Series B Preferred
 Stock liquidation
 preference increase             -      (899,220)            -   (1,798,441)
                     ------------- -------------  ------------ ------------
Net Income (loss)
 applicable to
 Common Stockholders $     814,475 $     363,495  $    831,740 $   (255,373)
                     ============= =============  ============ ============

Per share amounts:
Net income           $        0.01 $        0.05  $       0.01 $       0.06
Net income
 applicable to
 Preferred
 Stockholders                 0.00         (0.04)         0.00        (0.07)
                     ------------- -------------  ------------ ------------
Basic and diluted
 net income (loss)
 applicable to
 Common Stockholders $        0.01 $        0.01  $       0.01 $      (0.01)
                     ============= =============  ============ ============
Weighted average
 number of common
 shares outstanding
 - Basic                92,267,831    24,900,808    92,037,571   24,652,189
                     ============= =============  ============ ============
Weighted average
 number of common
 shares outstanding
 - Diluted              93,702,693    27,521,480    93,566,946   24,652,189
                     ============= =============  ============ ============
Net income           $     814,475 $   1,262,715  $    831,740 $  1,543,068
Other comprehensive
 income from foreign
 currency
 translation                   766        31,142         1,858       29,851
                     ------------- -------------  ------------ ------------
Total comprehensive
 income              $     815,241 $   1,293,857  $    833,598 $  1,572,919
                     ============= =============  ============ ============




                         TALON INTERNATIONAL, INC.
                        CONSOLIDATED BALANCE SHEETS

                                                  June 30,     December 31,
                                                    2014           2013
                                               -------------  -------------
                                                (Unaudited)
Assets
Current assets:
  Cash and cash equivalents                    $   4,472,438  $   3,779,508
  Accounts receivable, net                         3,776,051      3,576,925
  Inventories, net                                   651,370        800,240
  Prepaid expenses and other current assets          942,712        973,836
                                               -------------  -------------
Total current assets                               9,842,571      9,130,509

Property and equipment, net                          619,588        614,592
Intangible assets, net                             4,260,568      4,267,110
Deferred income tax assets, net                    5,794,198      6,050,402
Other assets                                         418,057        460,226
                                               -------------  -------------
Total assets                                   $  20,934,982  $  20,522,839
                                               =============  =============

Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                             $   7,798,189  $   7,158,938
  Accrued expenses                                 2,669,545      2,880,764
  Revolving credit loan                            1,000,000      1,000,000
  Current portion of term loan payable             1,666,667      1,666,667
                                               -------------  -------------
Total current liabilities                         13,134,401     12,706,369

Term loan payable, net of current portion          2,500,000      3,333,333
Deferred income tax liabilities                       12,054         30,388
Other liabilities                                     15,254         22,169
                                               -------------  -------------
Total liabilities                                 15,661,709     16,092,259
                                               -------------  -------------

Stockholders' Equity:
  Common Stock, $0.001 par value, 300,000,000
   shares authorized;92,267,831 and 91,342,215
   shares issued and outstanding at June 30,
   2014 and December 31, 2013, respectively           92,268         91,342
  Additional paid-in capital                      64,054,800     64,046,631
  Accumulated deficit                            (58,990,438)   (59,822,178)
  Accumulated other comprehensive income             116,643        114,785
                                               -------------  -------------
Total stockholders' equity                         5,273,273      4,430,580
                                               -------------  -------------
Total liabilities and stockholders' equity     $  20,934,982  $  20,522,839
                                               =============  =============


Contact:
Talon International, Inc.
Rayna Hernandez
Tel (818) 444-4128
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...