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Report No. : |
321893 |
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Report Date : |
19.05.2015 |
IDENTIFICATION DETAILS
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Name : |
DANIER LEATHER INC. |
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Registered Office : |
2650 St. Clair Avenue West, Toronto, Ontario M6N 1M2 |
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Country : |
Canada |
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Date of Incorporation : |
1972 |
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Legal Form : |
Public Company |
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Line of Business : |
Subject engaged in designs, manufactures, and retails fashion leather and suede apparel and accessories for women and men |
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No of Employees : |
1,193 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow But Correct |
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Litigation : |
Exist |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Canada |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
CANADA ECONOMIC OVERVIEW
As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the early intervention by the Bank of Canada and the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-14 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela.
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Source
: CIA |
Company name: DANIER LEATHER INC.
Address: 2650 St. Clair Avenue West, Toronto,
Ontario M6N 1M2 – Canada
Telephone: +1
416-762-8175
Fax: +1 416-762-4570
Website: www.danier.com
Corporate ID#: ON-001107739
State: Ontario
Judicial form: Public Company (TSX = DL)
Date incorporated: December
1, 1994
Date founded: 1972
Stock: 2,629,839
shares issued and outstanding (as of 05-17-2015)
Market Value: CAD
8,678,469=
Name of manager: Jeffrey
WORSTMAN
Business:
Danier Leather Inc. designs, manufactures, and retails fashion leather
and suede apparel and accessories for women and men in Canada.
The company offers outerwear and sportswear products, including jackets,
skirts, shirts, pants, sweat shirts, dresses, leggings, tops, minis, joggers,
tanks, T-shirts, sweaters, blouses, blazers, and tunics, as well as provides
applicator clothes, and leather cleaning wipes and rejuvenators.
It also offers leather accessories, such as handbags, wallets, gloves,
scarves, belts, briefcases, laptop cases, and other travel and business
accessories under the Danier brand.
As of August 14, 2014, it operated 90 shopping mall, street-front, and
outlet stores under the Danier brand, as well as danier.com online store.
The company was formerly known as Royal Leather Goods Limited.
Danier Leather Inc. was founded in 1972 and is headquartered in Toronto,
Canada.
Foreign suppliers
include:
XIAMEN ALLIED FASHION IMPORT EXPORT TRADING CO., LTD.
ROOM 812 THE BANK CENTRE, NO.189 XIAHE ROAD CHINA
Staff: 1,193
Operations & branches:
At the headquarters, we
find a factory, warehouse and office, owned.
As of August 14, 2014, it operated 90 shopping mall, street-front, and
outlet stores under the Danier brand.
Shareholders:
The Company is listed with the Toronto Stock Exchange under symbol DL.
The major shareholder is: (50%+)
CDS & CO
25 The Esplanade, CP 1038
Toronto, Ontario M5W 1G5 - Canada
Management:
Jeffrey WORTSMAN has been the Chief Executive Officer of Danier Leather
Inc. since 1997 and its President since 1994.
At Danier Leather, Mr. Wortsman is responsible for store operations,
marketing, logistics, distribution and direct sales. Prior to joining Danier
Leather Inc. in 1986, he was employed by a prominent Canadian investment firm.
He has been a Non-independent Director of Danier Leather Inc., since December
1994. He has been an Independent Director of Chesswood Group Limited since
December 24, 2010. He has been a Trustee of Chesswood Income Fund (also called
as Cars4U.com Ltd.) since 1999.
He served as a Director of Chesswood GP Limited since 1999.
Mr. Wortsman received a Masters Degree in Business Administration and a
Bachelor of Laws Degree from York University and a Bachelor of Arts Degree in
Economics from the University of Western Ontario.
Edwin F. HAWKEN is the Chairman.
Directors include Clare R. COPELAND, Douglas M. MURPHYS, Thomas HAIG and
Stephen I. KAHN.
Brian TATOFF is the CFO.
Subsidiaries
And partnership: Several
On May 8, 2015, Danier Leather Inc. announced unaudited consolidated
earnings results for the third quarter and nine months ended March 28, 2015.
For the quarter, the company announced revenue of CAD 26,295,000
compared to CAD 31,011,000 for the same period a year ago. Loss before income
taxes was CAD 5,476,000 compared to CAD 5,711,000 for the same period a year
ago. Net loss and comprehensive loss was CAD 4,136,000 compared to CAD
4,286,000 for the same period a year ago. Net loss per share, basic and diluted
was CAD 1.07 compared to CAD 1.12 for the same period a year ago. Net cash used
in operating activities was CAD 7,536,000 compared to CAD 7,520,000 for the
same period a year ago. Acquisition of property and equipment was CAD 146,000
compared to CAD 215,000 for the same period a year ago. Acquisition of computer
software was CAD 54,000 compared to CAD 116,000 for the same period a year ago.
LBITDA was CAD 4,651,000 compared to CAD 4,694,000 for the same period a year
ago. Adjusted LBITDA was CAD 4,406,000 compared to CAD 4,225,000 for the same
period a year ago. The decrease in net loss was mainly due to reduced SG&A.
For the nine months, the company announced revenue of CAD 102,577,000
compared to CAD 117,221,000 for the same period a year ago. Loss before income
taxes was CAD 8,701,000 compared to CAD 1,397,000 for the same period a year
ago. Net loss and comprehensive loss was CAD 6,578,000 compared to CAD 983,000
for the same period a year ago. Net loss per share, basic and diluted was CAD
1.71 compared to CAD 0.26 for the same period a year ago. Net cash used in
operating activities was CAD 9,920,000 compared to CAD 4,413,000 for the same period
a year ago. Acquisition of property and equipment was CAD 2,699,000 compared to
CAD 3,840,000 for the same period a year ago. Acquisition of computer software
was CAD 306,000 compared to CAD 1,048,000 for the same period a year ago.
LBITDA was CAD 6,186,000 compared to EBITDA of CAD 1,587,000 for the same
period a year ago. Adjusted LBITDA was CAD 6,415,000 compared to adjusted
EBITDA of CAD 2,254,000 for the same period a year ago. Year-to-date decrease
in revenue mainly relates to the Fall and Winter merchandise assortment which
lacked sufficient quantities of longer length winter-weight leather and
non-leather jackets. The increase in net loss was mainly due to reduced sales
and gross profit dollars.
For the third quarter ended March 31, 2015, the company announced
impairment loss on property and equipment of CAD 516,000 compared to CAD
153,000 for the same period a year ago.
On attachment:
- 10K 2013-2014 (fiscal year ending
- 3rd 10Q 2015
Banks: Canadian Imperial Bank of Commerce
HSBC Bank
Legal filings & complaints:
As of today date, there are several legal filing pending with the
Courts.
Secured debts summary: Several
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 63.55 |
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|
1 |
Rs. 99.86 |
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Euro |
1 |
Rs. 72.67 |
INFORMATION DETAILS
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Analysis Done by
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KRN |
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome
financial difficulties seems comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.