Lillian Vernon Corporation Announces Search for Chief Executive Officer; Eliminates Cash Dividend
RYE, N.Y., Feb. 28 -- Lillian Vernon, founder,
Chairman of the Board and Chief Executive Officer has asked the
Lillian Vernon Corporation (Amex: LVC) Board of Directors to launch a search
for a new Chief Executive Officer. A formal search committee of the Board has
been named. Lillian Vernon, who founded the Company in 1951, will remain at
the Company as Chairman of the Board but will relinquish day-to-day
responsibilities for managing the Company. The new Chief Executive Officer
will report directly to the Board of Directors.
Lillian Vernon, Chairman and Chief Executive Officer, stated, "I look
forward to focusing my time and efforts to develop exciting new opportunities
for the Company including licensing of the Lillian Vernon name and expansion
of our successful niche in personalization."
At its February 28, 2002 meeting, the Board of Directors voted to
discontinue the regular quarterly cash dividend effective after the payment of
the March 1, 2002 dividend to conserve cash for reinvestment in the business.
The Company will evaluate its dividend policy on an ongoing basis.
The Company`s financial position remains strong. At the end of fiscal
year 2002, cash and investments were in excess of $24.0 million and there was
no debt outstanding.
Lillian Vernon Corporation is a 51-year-old catalog and online retailer
that markets gift, housewares, gardening, Christmas and children`s products.
The Company is one of the largest specialty catalogs in the United States.
Lillian Vernon Corporation and its subsidiaries publish eight catalog titles:
Lillian Vernon, Lilly`s Kids, Sales & Bargains, Personalized Gifts, Favorites,
Rue de France, Lillian Vernon Gardening and Christmas Memories. Lillian
Vernon`s online catalogs are accessible at http://www.lillianvernon.com and
http://www.ruedefrance.com. The Company also sells its products in the
business-to-business and outlet store markets.
Except for the historical information contained herein, statements
included in this release may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to the Company`s future performance, including without
limitation, statements with respect to the Company`s anticipated results of
operations, revenues and/or level of business. Such statements represent the
Company`s current expectations only and are subject to certain risks,
assumptions and uncertainties. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated or projected.
Among the factors that could cause actual results to materially differ
include the overall strength of the economy, the level of consumer confidence
and spending, customer preferences, circulation changes and other initiatives,
increased competition in the direct mail industry and from the growing
Internet market, changes in government regulations, risks associated with the
social, political, economic and other conditions affecting foreign sourcing
including possible disruptions caused by the current global situation,
possible future increases in operating costs including postage and paper
costs, and other factors which are discussed in the Company`s 2001 Annual
Report and Form 10-K for the fiscal year ended February 24, 2001. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
CONTACT:
Wayne A. Palladino, Chief Financial Officer
Lillian Vernon Corporation
+1-914-925-1570
wpalladino@lillianvernon.com
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