Business
Phoenix Footwear Reports Fourth Quarter and Fiscal Year 2015 Results
Phoenix Footwear Reports Fourth Quarter and Fiscal Year 2015 Results.
About this update from Phoenix Footwear Group, Inc.
[{"type":"text","content":"\n \n Phoenix Footwear Group, Inc. (OTCMarkets.com: PXFG) today reported \n results for the fourth quarter and year ended January 2, 2016.\n \n \n Fourth Quarter and Fiscal Year 2015\n \n \n \n Net Sales for the fourth quarter of fiscal 2015 decreased 9.7% to \n $5.10 million compared to $5.65 million for the fourth quarter of \n fiscal 2014. Net Sales for fiscal 2015 decreased 1.5% to $21.7 million \n from $22.0 million in fiscal 2014. The decrease in fourth quarter and \n full year Net Sales was a result of the Company’s realignment of its \n distribution of Trotters products in a large national account, \n combined with shipments of an additional week (53 weeks) in fiscal \n 2014.\n \n \n Sales of the Company’s licensed footwear continued to expand, \n increasing 23% for the quarter and 90% for the full year.\n \n \n The Company generated an Operating Loss for the fourth quarter of \n $135,000 compared to Operating Income of $216,000 for the fourth \n quarter of fiscal 2014. The Operating Loss for the twelve months of \n fiscal 2015 totaled $256,000 compared to Operating Income of $1.1 \n million for the twelve months of fiscal 2014.\n \n \n Since October 3, 2015 the Company has not been in compliance with its \n Fixed Charge Coverage Ratio (“FCCR”). During this period, NewStar \n Business Credit has waived these covenant defaults. On March 18, 2016, \n the Company and NewStar entered into an amendment of their Loan \n Agreement to modify this covenant. The Company is in compliance with \n the newly modified covenant.\n \n \n Earnings before interest, taxes, depreciation and amortization \n (“EBITDA”) for fiscal year 2015 declined to $34,300 from$1.32 million \n for fiscal year 2014.\n \n \n \n Fiscal 2015\n \n \n For the fiscal year ended January 2, 2016, net sales decreased $340,000 \n or 1.5% to $21.7 million from $22.0 million when compared to the fiscal \n year ended January 3, 2015. The decrease in net sales for fiscal year \n 2015 was primarily the result of a reduction in sales of Trotters \n branded product as the Company reduced its footprint in a large national \n account together with the implementation of a MAP policy, that was \n partly offset by a 90.3% increase in net sales of licensed occupational \n footwear during fiscal 2015 when compared to fiscal 2014.\n \n \n Gross pr...