Orange 21 Inc. Reports Financial Results for the Three Months Ended June 30, 2009 and Announces Investor Conference Call | CARLSBAD, Calif.--(BUSINESS WIRE)--Aug. 14, 2009--
Orange 21 Inc. (NASDAQ:ORNG), a leading designer, producer and
distributor of sunglasses, snow and motocross goggles, and branded
apparel and accessories for the action sports, motorsports, snowsports
and youth lifestyle markets, today announced financial results for the
quarter ended June 30, 2009.
Consolidated net sales for the three months ended June 30, 2009 were
$9.1 million compared to net sales of $14.0 million for the three months
ended June 30, 2008. We incurred a net loss of $254,000 for the three
months ended June 30, 2009, compared to a net loss of $273,000 for the
three months ended June 30, 2008. The net loss for the three months
ended June 30, 2009 included $129,000 in non-cash share-based
compensation costs in accordance with FASB No. 123(R).
“The current recession continues to have a significant impact on our
global sales,” commented Stone Douglass, the Company’s Chief Executive
Officer. “During the most recent quarter, we reduced total operating
expenses by approximately $2.6 million from the same period last year,
and although we have had a significant decrease in sales, we have
continued to maintain relatively strong gross profit margins.”
Jerry Collazo, the Company’s Chief Financial Officer, added, “During
this period we continued to work with our vendors and customers and
fully appreciate the difficulty everyone is undergoing.”
Concluding, Stone Douglass added, “We continue to experience a soft
economy and as such we are operating cautiously and managing expenses
appropriately. However, we are very excited about new opportunities that
are unfolding for Orange 21 and its shareholders and are cautiously
optimistic for the next several months.”
Investor Conference Call
We invite you to join us for an investor conference call on Monday,
August 17, 2009 at 1:00, p.m. Pacific Daylight time. The dial-in number
for the call in North America is 1-866-713-8567 and 1-617-597-5326
for international callers. The participant pass code is 88811389. The
call also will be webcast live on the Internet and can be accessed by
logging onto www.orangetwentyone.com.
The webcast will be archived on the Company’s website for at least 60
days following the call. An audio replay of the conference call will be
available for seven days beginning approximately two hours after the
completion of the call on August 17, 2009. The audio replay dial-in
number for North America is 1-888-286-8010 and 1-617-801-6888 for
international callers. The replay pass code is 37127211.
About Orange 21 Inc.
Orange 21 designs, develops, markets and produces premium products for
the action sport, motorsports, snowsports and youth lifestyle markets.
Orange 21’s primary brand, Spy Optic (TM), manufactures sunglasses and
goggles targeted toward the action sports, motorsports, snowsports and
youth lifestyle markets.
Safe Harbor Statement
This press release contains forward-looking statements. These statements
relate to future events or future financial performance and are subject
to risks and uncertainties. In some cases, you can identify
forward-looking statements by terminology such as “may,” “will,”
“should,” “expect,” “plan,” “anticipate,” “believe,” “feel,” “estimate,”
“predict,” “potential” or “continue,” the negative of such terms or
other comparable terminology. Specifically, comments in this press
release regarding our future prospects, new opportunities, potential,
cost saving measures, improved efficiencies, ability to reap financial
rewards from enhanced relationships with customers and vendors,
organizational changes, the strength of and demand for our brand and the
success of our sales and marketing initiatives, are forward-looking
statements and are subject to inherent risks. These statements are only
predictions. Actual events or results may differ materially. Factors
that could cause actual results to differ from those contained in the
forward-looking statements include, but are not limited to: the general
conditions of the domestic and global economy, changes in consumer
discretionary spending; changes in the value of the U.S. dollar,
Canadian dollar and Euro; changes in commodity prices; our ability to
source raw materials and finished products at favorable prices; risks
related to the limited visibility of future orders; our ability to
continue to develop, produce and introduce innovative new products in a
timely manner; our ability to identify and execute successfully
cost-control initiatives without adversely impacting sales; the
performance of new products and continued acceptance of current
products; our execution of strategic initiatives and alliances;
uncertainties associated with intellectual property protection for our
products; and other risks identified from time to time in our filings
made with the U.S. Securities and Exchange Commission. Although, we
believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results. Moreover,
we assume no responsibility for the accuracy or completeness of such
forward-looking statements and undertake no obligation to update any of
these forward-looking statements.
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ORANGE 21 INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(Thousands, except number of shares and per share amounts)
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June 30,
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December 31,
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2009
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2008
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(Unaudited)
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Assets
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Current assets
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Cash
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$
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1,165
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$
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471
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Accounts receivable, net
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5,911
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6,991
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Inventories, net
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9,173
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11,698
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Prepaid expenses and other current assets
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1,304
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1,607
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Income taxes receivable
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197
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171
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Total current assets
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17,750
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20,938
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Property and equipment, net
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4,852
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5,417
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Intangible assets, net of accumulated amortization of $661 and
$601 at June 30, 2009 and December 31, 2008, respectively
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345
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401
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Other long-term assets
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74
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67
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Total assets
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$
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23,021
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$
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26,823
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Liabilities and Stockholders' Equity
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Current liabilities
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Lines of credit
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$
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4,401
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$
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5,787
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Current portion of capital leases
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331
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483
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Current portion of notes payable
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504
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484
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Accounts payable
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4,666
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8,635
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Accrued expenses and other liabilities
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3,617
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3,868
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Income taxes payable
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233
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214
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Total current liabilities
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13,752
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19,471
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Capitalized leases, less current portion
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664
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754
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Notes payable, less current portion
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653
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357
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Deferred income taxes
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407
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391
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Total liabilities
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15,476
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20,973
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Stockholders' equity
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Preferred stock: par value $0.0001; 5,000,000 authorized; none issued
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-
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-
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Common stock: par value $0.0001; 100,000,000 shares authorized;
11,864,155 and 8,176,850 shares issued and outstanding at June 30,
2009 and December 31, 2008, respectively
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1
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1
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Additional paid-in-capital
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40,232
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37,432
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Accumulated other comprehensive income
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855
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902
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Accumulated deficit
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(33,543
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)
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(32,485
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)
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Total stockholders' equity
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7,545
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5,850
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Total liabilities and stockholders' equity
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$
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23,021
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$
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26,823
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ORANGE 21 INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Thousands, except per share amounts)
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Three Months Ended June 30,
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Six Months Ended June 30,
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2009
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2008
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2009
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2008
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(Unaudited)
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(Unaudited)
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Net sales
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$
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9,116
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$
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13,984
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$
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16,537
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$
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25,538
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Cost of sales
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4,930
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7,039
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8,720
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13,149
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Gross profit
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4,186
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6,945
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7,817
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12,389
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Operating expenses:
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Sales and marketing
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1,918
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3,498
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3,682
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6,450
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General and administrative
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2,036
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2,674
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4,183
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5,136
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Shipping and warehousing
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239
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522
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510
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1,029
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Research and development
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286
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343
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511
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633
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Total operating expenses
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4,479
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7,037
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8,886
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13,248
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Loss from operations
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(293
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)
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(92
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)
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(1,069
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)
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(859
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)
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Other expense:
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Interest expense
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(73
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)
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(143
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)
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(165
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)
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(321
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)
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Foreign currency transaction gain (loss)
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122
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(3
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183
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(208
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)
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Other income
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19
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3
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2
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33
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Total other income (expense)
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68
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(143
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)
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20
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(496
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)
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Loss before income taxes
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(225
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)
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(235
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)
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(1,049
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(1,355
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)
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Income tax expense (benefit)
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29
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38
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9
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(231
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)
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Net loss
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$
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(254
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)
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$
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(273
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)
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$
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(1,058
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)
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$
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(1,124
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)
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Net loss per share of Common Stock
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Basic
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$
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(0.02
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)
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$
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(0.03
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)
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$
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(0.10
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)
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$
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(0.14
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)
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Diluted
|
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$
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(0.02
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)
|
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$
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(0.03
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)
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$
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(0.10
|
)
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$
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(0.14
|
)
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Shares used in computing net loss per share of Common Stock
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Basic
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11,864
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8,168
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11,004
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8,166
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Diluted
|
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11,864
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8,168
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11,004
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8,166
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Source: Orange 21 Inc.
Orange 21 Inc. Jerry Collazo, Chief Financial Officer 760-804-8420 Fax:
760-804-8442 www.orangetwentyone.com
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