JACKSONVILLE, Fla., Nov. 10, 2011 (GLOBE NEWSWIRE) -- Body Central Corp. (Nasdaq:BODY) today announced financial results for the third quarter and year-to-date 2011.
Highlights for the third quarter ended October 1, 2011:
- Net revenues for the quarter increased 17.9% to $67.1 million, compared to $56.9 million for the third quarter of 2010.
- Store sales rose 21.2% to $61.0 million driven by a comparable-store sales increase of 8.2% and net store unit growth of 10.8%.
- Operating income increased 58.9% to $4.7 million as compared to $2.9 million in the third quarter of 2010. Operating margin increased to 6.9% from 5.2% for the same period last year. Excluding $350,000 in severance costs related to the departure of the Company's former CFO, operating income for the third quarter of 2011 was $5.0 million or 7.5% of net revenues.
- Net income was $2.8 million, or $0.18 per diluted share based on 16.2 million weighted average shares outstanding as compared to net income of $1.3 million, or $0.11 per diluted share based on 12.8 million weighted average shares outstanding for the third quarter of 2010. Excluding the severance costs net income for the third quarter of 2011 was $3.1 million or $0.19 per diluted share.
- The Company opened 5 new stores during the third quarter and operated 226 stores as of October 1, 2011.
Highlights for the thirty-nine weeks ended October 1, 2011:
- Net revenues increased 22.4% to $215.8 million from $176.3 million for the same period a year ago.
- Store sales rose 26.8% to $188.9 million and comparable-store sales increased 13.0% from the same period in 2010.
- Operating margin increased to 10.0% of net revenues from 7.8% of net revenues for the same period last year. Excluding the above-mentioned severance costs related to the departure of the Company's former CFO, operating margin was 10.2% for the thirty-nine weeks ended October 1, 2011.
- Net income was $13.6 million or $0.85 per diluted share, as compared to net income of $7.1 million, or $0.56 per diluted share for the third quarter of 2010. Excluding the severance costs, net income for the thirty-nine weeks ended October 1, 2011 was $13.8 million or $0.86 per diluted share.
- The Company opened 17 new stores during the thirty-nine weeks ended October 1, 2011.
Allen Weinstein, Body Central's President and CEO, stated: "Our solid momentum continued in the third quarter as we consistently delivered fashionable merchandise at value prices. Our comparable store sales performance demonstrates the strength of our existing stores while our new stores are also performing ahead of expectations. We are on target to open 33 new stores in 2011 -- a record for our Company. In addition, we remain focused on enhancing our infrastructure and have made several strategic additions to our management team that we believe will better position us to execute on our long term growth objectives."
Balance Sheet highlights as of October 1, 2011:
Cash and cash equivalents were $31.7 million at the end of the third quarter compared to $5.8 million at the end of the third quarter in the prior year.
Inventories at the end of the third quarter were $20.6 million compared to $17.2 million at the end of the third quarter of 2010. Average store inventories increased 2% from one year ago, excluding inventories held for new store openings in October and November.
The Company had no long-term debt as of the end of the third quarter of 2011 as compared to $31.5 million at the end of the third quarter of 2010.
Outlook
For the fourth quarter of fiscal 2011, the Company expects net revenues in the range of $75 million to $79 million and diluted earnings per share in the range of $0.34 to $0.37, based on diluted weighted-average shares outstanding of 16.2 million.
For fiscal 2011, the Company now expects net revenues in the range of $291 million to $295 million and diluted earnings per share in the range of $1.19 to $1.22, based on diluted weighted-average shares outstanding of 16.2 million.
Conference Call Information
A conference call to discuss third quarter financial results is scheduled for today, November 10, 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 5664477. The replay is available until November 24, 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
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 November 4, 2011 the Company operated 232 specialty apparel stores in 24 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(R) and Lipstick(R) 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) our ability 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) our new stores or existing stores achieving 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) our direct business growing consistently with our growth strategy; (9) our information technology systems supporting 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 maintaining effective internal controls; and (21) our ability to protect our trademarks or other intellectual property rights.
| BODY CENTRAL CORP. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||
| October 1, | October 2, | October 1, | October 2, | |
| 2011 | 2010 | 2011 | 2010 | |
| (in thousands, except share and per share data) | ||||
| Net revenues | $ 67,110 | $ 56,943 | $ 215,764 | $ 176,288 |
| Cost of goods sold, including occupancy, buying, distribution center and catalog costs | 44,531 | 38,722 | 140,401 | 118,316 |
| Gross profit | 22,579 | 18,221 | 75,363 | 57,972 |
| Selling, general and administrative expenses | 16,577 | 14,050 | 49,974 | 40,663 |
| Depreciation and amortization | 1,342 | 1,238 | 3,815 | 3,510 |
| Income from operations | 4,660 | 2,933 | 21,574 | 13,799 |
| Interest (income) expense, net | (2) | 794 | (14) | 2,581 |
| Other (income), net | (39) | (49) | (206) | (105) |
| Income before income taxes | 4,701 | 2,188 | 21,794 | 11,323 |
| Provision for income taxes | 1,853 | 845 | 8,213 | 4,260 |
| Net income | $ 2,848 | $ 1,343 | $ 13,581 | $ 7,063 |
| Net income per common share: | ||||
| Basic | $ 0.18 | $ 6.43 | $ 0.86 | $ 34.20 |
| Diluted | $ 0.18 | $ 0.11 | $ 0.85 | $ 0.56 |
| Weighted-average common shares outstanding: | ||||
| Basic | 15,864,008 | 203,235 | 15,703,053 | 203,235 |
| Diluted | 16,166,285 | 12,768,103 | 16,008,014 | 12,597,459 |
| BODY CENTRAL CORP. | |||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||
| October 1, | January 1, | October 2, | |
| 2011 | 2011 | 2010 | |
| Assets | (In thousands) | ||
| Current assets | |||
| Cash and cash equivalents | $ 31,749 | $ 16,202 | $ 5,823 |
| Accounts receivable | 1,024 | 1,258 | 842 |
| Inventories | 20,631 | 18,369 | 17,180 |
| Prepaid expenses and other current assets | 5,312 | 3,933 | 3,120 |
| Deferred tax asset, current | 1,925 | 1,425 | 1,167 |
| Total current assets | 60,641 | 41,187 | 28,132 |
| Property and equipment, net of accumulated depreciation and amortization of $18,676, $15,627 and $15,403 | 19,861 | 17,071 | 17,367 |
| Goodwill | 21,508 | 21,508 | 21,508 |
| Intangible assets, net of accumulated amortization of $3,517, $3,077 and $2,930 | 16,688 | 17,128 | 17,275 |
| Other assets | 111 | 102 | 116 |
| Total assets | $ 118,809 | $ 96,996 | $ 84,398 |
| Liabilities, Redeemable Preferred Stock and Stockholders' Equity | |||
| Current liabilities | |||
| Accounts payable | $ 13,801 | $ 14,880 | $ 11,618 |
| Accrued expenses and other current liabilities | 15,929 | 14,605 | 11,731 |
| Current portion of long-term debt | -- | -- | 6,000 |
| Total current liabilities | 29,730 | 29,485 | 29,349 |
| Other liabilities | 7,785 | 5,149 | 5,883 |
| Deferred tax liability, long-term | 4,542 | 4,220 | 3,083 |
| Long-term debt, less current portion | -- | -- | 25,518 |
| Total liabilities | 42,057 | 38,854 | 63,833 |
| Commitments and contingencies | |||
| Redeemable preferred stock | 50,151 | ||
| Total stockholders' equity (deficit) | 76,752 | 58,142 | (29,586) |
| Total liabilities, redeemable preferred stock and stockholders' equity | $ 118,809 | $ 96,996 | $ 84,398 |
| BODY CENTRAL CORP. | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||
| Thirty-Nine Weeks Ended | ||
| October 1, | October 2, | |
| 2011 | 2010 | |
| (in thousands) | ||
| Cash flows from operating activities | ||
| Net income | $ 13,581 | $ 7,063 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 3,815 | 3,510 |
| Deferred income taxes | (178) | 1,197 |
| Excess tax benefits from stock-based compensation | (2,420) | -- |
| Stock-based compensation | 734 | 356 |
| Loss on disposal of property and equipment | 11 | 51 |
| Changes in assets and liabilities: | ||
| Accounts receivable | 235 | 106 |
| Inventories | (2,261) | (4,282) |
| Prepaid expenses and other current assets | (1,380) | (481) |
| Other assets | (9) | 5 |
| Accounts payable | (1,079) | 2,539 |
| Accrued expenses and other current liabilities | 1,559 | (285) |
| Income taxes | 2,185 | (500) |
| Other liabilities | 2,659 | 1,544 |
| Net cash provided by operating activities | 17,452 | 10,823 |
| Cash flows from investing activities | ||
| Purchases of property and equipment | (6,201) | (5,494) |
| Net cash used in investing activities | (6,201) | (5,494) |
| Cash flows from financing activities | ||
| Principal payments on long-term debt | -- | (6,732) |
| Proceeds from common stock offering, net of issuance costs | 1,142 | -- |
| Proceeds from exercise of stock options | 734 | -- |
| Excess tax benefits from stock-based compensation | 2,420 | -- |
| Net cash provided by (used in) financing activities | 4,296 | (6,732) |
| Net increase (decrease) in cash and cash equivalents | 15,547 | (1,403) |
| Cash and cash equivalents | ||
| Beginning of year | 16,202 | 7,226 |
| End of period | $ 31,749 | $ 5,823 |