SPY Inc. Announces Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Full Year 2014
For the nine months, the company's sales were $28.4 million in 2014, a decrease of 2.7% or $0.8 million less than from the sales of $29.154 million in the first nine months of 2013. Sales included lower closeout sales of $1.2 million in 2014, compared to $2.0 million in 2013. The decrease in Net Sales were primarily driven by an overall decline in the consumer market coupled with several key retailers currently holding lower levels of inventory and fewer closeout sales of the company's sunglass products. Income from operations remained constant and was $0.8 million and $0.8 million for the nine months ended in 2014 and 2013. Loss before provision for income taxes was $1.501 million against $1.597 million a year ago. Net loss was $1.504 million or $0.11 per diluted share against $1.597 million or $0.12 per diluted share a year ago.
Provided earnings guidance for the full year 2014, forecast is now for annual sales in the range of $38 million and continued improvement in gross margin rate. From a product perspective, the company anticipates the growth to come primarily from prescription frames and goggles, primarily driven by snow. For the full year, the company now expects the annual operating expenses in the range of $18 million to $18.5 million, which if achieved, will result in an annual operating profit of between $500,000 and $1 million.