EXHIBIT 99
AT THE COMPANY: Daniel D. Viren, Senior Vice President-Finance (614) 864-6400
Roy Youst, Director Corporate Communications (614) 864-6400
FOR IMMEDIATE RELEASE: Tuesday, November 8, 2005
R.G. BARRY CORPORATION REPORTS 3RD QUARTER RESULTS
Slipper Marketer's Performance Improvement Continues Under New Operating Model
PICKERINGTON, Ohio - Tuesday, November 8, 2005 - R.G. BARRY CORPORATION (OTC
BULLETIN BOARD: RGBC) today reported operating results for the third quarter and
nine months ended October 1, 2005.
For the quarter, the Company reported:
- Net sales of $35.4 million, up slightly from net sales of $34.6
million in the third quarter of 2004.
- Net earnings of approximately $4.3 million, or $0.43 cents per
basic share and $0.42 cents per diluted share, compared to a
quarterly net loss of $1.1 million, or $0.11 loss per basic and
diluted share, in the third quarter of 2004. The 2004 quarterly
net loss included restructuring and asset impairment charges of
about $4.2 million related to the Company's phase out of its
manufacturing operations and implementation of a new business
model. Comparable charges in the third quarter this year totaled
$529 thousand.
- Gross profit as a percent of sales improved to 40.4 percent
under the Company's revamped operating model compared to 37.1
percent in the third quarter of 2004.
- Selling, general and administrative expenses declined to
approximately $9.3 million from approximately $9.7 million in
the comparable period of 2004.
For the nine months, the Company reported:
- Net sales of $68.6 million compared to net sales of $67.5
million in the first nine months of 2004.
- Net earnings of approximately $3.3 million, or a $0.33 cents per
basic and diluted share, compared to a net loss of $24.2
million, or $2.46 loss per basic and diluted share, in the
equivalent period of 2004. Included in the 2004 nine-month net
loss were restructuring and asset impairment charges of $16.1
million. Comparable charges in the first nine months this year
totaled approximately $879 thousand.
- Gross profit as a percent of sales for the period also continued
to improve at 40.8 percent, up from 33.1 percent for the first
nine months of 2004.
- Selling, general and administrative expenses declined to
approximately $23.5 million from approximately $29.8 million in
the first nine months of 2004.
"We are encouraged by the improved results and return to profitability reported
today," said Thomas M. Von Lehman, President and Chief Executive Officer. "These
results are directly linked to the successful implementation of our refocused
business model and, we believe they are indicative of the kind of results we are
capable of producing going forward.
"We are continuing to refine our business with an eye toward better serving our
retailing partners and further enhancing the image and reach of the Dearfoams
family of brands. While we are seeking ways to lessen the highly seasonal nature
of our business, our annual results remain highly dependent upon a healthy
holiday sell-through at retail. Entering the 2005 holiday selling season, we
believe we have the products and tools in place to be successful, but the final
result ultimately rests with holiday shoppers in the critical weeks around
Christmas.
"Our overall outlook for 2005 remains unchanged. We expect net sales to be
relatively flat against 2004, and we believe we will end the year profitably,"
Mr. Von Lehman said.
The Company also reported today that it has made application for listing on the
American Stock Exchange. The American Stock Exchange has not yet approved the
Company's listing application, which is subject to numerous qualitative and
quantitative standards.
R.G. Barry Corporation senior management will conduct a conference call for all
interested parties at 1 p.m. EST today. Management will discuss the Company's
performance, its plans for the future and will accept questions from invited
participants. The conference call is available at (888) 530-7880 or (706)
634-1795 until five minutes before starting time. To listen via the Internet, go
to (www.rgbarry.com) at least 15 minutes prior to the scheduled start time to
register, download, and install any necessary audio software.
Replays of the call will be available shortly after its completion. The audio
replay can be accessed through November 15, 2005, by calling (800) 642-1687 or
(706) 645-9291 and using pass code 1837360; or for 30 days by visiting the
Company's Web site at (www.rgbarry.com). A written transcript of the call will
be available for 12 months at the Company's Web site under the "Investors/News
Release" section.
R.G. Barry Corporation, the Dearfoams(R) company, is one of the world's leading
developers and marketers of comfort footwear for at and around the home. The
Company's primary brands include Dearfoams(R) and EZfeet(R). To learn more about
the Dearfoams(R) company, visit our Web sites at (www.rgbarry.com) or
(www.dearfoams.com).
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: The statements in this news release, other than statements of historical
fact, are forward-looking statements, and are based upon information available
to the Company on the date of this release. Our forward-looking statements
inherently involve risks and uncertainties that could cause actual results and
outcomes to differ materially from those anticipated by our forward-looking
statements. Factors that could cause or contribute to such differences include,
but are not limited to, the ability of the Company to continue sourcing products
from outside North America without incurring substantial unplanned costs and
without negatively impacting delivery times or product quality; our ability to
comply with the various terms and covenants of our asset-based lending facility
with CIT Commercial Services; the Company's ability to maintain its inventory
levels in accordance with its plans; the continued demand for the Company's
products by its customers and the continuing willingness of its customers and
suppliers to support the Company; the strength of the retail market, especially
during the holiday selling period; the unexpected loss of key management or one
or more of our key customers; a decision by the American Stock
Exchange that the Company does not meet the listing requirements of that
exchange; and the impact of competition on the Company's market share. Other
risks to the Company's business are detailed in our previous press releases,
shareholder communications and Securities Exchange Act filings including our
Annual Report on Form 10-K for the fiscal year ended January 1, 2005. Except as
required by applicable law, we do not undertake to update the forward-looking
statements contained in this news release to reflect new information that
becomes available after the date hereof.
--tables to follow--
R. G. BARRY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands of dollars, except for per share data)
Thirteen weeks ended Thirty-nine weeks ended
-------------------- -----------------------
October 1 October 2 % Incr. October 1 October 2 % Incr.
2005 2004 (Decr.) 2005 2004 (Decr.)
---- ---- ------- ---- ---- -------
Net Sales $35,436 $34,573 2.5% $68,645 $67,519 1.7%
Cost of Sales 21,112 21,738 -2.9% 40,655 45,138 -9.9%
------ ------ ------ ------
Gross profit 14,324 12,835 11.6% 27,990 22,381 25.1%
Selling, general and
administrative expenses 9,347 9,748 -4.1% 23,540 29,802 -21.0%
Restructuring and asset
impairment charges 529 4,216 -87.5% 879 16,117 -94.5%
--- ----- --- ------
Operating profit (loss) 4,448 (1,129) 494.0% 3,571 (23,538) 115.2%
Other income 139 45 208.9% 229 135 69.6%
Interest expense, net (301) (396) -24.0% (540) (928) -41.8%
----- ----- ----- -----
Income (loss) from continuing
operations before income tax
and minority interest 4,286 (1,480) 389.6% 3,260 (24,331) 113.4%
Income tax (expense) benefit (26) 57 -145.6% (83) (171) -51.5%
Minority interest in income of
consolidated subsidiaries, net
of tax -- (3) -- (12)
-- --- -- ----
Income (loss) from continuing
operations 4,260 (1,426) 398.7% 3,177 (24,514) 113.0%
Earnings from discontinued
operations, net of income taxes 24 314 -92.4% 92 330 -72.1%
---- -- ----
Net earnings (loss) $4,284 ($1,112) 485.3% $3,269 ($24,184) 113.5%
====== ======== ====== =========
Earnings (loss) per common share:
Basic $0.43 ($0.11) $0.33 ($2.46)
===== ====== ===== =======
Dulited $0.42 ($0.11) $0.33 ($2.46)
===== ====== ===== =======
Average number of common shares
outstanding:
Basic 9,878 9,839 9,852 9,839
===== ===== ===== =====
Dulited 10,201 9,839 10,060 9,839
====== ===== ====== =====
</Table>
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
October 1, October 2, January 1,
2005 2004 2005
---- ---- ----
ASSETS:
Cash $1,292 $815 $958
Accounts receivable, net 25,381 25,876 10,141
Assets held for disposal 124 147 --
Inventory 30,018 29,549 20,192
Prepaid expenses 1,430 1,580 1,791
----- ----- -----
Total current assets 58,245 57,967 33,082
------ ------ ------
Property, plant and equipment, at cost 13,013 14,320 13,705
Less accumulated depreciation and amoritzation 10,464 11,211 10,987
------ ------ ------
Net property, plant and equipment 2,549 3,109 2,718
----- ----- -----
Other assets 3,252 3,334 3,292
----- ----- -----
Total assets $64,046 $64,410 $39,092
======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY:
Short-term notes payable 24,207 29,613 4,901
Current installments of long-term debt 770 1,876 1,721
Accounts payable 10,870 8,757 5,200
Accrued expenses 5,109 7,566 6,387
----- ----- -----
Total current liabilities 40,956 47,812 18,209
------ ------ ------
Accrued retirement costs and other 14,137 14,221 15,426
Long-term debt, excluding current installments 604 745 479
--- --- ---
Total liabilities 55,697 62,778 34,114
------ ------ ------
Minority interest -- 391 --
Shareholders' equity, net 8,349 1,241 4,978
----- ----- -----
Total Liabilities and Shareholders' Equity $64,046 $64,410 $39,092
======= ======= =======
</Table>