RETAIL HOLDINGS N.V. 
By Retail Holdings N.V. (Pink Sheets: RHDGF)
Retail Holdings N.V. ("ReHo" or the "Company") announced today improved
results for the six months ended
2008 First Half Results
The Company's improved consolidated results for the first half of 2008
reflect continuing profitable growth at the Company's retail operating units
in
For the six months ended
The Company's revenue for the first six months of 2008 includes
Gross profit for the six months ended
Selling and administrative expense for the six months ended
Operating profit for the six months ended
Interest expense was
Equity earnings from operating affiliates were
Royalty expense was
Miscellaneous other income was
Provision for income taxes amounted to
Minority interest share in income was
The net income available to Common Share was a profit of
Chairman's Comments
Commenting on the first half results,
"Fortunately, the Company's results have so far been largely unaffected by the current economic challenges. With an extensive distribution network, strong product offering and dedicated team, the Company has been able to grow revenue profitably despite the pressures on our customers from rising fuel and food prices and a weakening economic outlook. Nevertheless, we should be prepared for some slowdown in growth in the coming months.
"ReHo's strategy remains unchanged. The Company will seek to grow and
enhance the profitability of Singer Asia and ultimately to monetize our stake
in Singer Asia and the Company's other assets, with the medium-term objective
of liquidating the Company and distributing the resulting funds and any
remaining assets to our shareholders. Consistent with this strategy, the
Company initiated a dividend program during 2007, paying a special dividend of
About Retail Holdings
The Company is a holding company with three principal assets: 1) a 56.8%
equity interest in Singer Asia Limited, ("Singer Asia"), a distributor of
consumer durable products in selected emerging markets in
The Company is a
Price quotations for the Company's shares are available on the "Pink Sheets" quotation service under the symbol "RHDGF". Brokers should be able to continue trading ReHo's shares using the "Pink Sheets" quotation service as long as the Company is current in submitting to the U.S. Securities and Exchange Commission the materials that it makes available to its shareholders or is required to file under its own country jurisdiction. Even to the extent that quotations on the "Pink Sheets" service continue, there is no assurance that there will be adequate liquidity or that there will not be wide swings in prices and significant differences between "bid" and "asked" prices, which will make trading difficult and could cause prices for the Company's shares to deviate substantially from their theoretical inherent value.
Additional financial and other information about the Company, including: a
copy of ReHo's audited consolidated financial statements for the twelve months
ended
Statements made herein with respect to the Company's current plans,
estimates, strategies and beliefs and other statements that are not historical
facts are forward-looking statements about the future performance of the
Company. Forward-looking statements include, but are not limited to, those
using words such as believe, expect, anticipate, plans, strategy, prospects,
forecast, estimate, project, may or might, and words of similar meaning in
connection with a discussion of future operations, financial performance,
financial position, capital resources, and strategy and plans and objectives
of management. From time to time, oral or written forward-looking statements
may also be included in other materials released to the public. These
statements are based on management's assumptions and beliefs which are
expressed in light of the information available to management at the time. The
ultimate outcome in many cases is outside the Company's control. The Company
cautions you that no assurance can be given that expectations reflected in
such forward-looking statements will prove to have been correct, that a number
of important risks and uncertainties could cause actual results to differ
materially from those discussed in the forward-looking statements, and,
therefore, you should not rely on any obligation of the Company to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. The Company disclaims any such obligation. Risks
and uncertainties that might affect the Company include, but are not limited
to: general economic conditions, particularly in
For further information, please contact Amy Pappas at (914) 241-3404.
RETAIL HOLDINGS N.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2008 (Unaudited) AND DECEMBER 31, 2007 (Audited)
(in thousands of U.S. dollars, except Share data)
(Unaudited) (Audited)
June 30, December 31,
Notes 2008 2007
ASSETS:
Current assets:
Cash and cash equivalents $22,097 $24,835
Accounts receivable 3 115,388 109,646
Inventories 4 60,532 56,503
Other current assets 22,524 17,359
Total current assets $220,541 $208,343
Investment in affiliates 4,816 8,053
Installment receivables due
in excess of one year 27,125 23,820
Property, plant and equipment 30,137 28,851
Goodwill and intangible assets 16,043 15,693
Other assets 5 30,537 26,949
Total assets $329,199 $311,709
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Notes and loans payable 6 $83,268 $70,261
Current portion of long-term debt 33,331 25,483
Accounts payable 21,642 21,666
Accrued liabilities 20,530 21,476
Total current liabilities 158,771 138,886
Long-term debt, excluding
current portion 7 30,075 40,061
Other non-current liabilities 19,038 15,013
Minority interest 44,142 42,753
Total liabilities 252,026 236,713
SHAREHOLDERS' EQUITY: 8
Common Shares, $0.01 par value,
authorized 20,000,000 shares;
issued and outstanding 5,166,766
in 2007 and 5,268,266 in 2008 53 51
Additional paid-in capital 86,438 86,035
Deficit (5,106) (7,158)
Accumulated other comprehensive loss (4,212) (3,932)
Total shareholders' equity 77,173 74,996
Total liabilities and
shareholders' equity $329,199 $311,709
RETAIL HOLDINGS N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (Unaudited)
(in thousands of U.S. dollars, except Share data)
Six Months Six Months
ended ended
June 30, 2008 June 30, 2007
REVENUES $155,537 $133,429
COST OF REVENUES 96,909 79,014
Gross profit 58,628 54,415
SELLING AND ADMINISTRATIVE EXPENSES 45,307 52,667
Operating income 13,321 1,748
OTHER INCOME (EXPENSE):
Interest expense (9,704) (8,338)
Equity in earnings from affiliates 689 872
Royalty expense (1,555) (1,334)
Other, net 4,047 2,436
Other income (expense), net (6,523) (6,364)
Income/(Loss) before provision for
income taxes and minority interest 6,798 (4,616)
PROVISION FOR INCOME TAXES 2,105 2,528
MINORITY INTEREST SHARE IN INCOME/(LOSS) 2,641 (5,253)
NET INCOME/(LOSS) $2,052 $(1,891)
Earnings/(Loss) per Common Share - basic $0.39 $(0.37)
Earnings/(Loss) per Common Share - diluted $0.39 $(0.37)
Basic weighted average Common
Shares outstanding 5,185,277 5,112,758
Diluted weighted average
Common Shares outstanding 5,283,730 5,230,312
SOURCE Retail Holdings N.V.
