Jeweller Charles & Colvard gives a planned performance
20 Jul '05
5 min read
Year-to-date sales are 105% ahead of first half 2004 sales of $10.0 million on shipments of 55,800 carats. Six months 2005 net income was 226% above 2004 net income of $844,000 or $.06 per diluted share.
On May 23, 2005 the Board of Directors declared a 5% stock dividend which was distributed on July 15, 2005 to shareholders of record on June 30, 2005. Share and per share data for all periods presented have been adjusted to reflect the effect of this stock dividend.
In addition on the same date the Board of Directors declared a $.05 cash dividend distributed on July 15, 2005 to shareholders of record on June 30, 2005. Dividends payable as of June 30, 2005 was approximately $699,000.
Domestic sales, which represent 91% of total sales, were up 134% for the quarter (148% in carats), primarily attributable to the sales resulting from the JCPenney distribution which initially occurred in the fourth quarter of 2004 and the rollout to jewelry departments leased to Finlay Enterprises that began in the first quarter of this year.
International sales for the second quarter increased 14% (19% in carats) primarily due to increased sales in the United Kingdom, Taiwan and Indonesia offset by lower sales in Singapore and the Philippines. Total shipments of 53,900 carats for the current period were 125% above the 23,900 carats in the same period of 2004.
Gross margin as a percentage of sales for the second quarter was 65.3%, a decrease of 0.5 percentage points when compared to the same quarter in 2004. This decrease was primarily caused by a 2% decrease in average selling price per carat, due to a change in the mix of stone sizes sold.
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