Cost Plus, Inc. Reports First Quarter 2007 Results and Provides Financial Guidance.OAKLAND, Calif. -- Cost Plus, 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 :CPWM CPWM Certified Public Works Manager (New Jersey state license) CPWM Controlled Pulsewidth Modulation ) today announced preliminary financial results for its first quarter ended May 5, 2007 and provided financial guidance for the second quarter and for the full fiscal year 2007. First Quarter Results Net loss for the first quarter of fiscal 2007 was $12.0 million, or $0.54 per 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. share, compared to a net loss of $3.5 million, or $0.16 per diluted share, for the same period last year. Total revenue for the first quarter of fiscal 2007 was $207.9 million, a 2.4% decrease from $213.0 million for the first quarter ended April 29, 2006. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of for the quarter decreased 8.1% compared to a 4.3% decrease last year. "During the first quarter of 2007 we continued to press forward on our comprehensive turnaround initiatives in order to reposition the business for long-term growth and profitability," commented Barry Feld, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We are reintroducing our customer base to an improved and differentiated in-store experience. Our product offering is being refined to provide an ever-changing quality assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. of unique, affordable and authentic merchandise from around the world." The Company has not fully completed its analysis related to the adoption of FIN fin, organ of locomotion characteristic of fish and consisting of thin tissue supported by cartilaginous or bony rays. In some fish, e.g., the eel, a single fin extends from the back, around the tail, and along the ventral surface. 48, Accounting for Uncertainty in Income Taxes, but does not expect the results of this analysis to change first quarter net loss results. Accordingly, this press release only includes certain key balance sheet items that will not be affected by the adoption of FIN 48. The Company opened six new stores and closed one during the first quarter and ended the quarter with 292 stores in 34 states versus 272 stores in 34 states at the end of the first quarter of fiscal 2006. Financial Guidance For the second quarter of fiscal 2007, the Company is projecting a net loss in the range of $13 million to $15 million, or $0.59 to $0.69 per diluted share. The Company expects total second quarter fiscal 2007 revenue in the range of $218 million to $223 million, based on a same store sales decrease in the range of 4% to 6% and the opening of 4 net new stores, compared to 2 net new stores in the same period 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. is expected to increase year over year due to improvement in merchandise margin. For fiscal 2007, the Company is projecting a net loss in the range of $13 million to $19 million, or $0.58 to $0.87 per diluted share. The Company expects total fiscal 2007 revenue in the range of $1.04 billion to $1.06 billion, based on a same store sales decrease of 2% to 4% and the opening of 12 net new stores, compared to opening 20 net new stores in the same period last year. Gross profit margin is expected to show improvement year over year due to higher merchandise margins. SG&A expense is expected to remain approximately flat to last year as a percentage of sales. The Company's first quarter earnings conference call will be today, May 24, 2007, at 1:30 p.m. PT. It will be in a "listen-only" mode for all participants other than the sell-side and buy-side investment professionals who regularly follow the Company. The phone number for the call is (866) 770-7051, Access Code: 53635914. Callers should dial in approximately 15 minutes prior to the scheduled start time. A telephonic replay will be available at (888) 286-8010, Access Code: 59314804, from 6:30 p.m. PT Thursday, May 24, 2007 to 6:30 p.m. PT on Thursday, June 7, 2007. Investors may also access the live call or the replay over the internet at www.worldmarket.com . The replay will be available approximately one hour after the live call concludes. Cost Plus, Inc. is a leading specialty retailer of casual home living and entertaining products. As of May 24, 2007, the Company operated 294 stores in 34 states. The above statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated fiscal 2007 second quarter and full year results 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. " that are based on current expectations and are subject to various risks and uncertainties, which could cause actual results to differ materially from those forecasted. Such risk factors include, but are not limited to: changes in economic conditions that affect 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. ; changes in the competitive environment; interruptions in the flow of merchandise; changes in the cost of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. purchased including fuel, transportation and insurance; a material unfavorable outcome with respect to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , claims and assessments; the effects associated with terrorist acts; changes in accounting rules and regulations; and accounting adjustments identified in closing the Company's books. Please refer to documents on file with the Securities and Exchange Commission for a more detailed discussion of the Company's risk factors. The Company does not undertake any obligation to update its forward-looking statements. [TABLE OMITTED] [TABLE OMITTED] |
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