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Tatyana Designs Reports First Quarter 2013 Results

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LAS VEGAS, May 1, 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 first 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 months ended March 31, 2013:

  • Net sales increased 71% to $3.1 million from the $1.8 million during the comparable three months of 2012.
  • Bettie Page Boutique sales increased 85% and comparable boutique sales increased 28%.
  • E-commerce sales increased 94% to $369,000.
  • The number of Company owned Bettie Page Boutiques increased from eleven at December 31, 2012 to thirteen at March 31, 2013. Two more boutiques are scheduled to open in Q2.
  • Wholesale sales to other boutiques increased 16% to $473,000.
  • Gross profit remains strong at over 70% of sales.
  • Generated $158,000 in cash from operating activities -- increased inventories and related deposits by $65,000 to support boutique openings and wholesale and e-commerce growth.
  • As a direct result of absorbing startup expenses for two new boutiques, non-cash deferred rent of $156,000 and building infrastructure for 2013 growth, the Company reported a small net loss from operations of $11,000 in Q1.

The Company ended the quarter at March 31, 2013 with $824,000 cash, working capital of $1.8 million and inventory and inventory deposits of $3.0 million. The Company financed its growth during the first quarter from operations along with $196,000 of working capital bank financing.

"We delivered a very strong first quarter with dramatic sales growth from expanding our boutique base, growing comparable boutique sales and expanding our wholesale and e-commerce divisions," stated Jan Glaser, co-CEO and treasurer of Tatyana Designs, Inc. "We absorbed significant new boutique startup expenses in Q1 including a $156,000 non-cash increase in deferred rent. We also expanded our infrastructure to prepare for additional growth in 2013. We anticipate the Q1 investments we made in inventory, leasing and infrastructure, in advance of our typically busy spring and summer season, will result in continued sales growth and a profitable 2013."

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)
March 31, December 31,
2013 2012
$ $
ASSETS
Current
Cash 824 608
Inventories 2,816 2,553
Receivables and other 265 410
Total current assets 3,905 3,571
Property and equipment, net 584 491
Deferred income taxes 206 179
Deposits 394 364
Total assets 5,089 4,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable and accruals 1,089 948
Bank debt 468 272
Due stockholder 533 541
Total current liabilities 2,090 1,761
Deferred rent 877 721
Bank debt - long term 297 305
6% Convertible notes 300 300
Stockholder debt - long-term 500 500
Total liabilities 4,064 3,587
Stockholders' equity 1,025 1,018
Total liabilities and stockholders' equity 5,089 4,605
Tatyana Designs, Inc.
Condensed Consolidated Statements of Operations
(000's omitted except per share amount)
(unaudited)
Three Months Ended
March 31, March 31,
2013 2012
$ $
Net sales 3,131 1,831
Cost of revenues 818 496
Gross profit 2,313 1,335
Selling, general and administrative 2,324 1,154
Income from operations (11) 181
Other expenses 9 25
Income before income tax (20) 156
Income tax benefit (5) --
Net income (15) 156
Basic and diluted earnings per common share ($0.00) $0.02
Weighted average shares outstanding:
Basic and diluted shares 11,935 10,000
Pro forma net income data:
Income before income tax expense 154
Pro forma adjustments for income tax expense 59
Pro forma net income 95
Pro forma basic and diluted earnings per common share $0.01

CONTACT: Jan Glaser 702.458.1632 Ext 5

Source:Tatyana Designs, Inc.