Printer Friendly

Garden Botanika reports third quarter operating results.

REDMOND, Wash.--(BUSINESS WIRE)--Nov. 25, 1996--Garden Botanika, Inc. (Nasdaq NM: GBOT) today reported operating results for its fiscal 1996 third quarter and the nine months ended November 2, 1996.

For the quarter, sales increased 66% to $17.7 million from $10.7 million in the third quarter of fiscal 1995. Store sales increased 66% on the strength of an increase in the number of stores from 130 to 230. Comparable stores sales (for stores open at least 12 full months) were flat for the quarter. Catalog sales increased 63%, primarily as a result of increased circulation.

Garden Botanika reported a net loss of $3.8 million, for the third quarter of fiscal 1996, compared to a net loss of $2.0 million in the third quarter of fiscal 1995. For the purpose of comparing reported results to published estimates, an assumed 40% tax benefit should be applied to the reported loss. On that basis, Garden Botanika's third quarter 1996 net loss would be $0.32 per share on approximately 7.1 million shares, compared to $0.32 on approximately 3.7 million shares in the comparable prior period. The reported per share losses, which do not recognize the future tax benefit, were $0.53 and $0.54, respectively.

For the nine months, sales increased 69% to $51.2 million from $30.3 million in the comparable prior period. Store sales increased 65% on the strength of the increase in the number of stores and a 4% increase in comparable store sales. Catalog sales increased 118%, primarily as a result of increased circulation.

Garden Botanika reported a net loss of $8.5 million, for the first nine months of fiscal 1996, compared to a net loss of $3.6 million in the first nine months of fiscal 1995. After applying an assumed 40% tax benefit, Garden Botanika's 1996 nine-month net loss would be $0.87 per share on approximately 5.8 million shares, compared to $0.59 on approximately 3.7 million shares in the comparable prior period. The reported per share losses, which do not recognize the future tax benefit, were $1.45 and $0.98, respectively.

Commenting on the Company's third quarter results, Garden Botanika President Michael Luce said, "Although our comparable store sales were flat, there were a number of positive aspects to the third quarter. Our older comparable stores generally continued to perform better than the newer, and stores opened during the current year continued to exceed expectations. In addition, our store opening plan remained on schedule, and we were pleased with the initial performance of our new Color Studio and neighborhood stores. We were also encouraged by the initial results of our expanded direct mail program, which we believe helped restore comparable sales to positive territory in October and gave us upward momentum going into November and the all-important holiday season. While we do not comment specifically on current month sales," Luce concluded, "we would like our investors to know that our expanded direct mail program is continuing to have a positive impact in all classes of stores through the first three weeks of November."

Garden Botanika markets botanically based cosmetic and personal care products through its 244 stores across the U.S. and its own catalog. The Company's headquarters are located at 8624-154th Avenue NE, Redmond, Washington 98052, and its investor relations telephone number is 206/883-GBOT.

Forward Looking Statements: When used in the above discussion in the context of future events, the words "expects," "anticipates," "estimates," "plans," "believes" and similar expressions are intended to identify forward looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results or trends to differ materially from those projected. See the "Risk Factors" section of the Company's Prospectus dated May 22, 1996, contained in a Registration Statement on Form S-1 which has previously been filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly release the result of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. -0-
 CONDENSED BALANCE SHEETS
 (dollars in thousands)

 (Unaudited)
 November 2, February 3,
 1996 1996

Assets
Cash and cash equivalents $ 9,377 $ 1,309
Short-term investments 19,506 -
Inventories 19,900 10,176
Prepaid expenses 2,725 2,103
Receivable from lessors 4,722 1,639
Other 120 346
 Total current assets 56,350 15,573

Property and equipment, net 45,199 31,176
Other assets 241 388
 Total assets $ 101,790 $ 47,137

Liabilities & Shareholders' Equity
Checks drawn in excess of bank
 balances $ 5,531 $ 3,616
Note payable to bank -- 2,540
Accounts payable 10,727 5,138
Other current liabilities 2,971 1,617
 Total current liabilities 19,229 12,911

Deferred rent and other 1,650 1,109
 Total liabilities 20,879 14,020

Commitments
Shareholders' equity 80,911 33,117
 Total liabilities &
 shareholders' equity $ 101,790 $ 47,137

These summary financial statements should be read in conjunction
with the financial statements and accompanying footnotes included in
the Garden Botanika, Inc. Prospectus dated May 22, 1996, contained
in a Registration Statement on Form S-1 which has previously been
filed with the Securities and Exchange Commission.


 CONDENSED STATEMENTS OF OPERATIONS
 (dollars in thousands, except per share data)

 (Unaudited)
 Quarter Ended Nine Months Ended
 Nov. 2, Oct. 28, Nov. 2, Oct. 28,
 1996 1995 1996 1995

Net sales $17,682 $10,671 $51,245 $30,341
Cost of sales (including
 buying and occupancy costs) 11,049 6,501 30,773 17,875
 Gross margin 6,633 4,170 20,472 12,466

Operating expenses:
 Stores and catalog 8,135 4,178 22,037 11,305
 General and administrative 2,227 1,589 6,360 4,298
Preopening expenses 538 338 1,144 581
 Operating loss (4,267) (1,935) (9,069) (3,718)

Interest income (expense), net 487 (51) 617 69
 Net loss $(3,780) $(1,986) $(8,452) $(3,649)

Net loss per share,
 giving effect to the
 conversion of all
 Preferred shares to
 Common (a) $(0.53) $(0.54) $(1.45) $(0.98)

Weighted average Common and
 Common equivalent shares 7,067 3,707 5,839 3,707


Note (a): For purposes of comparing reported results to published
estimates, an assumed 40% tax benefit should be applied to the
reported loss in each period presented above. On that tax effected
basis, losses per share would be as follows:

Tax-effected losses per share $(0.32) $(0.32) $(0.87) $(0.59)


 CONDENSED STATEMENTS OF CASH FLOWS
 (dollars in thousands)

 (Unaudited)
 Nine Months Ended
 November 2, October 28,
 1996 1995

Operating Activities

Net loss $(8,452) $(3,649)
Expenses not requiring
 use of cash 3,728 2,174
Changes in assets and
 liabilities (3,656) (1,173)
 Net cash used by
 operating activities (8,380) (2,648)

Investing Activities

Purchase of short-term
 investments (19,506) -
Additions to property
 and equipment (17,753) (12,156)
 Net cash used by
 investing activities (37,259) (12,156)

Financing Activities

Sale of stock 56,191 9,920
(Payments) advances on note
 payable to bank, net (2,540) 4,600
Other 56 17
 Net cash provided by
 financing activities 53,707 14,537
 Increase (decrease) in cash
 and cash equivalents $ 8,068 $(267)




CONTACT: Garden Botanika, Inc.

Myron E. Kirkpatrick, 206/881-9603

Michael W. Luce, 206/881-9603
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Nov 25, 1996
Words:1252
Previous Article:Integrated Systems Announces $5 Million Charge Due to Restructuring of Diab Acquisition.
Next Article:VRLN) Varlen declares regular quarterly dividend.
Topics:


Related Articles
Garden Botanika Reports Second Quarter Operating Results.
Garden Botanika reports February sales.
Garden Botanika reports fourth quarter operating results.
Garden Botanika Reports Second Quarter Operating Results.
Garden Botanika Reports Fourth Quarter and Fiscal 1997 Operating Results; March Sales.
Garden Botanika Reports Second Quarter Operating Results.
STORES TO SHUT DOORS GARDEN BOTANIKA, LECHTERS AFFECTED.
NATURE STORE TO QUIT MALL.
ZANY BRAINY BANKRUPT, BUT STORE MIGHT STAY OPEN.
BANKRUPTCY UNLIKELY TO BREAK ZANY BRAINY TOYS.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters