Auri Announces Second Quarter 2011 Results
(firmenpresse) - LAGUNA BEACH, CA -- (Marketwire) -- 08/17/11 -- Auri, Inc. (OTCBB: AURI) announced today financial results for the three and six months ended June 30, 2011.
Women's footwear generated $61,452 in sales in the second quarter with Men's footwear generating $108,335 in sales for the same period.
Added 29 new retail distribution points in the 2nd quarter; 148 total retail locations at June 30, 2011
Auri designs and markets branded contemporary footwear for men and women in several unique styles. Auri's men's line consists of both causal/sport shoes and fashion/dress shoes and an array of sandals, while its new women's line, which debuted in February 2011, consists of an assortment of high-heel designs and flats. The Company's fall 2011 women's line will also include boots, wedges and platforms.
"With respect to both our men's and women's lines, our design platform fuses high fashion with proprietary technologies to create shoes that present true luxury with unparalleled performance and uncompromised style," stated Ori Rosenbaum, CEO and Chairman of Auri. "Our design team has created shoes with active suspension systems, which incorporate compression control and anti-fatigue features complemented by removable foot beds. By integrating Outlast® temperature regulating linings, Liquicell® ultra-thin interface technology, and encapsulated gel technologies, we are able to provide form and function unlike other brands. To this end, our innovative design philosophy and solid business fundamentals earned Auri the #8 spot on Forbes Magazine's 2009 'America's Most Promising Companies' list and we were the only footwear, fashion or apparel brand to make the list."
Revenues
Revenues for the three months ended June 30, 2011 were $169,787, 23% lower than the $221,380 for the three months ended June 30, 2010. The primary cause of the year-over-year decline, which occurred in both the women's and men's collections, was that the Company shipped the majority of its spring merchandise to retailers in the first quarter vs. the previous year spring sales coming in the second quarter.
Cost of Sales
Cost of sales for the three months ended June 30, 2011 increased to $169,975 from $154,180 a year ago. Gross margin decreased to 0% in the three months ended June 30, 2011 from 30% in the comparable period a year ago.
Operating Expenses
Selling, general and administrative expenses were $488,628 in the second quarter of 2011 compared to $194,108 in the same period a year ago. Auri incurred $201,273 of public company expenses, including $122,500 of non-cash stock-based compensation expense, which was not present in the year-ago period. Excluding these costs, adjusted operating expenses increased approximately 48% to $287,355.
Loss from operations was $483,816 in the second quarter of 2011 compared to $126,908 in the same period in 2010.
Net Income (Loss)
Net loss for the three months ended June 30, 2011 was $508,391 compared to a $130,536 loss for the three months ended June 30, 2010. The diluted loss per share was $0.01 based on 88.7 million weighted average shares outstanding in the second quarter of 2011 compared to $0.00 and 53.5 million shares in the same period a year ago, respectively.
The Company sold 1,190,000 units in a private placement during the six months ended June 30, 2011. Each unit consists of one share of common stock and one warrant to purchase one share of common stock at $1.00 per share. The warrants are exercisable for a period of two years.
Revenues
Revenues for the six months ended June 30, 2011 increased 31% to $473,824 from the year ago period. Sales of women's footwear increased approximately 112% to $234,306 and benefited from the Company's launch of its women's line in February 2011 into 58 department stores and boutique doors.
Cost of Sales
Cost of sales for the six months ended June 30, 2011 was $383,029 versus $251,750 last year. Gross profit was $90,795 in the first half of 2011 versus $108,949 in the first half of 2010, with associated gross margins of 19% and 30%, respectively.
Operating Expenses
Selling, general and administrative expenses increased from $442,792 to $881,273 due primarily to additional legal fees, addition of sales personnel and increased marketing/trade show attendance. In addition, the Company spent approximately $201,273 in public company expenses during the first six months of 2011, which were not present in the comparable period a year ago. Operating loss was $790,478 compared to $333,843 in the first half of 2010.
Net Income (Loss)
Net loss for first six months of 2011 was $837,723 as compared to a loss of $337,594 during the six months ended June 30, 2010. The diluted net loss per share was $0.01 based on 79.7 million weighted average shares outstanding.
As of June 30, 2011, the Company had $233,060 of cash and cash equivalents and $133,333 of long term debt outstanding. Working capital was $537,946 at June 30, 2011 compared to $240,325 at December 31, 2010. The Company received $0.6 million in net proceeds from various private placements in the six months ended June 30, 2011. Based on current projected working capital needs for the next twelve months, the Company needs to raise additional capital to meet its operating goals.
On July 18th, 2011, Auri announced its entry into the Middle East with an initial shipment to Fifty One East ("51 East"), a luxury retailer located in Qatar. Auri's fall 2011 men's sport and fashion footwear will be sold through 51 East's retail locations. Auri currently has made its first shipment to 51 East with additional orders scheduled for September delivery.
During the first two quarters the brand has added 52 new doors of distribution with prominent department and premium boutique stores domestically and internationally. Additionally, many of these doors are expected to provide vertical growth and door count for the fall 2011 collection.
Spring business has generated successful growth and brand awareness with positive sell throughs in the women's collection generating reorder activity and increased interest for fall.
Fall 2011 launch -- Auri's men's and women's fall collections will be delivered on September 9th at approximately 150 retail locations including Fred Segal, Rubenstein Brothers, The Tannery, and Gary's Newport Beach and Del Mar.
Auri's women's fall collection incorporates 10 patterns in 32 SKU's. Retail prices range from $145-$295. The men's collection features a diverse lineup of casual, dress, and sportswear oriented footwear. The offering consists of 9 patterns in 24 SKU's. Retail prices for the men's line range from $150-$285.
We believe the combination of great styles and unmatched comfort will expand our sales and brand in this large and growing market. A new marketing campaign and appearances at 7 trade shows this fall are expected to produce additional positive momentum in the 4th quarter carrying over in to 2012.
About Auri, Inc.
Auri designs, crafts and markets fashion footwear for men and women, fusing performance engineering, innovative designs and advanced technical materials to provide a new level of luxury in fashion footwear. Crafted with Italian leathers and hand finished details, the products incorporate a seamless fusion of next level technologies with pure style delivering a unique experience of a no compromise style.
Advanced technologies include active suspension systems, compression control, Outlast® temperature regulating linings, Liquicell® ultra-thin liquid-filled interface technology, and encapsulated gel technologies. For more information, please visit .
Safe Harbor Statement
This press release contains certain statements that may include 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believe, expect, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risks and other factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contacts:
Investor Relations:
MZ-HCI
Ted Haberfield
President
Phone: (760) 755-2716
Email:
Web:
Media Contact:
SnL Communications
Marla White
Phone: (310) 996-0239
Email:
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Datum: 17.08.2011 - 11:30 Uhr
Sprache: Deutsch
News-ID 47414
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contact information:
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LAGUNA BEACH, CA
Kategorie:
Apparel
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