Jaclyn Inc reported financial results for the third quarter ended March 31, 2007.
Net sales for the three-month period ended March 31, 2007 were $34,705,000 compared to $27,939,000 a year earlier. The Company reported a third quarter net loss of $1,487,000, or $.60 per diluted share, including a pretax pension plan settlement charge of $3,089,000, ($2,008,000 after tax, or $.79 per diluted share), compared to a net loss of $22,000 in the fiscal 2006 third quarter, or $.01 per diluted share.
Net sales for the nine-month period ended March 31, 2007 were $122,913,000 compared to $92,701,000 for the same period last year. Net earnings for the nine-month period ended March 31, 2007 were $692,000, or $.27 per diluted share including a pretax pension plan settlement charge of $3,089,000, ($2,008,000 after tax, or $.79 per diluted share), compared to net earnings of $1,055,000, or $.41 per diluted share in the same period last year.
Commenting on the financial results, Allan Ginsburg, Chairman of the Board, stated, "We experienced increases in net sales for the quarter and year-to-date periods including net sales increases in our children's apparel, women's sleepwear, and premium incentive divisions."
However, earnings results were adversely affected by the previously disclosed termination and pension plan settlement, which resulted in recording a one-time charge to earnings before income taxes of approximately $3,089,000 in the three and nine-month periods ended March 31, 2007. This pretax charge to earnings included a non-cash charge of approximately $2,188,000 for the write-off of unamortized pension costs, as well as a final cash payment of approximately $901,000 to fully fund the pension plan.
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