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  • Undervalued Micro Cap
    TALN

     

    Talon International, Inc.About Talon

    The Talon© product and brand originated with the inventor of the zipper in the mid 1800's, and for decades throughout most of the 20th Century the Talon brand and zipper has remained a household name. Although corporate ownership of the company changed over time, the company's dedication to and development of superior quality products has remained. In 1996 Tag-It Pacific, Inc. acquired Talon, and in 2007 Tag-It Pacific changed its corporate name to Talon International, Inc.

    Talon is a major supplier of quality apparel accessories, including its quality zippers, trim and interlining products to virtually all of the major national retailers throughout the U.S. including brands such as Wal-Mart, J.C. Penney, Kohl's, Gerber, Sears, Babies-R-Us, Abercrombie & Fitch, American Eagle, Express, Victoria Secret, Polo Ralph Lauren, Juicy Couture, BCBG, Chico's, and more.

    Talon operates its business from its headquarters in Woodland Hills, CA (part of the greater Los Angeles area), with regional offices located in Ohio, New York, North Carolina, Hong Kong, Shenzhen, Shanghai, Taipei, India, and Bangladesh. Talon manufactures its products through a controlled network of joint manufacturing arrangements with select Southeast Asia manufacturing partners. These carefully selected and monitored manufacturing facilities substantially dedicated their facilities to Talon and provide dyeing, chain manufacturing and final assembly services under the direct supervision of Talon production control and quality control engineers that are on-site at each facility. All raw materials used have been specified by Talon, all of the manufacturing processes and controls have been approved by Talon, and in many cases the manufacturing equipment has been supplied by Talon. These manufacturing partners join with Talon in producing the highest quality products in accordance with the specifications set out by Talon and its customers. To ensure continuous product and quality consistency, and to protect the Talon and customer brands, Talon carefully controls the manufacturing of key components such as custom sliders, pulls and tape components within a few select factories. These factories then supply these components to Talon's other manufacturing partners who complete the coloring, assembly, testing and inspection of the final product, delivering the finished product directly to the garment manufacturer.

    Each of Talon's manufacturing partners has a full organization of quality control and inspection engineers, and each facility is continuously monitored by Talon's on-site quality control inspectors, as well as our regional Compliance teams, and Brand Integrity teams that ensure the factories strictly follow the manufacturing methodologies, material controls, production processes and inspection and testing specifications Talon dictates. Talon places product quality and safety first among its manufacturing priorities and backs this commitment up with an extensive investment in quality and compliance control within its factories and its corporate organization.

    Talon's comprehensive network of quality manufacturing facilities and full vertical management of all aspects of the supply chain within these partner facilities is a proved business operation strategy that is commonplace in many other industries in the consumer products market. This strategy provides Talon the strength and flexibility to serve our customers at the lowest local level, to demand the highest levels of compliance and control providing not only superior products, but prompt and flexible delivery schedules to our customers. Numerous major retail brands worldwide, recognizing Talon's commitment to quality and service, honor Talon as a preferred supplier of choice in their programs.

    Talon International, Inc. (OTCQB: TALN), a leading global supplier of zippers, apparel fasteners, trim and interlining products, reported financial results for the quarter and nine months ended September 30, 2012.

    Highlights

    -- Third Quarter 2012 sales increase 20% over same period in 2011.-- Gross profit margin for the Third Quarter 2012 up 2.2 percentagepoints from 2011.

    Financial Results

    Total sales for the third quarter ended September 30, 2012 were $11.3 million; rising 20% or $1.9 million more than the same period in 2011. Zipper product sales for the quarter ended September 30, 2012 were $5.7 million as compared to $5.0 million for the same quarter in 2011, and Trim product sales for the quarter ended September 30, 2012 were $5.5 million as compared to $4.4 million for the same quarter in 2011. Total sales for the nine months ended September 30, 2012 were $33.2 million; an increase of $1.8 million or 5.8% compared to the same period in 2011. Zipper product sales for the nine months ended September 30, 2012 were $17.1 million as compared to $17.8 million for the same period in 2011, and Trim product sales for the nine months ended September 30, 2012 were $16.1 million as compared to $13.6 million for the same period in 2011. "We are very pleased with the sales gains achieved this quarter and year to date," noted Lonnie Schnell, Talon's CEO. "The sales gains evidence the important strategic wins we continue to achieve as we target bringing new nominations of image-driven and performance active specialty brands to our roster of marquee customers, and as we further our expansion within the European marketplace," Lonnie Schnell continued.

    Gross profit for the quarter ended September 30, 2012 was $3.7 million or 32.3% of sales as compared to $2.8 million, or 30.1% of sales for the same quarter in 2011, an increase of $0.8 million and 2.2 percentage points. Gross profit for the nine months ended September 30, 2012 was $10.8 million, or 32.5% of sales, as compared to $9.8 million, or 31.2% of sales for the same period in 2011, an increase of $1.0 million or 1.3 percentage points. The gross profit increases for the quarter and nine months ended September 30, 2012 as compared to the same period in 2011 were principally attributable to increased sales, an improved mix of higher-margin trim product sales, and a greater mix of sales to specialty retailers as opposed to mass merchandisers.

    Operating expenses for the third quarter of 2012 and 2011 were $3.3 million and $3.0 million, respectively. Operating expenses for the first nine months of 2012 and 2011 were $9.9 million and $9.2 million, respectively. The increases in operating spending were associated with additions to our internal sales force and expanding our sales presence in Europe; non-operational professional and advisory fees; and higher legal costs associated with our efforts to secure patent and trademark rights worldwide. These spending increases were partially offset by lower overall net compensation costs. Sales and marketing expenses for the quarter ended September 30, 2012 were $1.2 million as compared to $1.1 million for the same quarter in 2011. Sales and marketing expenses for the first nine months of 2012 were $3.5 million; an increase of $0.4 million over for the same period in 2011. General and administrative expenses for the quarter ended September 30, 2012 totaled $2.1 million compared to $1.8 million for the same period in 2011. General and administrative expenses for the nine months ended September 30, 2012 totaled $6.4 million, reflecting an increase of $0.3 million over the same period in 2011.

    Provision for income taxes, net for the three months ended September 30, 2012 was $182,000, as compared to benefit from income taxes, net of $57,000 for the same period in 2011. For the nine months ended September 30, 2012 provision for income taxes was $176,000 as compared to $357,000 for the same period in 2011. The provision for income taxes, net for the nine months ended September 30, 2012 included the reversal of a potential tax liability of $196,000 established in 2007 for foreign tax positions that might have been subject to reversal upon a regulatory review. During the first quarter of 2012, the time limit for assessment of the tax liability expired and the liability was removed.

    The net income for the quarter ended September 30, 2012 was $187,000 as compared to a net loss of $126,000 for the same quarter in 2011. The net income for the nine months ended September 30, 2012 was $652,000 as compared to a net income of $129,000 for the same period in 2011.

    TALN Is poised to make Investors a nice return from its current price of .049 cents per share. The OTCBB market may be full of scams and would be companies but TALN is not among that crowd.

    TALN stand well above the riff raff the dots the OTCBB Markets and offers astute investors a chance to realize Great Profits in 2013 as Talon Industries continues to Grow.

    For More information on TALN and other OTCBB Stocks like this visit and Join our Community of Investors for updated information and alerts on Many Stocks like TALN.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCQB:TALN over the next 72 hours.

    Jan 01 9:49 AM | Link | Comment!
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