Click here to close now.


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.

                     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
 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
 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
 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
                                               -------------  -------------
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
                                               =============  =============

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
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
Decisions about budgets and resources are often made without IT even having a seat at the table. As technologist we understand the value of DevOps - but do your business counterparts? If they don't, your DevOps initiatives could lose funding before they start. In her session at DevOps Summit, Jeanne Morain, Strategist / Author at iSpeak Cloud, LLC, will provide insights on how to bridge the gap between business and technology leaders. Attendees will learn prescriptive guidance on balancing wor...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT ...
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Today, we are in the middle of a paradigm shift as we move from managing applications on VMs and containers to embracing everything that the cloud and XaaS (Everything as a Service) has to offer. In his session at 17th Cloud Expo, Kevin Hoffman, Advisory Solutions Architect at Pivotal Cloud Foundry, will provide an overview of 12-factor apps and migrating enterprise apps to the cloud. Kevin Hoffman is an Advisory Solutions Architect for Pivotal Cloud Foundry, and has spent the past 20 years b...
While testing is often ignored when it comes to DevOps - it could be the most important aspect of achieving true DevOps success. Without rethinking automated testing from the ground-up, the entire DevOps productivity gain cannot be realized. Large tech companies build their own rapid test automation that runs in minutes across functional, performance, security and other tests. In his session at DevOps Summit, Kevin Surace, CEO of Appvance, will discuss how we learn from these real-world succe...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
SYS-CON Events announced today that has been named a "Bronze Sponsor" of SYS-CON's @DevOpsSummit Silicon Valley, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. provides open-source software ELK turned into a log analytics platform that is simple, infinitely- scalable, highly available, and secure.
DevOps delivers remarkable results. But does it help all of IT? Can traditional ‘mode 1’ IT benefit as much as innovative ‘mode 2’? How about the rest of your business? Or have you just shifted your bottleneck? And if so, what can you do about it? Improving dev and ops is necessary, but not sufficient. It often just shifts the burden sideways (e.g., to PMs, SQA, InfoSec, DBAs, NOC, etc.), upstream (to the PMO, Controller, Business Liaison, etc.), or downstream (to TechPubs, Service Desk, Traini...
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innov...
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text...