Francesca's Reports Fourth Quarter and Fiscal Year 2012 Financial Results
Fourth quarter net sales increased 40.6% to
$86.7 million Fourth quarter comparable boutique sales increased 9.2%
Fourth quarter diluted earnings per share increased 73.7% to
$0.33
FOURTH QUARTER SUMMARY
Net sales for the fourteen weeks increased 40.6% to
Gross profit, as a percentage of net sales, increased 92 basis points to 53.37%. The increase was attributable to leverage of occupancy costs on increased sales.
Selling, general and administrative (SG&A) expenses increased 20.8% to
Income from operations for the quarter increased 70.6% to
FULL YEAR RESULTS
Net sales increased 45.2% to
Net income for 53 weeks ending
BALANCE SHEET SUMMARY
Total inventories at the end of the quarter increased by
Total cash and cash equivalents at quarter end were
FIRST QUARTER AND FULL YEAR 2013 GUIDANCE
For the first quarter ending
For the full fiscal year ending
The number of diluted average shares outstanding is expected to be 44.9 million for both the first quarter and full year. The effective tax rate is estimated to be 39.3% for both the first quarter and full year. Capital expenditures are planned in a range of
Conference Call Information
A conference call to discuss fourth quarter and fiscal year 2012 results is scheduled for
SEC Regulation G — Non-GAAP Information
This press release includes non-GAAP adjusted net income and adjusted diluted earnings per share, each a non-GAAP financial measure. We have reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in the text above. We believe that these non-GAAP financial measures not only provide our management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of our business and facilitate a meaningful evaluation of our quarterly and fiscal year 2012 diluted earnings per share and actual results on a comparable basis with our quarterly and fiscal year 2011 results. These non-GAAP measures should be considered a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Forward-Looking Statements
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. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to "Risk Factors" in our Annual Report on Form 10-K and our most recent Quarterly Report on Form 10-Q filed with the
About
francesca's® is a growing specialty retailer with retail locations designed and merchandised to feel like independently owned, upscale boutiques providing customers a fun and differentiated shopping experience. The merchandise assortment is a diverse and balanced mix of apparel, jewelry, accessories and gifts. francesca's® appeals to the 18-35 year-old, fashion conscious, female customers, although the Company finds that women of all ages are attracted to the eclectic and sophisticated merchandise selection and boutique setting. francesca's® boutiques carry a broad selection but limited quantities of individual styles and new merchandise is introduced five days a week. For additional information on francesca's®, please visit www.francescas.com
The Francesca's Collections logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15831
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Consolidated Statements of Operations | |||||||
For the Fourteen Weeks Ended |
For the Thirteen Weeks Ended |
Variance |
|||||
In Dollars |
As a % of Net Sales(1) |
In Dollars |
As a % of Net Sales(1) |
In Dollars |
% |
As a % of Net Sales(1) |
|
(in thousands, except percentages) | |||||||
Net sales |
|
100.00% |
|
100.00% |
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40.6% | 0.00% |
Cost of goods sold and occupancy costs | 40,430 | 46.63% | 29,317 | 47.55% | 11,113 | 37.9% | (0.92)% |
Gross profit | 46,270 | 53.37% | 32,335 | 52.45% | 13,935 | 43.1% | 0.92% |
Selling, general and administrative expenses | 21,600 | 24.91% | 17,875 | 28.99% | 3,725 | 20.8% | (4.08)% |
Income from operations | 24,670 | 28.45% | 14,460 | 23.45% | 10,210 | 70.6% | 5.00% |
Interest income (expense) | (125) | (0.14)% | (339) | (0.55)% | 214 | (63.1)% | 0.41% |
Other income (expense) | (27) | (0.03)% | 36 | 0.06% | (63) | (175.0)% | (0.09)% |
Income before income tax expense | 24,518 | 28.28% | 14,157 | 22.96% | 10,361 | 73.2% | 5.32% |
Income tax expense | 9,648 | 11.13% | 5,804 | 9.41% | 3,844 | 66.2% | 1.72% |
Net income |
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17.15% |
|
13.55% |
|
78.0% | 3.60% |
Diluted earnings per common share |
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Weighted average diluted shares outstanding | 44,858 | 44,547 | |||||
Comparable boutique sales increase | 9.2% | 14.7% | |||||
Fiscal Year Ended | |||||||
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Variance | |||||
In Dollars |
As a % of Net Sales(1) |
In Dollars |
As a % of Net Sales(1) |
In Dollars |
% |
As a % of Net Sales(1) |
|
(in thousands, except percentages) | |||||||
Net sales |
|
100.00% |
|
100.00% |
|
45.2% | 0.00% |
Cost of goods sold and occupancy costs | 137,873 | 46.52% | 97,365 | 47.69% | 40,508 | 41.6% | (1.17)% |
Gross profit | 158,500 | 53.48% | 106,793 | 52.31% | 51,707 | 48.4% | 1.17% |
Selling, general and administrative expenses | 80,560 | 27.18% | 63,262 | 30.99% | 17,298 | 27.3% | (3.81)% |
Income from operations | 77,940 | 26.30% | 43,531 | 21.32% | 34,409 | 79.0% | 4.98% |
Interest income (expense) | (672) | (0.23)% | (4,868) | (2.38)% | 4,196 | (86.2)% | 2.15% |
Loss on early extinguishment of debt | -- | 0.00% | (1,591) | (0.78)% | 1,591 | (100.0)% | 0.78% |
Other income (expense) | 230 | 0.08% | 284 | 0.14% | (54) | (19.0)% | (0.06)% |
Income before income tax expense | 77,498 | 26.15% | 37,356 | 18.30% | 40,142 | 107.5% | 7.85% |
Income tax expense | 30,437 | 10.27% | 14,855 | 7.28% | 15,582 | 104.9% | 2.99% |
Net income |
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15.88% |
|
11.02% |
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109.2% | 4.86% |
Diluted earnings per share |
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Weighted average diluted shares outstanding | 44,807 | 42,948 | |||||
Comparable boutique sales increase | 14.9% | 10.4% | |||||
(1) Percentage totals in the above tables may not equal the sum of the components due to rounding. |
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Consolidated Balance Sheets | ||
(In thousands) | ||
February 2, 2013 |
January 28, 2012 |
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ASSETS | ||
Current assets: | ||
Cash and cash equivalents |
|
|
Accounts receivable | 1,925 | 2,156 |
Inventories | 19,049 | 14,462 |
Deferred income taxes | 3,506 | 2,352 |
Prepaid expenses and other current assets | 4,749 | 3,025 |
Total current assets | 59,106 | 36,041 |
Property and equipment, net | 49,559 | 33,199 |
Deferred income taxes | 2,357 | 952 |
Other assets, net | 1,573 | 2,120 |
TOTAL ASSETS |
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LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable |
|
|
Accrued liabilities | 10,667 | 9,893 |
Total current liabilities | 18,446 | 18,520 |
Deferred and accrued rents | 22,092 | 14,890 |
Long-term debt | -- | 22,000 |
Total liabilities | 40,538 | 55,410 |
Commitments and contingencies | ||
Shareholders' equity (deficit): | ||
Common stock- |
439 | 435 |
Additional paid-in capital | 85,161 | 77,071 |
Accumulated deficit | (13,543) | (60,604) |
Total shareholders' equity | 72,057 | 16,902 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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Consolidated Statements of Cash flows | |||
(In thousands) | |||
For the Fiscal Year Ended | |||
February 2, 2013 |
January 28, 2012 |
January 29, 2011 |
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Cash Flows Provided by Operating Activities: | |||
Net income |
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Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,151 | 4,936 | 2,377 |
Stock-based compensation expense | 3,599 | 4,671 | 2,400 |
Excess tax benefit from stock-based compensation | (2,296) | (449) | (1,757) |
Loss on sale of assets | 188 | 23 | 25 |
Loss on early extinguishment of debt | -- | 1,591 | -- |
Amortization of debt issuance costs | 299 | 537 | 158 |
Deferred income taxes | (2,559) | 721 | (2,685) |
Changes in assets and liabilities: | |||
Accounts receivables | 231 | 1,898 | (3,557) |
Inventories | (4,587) | (2,593) | (5,631) |
Prepaid expenses and other assets | (1,512) | (445) | (1,499) |
Accounts payable | (848) | 2,481 | 3,443 |
Accrued liabilities | 3,069 | 3,932 | 4,852 |
Deferred and accrued rents | 7,203 | 6,667 | 5,999 |
Net cash provided by operating activities | 56,999 | 46,471 | 21,020 |
Cash Flows Used in Investing Activities: | |||
Purchase of property and equipment | (23,663) | (16,894) | (16,208) |
Other | -- | 36 | -- |
Net cash used in investing activities | (23,663) | (16,858) | (16,208) |
Cash Flows Used in Financing Activities: | |||
Proceeds from issuance of stock in initial public offering, net of costs | -- | 44,245 | -- |
Proceeds from borrowings under the revolving credit facility | -- | 41,000 | -- |
Proceeds from borrowings under the senior secured credit facility | -- | -- | 95,000 |
Repayment of borrowings under the revolving credit facility | (22,000) | (19,000) | -- |
Repayment of borrowings under the senior secured credit facility | -- | (93,813) | (1,187) |
Dividends | -- | -- | (100,000) |
Payment of debt issuance costs | -- | (1,468) | (2,137) |
Proceeds from the exercise of stock options | 2,199 | 504 | 504 |
Excess tax benefit from stock-based compensation | 2,296 | 449 | 1,757 |
Net cash used in financing activities | (17,505) | (28,083) | (6,063) |
Net increase (decrease) in cash and cash equivalents | 15,831 | 1,530 | (1,251) |
Cash and cash equivalents, beginning of year | 14,046 | 12,516 | 13,767 |
Cash and cash equivalents, end of year |
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Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for income taxes |
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Interest paid | 448 | 5,569 | 163 |
CONTACT: InvestorsSource: Francesca's CollectionsICR, Inc. Jean Fontana 646-277-1214 CompanyRandi Sonenshein , Vice President, Finance and Investor Relations 832-494-2250
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