| Net sales increased 19.5% to $473.7 million from $396.4 million in the fourth quarter of fiscal 2009; | ||
| Comparable store sales (sales for stores open at least 14 months) increased 10.4% compared to an increase of 6.2% in the fourth quarter of fiscal 2009; | ||
| Gross profit increased 110 basis points to 33.1% from 32.0% in the fourth quarter fiscal 2009; | ||
| Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 60 basis points, excluding the planned non-recurring compensation charge, compared to fiscal 2009; | ||
| Operating income increased 43.0% to $49.0 million, or 10.3% of net sales, compared to $34.3 million, or 8.6% of net sales, in the fourth quarter of fiscal 2009; | ||
| Tax rate of 38.3% reflects a $0.02 per diluted share benefit related to stock option exercises and certain state tax benefits; | ||
| Net income increased 48.8% to $30.1 million compared to $20.2 million in the fourth quarter of fiscal 2009; | ||
| Income per diluted share increased to $0.49, including the aforementioned $0.02 per diluted share tax benefit and $0.01 per diluted share reduction related to the planned |
non-recurring compensation charge. Excluding the net impact of these items, income per diluted share was $0.48, representing an increase of 41.2% from $0.34 in the fourth quarter of fiscal 2009. |
| Net sales increased 19.0% to $1,454.8 million from $1,222.8 million in fiscal 2009; | ||
| Comparable store sales (sales for stores open at least 14 months) increased 11.0% compared to an increase of 1.4% in fiscal 2009; | ||
| Gross profit increased 250 basis points to 33.3% from 30.8% in fiscal 2009; | ||
| SG&A expense as a percentage of net sales decreased 40 basis points, excluding the non-recurring compensation charge, compared to fiscal 2009; | ||
| Operating income increased 74.4% to $118.9 million, or 8.2% of net sales, compared to $68.2 million, or 5.6% of net sales, in fiscal 2009; | ||
| Net income increased 80.5% to $71.0 million compared to $39.4 million in fiscal 2009; | ||
| Income per diluted share increased to $1.16, which includes $0.06 per share of non-recurring compensation charge. This compares to $0.66 in fiscal 2009. | ||
| The Company generated free cash flow of $79.4 million, ended the year with a cash position of $111.2 million and did not utilize its credit facility during fiscal 2010. |
| Open approximately 61 new stores expanding square footage by approximately 16%, remodel 17 stores and relocate 1 store; | ||
| incur capital expenditures of approximately $130 million, compared to $97.1 million in fiscal 2010; | ||
| reduce inventory by approximately 3% on an average per store basis by year end 2011; | ||
| generate free cash flow. |
13 Weeks Ended | 13 Weeks Ended | |||||||||||||||
January 29, | January 30, | |||||||||||||||
2011 | 2010 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net sales |
$ | 473,659 | 100.0 | % | $ | 396,364 | 100.0 | % | ||||||||
Cost of sales (1) |
316,973 | 66.9 | % | 269,722 | 68.0 | % | ||||||||||
Gross profit |
156,686 | 33.1 | % | 126,642 | 32.0 | % | ||||||||||
Selling, general and administrative expense (1) |
107,159 | 22.6 | % | 91,755 | 23.1 | % | ||||||||||
Pre-opening expenses |
523 | 0.1 | % | 615 | 0.2 | % | ||||||||||
Operating income |
49,004 | 10.3 | % | 34,272 | 8.6 | % | ||||||||||
Interest expense |
179 | 0.0 | % | 445 | 0.1 | % | ||||||||||
Income before income taxes |
48,825 | 10.3 | % | 33,827 | 8.5 | % | ||||||||||
Income tax expense |
18,721 | 4.0 | % | 13,601 | 3.4 | % | ||||||||||
Net income |
$ | 30,104 | 6.4 | % | $ | 20,226 | 5.1 | % | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.50 | $ | 0.35 | ||||||||||||
Diluted |
$ | 0.49 | $ | 0.34 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
59,738 | 58,116 | ||||||||||||||
Diluted |
61,919 | 59,774 |
(1) | The Company made reclassifications in the statement of income for the 13 weeks ended January 30, 2010 of $1,992 to decrease cost of sales and increase selling, general and administrative expenses to conform to the fiscal 2010 presentation. |
52 Weeks Ended | 52 Weeks Ended | |||||||||||||||
January 29, | January 30, | |||||||||||||||
2011 | 2010 | |||||||||||||||
(Unaudited) | ||||||||||||||||
Net sales |
$ | 1,454,838 | 100.0 | % | $ | 1,222,771 | 100.0 | % | ||||||||
Cost of sales (1) |
970,753 | 66.7 | % | 846,202 | 69.2 | % | ||||||||||
Gross profit |
484,085 | 33.3 | % | 376,569 | 30.8 | % | ||||||||||
Selling, general and administrative expense (1) |
358,106 | 24.6 | % | 302,413 | 24.7 | % | ||||||||||
Pre-opening expenses |
7,095 | 0.5 | % | 6,003 | 0.5 | % | ||||||||||
Operating income |
118,884 | 8.2 | % | 68,153 | 5.6 | % | ||||||||||
Interest expense |
755 | 0.1 | % | 2,202 | 0.2 | % | ||||||||||
Income before income taxes |
118,129 | 8.1 | % | 65,951 | 5.4 | % | ||||||||||
Income tax expense |
47,099 | 3.2 | % | 26,595 | 2.2 | % | ||||||||||
Net income |
$ | 71,030 | 4.9 | % | $ | 39,356 | 3.2 | % | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 1.20 | $ | 0.68 | ||||||||||||
Diluted |
$ | 1.16 | $ | 0.66 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
58,959 | 57,915 | ||||||||||||||
Diluted |
61,288 | 59,237 |
(1) | The Company made reclassifications in the statement of income for the 52 weeks ended January 30, 2010 of $3,520 to decrease cost of sales and increase selling, general and administrative expenses to conform to the fiscal 2010 presentation. |
January 29, | January 30, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 111,185 | $ | 4,017 | ||||
Receivables, net |
22,292 | 13,477 | ||||||
Merchandise inventories, net |
218,516 | 206,948 | ||||||
Prepaid expenses and other current assets |
32,790 | 30,272 | ||||||
Prepaid income taxes |
10,684 | | ||||||
Deferred income taxes |
8,922 | 8,060 | ||||||
Total current assets |
404,389 | 262,774 | ||||||
Property and equipment, net |
326,099 | 290,861 | ||||||
Total assets |
$ | 730,488 | $ | 553,635 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 87,093 | $ | 56,387 | ||||
Accrued liabilities |
76,264 | 59,189 | ||||||
Accrued income taxes |
| 10,781 | ||||||
Total current liabilities |
163,357 | 126,357 | ||||||
Deferred rent |
134,572 | 113,718 | ||||||
Deferred income taxes |
30,026 | 20,952 | ||||||
Total liabilities |
327,955 | 261,027 | ||||||
Commitments and contingencies |
||||||||
Total stockholders equity |
402,533 | 292,608 | ||||||
Total liabilities and stockholders equity |
$ | 730,488 | $ | 553,635 | ||||
52 Weeks Ended | ||||||||
January 29, | January 30, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Operating activities |
||||||||
Net income |
$ | 71,030 | $ | 39,356 | ||||
Adjustments to reconcile net income to net cash |
||||||||
provided by operating activities: |
||||||||
Depreciation and amortization |
64,936 | 62,166 | ||||||
Deferred income taxes |
7,741 | 3,143 | ||||||
Non-cash stock compensation charges |
11,155 | 5,949 | ||||||
Excess tax benefits from stock-based compensation |
(10,640 | ) | (476 | ) | ||||
Gain on disposal of property and equipment |
(519 | ) | (51 | ) | ||||
Change in operating assets and liabilities: |
||||||||
Receivables |
(8,815 | ) | 4,791 | |||||
Merchandise inventories |
(11,568 | ) | 6,654 | |||||
Prepaid expenses and other current assets |
(2,518 | ) | (5,978 | ) | ||||
Income taxes |
(10,354 | ) | 19,885 | |||||
Accounts payable |
30,706 | 8,576 | ||||||
Accrued liabilities |
14,535 | 16,382 | ||||||
Deferred rent |
20,854 | 12,430 | ||||||
Net cash provided by operating activities |
176,543 | 172,827 | ||||||
Investing activities |
||||||||
Purchases of property and equipment |
(97,115 | ) | (68,105 | ) | ||||
Net cash used in investing activities |
(97,115 | ) | (68,105 | ) | ||||
Financing activities |
||||||||
Proceeds on long-term borrowings |
| 1,161,673 | ||||||
Payments on long-term borrowings |
| (1,267,720 | ) | |||||
Proceeds from issuance of common stock under stock plans |
17,100 | 1,228 | ||||||
Excess tax benefits from stock-based compensation |
10,640 | 476 | ||||||
Net cash provided by (used in) financing activities |
27,740 | (104,343 | ) | |||||
Net increase in cash and cash equivalents |
107,168 | 379 | ||||||
Cash and cash equivalents at beginning of period |
4,017 | 3,638 | ||||||
Cash and cash equivalents at end of period |
$ | 111,185 | $ | 4,017 | ||||
52 Weeks Ended | ||||||||
January 29, | January 30, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Net cash provided by operating activities |
$ | 176,543 | $ | 172,827 | ||||
Less: purchases of property and equipment |
(97,115 | ) | (68,105 | ) | ||||
Free cash flow (a) |
$ | 79,428 | $ | 104,722 | ||||
(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 2010 | quarter | quarter | quarter | at end of the quarter | ||||||||||||
1st Quarter |
346 | 2 | 1 | 347 | ||||||||||||
2nd Quarter |
347 | 10 | 1 | 356 | ||||||||||||
3rd Quarter |
356 | 30 | 2 | 384 | ||||||||||||
4th Quarter |
384 | 5 | 0 | 389 | ||||||||||||
Gross square feet | ||||||||||||||||
Total gross square | for stores opened | Gross square feet for | Total gross square | |||||||||||||
feet at beginning of | or expanded during the | stores closed | feet at end of the | |||||||||||||
Fiscal 2010 | the quarter | quarter | during the quarter | quarter | ||||||||||||
1st Quarter |
3,613,840 | 28,977 | 10,796 | 3,632,021 | ||||||||||||
2nd Quarter |
3,632,021 | 105,596 | 15,936 | 3,721,681 | ||||||||||||
3rd Quarter |
3,721,681 | 340,185 | 22,536 | 4,039,330 | ||||||||||||
4th Quarter |
4,039,330 | 55,478 | 0 | 4,094,808 |