Attached files
| file | filename |
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| 8-K - FORM 8-K - Spy Inc. | d8k.htm |
Exhibit 99.1
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Orange 21 Inc.
2070 Las Palmas Drive Carlsbad, CA 92011 PH: (760) 804-8420 FX: (760) 804-8442 www.orangetwentyone.com |
Orange 21 Inc. Reports Financial Results for the Year Ended December 31, 2010 and Announces Investor Conference Call
CARLSBAD, Calif.—(MARKET WIRE)—March 25, 2011. Orange 21 Inc. (OTCBB:ORNG), announced today it released financial results for the year ended December 31, 2010.
Consolidated net sales increased 2% to $35.0 million for the year ended December 31, 2010 from $34.2 million for the year ended December 31, 2009. Our consolidated gross profit increased 21% to $16.8 million for the year ended December 31, 2010 from $13.8 million for the year ended December 31, 2009.
Consolidated net losses of $4.6 million and $3.4 million were incurred for the years ended December 31, 2010 and 2009, respectively. The year ended December 31, 2010 included (1) a $1.4 million loss on the deconsolidation of LEM as a result of the sale of 90% of our equity interest in LEM on December 31, 2010 and (2) $1.2 million in additional direct operating expenses related to the addition of the Margaritaville™ and Melodies by MJB™ eyewear brands for which there have been minimal sales during this period.
“We are pleased with our results for 2010 even though we had substantial direct and indirect additional operating costs related to our two newest brands, Margaritaville™ and Melodies by MJB™, for which there have been minimal sales during this period,” commented Stone Douglass, the Company’s Chief Executive Officer. “Gross margins increased to 48% for the year ended December 31, 2010 from 40% during the comparable period in 2009, aided by more effective sourcing in Asia, and improved operations and a more favorable Euro to U.S. Dollar exchange rate on purchases from our Italian manufacturer, LEM.”
Investor Conference Call
We invite you to join us for an investor conference call on Wednesday, March 30, 2011 at 1:30, p.m. Pacific Time. The dial-in number for the call in North America is 1-866-711-8198 and 1-617-597-5327 for international callers. The participant pass code is 34128218. The call will also 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 March 30, 2011. 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 34116019.
About Orange 21 Inc.
Orange 21 designs, develops, markets and produces premium products for the action sports, motorsports, snowsports and lifestyle markets under the brands Spy Optic™, O’Neill™, Margaritaville™ and Melodies by MJB™.
Safe Harbor Statement
This press release may contain forward-looking statements. Actual events or results may differ materially. Although, we believe that the expectations reflected in any forward-looking statement is 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.
Contact:
Orange 21 Inc.
A. Stone Douglass, Chief Executive Officer
760-804-8420
Fax: 760-804-8442
www.orangetwentyone.com
ORANGE 21 INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Thousands, except number of shares and per share amounts)
| December 31, | ||||||||
| 2010 | 2009 | |||||||
| Assets | ||||||||
| Current assets |
||||||||
| Cash |
$ | 263 | $ | 654 | ||||
| Accounts receivable, net |
4,173 | 5,886 | ||||||
| Inventories, net |
8,902 | 7,759 | ||||||
| Prepaid expenses and other current assets |
618 | 1,036 | ||||||
| Income taxes receivable |
14 | 56 | ||||||
| Total current assets |
13,970 | 15,391 | ||||||
| Property and equipment, net |
957 | 4,892 | ||||||
| Intangible assets, net of accumulated amortization of $631 and $714 at December 31, 2010 and 2009, respectively |
122 | 296 | ||||||
| Other long-term assets |
50 | 92 | ||||||
| Total assets |
$ | 15,099 | $ | 20,671 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities |
||||||||
| Lines of credit |
$ | 2,235 | $ | 3,750 | ||||
| Current portion of capital leases |
27 | 395 | ||||||
| Current portion of notes payable |
13 | 723 | ||||||
| Accounts payable |
1,693 | 5,431 | ||||||
| Accrued expenses and other liabilities |
3,007 | 3,350 | ||||||
| Total current liabilities |
6,975 | 13,649 | ||||||
| Capitalized leases, less current portion |
38 | 812 | ||||||
| Notes payable, less current portion |
61 | 308 | ||||||
| Note payable to stockholder |
7,000 | — | ||||||
| Deferred income taxes |
— | 404 | ||||||
| Total liabilities |
14,074 | 15,173 | ||||||
| Stockholders’ equity |
||||||||
| Preferred stock: par value $0.0001; 5,000,000 authorized; none issued |
— | — | ||||||
| Common stock: par value $0.0001; 100,000,000 shares authorized; 11,980,934 and 11,903,943 shares issued and outstanding at December 31, 2010 and 2009, respectively |
1 | 1 | ||||||
| Additional paid-in capital |
40,972 | 40,515 | ||||||
| Accumulated other comprehensive income |
551 | 874 | ||||||
| Accumulated deficit |
(40,499 | ) | (35,892 | ) | ||||
| Total stockholders’ equity |
1,025 | 5,498 | ||||||
| Total liabilities and stockholders’ equity |
$ | 15,099 | $ | 20,671 | ||||
ORANGE 21 INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except per share amounts)
| Year Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
| Net sales |
$ | 34,987 | $ | 34,238 | ||||
| Cost of sales |
18,235 | 20,399 | ||||||
| Gross profit |
16,752 | 13,839 | ||||||
| Operating expenses: |
||||||||
| Sales and marketing |
9,272 | 7,330 | ||||||
| General and administrative |
7,471 | 7,614 | ||||||
| Shipping and warehousing |
1,103 | 1,040 | ||||||
| Research and development |
1,539 | 1,145 | ||||||
| Total operating expenses |
19,385 | 17,129 | ||||||
| Loss from operations |
(2,633 | ) | (3,290 | ) | ||||
| Other income (expense): |
||||||||
| Interest expense |
(606 | ) | (310 | ) | ||||
| Foreign currency transaction gain |
141 | 330 | ||||||
| Other income (expense) |
84 | (36 | ) | |||||
| Loss on deconsolidation of LEM |
(1,441 | ) | — | |||||
| Total other expense |
(1,822 | ) | (16 | ) | ||||
| Loss before provision for income taxes |
(4,455 | ) | (3,306 | ) | ||||
| Income tax provision |
152 | 101 | ||||||
| Net loss |
$ | (4,607 | ) | $ | (3,407 | ) | ||
| Net loss per share of Common Stock |
||||||||
| Basic |
$ | (0.39 | ) | $ | (0.30 | ) | ||
| Diluted |
$ | (0.39 | ) | $ | (0.30 | ) | ||
| Shares used in computing net loss per share of Common Stock |
||||||||
| Basic |
11,956 | 11,444 | ||||||
| Diluted |
11,956 | 11,444 | ||||||