Selling, general and administrative expenses increased to $13.7 million in the quarter from $8.2 million in the same period in 2006. SG&A expenses excluding non-cash restricted stock expense and certain unusual items amounted to $8.4 million versus $7.0 million in the first quarter of 2006.
The company recorded $2.4 million in unusual charges in the quarter. These include a change in the accounting method for recognizing restricted stock grant expenses to better align such expense with the vesting schedule, resulting in an additional $1.2 million of pre-tax expense in the 2007 first quarter.
Also, reflecting the build-up in the company's design and finance departments and the departure of a former vice president of women's design and a former CFO, incremental costs of $1.2 million associated with the separations were recorded in the most recent quarter.
In addition to the aforementioned unusual items, the company had $3.1 million of additional costs of which $1.3 million reflected operating costs for the continued growth in the company's consumer direct segment.
The company also incurred an additional $1.7 million in non-cash restricted stock expense for the stock grant that was given in January 2007. The remaining SG&A cost categories overall were flat compared with the same period last year with a reduction in sales commissions offsetting increases in occupancy and management costs.
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True Religion Apparel Inc
marketing@alchempro.com
