Atnaujinta: 2024.07.04 06:10 (GMT+3)
AS KLEMENTI FINANCIAL RESULTS 12.09.2005
CORRECTED RESULTS FOR THREE MONTHS OF 2005
AS Klementi is a company operating in Estonia in the
field of design, manufacturing, retail sales and
wholesale of apparel. The company has been registered and
operates in Tallinn. The head office of the company is
located at Akadeemia tee 33, Tallinn.
Changes introduced to the interim report for the first
quarter of 2005
The introduction of the new business software, “Microsoft
Axapta”, has proved to be remarkably more arduous and
time-consuming than the timeframe originally planned.
As a result of errors in the conversion of the initial
data regarding inventories from the previous software
programme into the new one, and due to the erroneous set-
up of the programme as regards finances, the accounting
of inventories was incorrect in the 1st quarter. Those
errors were detected and corrected at the end of the
second quarter.
Owing to the errors that had occurred in the set-up of
the business software and in the conversion of data, a
thorough stocktake of inventories was carried out at the
end of the 2nd quarter, on the results of which the
inventories were recorded at their correct and fair
value.
In connection with the foregoing, AS Klementi has
retroactively corrected the performance result for the
1st quarter of 2005, as well as the result for the 2nd
quarter with a view to ensuring the correct accounting of
inventories.
In the Income Statement for the first quarter, changes
were introduced to the rows “Change in inventories” and
“Goods, raw materials and services”, the aggregate effect
of which amounted to EEK 7,140 thousand. Inventories were
reduced by the same amount in the row “Inventories” in
the Balance Sheet prepared as of 31 March 2005. Since the
business software does not allow us to precisely allocate
said corrections to past quarters, the changes made to
the result of the first quarter are to be viewed as the
evaluation of the management rendered on the basis of its
knowledge, and the aggregate effect of the accounting of
inventories on the result of the half-year is set out in
the report for the first half-year. In addition, the cost
of depreciation has been reduced by EEK 55 thousand in
the Income Statement for the first quarter, and the
change is reported in the row “Intangible assets” in the
Balance Sheet prepared as of 31 March 2005.
Results for three months of 2005
The consolidated net sales of the AS Klementi group in
the first quarter of 2005 amounted to EEK 32.2 million
(€2.1 million) and the net loss was EEK 5.6 million (€0.4
million). Sales for the same period in the previous year
amounted to EEK 39.1 million (€2.5 million) and the net
loss was EEK 1.4 million (€0.1 million). Sales decreased
in the first quarter of 2005 by 17.5% compared to the
previous year.
Apparel sales made up 74% of total sales in the first
quarter (80% in the first quarter of 2004). The
percentage of subcontracted production in the sales
structure grew by 5.2% in the first quarter of 2005.
Compared to the same period of the previous year, export
sales decreased by EEK 6.7 million (€0.4 million) in the
first quarter of 2005. The reason for the decline in net
sales lies in a decrease of wholesale to Sweden and
Norway.
Compared to the first quarter of 2004, the relative share
of retail sales grew by approximately 9% in the first
quarter of 2005. Retail sales accounted for nearly 59% of
apparel sales in the first quarter of 2005 (43% in the
first quarter of 2004). Compared to the previous year,
the average retail sales per square metre increased by
nearly 4.4%. As of the end of the first quarter of 2005,
Klementi was using 2,799 square metres of sales area
(compared to 2,356 square metres of retail sales area a
year ago).
Starting from 2005, AS Klementi is focusing more on the
development of retail trade and on the extension of
selling space. At the end of the first quarter, a PTA
store was opened in the Sola Centre in Daugavpils, and at
the beginning of the second quarter in the Mols Centre in
Riga. In conjunction with Mari Koger, an interior
decorator, a new concept for the interior decoration of
PTA stores was developed, which was used for the first
time in the PTA store opened in the Mols Centre in Riga.
Cooperation with large-scale buyers of the subcontracting
service package was started in the first quarter of 2005.
As a result of reorientation of a part of the production
capacity to the sales of finished goods, the company has
succeeded in improving profitability in said sphere.
In 2004, AS Klementi started preparations for development
and introduction in 2005 of a new information system, MS
Axapta. Following full introduction of the software, the
new integrated information system should significantly
improve the speed of obtaining information on
developments in retail trade and statistics of sales, as
well as improve the management of inventories. The
needs of product development were taken into account to a
substantial extent in the development of the information
system. It is also intended to integrate production
management in the single information system during the
second phase of introduction of the software. Cooperation
with the company consulting the introduction of the
software has proved to be more arduous and time-consuming
than the timeframe originally planned, which has hindered
the management of the company and affected the result for
the first quarter.
Compared to the first quarter of 2004, the company’s cash
flow from operating activities has improved by EEK 4.3
million (€0.3 million).
As of 31 March 2005, 456 employees worked for the Group
(499 employees as of 31 March 2004).
Profit analysis
Operating profit for the first quarter of 2005 before
depreciation of fixed assets amounted to EEK 2.6 million
(€0.2 million).
Balance Sheet and ratios
The consolidated Balance Sheet total of AS Klementi was
EEK 101.8 million (€6.5 million) as of 31 March 2005. The
Balance Sheet total has decreased by EEK 4.0 million
(€0.3 million) since the beginning of the year.
Trade receivables have increased by EEK 6.0 million (€0.4
million) when compared to the end of the year due to the
sale of spring season products to wholesale customers.
Compared to the end of the year, the balance of
inventories has decreased in the group by EEK 6.6 million
(€0.4 million) and amounted to EEK 21.6 million (€1.4
million) as of 31 March 2005. Accounts payable have
increased by EEK 0.5 million (€0.03 million) as of the
end of the first quarter of 2005. Total debts decreased
by EEK 1.7 million (€0.1 million) over the first quarter
of 2005.
The main financial indicators and ratios that
characterise the consolidated data of the AS Klementi
group for the first three months of 2005 are as follows:
1st 1st Change
Main financial indicators quarter quarter
2005 2004
Operating income, EEK (in 32 307 39 497 -18.20%
thousands)
Earnings before interests, - 2 597 1 914 - 4 511
taxes, depreciation and
amortisation (EBITDA), EEK (in
thousands)
Margin, % -8.03% 4.84% -
Earnings before interests and - 4 351 12 - 4 363
taxes (EBIT), EEK (in thousands)
EBIT to net sales, % -13.46% 0,03%
Loss for the period, EEK (in -5 640 - 1 368 - 4 272
thousands)
ROA, % - 5.43% -1.16% -
ROE, % -36.52% -4,91% -
Earnings per share (EPS), EEK - 2.90 -0.72 - 2.18
Share of clothes sales in total 74.39% 80.36% -
sales, %
Current ratio 0.56 0.81 -
Quick ratio 0.27 0.37 -
Inventory turnover 1.29 1.34 -
The ratios were calculated as follows:
Return on assets (ROA): Net income / average total assets
Return on equity (ROE): Net income / average equity
capital
Earnings per share (EPS): Net income / average common
shares
Current ratio: Current assets / current liabilities
Quick ratio: (Current assets – inventories) / current
liabilities
Inventory turnover: Net sales / average inventory for the
period
Balance Sheet
Consolidated, unaudited (In thousands)
31.03. 31.03. 31.12. 31.03. 31.03. 31.12.
2005 2004 2004 2005 2004 2004
EEK EEK EEK EUR EUR EUR
ASSETS
Current assets
Cash and bank 1 452 1 778 3 400 93 114 217
Accounts 15 882 24 541 9 906 1 015 1 568 633
receivable
Other short-term 1 593 605 1 706 102 39 109
receivables
Prepaid expenses 1 541 1 375 1 141 98 88 73
Inventories 21 612 34 311 28 255 1 382 2 193 1 806
Total current 42 808 62 610 44 408 2 690 4 002 2 838
assets
Fixed assets
Long-term 955 988 955 61 63 61
financial
investments
Tangible assets 51 454 59 459 52 896 3 288 3 800 3 381
Intangible assets 7 326 6 997 7 574 468 447 484
Total fixed 59 735 67 444 61 425 3 814 4 310 3 926
assets
TOTAL ASSETS 101 815 130 054 105 833 6 507 8 312 6 764
OWNERS’ EQUITY
AND LIABILITIES
Current
liabilities
Debt obligations 54 167 53 007 43 183 3 462 3 388 2 760
Customer 221 26 223 14 2 14
prepayments
Accounts payable 9 726 12 168 9 189 622 778 588
Other payables 68 142 - 4 9 -
Tax liabilities 2 363 3 975 1 399 151 254 89
Accrued expenses 8 346 6 971 7 747 533 445 495
Short-term 12 803 12 1 51 1
provisions
Total current 74 903 77 092 61 753 4 787 4 927 3 947
liabilities
Long-term
liabilities
Long-term debt 13 547 21 283 26 219 866 1 360 1 676
Other long-term 25 3 363 25 2 215 2
payables
Long-term 146 68 148 9 5 9
provisions
Total long-term 13 718 24 714 26 392 877 1 580 1 687
liabilities
Total liabilities 88 621 101 806 88 145 5 664 6 507 5 634
Owners’ equity
Share capital 19 469 18 969 18 969 1 244 1 212 1 212
Issue premium 40 994 40 294 40 294 2 621 2 575 2 575
Revaluation 13 876 15 578 13 876 887 995 887
reserve
Other reserves 1 046 1 046 1 046 67 67 67
Retained earnings-56 636 -46 439 -44 735 - 3 620 -2 968 -2 859
Unrealised 85 168 139 5 11 9
foreign exchange
differences
Net income for - 5 640 -1 368 -11 901 - 361 -87 -761
the financial
year
Total owners’ 13 194 28 248 17 688 843 1 805 1 130
equity
TOTAL OWNERS’ 101 815 130 054 105 833 6 507 8 312 6 764
EQUITY AND
LIABILITIES
Income Statement – 1st quarter
Consolidated, unaudited (In thousands)
2005 2004 2005 2004
1st 1st 1st 1st
quarter quarter quarter quarter
EEK EEK EUR EUR
Operating income
Net sales 32 218 39 056 2 059 2 496
Other operating income 89 441 6 28
Total operating income 32 307 39 497 2 065 2 524
Operating expenses
Change in inventories 5 974 1 910 382 122
Materials, raw materials and 10 528 16 640 673 1 063
services
Other operating expenses 6 890 6 882 440 440
Labour 11 512 11 676 736 746
Other operating expenses - 475 - 30
Total operating expenses 34 904 37 583 2 231 2 401
EBITDA - 2 597 1 914 - 166 123
Depreciation 1 754 1902 112 122
Earnings - 4 351 12 - 278 1
Financial income and
expenses
Interest expenses -1 066 -1 439 -68 -92
Foreign exchange gain (loss -93 44 -6 3
Other financial income and -130 15 -9 1
expenses
Total financial income and - 1 289 -1 380 -83 -88
expenses
Net income (loss) - 5 640 - 1 368 - 361 -87
Earnings per share
Basic earnings per share - 2.90 -0.72 -0.19 -0.05
(EEK/EUR)
Diluted earnings per share - 2.90 -0.72 -0.19 -0.05
(EEK/EUR)
Toomas Leis
CEO of AS Klementi
tel.+372 6 710 700
Schema