Cache Reports Record Fourth Quarter 2004 Earnings of $0.39 Per Share; Company Reports Record Sales and Earnings for 2004.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 -- Company Introduces Fiscal 2005 Guidance Range of $0.99 - $1.02; Company Announces Auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together Will Not Stand for Re-Appointment for Fiscal 2005 Cache Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CACH CACH Canyon de Chelly National Monument (US National Park Service) CACH Carolina Chickadee CACH Canadian Adult Congenital Heart Network CACH Chicago Area Consolidation Hub (United Parcel Service) ), a specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. chain of women's apparel stores with 291 stores open, reported results for the fourteen and fifty-three week periods ended January January: see month. 1, 2005, with each period reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the 3 for 2 stock split completed June June: see month. 18, 2004. For the fourteen week period ended January 1, 2005, as compared to the thirteen week period in fiscal 2003: --Net sales rose by 21.7% to $78.6 million compared to $64.6 million, in the thirteen week 2003 period and comparable store sales gained 4%; --Operating income increased by 10.3% to $9.6 million, or 12.2% of 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 , as compared to $8.7 million, or 13.5% of net sales in 2003; --Net income grew by 17.0% to $6.2 million, or 7.9% of net sales, as compared to $5.3 million, or 8.2% of net sales in 2003; and --Diluted earnings per share increased by 14.7% to $0.39 compared to $0.34 in 2003, as compared to the First Call consensus estimate of $0.39. Commenting on the results, Mr. Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. Woolf Woolf , (Adeline) Virginia (Stephen) 1882-1941. British writer whose works include fiction written in an experimental stream-of-consciousness style, such as Mrs. , Cache Chairman and Chief Executive Officer, stated: "Fiscal 2004 marked a rewarding period for Cache. We drove double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" gains in net sales and earnings and implemented strategies that proved successful in garnering increased market share. Our initiatives, such as expanding the penetration of sportswear, accessories and distributing lifestyle mailers, led to a strong performance in the holiday season with comparable store sales rising by 7% in December December: see month. . We are pleased to have met analysts' expectations for the fourth quarter and full year, especially given the increased expenditures incurred to comply with the requirements of Sarbanes Oxley Oxley refers to several things: People
adj. 1. Almost exact or correct: the approximate time of the accident. 2. one to two cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the fourth quarter. "More importantly, we are excited to begin the new year with strong positive momentum and expect to report another record year in fiscal 2005," Mr. Woolf added. For the fifty three week period, as compared to the fifty two week period in fiscal 2003: --Net sales rose by 14.3% to $247.3 million compared to $216.3 million, in the fifty-two Adj. 1. fifty-two - being two more than fifty 52, lii cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" week period in 2003 and comparable store sales gained 5%; --Operating income increased by 16.8% to $20.9 million, or 8.4% of net sales compared to $17.9 million, or 8.3% of net sales, in 2003; --Net income grew by 19.8% to $13.3 million, or 5.4% of net sales compared to $11.1 million, or 5.1% of net sales in 2003; and --Diluted earnings per share increased by 10.7% to $0.83 compared to $0.75 in 2003, as compared to the First Call consensus estimate of $0.83. Additionally, during 2004 the Company: --Opened 31 Cache and 9 Lillie Rubin Ru´bin n. 1. A ruby. stores and at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. operated 291 stores in 43 states; --Completed 19 remodels with 47% of its Cache store base in the new store format at year-end; --Increased sportswear penetration in its Cache and Lillie Rubin stores, which helped to increase the comparative sales in fiscal 2004: Gross profit in the fourth quarter rose by 22.0% to $37.1 million, or 47.2% of net sales, compared to $30.4 million, or 47.0% of net sales, in the fourth quarter of 2003. The improvement in 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. resulted from increased merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. margins mainly attributed to sourcing improvements. In total, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $27.5 million, or 35.1% of net sales compared to $21.6 million, or 33.5% of net sales in the fourth quarter of 2003. Fiscal year gross profit rose by 16.9% to $111.6 million, or 45.1% of net sales, compared to $95.5 million, or 44.2% of net sales, in fiscal 2003. In total, operating expenses were $90.7 million, or 36.7% of net sales compared to $77.6 million, or 35.9% of net sales in Fiscal 2003. The Company's balance sheet remained strong. At January 1, 2005, cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has totaled $42.7 million, rising $6.1 million from $36.6 million at December 27, 2003. Inventory was on plan and current at $32.3 million, as compared to $26.7 million at December 27, 2003. Of the 21.0% rise in inventory, 14% was due to the growth in new stores, with the remaining increase planned to capture early spring merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain sales. Working capital increased by $12.4 million to $53.4 million from $41.0 million at December 27, 2003.
A table summarizes financial results follows:
53 Weeks 52 Weeks 14 Weeks 13 Weeks
Ended Ended Ended Ended
------------------- -------------------
Jan. 1, Dec. 27, Jan. 1, Dec. 27,
2005 2003 2005 2003
---- ---- ---- ----
($ Thousands, except for per share data)
Sales $ 247,300 $ 216,256 $ 78,589 $ 64,622
Operating income $ 20,868 $ 17,905 $ 9,576 $ 8,721
Net income $ 13,297 $ 11,089 $ 6,208 $ 5,293
Basic earnings per share $ 0.85 $ 0.78 $ 0.40 $ 0.35
Diluted earnings per share $ 0.83 $ 0.75 $ 0.39 $ 0.34
Basic weighted average
shares outstanding 15,589,000 14,256,000 15,645,000 14,955,000
Diluted weighted average
shares outstanding 16,004,000 14,721,000 16,060,000 15,470,000
Guidance The Company estimates fiscal 2005 net sales in the range of $275 million to $280 million compared to $247.3 million in fiscal 2004. Fiscal 2005 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is currently estimated in the range of $0.99 to $1.02 compared to actual diluted earnings per share of $0.83 in fiscal 2004, which represents growth of 21.1% at the mid-point of the range. For the first quarter, the Company estimates net sales to range between $65 million and $67 million compared to actual net sales of $57.2 million in the first quarter of fiscal 2004. The Company estimates first quarter 2005 diluted earnings per share in the range of $0.21 to $0.23, compared to actual diluted earnings per share of $0.20 in the first quarter of fiscal 2004. The Company also noted that its current guidance does not include the effect of accounting changes, which require the expensing of stock options. Mr. Woolf concluded: "We remain enthusiastic regarding our outlook. To this end, as we begin 2005, our sales are in line with our expectations with comparable store sales during the first two weeks of February February: see month. continuing our expected trend for a low single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. increase. Our priorities for the year are focused on furthering our store expansion while intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our merchandising efforts. We are also excited by the opportunity to implement a national loyalty program in the second half of 2005 and believe the investment in our new POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale system will lead to additional sales and cost advantages in 2005 and beyond." Store opening plans The Company also noted that it has plans to open between 30 and 35 new stores in fiscal 2005. The Company plans to end the year with approximately 325 locations, increasing square footage by 9% to 11% to approximately 660,000 square feet. The Company also indicated that it expects to open approximately 15 stores during the first half of the year. Auditor auditor n. an accountant who conducts an audit to verify the accuracy of the financial records and accounting practices of a business or government. A proper audit will point out deficiencies in accounting and other financial operations. announcement Separately, the Company announced that KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen , the Company's independent registered accountants, will not stand for re-appointment, as the Company's auditors, beginning with fiscal 2005. There have been no disagreements between the Company and KPMG with respect to any accounting principle or practices. Conference Call The Company also announced that it will conduct a conference call to discuss its fourth quarter and fiscal 2004 results today, Tuesday Tuesday: see week. , February 15, 2005 at 9:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (888) 202-2422, approximately ten minutes prior to the start of the call. The conference call will also be webcast live at www.cache.com. A replay of this call will be available until February 22, 2005 and can be accessed by dialing (888) 203-1112 and entering code 7482002. Certain matters discussed within this press release may constitute 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 the federal securities laws. Although Cache, Inc. believes the statements are based on reasonable assumptions, there can be no assurance that these expectations will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . Actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, industry trends, merchandise and fashion trends, competition, changes in general economic conditions and consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. patterns, vendor procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. issues and the ability to obtain financing, as well as other risks outlined from time to time in the filings of Cache, Inc., with the Securities and Exchange Commission. Financial Tables Follow: For further information contact Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. Reinckens, President, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , Cache, Inc., 1440 Broadway Broadway, famous thoroughfare in New York City. It extends from Bowling Green near the foot of Manhattan island N to 262d St. in the Bronx. Throughout its length Broadway is chiefly a commercial street. , New York, New York 10018, (212) 575-3246.
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
December 27, January 1,
2003 2005
------------ ------------
CURRENT ASSETS
Cash and equivalents $ 16,887,000 $ 16,848,000
Marketable securities 19,746,000 25,874,000
Receivables, net 4,614,000 6,545,000
Inventories 26,724,000 32,296,000
Deferred income taxes and other
tax assets 936,000 567,000
Prepaid expenses 1,239,000 1,851,000
------------- -------------
Total Current Assets 70,146,000 83,981,000
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net 33,048,000 47,118,000
OTHER ASSETS 873,000 832,000
------------- -------------
Total Assets $104,067,000 $131,931,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 14,362,000 $ 17,055,000
Accrued compensation 4,675,000 1,927,000
Accrued liabilities 10,075,000 11,627,000
------------- -------------
Total Current Liabilities 29,112,000 30,609,000
------------- -------------
OTHER LIABILITIES 9,126,000 13,556,000
DEFERRED INCOME TAXES, net 687,000 2,926,000
STOCKHOLDERS' EQUITY
Common stock 100,000 157,000
Additional paid-in capital 28,361,000 34,705,000
Retained earnings 36,681,000 49,978,000
------------- -------------
Total Stockholders' Equity 65,142,000 84,840,000
------------- -------------
Total Liabilities and
Stockholders' Equity $104,067,000 $131,931,000
============= =============
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
52 Weeks 53 Weeks
Ended Ended
------------- -------------
DECEMBER 27, JANUARY 1,
2003 2005
------------- -------------
NET SALES $216,256,000 $247,300,000
COST OF SALES, including buying and
occupancy 120,731,000 135,745,000
------------ ------------
GROSS PROFIT 95,525,000 111,555,000
------------ ------------
EXPENSES
Store operating expenses 63,546,000 76,466,000
General and administrative expenses 14,074,000 14,221,000
------------ ------------
TOTAL EXPENSES 77,620,000 90,687,000
------------ ------------
OPERATING INCOME 17,905,000 20,868,000
------------ ------------
OTHER INCOME (EXPENSE)
Interest income 259,000 439,000
Miscellaneous income (net) 14,000 20,000
------------ ------------
TOTAL OTHER INCOME 273,000 459,000
------------ ------------
INCOME BEFORE INCOME TAXES 18,178,000 21,327,000
INCOME TAX PROVISION 7,089,000 8,030,000
------------ ------------
NET INCOME $ 11,089,000 $ 13,297,000
============= =============
BASIC EARNINGS PER SHARE $0.78 $0.85
============ ============
DILUTED EARNINGS PER SHARE $0.75 $0.83
============ ============
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 14,256,000 15,589,000
============ ============
DILUTED WEIGHTED AVERAGE SHARES
OUTSTANDING 14,721,000 16,004,000
============ ============
NUMBER OF STORES OPEN AT END OF PERIOD 255 291
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
13 Weeks 14 Weeks
Ended Ended
-------------------------
DECEMBER 27, JANUARY 1,
2003 2005
------------ ------------
NET SALES $64,622,000 $78,589,000
COST OF SALES, including buying and
occupancy 34,270,000 41,467,000
----------- -----------
GROSS PROFIT 30,352,000 37,122,000
----------- -----------
EXPENSES
Store operating expenses 17,462,000 22,842,000
General and administrative expenses 4,169,000 4,704,000
----------- -----------
TOTAL EXPENSES 21,631,000 27,546,000
----------- -----------
OPERATING INCOME 8,721,000 9,576,000
----------- -----------
OTHER INCOME (EXPENSE)
Interest income 67,000 130,000
Miscellaneous income (net) 0 0
----------- -----------
TOTAL OTHER INCOME 67,000 130,000
----------- -----------
INCOME BEFORE INCOME TAXES 8,788,000 9,706,000
INCOME TAX PROVISION 3,495,000 3,498,000
----------- -----------
NET INCOME $ 5,293,000 $ 6,208,000
============ ============
BASIC EARNINGS PER SHARE $0.35 $0.40
=========== ===========
DILUTED EARNINGS PER SHARE $0.34 $0.39
=========== ===========
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 14,955,000 15,645,000
=========== ===========
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 15,470,000 16,060,000
=========== ===========
NUMBER OF STORES OPEN AT END OF PERIOD 255 291
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion