Brylane Inc. Announces Pro Forma Fourth Quarter And Fiscal Year 1996 Results.NEW YORK--(BUSINESS WIRE)--March 25, 1997-- Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Results For Quarter Ended February February: see month. 1, 1997: Pro forma net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 21.1% to $319.6 million versus $264.0 million in the fourth quarter of fiscal 1995 as a result of strong customer response and increases in average order size. Pro forma operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the fourth quarter increased to $26.2 million from $21.2 million, a 23.6% increase. Pro forma net income for the quarter increased 42.1% to $10.8 million, or $0.53 fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share, compared to pro forma net income of $7.6 million, or $0.37 fully diluted per share, in the fourth quarter of fiscal 1995. Commenting on the results, Peter J. Canzone canzone, in literature canzone (käntsô`nā) or canzona (–nä), in literature, Italian term meaning lyric or song. , Chairman and Chief Executive Officer stated, "Our sales and earnings growth during the quarter is attributable primarily to the exceptionally strong performance at Chadwick's and Lerner Ler·ner , Alan Jay 1918-1986. American playwright and lyricist. He wrote a number of musicals with the composer Frederick Loewe, including Brigadoon (1947) and My Fair Lady (1956). Noun 1. , along with positive performance at our other businesses. We are encouraged by the early initial response to the Spring 1997 mailings." Mr. Canzone continued, "We are proud to have accomplished the Chadwick's acquisition and the completion of our initial public offering. Additionally, we expect the catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. retailing industry to grow faster than store retailing, as it has over the last five years. With favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. , our established niches, growth opportunities from the Chadwick's acquisition and the growth potential from new catalogs, Brylane is well positioned to take advantage of the revenue and profit opportunities before us." Pro Forma Results Fiscal Year 1996: Pro forma net sales for fiscal year 1996 increased 7.3% to $1.2 billion compared to $1.1 billion last year. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. , excluding non-recurring inventory charges, increased 100 basis points to 48.7% in fiscal 1996 from 47.7% in the prior year. The improvement resulted from better pricing for merchandise purchased in fiscal 1996. Operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. margin improved 50 basis points from lower paper costs partially offset by increased utilization of shipping incentives. Pro Forma operating income increased to $91.9 million from $69.3 million, a 32.6% increase. Pro forma net income increased 60.6% to $37.9 million, or $1.87 fully diluted per share, versus pro forma net income of $23.6 million, or $1.18 fully diluted per share, in fiscal year 1995. Pro forma comparisons are calculated to include Brylane's acquisition of Chadwick's on Dec. 9, 1996, and the completion of its initial public offering of 4,000,000 shares in February 1997, as if the transactions had been completed on the first day of each of the respective fiscal periods. In addition, the comparisons assume the Company recorded taxes at a 37% effective rate. On a pro forma basis, the unaudited results exclude both the 53rd week of Chadwick's included in the quarter ended Feb. 1, 1997 and the 53rd week of Brylane included in the quarter ended Feb. 3, 1996. The comparisons exclude certain one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. acquisition related charges. Brylane Inc. is the nation's leading specialty catalog retailer of value-priced apparel, with a focused portfolio of catalogs that target consumers in both special and regular size apparel. Brylane's catalogs include Lane Bryant Lena Himmelstein Bryant Malsin (1879? - September 26, 1951) was an American clothing designer and retailer who founded the plus-size clothing chain Lane Bryant. Early Life & Career and Roaman's, the leading catalog retailers of women's special size apparel, KingSize, a leading catalog retailer of men's special size apparel, Chadwick's of Boston, the nation's largest off-price women's apparel catalog retailer, and Lerner, which has a strong and growing presence in the women's regular size apparel market, as well as several new catalog concepts including Sue Brett and Bridgewater. Brylane also markets certain of its catalogs under the "Sears" name to customers of Sears, Roebuck and Co. under an exclusive licensing arrangement with Sears Shop at Home Services, Inc. Brylane's common stock trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors : BYL BYL Before You Leave . This press release contains statements that are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of applicable federal security laws and are based on Brylane Inc.'s current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Primary factors that could cause actual results to differ are indicated in filings with the Securities and Exchange Commission. -0-
Brylane Inc.
Unaudited Pro Forma Statement of Operations
(in millions, except per share data)
Fourth Quarter Fiscal Year
Ended Ended
02/01/97 02/03/96 02/01/97 02/03/96
Net sales $319.6 $264.0 $1,156.9 $1,078.6
Cost of goods sold 167.2 136.9 593.7 563.6
Gross profit 152.4 127.1 563.2 515.0
Catalog and operating
expenses 123.4 103.1 460.4 434.8
Intangibles and organization
costs amortization 2.8 2.8 10.9 10.9
Operating income 26.2 21.2 91.9 69.3
Interest expense, net 9.1 9.1 31.8 31.8
Income before income taxes 17.1 12.1 60.1 37.5
Provision for income taxes 6.3 4.5 22.2 13.9
Net income $10.8 $7.6 $37.9 $23.6
Earnings per share data:
Fully diluted EPS $0.53 $0.37 $1.87 $1.18
Primary EPS $0.54 $0.38 $1.91 $1.19
Fully diluted shares 20.585 20.585 20.585 20.585
Primary shares 19.857 19.857 19.857 19.857
% Change:
Sales 21.1% -- 7.3% --
EPS (Fully diluted) 43.2% -- 58.5% --
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Brylane Inc.
Unaudited Statement of Actual Operations
(in millions)
Fourth Quarter Fiscal Year
Ended Ended
02/01/97 02/03/96 02/01/97 02/03/96
Net sales $238.3 $165.9 $705.3 $601.1
Cost of goods sold 120.9 81.6 346.6 298.4
Non-recurring inventory
charge (a) 1.7 0.4 1.7 0.6
Gross profit 115.7 83.9 357.0 302.1
Catalog and operating
expenses 96.9 67.5 294.4 248.8
Intangibles and organization
costs amortization 2.3 1.4 6.5 4.7
Non-cash compensation
expense (b) 2.4 0.0 2.4 0.0
Operating income 14.1 15.0 53.7 48.6
Interest expense, net 7.8 5.8 24.0 20.6
Income before income taxes 6.3 9.2 29.7 28.0
Provision for income
taxes (c) 0.2 (0.1) 0.3 0.1
Net income before extraordinary
charge 6.1 9.3 29.4 27.9
Extraordinary charge (d) 2.5 0.0 2.5 0.0
Net income $3.6 $9.3 $26.9 $27.9
(a) Includes non-recurring inventory charge of $1.7 million for the
step-up of the value of inventory in connection with the Chadwick's
acquisition. The balance of $3.3 million will be amortized in
Spring 1997.
(b) Includes non-cash compensation charge of $2.4 million due to
amendments to the 1996 Brylane Performance Option plan. The balance
of $0.7 million will be a charge in Spring 1997.
(c) Provision for income taxes is based on partnership status.
(d) Deferred financing fees of $2.5 million written off in
connection with repayment of old bank credit facility.
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CONTACT: Robert Pulciani Brylane Inc. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (212) 613-9536 (212) 613-9567 (fax) |
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