Talon International, Inc. Reports 2017 Third Quarter and Nine Months Financial Results

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LOS ANGELES, Nov. 14, 2017 (GLOBE NEWSWIRE) -- Talon International, Inc. (OTCQB:TALN), a leading global supplier of zippers, apparel fasteners, trim and stretch technology products, reported financial results for the third quarter ended September 30, 2017.

Revenues for the three months ended September 30, 2017 were $9.8 million, reflecting a decrease of $1.1 million, or 9.8%, as compared to the same period in 2016. Talon Zipper sales were $396,000 lower than the same period in 2016. Talon Trim products, which consist primarily of sales to specialty retail branded customers, decreased by $671,000 compared to the same period in 2016. Both business segments experienced decreased sales to mass merchandising brand customers and specialty retail brands customers. Revenues for the nine months ended September 30, 2017 were $33.8 million, a decrease of 7.6% from the same period in 2016.

“As a management team, we remain committed to our corporate initiatives including innovating new products, offering value-add services to our existing customers, and maximizing new growth opportunities,” stated Larry Dyne, Talon's Chief Executive Officer. “Once again this quarter, we experienced the negative effects of a sluggish brick and mortar retail environment. However, we intend to hold our footprint in the current business, as well as dedicate resources to additional opportunities as the market evolves. Specifically, increasing penetration of ecommerce retailers represents a significant growth opportunity. A positive for us this quarter is that margins have held steady as a result of our concentration on the right mix of product and customers - customers that generally require higher quality and differentiated products and greater customer service. Additionally, we believe we are positioned to quickly adapt and grow in a global apparel environment that is constantly evolving. We have recently received a patent for expandable and flexible shirt collar technology which further displays Talon’s focus on innovation and commitment to bring new garment technology to the apparel market.”

Gross profit for the quarter ended September 30, 2017 was $3.5 million, or 35.4% of sales, compared to $3.8 million, or 35.0% of sales, in the third quarter of 2016. The gross profit decrease is largely attributable to lower sales volumes partially offset by a favorable change in product mix, improved sourcing and lower manufacturing support costs. Gross profit for the nine months ended September 30, 2017 was $12.3 million, or 36.5% of sales, reflecting a decrease of $1.1 million as compared to the same period in 2016. 

Operating expenses for the quarter ended September 30, 2017 were $3.4 million, a decrease of $203,000 from the prior year. Operating expenses consist of sales and marketing and general and administrative expenses. Sales and marketing expenses totaled $1.5 million, a decrease of $404,000 as compared to the same period in 2016, mainly due to lower sales in the quarter, decreased compensation costs, and reduced marketing costs. General and administrative expenses for the quarter totaled $1.9 million, or 19.3% of sales. General and administrative expenses increased $28,000 in the third quarter ended September 30, 2017 as compared to the prior year period due to the offsetting effect of the fraud recovery in 2016, and the net effect of decreased compensation costs and facilities costs with additional IT software and implementation expense in 2017.

Operating expenses for the nine months ended September 30, 2017 were $10.9 million, or 32.3% of sales, compared to $11.1 million, or 30.5% of sales, in the first nine months of 2017. Sales and marketing expenses for the nine months ended September 30, 2017 totaled $4.6 million, a decrease of $404,000 as compared to the same period in 2016. General and administrative expenses for the nine months ended September 30, 2017 totaled $6.4 million, or 18.8% of sales, compared to the prior year of $6.2 million, or 16.9% of sales. The year over year increase was due to the fraud recovery recorded in 2016, which reduced general and administrative expenses in the prior period.

For the quarter ended September 30, 2017, income from operations was $99,000 as compared to $229,000 for the same quarter in 2016. Income from operations for the nine months ended September 30, 2017 was $1.4 million as compared to $2.3 million for the same period in 2016. 

Net loss for the quarter was $78,000 or $0.00 per share as compared to net income of $21,000, or $0.00 per share, for the quarter ended September 30, 2016. Net income for the nine months ended September 30, 2017 was $531,000, a decrease from $1.0 million in the same period in 2016.

Talon International, Inc. is a major supplier of custom zippers and complete trim solutions including ® stretch technology products to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers worldwide. Talon develops, manufactures and distributes custom zippers exclusively under its ® brand (“The World’s Original Zipper Since 1893”); designs, develops, manufactures, and distributes complete apparel trim solutions and products including stretch technology products for specialty waistbands, shirt collars, and other items all under its trademark and world renowned brands, ® and ® to major apparel brands and retailers. Leading retailers worldwide recognize and use Talon products including VF Corporation, American Eagle, Abercrombie and Fitch, Polo Ralph Lauren, Kohl’s, JC Penney, FatFace, Victoria’s Secret, Wal-Mart, Phillips-Van Heusen, Levi Strauss & Co., Express and many others. The company is headquartered in the greater Los Angeles area, and has offices and facilities throughout the United States, United Kingdom, Hong Kong, China, India, Indonesia and Bangladesh.

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on market growth, changing trends in apparel retailing, new product introductions, product innovation, and the Company's ability to execute on its sales strategies, and are generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry, competition and capital requirements. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission including the Company's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:                                                                                 
Talon International, Inc.
Rayna Hernandez
Tel (818) 444-4128
raynah@talonzippers.com

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Globe Newswire: 21:15 GMT Tuesday 14th November 2017

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