Business
Stonegate Capital Partners Updates Coverage on Talon International, Inc. (OTCQB: TALN)
Stonegate Capital Partners Updates Coverage on Talon International, Inc. (OTCQB: TALN).
About this update from Talon International, Inc.
[{"type":"text","content":"DALLAS, TX / ACCESSWIRE / December 6, 2017 / Talon International, Inc. (OTCQB: TALN):COMPANY DESCRIPTIONTalon International, Inc. is a leading supplier of customized zippers and apparel accessories. Talon International has a globally recognized brand backed by 120 years of experience in the industry. The company is responsible for the invention of the sliding zipper device. Talon's product mix is composed of two main categories: zippers and managed trim solutions (i.e. woven & printed labels, buttons & rivets, printed marketing, zippers, thread as well as any other types of trim or accessory products), including Tekfit Stretch Technology™. Tekfit® has exclusive rights to advanced fabric technologies that facilitate the addition of mechanical stretch into most standard fabrics. There are numerous applications, including waistbands that have the ability to stretch out and back, without the need to add costly and unsightly elastics or other components. Talon is headquartered in Woodland Hills, California, a northern suburb of Los Angeles, and currently employs 201 full time employees, including 30 in the United States and 171 in Asia.SUMMARYTalon plans to capture continuing growth via its integrated business model that provides clients with a \"one-stop shop\" for their zipper and trim needs. By operating as a fully integrated, single source supplier for its clients, Talon can save clients time and expenses. Furthermore, by leveraging its decades of experience and expertise in engineering, sourcing, manufacturing and assembly, Talon has positioned itself to effectively compete in a highly fragmented industry. The company's ability to deliver superior products, unmatched customer service, and leading customization capabilities is what sets Talon apart from its peers. The company has emerged from a multi-year restructuring effort and recent recapitalization that has enhanced its financial flexibility and set the stage for growth; results for FY16 included revenues remaining steady at $48.3M, with gross margins increasing to 36.5% vs. 33.7% in FY15 and net income increasing to $995K vs. $511K in the prior year. Most recently, Q317 saw lower revenues of 9.8% Y-O-Y with both trim and zipper segments seeing decreased sales to mass merchandising brand customers and specialty retail brand customers. Gross profit percenta...