PEORIA, ARIZ., August 30 /CNW/ - Antigua Enterprises Inc. (Pink Sheets: ANTGF) (TSX VENTURE: ANE) reports financial results for the year ended April 30, 2007.
Antigua Enterprises Inc. had a very positive fiscal year from May 2006 through April 2007. The Antigua brand maintained its momentum in the marketplace and the Company added the Slazenger brand and the Dunlop brand to its portfolio.
Sales results for fiscal year 2007 were significantly ahead of previous periods. The sales growth was driven by our Licensed Sports division and our Golf division. The Licensed channel grew by 16% or $3.2 million in sales over fiscal year 2006. The Golf division grew by 12% or $1.5 million in sales over fiscal year 2006. Sales in both divisions have been fueled by new products and new fabrications, continuing focus on outstanding customer service and in stock inventory positions.
As a percentage of sales, income before income taxes dipped slightly in fiscal year 2007 as compared to prior periods. The decrease was primarily attributable to royalty and production costs on licensed sales as well as our investment in selling and marketing to maintain the positive momentum of the Antigua brand and to pre-launch the Slazenger and Dunlop brands. Overall profitability remains strong and the Company is well positioned for future periods.
One result of our positive profitability trend line is the Company's decision to reverse its valuation allowance on future tax assets as it now appears that those assets will more likely than not be utilized before expiring. The recognition of this tax benefit had a dramatic one-time impact on our net income for fiscal year 2007 and is not reflective of future results. Excluding the effect of the tax benefit the Company's net income as a percentage of sales and earnings per share are consistent with prior period results.
Fiscal year 2007 was successful in sales, profits, distribution growth and brand awareness growth. Our sights are now set on new opportunities for fiscal year 2008 with three distinctive brands to design and distribute.
Consolidated Statements of Income for the Fiscal Years ended April 30, 2007 and April 30, 2006 (in U.S. Dollars):
Due to the Company's change in fiscal year end, fiscal year end April 30, 2006 results are unaudited and presented only for comparison to current results.
ANTIGUA ENTERPRISES INC.
Consolidated Statements of Income
For the Years Ended April 30, 2007 and December 31, 2005,
and the Four Months Ended April 30, 2006
(in U.S. dollars)
Year Ended
Year Ended April 30, 2006
April 30, 2007 (Unaudited)
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Sales $ 51,958,926 $47,896,142
Cost of Sales 33,124,918 29,897,630
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Gross profit 18,834,008 17,998,512
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Selling and Marketing Expenses 10,178,050 9,484,447
General and Administrative Expenses 5,064,471 4,867,758
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15,242,521 14,352,205
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Income before other income (expense)
and provision for income taxes 3,591,487 3,646,307
Other Income (Expense):
Interest expense (1,404,095) (1,424,598)
Income from investment subject to
significant influence 144,977 211,760
Other 94,729 81,090
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(1,164,389) (1,131,748)
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Income Before Income Taxes 2,427,098 2,514,559
Benefit (provision) for income taxes 2,542,857 (134,000)
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Net Income $ 4,969,955 $ 2,380,559
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Basic and diluted earnings per share:
Net Income $ 0.12 $ 0.06
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Weighted Average Common Shares
Outstanding:
Basic and diluted 42,368,236 42,839,185
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