Attached files
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| 8-K - 8-K - BODY CENTRAL CORP | a11-12214_18k.htm |
Exhibit 99.1
BODY CENTRAL ANNOUNCES FIRST QUARTER 2011 FINANCIAL RESULTS
Reports Net Revenue Growth of 27%; and
Net Income Growth of 60% for the First Quarter 2011
JACKSONVILLE, FLORIDA — May 12, 2011 — Body Central Corp. (Nasdaq: BODY) today announced financial results for the first quarter 2011.
Highlights for the first quarter ended April 2, 2011:
· Net revenues for the first quarter increased 27.2% to $74.0 million, compared to $58.2 million for the first quarter of 2010.
· Store sales rose 30.3% to $63.3 million driven by a comparable-store sales increase of 16.1% and net store unit growth.
· Operating margin increased to 11.9% of net revenues. This compares to an operating margin of 10.7% for the same period last year.
· Net income was $5.4 million, or $0.34 per diluted share based upon 16.1 million weighted average shares outstanding, compared to net income of $3.4 million or $0.28 per diluted share based upon 12.2 million weighted average shares outstanding for the first quarter of 2010.
· The Company opened 5 new stores during the first quarter and operated 214 stores as of April 2, 2011.
Allen Weinstein, Body Central’s President and CEO, stated: “Our 2011 performance is off to a strong start reflecting continued execution on our strategy to provide our customers with on trend fashion at value prices in an exciting shopping environment. Our comparable store sales growth was broad-based, across all lifestyle categories and geographies. We also continued to make progress on several key initiatives to support our long term growth objectives.”
Balance Sheet highlights as of April 2, 2011:
Cash and cash equivalents were $25.1 million at the end of the first quarter 2011 compared to $12.0 million at the end of the first quarter 2010.
Inventories at the end of the quarter were $19.5 million compared to $14.9 million at the end of the same period last year. The increase in inventory was in support of higher sales expectations related to the Easter shift as well as new store openings. On an average store basis, inventory growth is planned to be in line with or slightly below the rate of sales growth at the end of the second quarter.
Outlook:
For the second quarter of 2011, net revenues are expected to be in the range of $71 million to $73 million assuming a comparable store sales increase in the low teens coupled with net new store openings. This compares to net revenues of $61.2 million in the second quarter of 2010. Net income is expected to be in the range of $4.6 million to $4.9 million and diluted earnings per share are expected to be in the range of $0.28 to $0.30 for the quarter. This assumes a tax rate of approximately 35.0% and 16.2 million weighted average shares outstanding. This compares to net income of $2.3 million or $0.19 per diluted share on 12.2 million weighted average shares outstanding in the second quarter of 2010.
For fiscal year 2011, net revenues are expected to be in the range of $286 million to $292 million assuming a mid to high-single digit comparable store sales increase coupled with net new store openings. This compares to net revenues of $243.4 million for fiscal year 2010. Net income is expected to be in the range of $18.3 million to $18.9 million and diluted earnings per share are expected to be in the range of $1.12 to $1.16 for the full year. This assumes a tax rate of approximately 37.6% and 16.2 million weighted average shares outstanding. This compares to net income of $9.8 million or $0.73 per diluted share on 13.4 million weighted average shares outstanding. Excluding $1.2 million of non-recurring costs related to the IPO, as well as one-time costs of $793,000 related to the early repayment of debt, net income for fiscal year 2010 was $11.0 million or $0.82 per diluted share.
Conference Call Information
A conference call to discuss first quarter 2011 financial results is scheduled for today, May 12, 2011, at 4:30 PM Eastern Time. The conference call will also be webcast live at www.bodyc.com. To access the replay of this call, please dial 877-870-5176 and enter pin number 2823210. The replay is available until May 19, 2011. A replay of this call will also be available on the Investor Relations section of the Company’s website, www.bodyc.com, within two hours of the conclusion of the call and will remain on the website for ninety days.
About Body Central Corp.
Founded in 1972, Body Central Corp. is a growing, multi-channel, specialty retailer offering on-trend, quality apparel and accessories at value prices. As of April 2, 2011 the Company operated 214 specialty apparel stores in 23 states under the Body Central and Body Shop banners, as well as a direct business comprised of a Body Central catalog and an e-commerce website at www.bodyc.com. The Company targets women in their late teens and twenties from diverse cultural backgrounds who seek the latest fashions and a flattering fit. Stores feature an assortment of tops, dresses, bottoms, jewelry, accessories and shoes sold primarily under the Company’s exclusive Body Central® and Lipstick® labels.
Safe Harbor Language
Certain statements in this release are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “guidance,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based on our current expectations and assumptions, which
may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are (1) our ability to identify and respond to new and changing fashion trends, customer preferences and other related factors; (2) failure to execute successfully our growth strategy; (3) changes in consumer spending and general economic conditions; (4) changes in the competitive environment in our industry and the markets we serve, including increased competition from other retailers; (5) failure of our new stores or existing stores to achieve sales and operating levels consistent with our expectations; (6) the success of the malls and shopping centers in which our stores are located; (7) our dependence on a strong brand image; (8) failure of our direct business to grow consistent with our growth strategy; (9) failure of our information technology systems to support our current and growing business, before and after our planned upgrades; (10) disruptions to our information systems in the ordinary course or as a result of systems upgrades; (11) our dependence upon key executive management or our inability to hire or retain additional personnel; (12) disruptions in our supply chain and distribution facility; (13) our indebtedness, if any, and lease obligations; (14) our reliance upon independent third-party transportation providers for all of our product shipments; (15) hurricanes, natural disasters, unusually adverse weather conditions, boycotts and unanticipated events; (16) the seasonality of our business; (17) increases in costs of fuel, or other energy, transportation or utilities costs and in the costs of labor and employment; (18) the impact of governmental laws and regulations and the outcomes of legal proceedings; (19) restrictions imposed by our indebtedness on our current and future operations; (20) our failure to maintain effective internal controls; and (21) our inability to protect our trademarks or other intellectual property rights.
Investor Relations inquiries:
ICR, Inc.
Jean Fontana/Joseph Teklits
203-682-8200
www.icrinc.com
BODY CENTRAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
Thirteen Weeks Ended |
| ||||
|
|
|
April 2, |
|
April 3, |
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|
|
|
2011 |
|
2010 |
| ||
|
|
|
(in thousands, except |
| ||||
|
|
|
share and per share data) |
| ||||
|
|
|
|
|
|
| ||
|
Net revenues |
|
$ |
73,984 |
|
$ |
58,173 |
|
|
Cost of goods sold, including occupancy, buying, distribution center and catalog costs |
|
47,251 |
|
38,399 |
| ||
|
Gross profit |
|
26,733 |
|
19,774 |
| ||
|
Selling, general and administrative expenses |
|
16,701 |
|
12,437 |
| ||
|
Depreciation and amortization |
|
1,203 |
|
1,117 |
| ||
|
Income from operations |
|
8,829 |
|
6,220 |
| ||
|
Interest (income) expense, net |
|
(5 |
) |
922 |
| ||
|
Other income, net |
|
(44 |
) |
(63 |
) | ||
|
Income before income taxes |
|
8,878 |
|
5,361 |
| ||
|
Provision for income taxes |
|
3,463 |
|
1,972 |
| ||
|
Net income |
|
$ |
5,415 |
|
$ |
3,389 |
|
|
|
|
|
|
|
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Net income per common share: |
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|
|
|
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Basic |
|
$ |
0.35 |
|
$ |
16.49 |
|
|
Diluted |
|
$ |
0.34 |
|
$ |
0.28 |
|
|
|
|
|
|
|
| ||
|
Weighted-average common shares outstanding: |
|
|
|
|
| ||
|
Basic |
|
15,550,193 |
|
203,235 |
| ||
|
Diluted |
|
16,070,603 |
|
12,213,816 |
| ||
BODY CENTRAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
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April 2, |
|
January 1, |
|
April 3, |
| |||
|
|
|
2011 |
|
2011 |
|
2010 |
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|
|
|
(In thousands) |
| |||||||
|
Assets |
|
|
|
|
|
|
| |||
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Current assets |
|
|
|
|
|
|
| |||
|
Cash and cash equivalents |
|
$ |
25,108 |
|
$ |
16,202 |
|
$ |
11,972 |
|
|
Accounts receivable |
|
851 |
|
1,258 |
|
581 |
| |||
|
Inventories |
|
19,543 |
|
18,369 |
|
14,905 |
| |||
|
Prepaid expenses and other current assets |
|
4,418 |
|
3,933 |
|
3,371 |
| |||
|
Deferred tax asset, current |
|
1,722 |
|
1,425 |
|
621 |
| |||
|
Total current assets |
|
51,642 |
|
41,187 |
|
31,450 |
| |||
|
Property and equipment, net of accumulated depreciation and amortization |
|
17,545 |
|
17,071 |
|
14,723 |
| |||
|
Goodwill |
|
21,508 |
|
21,508 |
|
21,508 |
| |||
|
Intangible assets, net of accumulated amortization |
|
16,982 |
|
17,128 |
|
17,641 |
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|
Other assets |
|
102 |
|
102 |
|
122 |
| |||
|
Total assets |
|
$ |
107,779 |
|
$ |
96,996 |
|
$ |
85,444 |
|
|
|
|
|
|
|
|
|
| |||
|
Liabilities, Redeemable Preferred Stock and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
| |||
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Current liabilities |
|
|
|
|
|
|
| |||
|
Accounts payable |
|
$ |
17,068 |
|
$ |
14,880 |
|
$ |
13,060 |
|
|
Accrued expenses and other current liabilities |
|
13,614 |
|
14,605 |
|
10,906 |
| |||
|
Current portion of long-term debt |
|
— |
|
— |
|
5,500 |
| |||
|
Total current liabilities |
|
30,682 |
|
29,485 |
|
29,466 |
| |||
|
Other liabilities |
|
6,823 |
|
5,149 |
|
5,227 |
| |||
|
Deferred tax liability, long-term |
|
4,562 |
|
4,220 |
|
2,715 |
| |||
|
Long-term debt, less current portion |
|
— |
|
— |
|
31,500 |
| |||
|
Total liabilities |
|
42,067 |
|
38,854 |
|
68,908 |
| |||
|
Commitments and contingencies |
|
|
|
|
|
|
| |||
|
Redeemable preferred stock |
|
— |
|
— |
|
50,076 |
| |||
|
Stockholders’ equity (deficit) |
|
65,712 |
|
58,142 |
|
(33,540 |
) | |||
|
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit) |
|
$ |
107,779 |
|
$ |
96,996 |
|
$ |
85,444 |
|
BODY CENTRAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
Thirteen Weeks Ended |
| ||||
|
|
|
April 2, |
|
April 3, |
| ||
|
|
|
2011 |
|
2010 |
| ||
|
|
|
(in thousands) |
| ||||
|
Cash flows from operating activities |
|
|
|
|
| ||
|
Net income |
|
$ |
5,415 |
|
$ |
3,389 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
|
Depreciation and amortization |
|
1,203 |
|
1,117 |
| ||
|
Deferred income taxes |
|
45 |
|
1,375 |
| ||
|
Excess tax benefits from stock-based compensation |
|
(834 |
) |
— |
| ||
|
Other non-cash charges |
|
240 |
|
(2 |
) | ||
|
Changes in assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
407 |
|
329 |
| ||
|
Inventories |
|
(1,174 |
) |
(2,007 |
) | ||
|
Prepaid expenses and other current assets |
|
(485 |
) |
(724 |
) | ||
|
Other assets |
|
— |
|
(6 |
) | ||
|
Accounts payable |
|
2,188 |
|
3,982 |
| ||
|
Accrued expenses and other current liabilities |
|
(1,383 |
) |
(2,177 |
) | ||
|
Income taxes |
|
1,226 |
|
597 |
| ||
|
Other liabilities |
|
1,681 |
|
873 |
| ||
|
Net cash provided by operating activities |
|
8,529 |
|
6,746 |
| ||
|
Cash flows from investing activities |
|
|
|
|
| ||
|
Purchases of property and equipment |
|
(1,538 |
) |
(750 |
) | ||
|
Net cash used in investing activities |
|
(1,538 |
) |
(750 |
) | ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Principal payments on long-term debt |
|
— |
|
(1,250 |
) | ||
|
Proceeds from common stock offering, net of issuance costs |
|
1,074 |
|
— |
| ||
|
Proceeds from exercise of stock-based compensation |
|
7 |
|
— |
| ||
|
Excess tax benefits from stock-based compensation |
|
834 |
|
— |
| ||
|
Net cash provided by (used in) financing activities |
|
1,915 |
|
(1,250 |
) | ||
|
Net increase in cash and cash equivalents |
|
8,906 |
|
4,746 |
| ||
|
Cash and cash equivalents |
|
|
|
|
| ||
|
Beginning of year |
|
16,202 |
|
7,226 |
| ||
|
End of period |
|
$ |
25,108 |
|
$ |
11,972 |
|