| Net sales increased 11.5% to $284.0 million from $254.8 million in the third quarter of fiscal 2008; | ||
| Comparable store sales (sales for stores open at least 14 months) increased 1.5% compared to an increase of 2.0% in the third quarter of fiscal 2008; | ||
| Pre-opening expenses decreased $2.5 million to $2.2 million in the third quarter fiscal 2009 due to the planned decrease in the Companys new store program; | ||
| Operating income increased 52.9% to $14.7 million compared to $9.6 million in the third quarter of fiscal 2008; | ||
| Net income increased 68.6% to $8.5 million compared to $5.0 million in the third quarter of fiscal 2008; | ||
| Income per diluted share increased to $0.14, compared to $0.09 in the third quarter of fiscal 2008. |
| Net sales increased 11.2% to $826.4 million from $743.3 million in the first nine months of fiscal 2008; | ||
| Comparable store sales (sales for stores open at least 14 months) decreased 0.8% compared to an increase of 3.2% in the first nine months of fiscal 2008; | ||
| Pre-opening expenses decreased $7.1 million to $5.4 million in the first nine months of fiscal 2009 due to the planned decrease in the Companys new store program; | ||
| Operating income increased to $33.9 million compared to $24.9 million in the first nine months of fiscal 2008; | ||
| Net income increased to $19.1 million compared to $13.0 million in the first nine months of fiscal 2008; | ||
| Income per diluted share increased to $0.32 compared to $0.22 in the first nine months of fiscal 2008, which included $0.01 per share of severance costs for the management change in March 2008. |
| generate free cash flow of approximately $75 million, compared to a $35.7 million net cash out flow in fiscal 2008; | ||
| permanently reduce expenses by approximately $18 million including supply chain, store and other operating costs; | ||
| open 37 new stores; | ||
| incur capital expenditures of approximately $71 million, compared to $110.9 million in capital expenditures reported in fiscal 2008; and | ||
| reduce inventory by approximately 9% on an average per store basis by year end 2009. |
13 Weeks Ended | 13 Weeks Ended | |||||||||||||||
October 31, | November 1, | |||||||||||||||
2009 | 2008 | |||||||||||||||
Net sales |
$ | 284,043 | 100.0 | % | $ | 254,843 | 100.0 | % | ||||||||
Cost of sales |
193,498 | 68.1 | % | 175,368 | 68.8 | % | ||||||||||
Gross profit |
90,545 | 31.9 | % | 79,475 | 31.2 | % | ||||||||||
Selling, general and administrative expense |
73,671 | 25.9 | % | 65,176 | 25.6 | % | ||||||||||
Pre-opening expenses |
2,183 | 0.8 | % | 4,693 | 1.8 | % | ||||||||||
Operating income |
14,691 | 5.2 | % | 9,606 | 3.8 | % | ||||||||||
Interest expense |
441 | 0.2 | % | 1,124 | 0.4 | % | ||||||||||
Income before income taxes |
14,250 | 5.0 | % | 8,482 | 3.3 | % | ||||||||||
Income tax expense |
5,790 | 2.0 | % | 3,465 | 1.4 | % | ||||||||||
Net income |
$ | 8,460 | 3.0 | % | $ | 5,017 | 2.0 | % | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.15 | $ | 0.09 | ||||||||||||
Diluted |
$ | 0.14 | $ | 0.09 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
57,979 | 57,591 | ||||||||||||||
Diluted |
59,376 | 59,013 |
39 Weeks Ended | 39 Weeks Ended | |||||||||||||||
October 31, | November 1, | |||||||||||||||
2009 | 2008 | |||||||||||||||
Net sales |
$ | 826,407 | 100.0 | % | $ | 743,252 | 100.0 | % | ||||||||
Cost of sales |
578,008 | 69.9 | % | 516,710 | 69.5 | % | ||||||||||
Gross profit |
248,399 | 30.1 | % | 226,542 | 30.5 | % | ||||||||||
Selling, general and administrative expense |
209,130 | 25.3 | % | 189,130 | 25.4 | % | ||||||||||
Pre-opening expenses |
5,388 | 0.7 | % | 12,515 | 1.7 | % | ||||||||||
Operating income |
33,881 | 4.1 | % | 24,897 | 3.3 | % | ||||||||||
Interest expense |
1,757 | 0.2 | % | 3,055 | 0.4 | % | ||||||||||
Income before income taxes |
32,124 | 3.9 | % | 21,842 | 2.9 | % | ||||||||||
Income tax expense |
12,994 | 1.6 | % | 8,862 | 1.2 | % | ||||||||||
Net income |
$ | 19,130 | 2.3 | % | $ | 12,980 | 1.7 | % | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.33 | $ | 0.23 | ||||||||||||
Diluted |
$ | 0.32 | $ | 0.22 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
57,847 | 57,328 | ||||||||||||||
Diluted |
59,081 | 59,005 |
October 31, | January 31, | November 1, | ||||||||||
2009 | 2009 | 2008 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Assets |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 3,795 | $ | 3,638 | $ | 3,648 | ||||||
Receivables, net |
13,340 | 18,268 | 20,488 | |||||||||
Merchandise inventories, net |
273,978 | 213,602 | 268,928 | |||||||||
Prepaid expenses and other current assets |
28,386 | 24,294 | 24,960 | |||||||||
Prepaid income taxes |
| 8,628 | | |||||||||
Deferred income taxes |
7,984 | 8,278 | 9,088 | |||||||||
Total current assets |
327,483 | 276,708 | 327,112 | |||||||||
Property and equipment, net |
293,746 | 292,224 | 292,120 | |||||||||
Deferred income taxes |
| | 4,080 | |||||||||
Total assets |
$ | 621,229 | $ | 568,932 | $ | 623,312 | ||||||
Liabilities and stockholders equity |
||||||||||||
Current liabilities: |
||||||||||||
Current portion notes payable |
$ | 14,635 | $ | 18,000 | $ | 51,590 | ||||||
Accounts payable |
117,520 | 47,811 | 97,768 | |||||||||
Accrued liabilities |
57,811 | 51,202 | 50,532 | |||||||||
Accrued income taxes |
5,682 | | 5,798 | |||||||||
Total current liabilities |
195,648 | 117,013 | 205,688 | |||||||||
Notes payable less current portion |
24,527 | 88,047 | 86,390 | |||||||||
Deferred rent |
113,184 | 101,288 | 100,126 | |||||||||
Deferred income taxes |
17,616 | 17,616 | | |||||||||
Total liabilities |
350,975 | 323,964 | 392,204 | |||||||||
Commitments and contingencies |
||||||||||||
Total stockholders equity |
270,254 | 244,968 | 231,108 | |||||||||
Total liabilities and stockholders equity |
$ | 621,229 | $ | 568,932 | $ | 623,312 | ||||||
39 Weeks Ended | ||||||||
October 31, | November 1, | |||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Operating activities |
||||||||
Net income |
$ | 19,130 | $ | 12,980 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||
Depreciation and amortization |
46,766 | 37,619 | ||||||
Non-cash stock compensation charges |
4,214 | 2,644 | ||||||
Excess tax benefits from stock-based compensation |
(602 | ) | (1,565 | ) | ||||
Loss on disposal of property and equipment |
199 | 219 | ||||||
Change in operating assets and liabilities: |
||||||||
Receivables |
4,928 | 155 | ||||||
Merchandise inventories |
(60,376 | ) | (92,819 | ) | ||||
Prepaid expenses and other assets |
(4,092 | ) | (5,776 | ) | ||||
Income taxes |
14,310 | 734 | ||||||
Accounts payable |
69,709 | 45,646 | ||||||
Accrued liabilities |
8,850 | 754 | ||||||
Deferred rent |
11,896 | 28,891 | ||||||
Net cash provided by operating activities |
114,932 | 29,482 | ||||||
Investing activities |
||||||||
Purchases of property and equipment |
(49,390 | ) | (96,608 | ) | ||||
Net cash used in investing activities |
(49,390 | ) | (96,608 | ) | ||||
Financing activities |
||||||||
Proceeds on long-term borrowings |
863,237 | 874,139 | ||||||
Payments on long-term borrowings |
(930,122 | ) | (810,929 | ) | ||||
Proceeds from issuance of common stock under stock plans |
898 | 2,269 | ||||||
Excess tax benefits from stock-based compensation |
602 | 1,565 | ||||||
Initial public offering issuance costs |
| (59 | ) | |||||
Net cash (used in) provided by financing activities |
(65,385 | ) | 66,985 | |||||
Net increase (decrease) in cash and cash equivalents |
157 | (141 | ) | |||||
Cash and cash equivalents at beginning of period |
3,638 | 3,789 | ||||||
Cash and cash equivalents at end of period |
$ | 3,795 | $ | 3,648 | ||||
39 Weeks Ended | ||||||||
October 31, | November 1, | |||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Net cash provided by operating activities |
$ | 114,932 | $ | 29,482 | ||||
Less: purchases of property and equipment |
(49,390 | ) | (96,608 | ) | ||||
Free cash flow (a) |
$ | 65,542 | $ | (67,126 | ) | |||
(a) | Free cash flow is a non-GAAP financial measure. The Company believes free cash flow is an important metric as it represents a measure of how much cash the Company has available after the deduction of capital expenditures, as the Company requires regular capital expenditures to build and maintain stores and purchase new equipment to improve the business. The Company uses this metric internally as the Company believes the sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace the Companys GAAP results. |
Total stores open | Number of stores | Number of stores | ||||||||||||||
at beginning of the | opened during the | closed during the | Total stores open | |||||||||||||
Fiscal 2009 | quarter | quarter | quarter | at end of the quarter | ||||||||||||
1st Quarter |
311 | 9 | 0 | 320 | ||||||||||||
2nd Quarter |
320 | 13 | 0 | 333 | ||||||||||||
3rd Quarter |
333 | 12 | 0 | 345 |
Gross square feet for | ||||||||||||||||
Total gross square | stores opened or | Gross square feet for | Total gross square | |||||||||||||
feet at beginning of | expanded during the | stores closed | feet at end of the | |||||||||||||
Fiscal 2009 | the quarter | quarter | during the quarter | quarter | ||||||||||||
1st Quarter |
3,240,579 | 93,906 | 0 | 3,334,485 | ||||||||||||
2nd Quarter |
3,334,485 | 134,963 | 0 | 3,469,448 | ||||||||||||
3rd Quarter |
3,469,448 | 123,808 | 0 | 3,593,256 |