Tatyana Designs Reports Third Quarter 2013 Results

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LAS VEGAS, Nov. 6, 2013 (GLOBE NEWSWIRE) -- Tatyana Designs, Inc. (the "Company") (OTC Pink:TATD), a growing designer, manufacturer and retailer of vintage inspired contemporary designs, today posted financial results for the third quarter of 2013. The Company owns significant trademarks and license rights, the most prominent being the exclusive license for dresses and retail stores carrying the moniker of the iconic Bettie Page.

For the three and nine months ended September 30, 2013:

  • Net sales increased in Q3 by 50% to $4.3 million from $2.8 million during Q3 of 2012. Net sales for the nine months ended September 30, 2013 increased 54% to $11.1 million.
  • Bettie Page Boutique sales increased 63% in Q3 and 73% in the first nine months of 2013. Comparable boutique sales increased 14% during the first nine months of 2013.
  • E-commerce sales increased 44% to $951,000 in the first nine months of 2013.
  • Adjusted EBITDA for the first nine months of 2013 was $480,000 (see discussion below and accompanying table for non-GAAP measures) and the Company generated $535,000 in cash from operating activities.
  • Selling, general and administrative costs increased due to the significant increase in the national scope of operations with boutiques in twelve states. Results for 2013 included officer salaries whereas the prior year had no comparable officer salaries prior to August 2012 as prior year results to that date were taxable to the member and treated as distributions.
  • The number of Company owned Bettie Page Boutiques increased from eleven at December 31, 2012 to sixteen at September 30, 2013.

The Company ended the quarter at September 30, 2013 with $825,000 cash, working capital of $1.6 million and inventory and inventory and deposits of $2.9 million. The Company financed its growth during 2013 from operations along with $196,000 of working capital bank financing.

"We continue to see strong growth and positive financial performance from an expanded boutique base, growing comparable boutique sales and growth in our e-commerce division," said Jan Glaser, co-CEO and treasurer of Tatyana Designs, Inc. "We absorbed significant new boutique startup expenses including a $326,000 non-cash increase in deferred rent. We also expanded our infrastructure to prepare for additional growth in 2014. We are generating cash from operations to support growth and we are optimistic about the balance of the year and 2014."

Non-GAAP Information - This press release includes non-GAAP EBITDA and Adjusted EBITDA (adjusted for non-cash deferred rent) each a non-GAAP financial measure. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in tables accompanying this release. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company's business as it grows. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. The Company has provided this information as a means to evaluate the results of its ongoing operations. Other companies in the Company's industry may calculate these items differently than it does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

About the Company - Based in Las Vegas, Nevada, Tatyana Designs, Inc. is a growing retailer specializing in contemporary designs inspired by the 1940's and 50's – the "Golden Age" of fashion. The Company owns significant trademark and license rights, the most prominent being the exclusive license for dresses and retail stores carrying the moniker of the iconic Bettie Page. The merchandise offered through the boutiques, e-commerce and wholesale divisions offer a diverse mix of high-quality and attractively priced apparel, jewelry, accessories and gifts. Bettie Page Boutiques and e-commerce target the 18-35 year-old, fashion conscious female customer, but women of all ages are attracted to the unique retro inspired, yet modern, look. New product styles are presented monthly. For more information on the company please visit the Web site at www.tatyanadesigns.com.

Trademark Information: Bettie Page is a trademark registered to Bettie Page, LLC (www.BettiePage.com) and licensed for use by the Company. All other trade names are either trademarks or registered trademarks of their respective holders.

Cautionary note on forward-looking statements:

Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brand; possible inability to successfully implement our growth strategies or manage our growing business; possible inability to successfully open new boutiques as planned; and possible inability to sustain levels of comparable-boutique sales. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to the Company's most recent public corporate documents and risk factors discussed therein (www.otcmarkets.com/stock/TATD/filings). We undertake no obligation to publicly update or revise any forward-looking statement. Future results may differ materially from the Company's current expectations.

Tatyana Designs, Inc.
Condensed Consolidated Balance Sheets
(000's omitted except per share amount)
(unaudited)
September 30, December 31,
2013 2012
$ $
ASSETS
Current
Cash 825 608
Inventories 2,576 2,553
Receivables and other 529 410
Total current assets 3,930 3,571
Property and equipment, net 738 491
Deferred income taxes 295 179
Deposits 427 364
Total assets 5,390 4,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable and accruals 1,323 948
Bank debt 520 272
Due stockholder 457 541
Total current liabilities 2,300 1,761
Deferred rent 1,047 721
Bank debt - long term 185 305
6% Convertible notes 300 300
Stockholder debt - long-term 500 500
Total liabilities 4,332 3,587
Stockholders' equity 1,058 1,018
Total liabilities and stockholders' equity 5,390 4,605
Tatyana Designs, Inc.
Condensed Consolidated Statements of Operations
(000's omitted except per share amount)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
$ $ $ $
Net sales 4,255 2,827 11,144 7,248
Cost of revenues 1,496 838 3,183 2,114
Gross profit 2,759 1,989 7,961 5,134
Selling, general and administrative 2,848 1,958 7,934 4,525
Income (loss) from operations (89) 31 27 609
Other expenses 9 4 53 42
Income before income tax (98) 27 (26) 567
Income tax expense (benefit) (30) (159) 3 (159)
Net income (loss) (68) 186 (29) 726
Basic and diluted earnings per common share ($0.01) $0.02 ($0.00) $0.07
Weighted average shares outstanding:
Basic and diluted shares 11,935 11,146 11,935 10,381
Pro forma net income data:
Income before income tax expense 567
Pro forma adjustments for income tax expense 203
Pro forma net income 364
Pro forma basic and diluted earnings per common share $0.03
Tatyana Designs, Inc.
GAAP to Non-GAAP Reconciliations
(000's omitted)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
$ $ $ $
Reconciliation of net income (loss) to EBITDA:
Net income (loss) (68) 186 (29) 726
Adjustments:
Interest 9 28 65 66
Depreciation 45 26 115 62
Taxes (30) (159) 3 (159)
EBITDA (44) 81 154 695
Reconciliation of net income (loss) to Adjusted EBITDA:
Net income (loss) (68) 186 (29) 726
Adjustments:
Interest 9 28 65 66
Depreciation 45 26 115 62
Taxes (30) (159) 3 (159)
Non-cash increase deferred rent 89 135 326 212
Adjusted EBITDA 45 216 480 907

CONTACT: Jan Glaser 702.458.1632 Ext 5

Source:Tatyana Designs, Inc.