CARLSBAD, Calif., Aug 11, 2005 (BUSINESS WIRE) -- Orange 21 Inc. (NASDAQ:ORNG):
- Second quarter revenues of $10.4 million, a 36% year-over-year
increase
- Second quarter EPS of $0.04 compared to a loss per share of
$0.02 in the second quarter of 2004
Orange 21 Inc. (NASDAQ:ORNG), a leading developer of brands that
produce premium optical products, today announced financial results
for the three months ended June 30, 2005.
The Company's net sales for the second quarter of 2005 were $10.4
million compared to $7.6 million in the second quarter of 2004, an
increase of 36%. The Company reported net income for the second
quarter of 2005 of approximately $362,000 versus a net loss of
approximately $84,000 in the second quarter of 2004. Earnings per
diluted share for the second quarter were $0.04 on approximately 8.2
million average shares outstanding compared to a loss per share of
$0.02 on approximately 4.5 million average shares outstanding in the
same period a year ago.
Cash, cash equivalents, and short term investments at June 30,
2005, totaled $11.6 million.
"We are pleased with our results for second quarter 2005,
particularly our strong sales growth of 36% year-over-year," said
Barry Buchholtz, Chief Executive Officer. "We believe this
demonstrates the increased awareness of our brands achieved through
the execution of the strategic initiatives we have put in place. We
look forward to taking this momentum into the second half of the year.
We will continue to work on expanding global distribution, improving
service levels, and developing innovative sales and marketing programs
that reach our target audience and drive our business."
Updated 2005 Guidance
In accordance with the Company's policy to provide periodic
earnings guidance, it remains comfortable with its previous annual
revenue guidance of 25% - 30% growth and the current annual consensus
estimate of $0.16 EPS. However, the Company believes sales will be
more heavily weighted toward the fourth quarter in 2005 due to
selected goggle shipments that will occur later in the second half of
the year.
As previously stated, the guidance discussion excludes the impact
of legal costs associated with the Oakley and shareholder class action
law suits.
Investor Conference Call
Orange 21's quarterly earnings conference call is scheduled to
begin today, Thursday, August 11, 2005 at 1:30 p.m., Pacific Daylight
Time. The conference call will be broadcast live over the Internet.
Investors may listen to the live webcast at www.orangetwentyone.com.
For those who are not available for the live broadcast, the call will
be archived on Orange 21's investor website.
About Orange 21 Inc.
Orange 21 develops brands that produce premium optical products.
Orange 21's brands include Spy Optic(TM), which manufactures
sunglasses and goggles targeted towards the action sports and youth
lifestyle market, and E Eyewear(TM), which manufactures the signature
Dale Earnhardt, Jr. sunglass line.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements and forecasts about Orange 21 and its business, such as
management's estimates of net sales and earnings for 2005. Because
forecasts are inherently estimates that cannot be made with precision,
the company's performance may at times differ from its estimates and
targets.
Statements in this press release regarding financial guidance,
management's statements and statements that refer to Orange 21's
estimated and anticipated future results are forward-looking
statements. All forward-looking statements in this press release
reflect Orange 21's current analysis of existing trends and
information and represent Orange 21's judgment only as of the date of
this press release. Actual results may differ from current
expectations based on a number of factors affecting Orange 21's
business, including but not limited to, adjustments made pursuant to
the final audit by our outside auditors; uncertainties associated with
Orange 21's ability to maintain a sufficient supply of products and to
successfully manufacture its products; the performance of new products
and continued acceptance of current products; the execution of
strategic initiatives and alliances; the impact of ongoing litigation;
and the uncertainties associated with intellectual property protection
for its products. In addition, matters generally affecting the
domestic and global economy, such as changes in interest and currency
exchange rates, can affect Orange 21's results. Therefore, the reader
is cautioned not to rely on these forward-looking statements. Orange
21 disclaims any intent or obligation to update these forward-looking
statements.
Further information on potential risk factors that could affect
Orange 21's business and its financial results are detailed in its
filings with the Securities and Exchange Commission, including its
most recent quarterly report on Form 10-Q. Undue reliance should not
be placed on forward-looking statements.
Orange 21, Inc.
Consolidated Balance Sheets
December 31, June 30,
2004 2005
unaudited
------------ ------------
Assets
Current assets
Cash and cash equivalents $11,476,828 $1,729,098
Short-term investments - 9,874,331
Accounts receivable -- net 8,244,910 7,975,984
Inventories 11,814,846 13,295,229
Prepaid expenses and other current assets 1,073,181 1,838,479
Deferred income taxes 1,074,000 1,183,000
------------ ------------
Total current assets 33,683,765 35,896,121
Property and equipment - net 3,687,907 4,245,493
Intangible assets, net of accumulated
amortization of $318,332 and $348,153
at 2004 and 2005, respectively 152,543 183,137
------------ ------------
Total assets $37,524,215 $40,324,751
============ ============
Liabilities and Stockholders' Equity
Current liabilities
Current portion of notes payable $125,000 $-
Current portion of capitalized leases 37,370 37,041
Accounts payable 2,243,955 1,853,342
Accrued expenses and other liabilities 2,433,371 2,767,369
Income taxes payable 443,619 89,060
------------ ------------
Total current liabilities 5,283,315 4,746,812
Notes payable, less current portion 166,667 -
Capitalized leases, less current portion 31,369 12,752
Deferred income taxes 143,000 110,000
------------ ------------
Total liabilities 5,624,351 4,869,564
Commitments and contingencies
Stockholders' equity
Preferred stock; par value $0.0001;
5,000,000 authorized - -
Common stock; par value $0.0001; 100,000,000
shares authorized; 7,491,218 and 8,012,483
shares issued and outstanding at 2004 and
2005, respectively 747 799
Additional paid-in capital 31,655,426 35,836,456
Accumulated other comprehensive income
(loss) 437,673 (55,475)
Accumulated deficit (193,982) (326,593)
------------ ------------
Total stockholders' equity 31,899,864 35,455,187
------------ ------------
Total liabilities and
stockholders' equity $37,524,215 $40,324,751
============ ============
Orange 21, Inc.
Consolidated Statements of Operations
(unaudited)
Three months ended Six months ended
June 30, June 30,
------------------------ -------------------------
2004 2005 2004 2005
----------- ------------ ------------ ------------
Net sales $7,647,545 $10,415,630 $14,050,961 $18,888,183
Cost of sales 3,066,510 4,786,473 6,310,875 9,184,167
----------- ------------ ------------ ------------
Gross Profit 4,581,035 5,629,157 7,740,086 9,704,016
----------- ------------ ------------ ------------
Operating expenses:
Sales and
marketing 2,561,719 3,050,056 4,827,084 5,918,557
General and
administrative 1,188,110 1,555,128 2,172,636 2,855,069
Shipping and
warehousing 192,311 297,402 354,671 589,591
Research and
development 98,154 178,381 187,205 314,456
----------- ------------ ------------ ------------
Total operating
expenses 4,040,294 5,080,967 7,541,596 9,677,673
----------- ------------ ------------ ------------
Income from
operations 540,741 548,190 198,490 26,343
Other (expense)
income
Interest
(expense) income
- net (112,966) 86,302 (234,250) 150,413
Foreign currency
translation
(loss) gain (228,381) 32,686 (145,714) (99,588)
Other income
(expense) - net 14,793 (8,570) (175) (12,621)
----------- ------------ ------------ ------------
Total other
(expense)
income (326,554) 110,418 (380,139) 38,204
----------- ------------ ------------ ------------
Income (loss)
before income
taxes 214,187 658,608 (181,649) 64,547
Income tax
provision 297,959 296,158 249,959 197,158
----------- ------------ ------------ ------------
Net (loss) income $(83,772) $362,450 $(431,608) $(132,611)
=========== ============ ============ ============
Net (loss) earnings
per common share
Basic $(0.02) $0.05 $(0.10) $(0.02)
=========== ============ ============ ============
Diluted $(0.02) $0.04 $(0.10) $(0.02)
=========== ============ ============ ============
Weighted average
common shares
outstanding
Basic 4,504,674 8,012,483 4,454,241 8,012,483
=========== ============ ============ ============
Diluted 4,504,674 8,153,149 4,454,241 8,012,483
=========== ============ ============ ============
SOURCE: Orange 21 Inc.
Orange 21 Inc.
Michael Brower, 760-804-8420
or
Integrated Corporate Relations
Andrew Greenebaum/Allyson Pooley, 310-395-2215
agreenebaum@icrinc.com
apooley@icrinc.com
