Burlington Coat Factory Reports First Quarter Sales and Net Loss.BURLINGTON Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , N.J. -- Burlington Coat Factory Burlington Coat Factory Warehouse Corporation is a national department store retailer focusing on clothing and shoes, with over 360 stores in 42 states (as of 2006). In early 2007, the first location to be opened in Canada will be at the Vaughan Mills mall in Toronto. Warehouse Corporation (NYSE NYSE See: New York Stock Exchange :BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter ) today reported its sales and net loss for the first quarter ended August 27, 2005. 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 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the three months ended August 27, 2005 were $650.8 million compared with sales of $574.2 million during the corresponding period of last year. Comparative store sales for the quarter increased 8.9%. Total sales for the comparative quarter increased 13.4%. Net loss for the three months ended August 27, 2005 was $15.9 million or $0.36 per share compared with a net loss in the comparative three-month period ended August 28, 2004 of $18.7 million or $0.42 per share. Net loss for the three months ended August 28, 2004 included a net loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $1.3 million or $0.03 per share. Historically, the Company's operations have been unprofitable during the first fiscal quarter. During the first quarter of fiscal 2006, the Company relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. three Burlington Coat Factory stores to new locations within their existing trading markets. As of the end of the fiscal quarter, the Company had three hundred and sixty two stores in operation in 42 states. In addition, the Company reported today that it intends to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. in full its senior notes in the original principal amount of $100.0
million. Under the terms of the notes, the Company is required to give
at least thirty days prior written notice to the noteholders in order to
voluntarily prepay the notes. As the Company gave this notice on October
3, 2005, the payoff date of the notes is November 2, 2005. The terms of
the senior notes also provide for a prepayment Prepayment1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. premium that is based on the yields reported as of the second business day prior to the payoff date for actively traded U.S. treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. notes with maturities corresponding to the remaining average life of the senior notes (3.1 years and 5.1 years). Under the current interest rate environment, the Company would not incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. . However, if the U.S. treasury rate decreases prior to the payoff date, the Company may incur a prepayment penalty. Based on historical treasury rates and current trends, the Company does not expect that a prepayment penalty, if any, would have a material effect on the Company's consolidated financial position, results of operations and cash flows. The Company expects to use existing unrestricted cash generated from operating activities, as well as cash from the sale of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, to pay off the senior notes. The Company does not anticipate borrowing any amounts in order to pay off the senior notes. The Company expects that the prepayment of the senior notes will result in a charge to earnings of approximately $0.5 million in deferred debt charges during the second quarter of fiscal 2006. The Company will be holding a conference call regarding the first quarter results at 10:30 AM Eastern time on Friday, October 7, 2005. To listen to the call, visit the Company's site at www.burlingtoncoatfactory.com. Statements made on the press release that are forward-looking (within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995) are not historical facts and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: general economic conditions; consumer demand; consumer preferences; weather patterns; competitive factors, including pricing and promotional activities of major competitors; the availability of desirable store locations on suitable terms; the availability, selection and purchasing of attractive merchandise on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms; import risks; the Company's ability to control costs and expenses; unforeseen computer related problems; any unforeseen material loss or casualty; the effect of inflation; fluctuations in the U.S. treasury rate; and other factors that may be described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its 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. even if experience or future changes make it clear that any projected results expressed or implied will not be realized.
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(All amounts in thousands, except share data)
Three Months Ended
27-Aug-05 28-Aug-04
REVENUES:
Net Sales $650,848 100.00% $574,180 100.00%
Other Revenue 7,324 1.13% 6,379 1.11%
----------- -----------
658,172 101.13% 580,559 101.11%
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COSTS AND EXPENSES:
Cost of Sales (Exclusive of
Depreciation) 425,335 65.35% 371,941 64.78%
Selling and Administrative
Expenses 234,514 36.03% 215,538 37.54%
Depreciation 22,628 3.48% 21,345 3.72%
Interest Expense 1,763 0.26% 1,794 0.31%
Other Income, Net (119) -0.03% (752) -0.13%
----------- -----------
684,121 105.11% 609,866 106.22%
----------- -----------
Loss From Continuing
Operations Before Provision
for Income Tax (25,949) -3.99% (29,307) -5.10%
Income Tax Benefit (10,042) -1.54% (11,890) -2.07%
----------- -----------
Loss From Continuing
Operations (15,907) -2.44% (17,417) -3.03%
Net Loss From Discontinued
Operations, Net of Tax
Benefit -- 0.00% (1,264) -0.22%
----------- -----------
Net Loss (15,907) -2.43% (18,681) -3.24%
Net Unrealized Gain on
Non-Marketable Securities,
Net of Tax -- 0.00% 1 0.00%
----------- -----------
Total Comprehensive Loss ($15,907) -2.43% ($18,680) -3.25%
=========== ===========
Basic and Diluted Earnings Per
Share:
Basic and Diluted Loss Per
Share from Continuing
Operations ($0.36) ($0.39)
Basic and Diluted Loss from
Discontinued Operations 0.00 (0.03)
----------- -----------
Basic and Diluted Net Loss Per
Share ($0.36) ($0.42)
=========== ===========
Basic and Diluted Weighted
Average Shares Outstanding 44,772,805 44,635,847
=========== ===========
Dividends Per Share -- $0.04
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