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OmniaLuo Reports Record Annual Revenue of $7.9 Million SHENZHEN, CHINA--(MARKET WIRE)--Mar 31, 2008 -- OmniaLuo, Inc. ("OmniaLuo" or the
"Company") (OTC BB:OLOU.OB - News), a China-based company engaged
in the business of
designing, developing, marketing and distributing fine women's
apparel
under the brand name OMNIALUO, has announced operating results
for the
quarter and year ended December 31, 2007.
OmniaLuo reported revenue of approximately $2.7 million for the quarter ended December 31, 2007, compared to approximately $1.5 million for the quarter ended December 31, 2006 -- an 80% increase. OmniaLuo reported revenue of approximately $7.9 million for the year ended December 2007. Since the Company was incorporated on August 11, 2006 and only began sales in the fourth quarter of 2006, a year-on-year comparison is not meaningful. The increase in revenue was attributable to the increase in the number of retail stores from 84 at year end 2006 to 184 at year end 2007. OmniaLuo also reported operating income of approximately $0.5 million for the quarter ended December 31, 2007, compared to approximately $0.5 million for the quarter ended December 31, 2006. OmniaLuo reported operating income of approximately $1.2 million for the year ended December 31, 2007. Excluding approximately $1.0 million of charges associated with its 2007 reverse acquisition through a share exchange with Wentworth II, Inc. and private placement transactions, OmniaLuo would have reported operating income of approximately $2.2 million for the year ended December 31, 2007. OmniaLuo reported net income of approximately $0.5 million for the quarter ended December 31, 2007, compared to net income of approximately $0.4 million for the quarter ended December 31, 2006 -- a 25% increase. The Company reported a net loss of approximately $1.1 million for the year ended December 31, 2007. Excluding approximately $1.0 million of charges associated with its 2007 reverse acquisition through a share exchange with Wentworth II, Inc. and private placement transactions and $2.3 million of non-cash charges arising from the return of escrowed shares from escrow to the Company's chief executive officer and another stockholder (explained below), OmniaLuo would have reported net income of approximately $2.2 million for the year ended December 31, 2007. Pursuant to the terms of a "make good provision" in the 2007 $6.15 million private placement transaction, the chief executive officer and another stockholder placed approximately 4.5 million shares into escrow and agreed to return up to 50% of the shares to investors who participated in the private placement transaction if the Company failed to report net income of at least $2.0 million before adjustments for charges related to the reverse acquisition and private placement transactions. However, the Company achieved its stated goals and met the threshold; thus, 50% of the shares are being returned to the chief executive officer and the other stockholder. Based on the weighted average number of shares outstanding of approximately 21,993,753 as of December 31, 2007, OmniaLuo reported a loss of approximately $0.05 per share for the year ended December 31, 2007. Excluding approximately $1.0 million of charges associated with its 2007 reverse acquisition through a share exchange with Wentworth II, Inc. and private placement transactions and $2.3 million of non-cash charges arising from the previously described return of escrowed shares, OmniaLuo would have reported earnings of approximately $0.10 per share for the year ended December 31, 2007. As of December 31, 2007, a total of 28,544,752 shares of common stock were issued and outstanding on a fully diluted basis included: 1) 22,840,000 issued and outstanding shares, 2) 4,920,000 shares issuable upon exercise of private placement investor warrants, 3) 492,000 shares issuable upon exercise of placement agent warrants and 4) 292,752 shares issuable upon exercise of venture capital investor warrants. "This past year has been one of many milestones for our Company," stated Chairwoman and CEO Cindy Luo. "We opened an additional 100 retail stores, achieved a U.S. public quotation, completed a $6.15 million PIPE transaction, and most importantly, hit our projected 2007 revenue figure of $7.9 million and adjusted net income figure of $2.2 million. And while we have grown quickly in the last year, most of our strategic growth is still before us -- we will open many additional retail stores throughout China and plan to bring the total store count to more than 250 by year-end 2008. As we continue to achieve our financial goals we will begin to focus on international expansion into the U.S. and Southeast Asia. We have now established a profitable platform upon which we can build a high-growth future," concluded Ms. Luo. Earnings Conference Call OmniaLuo will host a conference call on Tuesday, April 1, 2008 to review fourth quarter and full year 2007 earnings results. The conference call is scheduled for 9:00 a.m. Eastern Time. To participate in the call, please dial:
- U.S. and Canada: 1 (888) 241-0558
- International: 1 (647) 427-3417
- Conference ID: 41095127A replay of the call will be available 24 hours after completion of the call. You will be able to access it at any time through the OmniaLuo Website at http://ir.omnialuoinc.com, or by phone until May 1, 2008. To access the replay by phone, please dial:
- U.S. and Canada: 1 (888) 214-7699
- International: 1 (402) 220-1554
- Conference ID: 41095127About OmniaLuo, Inc. OmniaLuo, Inc. (ir.omnialuoinc.com), based in China's fashion capital of Shenzhen, is in the business of designing, developing, marketing and distributing fine women's apparel under the brand name OMNIALUO. OMNIALUO's apparel embodies elegance, femininity and sophistication for China's rapidly growing class of urban and affluent female professionals. With its rapid and strategic expansion plan, OMNIALUO plans to increase its retail presence throughout China from its current 187 stores to more than 250 stores by year end 2008. Under the leadership of Cindy Luo, the Company's founder and award winning chief designer, OMNIALUO is positioned to become the Chinese brand equivalent of Donna Karan or Liz Claiborne. OmniaLuo Investor Resources Article Appearing on CNNMoney.com: http://money.cnn.com/news/newsfeeds/articles/marketwire/0379865.htm Article Appearing on Reuters.com: http://www.reuters.com/article/pressRelease/idUS183841+26-Mar-2008+MW20080326 Fact Sheet and Presentation: http://ir.omnialuoinc.com Video: http://ir.omnialuoinc.com/video/omnialuo.cfm (Due to their length, these URLs may need to be copied/pasted into your Internet browser's address field. Remove extra spaces if they exist.) SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements, including statements that include the words "believes," "expects," "anticipates," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. Factors that may affect these forward-looking statements include, among others, our dependency on our chief executive officer, principal stockholder and chief designer, our sensitivity to economic conditions and consumer spending in China, competition in our industry, our ability to effectively manage our growth, our ability to raise capital in the future, changes in China's economic or political situation, and other factors set forth in our Annual Report on Form 10-KSB filed with the United States Securities and Exchange Commission or otherwise set forth from time to time in our other public filings. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date of this news release.
OmniaLuo, Inc.
(Formerly Wentworth II, Inc.)
Consolidated Statements of Operations and Comprehensive Income
(Stated in U.S. Dollars)
Year ended December 31,
-------------- -------------
2007 2006
Revenues $ 7,875,757 $ 1,479,603
Cost of revenues (3,624,486) (788,050)
-------------- -------------
Gross profit 4,251,271 691,553
-------------- -------------
Expenses
General and administrative expenses 1,923,899 113,760
Depreciation 129,678 20
Selling and marketing expenses 979,459 93,537
-------------- -------------
3,033,036 207,317
-------------- -------------
Income from operations 1,218,235 484,236
Interest income 5,647 900
Other income 19,329 -
Finance costs (38,802) (339)
Make good provision (2,299,893) -
-------------- -------------
(Loss) income before income taxes (1,095,484) 484,797
Income taxes - (78,114)
-------------- -------------
Net (loss) income $ (1,095,484) $ 406,683
============== =============
Other comprehensive income
Foreign currency translation adjustments 286,560 10,162
-------------- -------------
Comprehensive (loss) income $ (808,924) $ 416,845
============== =============
(Loss) earnings per share
Basic and diluted $ (0.05) $ 0.02
============== =============
Weighted average number of shares outstanding
Basic and diluted 21,993,753 16,800,000
============== =============
OmniaLuo, Inc.
(Formerly Wentworth II, Inc.)
Consolidated Balance Sheet
(Stated in U.S. Dollars)
December 31,
-------------
2007
-------------
ASSETS
Current assets
Cash and cash equivalents $ 3,083,715
Trade receivables (net of allowance of
doubtful accounts of $8,313) 1,573,644
Inventories 2,602,653
Deposits 1,995,229
-------------
Total current assets 9,255,241
Property and equipment, net 724,681
-------------
TOTAL ASSETS $ 9,979,922
=============
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Current liabilities
Trade payables $ 281,027
Loans from stockholders 14,294
Other payables, deposits received and
accrued expenses 1,368,890
-------------
Total current liabilities 1,664,211
-------------
TOTAL LIABILITIES 1,664,211
-------------
COMMITMENTS
STOCKHOLDERS’ EQUITY
Common stock: par value $0.01 per share
Authorized 40,000,000 shares; issued and
outstanding 22,840,000 shares 228,400
Preferred stock: par value $0.01 per share
Authorized 10,000,000 shares; none issued and
outstanding -
Additional paid-in capital 8,479,390
Statutory reserve 261,948
Accumulated other comprehensive income 296,722
Accumulated deficit (950,749)
-------------
TOTAL STOCKHOLDERS’ EQUITY 8,315,711
-------------
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 9,979,922
=============Contact: Contact:
After Market Support, LLC
Vivien Yeh
Phone: 1 (877) 880-OLOU (6568)
vivien.yeh@aftermarketsupport.com
Source: OmniaLuo, Inc.
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