HomeBase Announces Fourth Quarter, Year End Financial Results; Expansion of New House2Home Home Decorating Stores Proceeding on Schedule.Business Editors IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--February 27, 2001 HomeBase HomeBase was a home improvement warehouse chain in the Western United States based in Irvine, California. History Robert J. McNulty and George Handgis founded the chain as a warehouse club called the HomeClub , Inc. (NYSE NYSE See: New York Stock Exchange :HBI HBI Home Builders Institute HBI Hot Briquetted Iron (plant or facility) HBI Health and Biomedical Information HBI Hot Beef Injection (band) HBI Healthcare Building Ideas (magazine) ) today announced financial results for the fourth fiscal quarter and full year ended January January: see month. 27, 2001 and reported that the expansion program of its new House2Home(TM) home decorating superstores This is a list of superstores by country. Multi-national
The company reported a net loss for the fiscal year of $70 million, or $1.87 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, in line with the company's expectations as stated on December December: see month. 5, 2000 when it announced its intention to move forward with a broad expansion of its new House2Home retail concept and to exit the home improvement business. For the fourth quarter, the company reported a net loss of $60 million, or $1.61 per diluted share, including a $55 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge for the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of inventory at all of the company's remaining 84 HomeBase stores and a $15 million write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . In the company's December 5 news release, the company projected it would take an accelerated write-down of fixed assets totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $34 million, of which a portion would be charged in the fourth quarter and the remainder charged in the first half of the fiscal year ending January 2002 as the remaining stores complete their liquidation. The company reported net income for the fiscal year ended January 29, 2000 of $12.6 million, or $0.33 per diluted share, and a net loss of $2.0 million, or $0.05 per diluted share, for the fiscal fourth quarter ended January 29, 2000. Total sales for the year were $1.4 billion, including sales at the company's HomeBase and House2Home stores. Comparable store sales for the year declined 11.5% for the HomeBase stores that had not yet entered liquidation by year's end. This compares with total sales last year of $1.5 billion for 88 stores in operation. 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 for the fourth quarter were $332 million, with a 17.9% decline in comparable store sales for the 45 HomeBase stores not in liquidation. This compares with total sales of $327 million for the comparable period last year. During the quarter, the company began liquidation sales liquidation sale liquid (US) n → Verkauf m wegen Geschäftsaufgabe at 39 HomeBase stores. To date, the company has completed liquidation sales at 31 stores, has liquidation sales currently ongoing at another 16 stores and has 24 stores in various stages of construction. Seventeen Seventeen novel of young love. [Am. Lit.: Booth Tarkington Seventeen in Magill I, 882] See : Adolescence of these 24 stores are scheduled to grand open as House2Home stores in May of this year throughout the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. market. Combined fourth quarter sales for the five House2Home flagship This article is about the lead ship, store, or product of a group. For other uses, see Flagship (disambiguation). A flagship is the ship used by the commanding officer of a group of naval ships. stores totaled $20.5 million, or an average of $4.1 million per store, slightly ahead of the company's expectations for the quarter, which, seasonally, is expected to be a slower quarter than the second and third quarters. Average sales for these House2Home stores for the 21-week period between their September September: see month. 2000 opening and fiscal year end totaled $7 million per store, with an average ticket of just over $60 and an average gross product margin of 39.6%. The slight drop in gross margin from the 40% achieved at the end of last quarter reflects a temporary impact in the fourth quarter of the clearance CLEARANCE, com. law. The name of a certificate given by the collector of a port, in which is stated the master or commander (naming him) of a ship or vessel named and described, bound for a port, named, and having on board goods described, has entered and cleared his ship or vessel of Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). 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 as well as some merchandise that will be discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: at the five current House2Home stores as a result of a decision to exit a select number of smaller ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. product categories that the company was testing, including paint, power garden tools and faucet hardware. "We continue to be encouraged by the results of our five House2Home stores, particularly in light of the current retail environment," said Herb Zarkin, chairman, president and chief executive officer. "Among House2Home's strongest performing categories during the quarter were the outdoor living, holiday, furniture, kitchenware and domestics departments. As we move into the spring selling season, we anticipate the outdoor living category to be a significant driver of House2Home's overall business in the second and third quarters. In addition, in a constant effort to improve and refine the House2Home format, we have enacted several changes, such as eliminating the paint department, expanding the storage department and reconfiguring the lighting area. In addition, we will be adding a new department that features kids' merchandise, including bedding, rugs, lighting, furniture, crafts and other accessories. We are excited about these changes and believe they will all serve to help strengthen the House2Home concept going forward." Zarkin noted the company's chain-wide, eight-phase conversion program remains on schedule. The company will launch phase five of the program tomorrow, which involves eleven additional stores, and expects to begin the remaining few phases by early May. "As we noted earlier, the exact number of store closures and conversions may change somewhat as we move through this process," said Zarkin. "While we remain encouraged about our progress, there are a number of variables that could ultimately impact the final outcome of the conversion program, including ongoing positive sales trends, the progress of construction, hiring and training for the stores, stocking the stores with the right kind of merchandise on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms from our vendors, ensuring our newly expanded distribution center is operating efficiently and that our systems and controls function adequately. Overall, however, we are making excellent progress and remain on schedule with our efforts to reinvent re·in·vent tr.v. re·in·vent·ed, re·in·vent·ing, re·in·vents 1. To make over completely: "She reinvented Indian cooking to fit a Western kitchen and a Western larder" this company and pursue greater growth opportunities." The company noted it continues to expect a net loss for the fiscal year ending January 2002 of approximately $80 million, with the majority of the conversion costs landing in the first and second quarters. On December 5, 2000, the company announced it had entered into an underwritten commitment letter agreement with Fleet Retail Finance to amend its existing credit facility to provide added flexibility to support the conversion program. Subsequent to the close of the quarter, the credit facility amendment was signed. The amount of the credit facility and the maturity date of the credit facility remain the same. The company will host a conference call today at 2:00 p.m. PST PST Paroxysmal supraventricular tachycardia, see there to discuss its fourth quarter results. To listen to the call, please dial 212-896-6094 and reference reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. No. 17802504. A live webcast of the call will be available in the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's web site, at www.homebase.com. A telephonic replay of the call will be available for 48 hours, beginning at 4:00 p.m. PST on February February: see month. 27, 2001. To access the telephonic replay, please dial 1-800-633-8284 and enter reservation No. 17802504. In addition, an online replay of the webcast can be accessed at www.homebase.com. HomeBase, Inc. is a retail company operating HomeBase home improvement warehouses and House2Home home decorating superstores throughout 10 western states. For more information on the company and its stores, please visit www.homebase.com or www.house2home.com (neither of which shall be deemed to be incorporated in, nor made a part of, this press release). Matters discussed in this press release include 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 involve risks and uncertainties that could cause results to differ materially from those expressed. Such risks and uncertainties include, but are not limited to, a change in the positive trends at House2Home stores; House2Home becoming a substantial growth opportunity for the company; the company's ability to successfully complete a conversion program by the fourth quarter of this year; the accuracy of all assumptions in this press release upon which the company's earnings and growth estimates are based, including ongoing positive sales trends at House2Home stores, the progress of construction of House2Home stores, hiring and training for House2Home stores, stocking of House2Home stores on favorable terms from vendors, the efficiency of the company's newly expanded distribution center and adequate systems and controls; the competitive marketplace; economic conditions in the company's markets and the factors set forth in the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended January 29, 2000 under the heading "Risk Factors" and in the company's other filings with the Securities and Exchange Commission. The company undertakes no obligation to release publicly the results of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements that may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" .
HOMEBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended 52 Weeks Ended
January 27, January 29, January 27, January 29,
2001 2000 2001 2000
Net sales $ 332,413 $ 327,148 $ 1,439,598 $ 1,525,275
Cost of sales,
including buying
and occupancy
costs 347,636 260,169 1,235,419 1,196,465
Gross profit
(loss) (15,223) 66,979 204,179 328,810
Selling, general
and administrative
expenses 78,735 71,544 312,824 304,457
Pre-opening
expenses 99 19 5,634 3,726
Store closures
and other
charges - - (6,450) -
Operating income
(loss) (94,057) (4,584) (107,829) 20,627
Interest on debt
and capital
leases, net 1,862 1,497 4,838 3,440
Income (loss)
before income
taxes (95,919) (6,081) (112,667) 17,187
Provision (benefit)
for income taxes (35,494) (2,251) (41,687) 6,358
Income (loss) before
extraordinary
gain (60,425) (3,830) (70,980) 10,829
Extraordinary gain
on early
extinguishment
of debt - 1,799 576 1,799
Net income
(loss) $ (60,425) $ (2,031) $ (70,404) $ 12,628
Basic net
income (loss)
per share:
Income (loss)
before
extraordinary
gain $ (1.61) $ (0.10) $ (1.89) $ 0.28
Extraordinary
gain - 0.05 0.02 0.05
Net income
(loss) $ (1.61) $ (0.05) $ (1.87) $ 0.33
Diluted net
income (loss)
per share:
Income (loss)
before
extraordinary
gain $ (1.61) $ (0.10) $ (1.89) $ 0.28
Extraordinary
gain - 0.05 0.02 0.05
Net income
(loss) $ (1.61) $ (0.05) $ (1.87) $ 0.33
Shares used in
computation
of net income
per share:
Basic 37,596 37,765 37,599 37,849
Diluted 37,596 37,765 37,599 37,936
HOMEBASE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 27, January 29,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 44,869 $ 26,747
Marketable securities - 15,020
Accounts receivable, net 12,449 29,439
Merchandise inventories 213,352 371,060
Prepaid and refundable income taxes 9,966 -
Prepaid expenses and other current assets 3,047 10,183
Total current assets 283,683 452,449
Property, net 246,284 257,726
Property under capital leases, net 4,320 4,759
Other assets 50,424 12,808
Total assets $ 584,711 $ 727,742
LIABILITIES
Current liabilities:
Accounts payable $ 38,972 $ 108,823
Accrued expenses and other current
liabilities 85,812 75,928
Total current liabilities 124,784 184,751
Long-term debt 90,182 92,382
Obligations under capital leases, less
portion due
Within one year 7,664 8,040
Other noncurrent liabilities 37,443 47,883
Total liabilities 260,073 333,056
STOCKHOLDERS' EQUITY
Total stockholders' equity 324,638 394,686
Total liabilities and stockholders'
equity $ 584,711 $ 727,742
HOMEBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
52 Weeks Ended
January 27, January 29,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(70,404) $ 12,628
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 41,780 29,039
Extraordinary gain on early extinguishment
of debt (914) (2,855)
Deferred income taxes (31,871) 7,476
Merchandise inventories, net of accounts
payable 87,857 (25,835)
Other 13,652 1,045
Net cash provided by operating activities 40,100 21,498
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of marketable securities - (12,728)
Sale of marketable securities 15,012 8,586
Maturity of marketable securities - 17,164
Property additions (34,200) (28,503)
Proceeds from property disposals 107 169
Net cash used in investing activities (19,081) (15,312)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of short-term debt 15,000 -
Repayment of short-term debt (15,000) -
Early extinguishment of long-term debt (1,271) (4,609)
Repayment of long-term debt - (7,009)
Repayment of capital lease obligations (327) (283)
Debt issuance costs (1,372) (2,317)
Purchase of treasury stock - (818)
Proceeds from sale and issuance of common
stock 73 19
Net cash used in financing activities (2,897) (15,017)
Net increase (decrease) in cash and cash
equivalents 18,122 (8,831)
Cash and cash equivalents at beginning of
year 26,747 35,578
Cash and cash equivalents at end of year $ 44,869 $ 26,747
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Certain prior period amounts have been reclassified to conform to
the current year presentation.
2. On November 16, 1999, the Board of Directors authorized the
Company to spend up to $20 million to repurchase HomeBase common
stock and 5.25% convertible subordinated notes periodically in
the open market. The repurchase program is authorized to extend
through December 31, 2001. However, the Company's amended credit
facility prohibits any such repurchases through May 2002.
Consequently, the Company will not repurchase any of its
securities pursuant to the current repurchase program so long as
the amended credit facility is in place. For the quarter ended
January 27, 2001, the Company did not make any repurchases.
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