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Jaclyn Reports First Quarter Financial Results and Agreements for Sale of Former Office and Warehouse Facility

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  Published in House and Home on Wednesday, July 14th 2010 at 8:50 GMT by Market Wire
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MAYWOOD, NJ--(Marketwire - July 14, 2010) - Jaclyn, Inc. (OTCQX: [ JCLY ]) today reported financial results for the first quarter ended May 31, 2010.

Net sales for the three-month period ended May 31, 2010 were $35,539,000 compared to $35,406,000 for the three-month period ended May 31, 2009. The Company reported a first quarter net loss of $209,000, or $.08 per diluted share, compared to net earnings of $372,000, or $.16 per diluted share, in last year's comparable quarter.

Jaclyn also announced that on July 9, 2010, the Company and D.R. Mon Group, Inc. entered into agreements for the purchase and sale of real property (the "Real Estate Agreements") relating to the Company's former executive office and warehouse facility, plus one additional lot, located in West New York, New Jersey. Under the Real Estate Agreements, the properties will be purchased for an aggregate purchase price of $4,145,588, of which $1,474,778 is payable in cash at closing, and the remaining amounts are payable by the delivery of a series of two-year promissory notes, which will bear interest at a rate of 5% per annum at the times and for the periods set forth in the notes. The maturity date of one of the notes may be extended for up to one year under certain circumstances. The obligations of the proposed purchaser under the agreements will be guaranteed by the proposed purchaser's owner. The obligations of the proposed purchaser under the promissory notes will be secured by a first priority mortgage on a portion of the properties to be sold by the Company.

The closing of the proposed transaction and the obligations of the proposed purchaser are subject to a number of conditions and contingencies, including, but not limited to: completion by the proposed purchaser of environmental due diligence; termination of all existing subtenancies at the West New York facility; receipt by the proposed purchaser of zoning approvals from the West New York, New Jersey Zoning Board of Adjustment for a number of matters, including the construction and use of the properties as residential housing; the receipt of and closing on required construction and other financing commitments to fund the demolition of the buildings on the West New York property and for the construction of the number of residential housing units the proposed purchaser intends to build; as well as a number of other contingencies and conditions. The closing of the proposed transaction is intended to occur on or before December 31, 2010, although if an appeal of the Zoning Board of Adjustment's approvals is filed, the closing may be extended until March 31, 2011.

Since the completion of any sale of the property is subject to a number of conditions and deliveries, including but not limited to those noted above, there is no assurance that sale of the property will be concluded.

Note: This press release contains information concerning, among other things, our future plans and objectives that are or may be deemed to be forward-looking statements. However, forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause our actual results, trends, performance or achievements, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward-looking statements. Those risks and uncertainties may include, but are not limited to, general economic and business conditions (including the ongoing financial downturn and disruptions in credit markets); competition; potential changes in customer spending; acceptance of our product offerings and designs; the variability of consumer spending resulting from changes in domestic economic activity; a highly promotional retail environment; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates as well as other significant accounting estimates made in the preparation of our financial statements; and the impact of current and potential hostilities in the Middle East and in other geographic areas; as well as other geopolitical concerns. You are urged to consider all such factors. In light of the uncertainty inherent in such forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. We assume no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements

Jaclyn, Inc. is a designer, manufacturer and marketer of apparel, women's sleepwear, infants' and children's apparel, handbags, premium incentives and related accessories. Website: [ www.jaclyninc.com ]

 JACLYN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) First Quarter Ended May 31, ------------------------ 2010 2009 ----------- ----------- Net Sales $35,539,000 $35,406,000 Net (Loss) Earnings $ (209,000) $ 372,000 Net (Loss) Earnings per Common Share-Basic $ (.08) $ .16 Net (Loss) Earnings per Common Share-Diluted $ (.08) $ .16 Weighted Average Number of Shares Outstanding-Diluted 2,409,000 2,267,000