- Fourth Quarter Diluted Earnings Per Share Increased to $0.89
versus $0.76 Last Year - PHILADELPHIA, March 9
/PRNewswire-FirstCall/ -- Deb Shops, Inc. (NASDAQ:DEBS), a leading
teen apparel retailer, today reported financial results for the
fourth quarter and fiscal year ended January 31, 2006. For the
fourth quarter of fiscal 2006, net sales increased 7.1% to $88.4
million compared to $82.6 million in the fourth quarter a year ago.
Gross profit, which is net of buying and occupancy costs, was $39.0
million resulting in a gross margin of 44.2% for the period versus
gross profit of $35.4 million and a 42.9% gross margin in the
fourth quarter of fiscal 2005. Fourth quarter net income increased
to $12.8 million compared to $10.6 million in the prior year and
diluted earnings per share increased 17.1% to $0.89 compared to
$0.76 a year ago. As of January 31, 2006, the Company had $117.5
million in cash and marketable securities, shareholders' equity of
$131.6 million, and no debt. "We are very pleased with our fourth
quarter results, which represent a nice finish to a solid year for
our company," stated Marvin Rounick, President and Chief Executive
Officer of Deb Shops. "Our performance in fiscal 2006 reflects our
strategic efforts to reinvigorate our top-line by successfully
opening new locations, increasing the penetration of our plus-size
business, selectively updating our store base, and enhancing our
merchandise assortment. Coupled with strong full-price selling and
key operating expense leverage, we were able to report a same
stores gain of 7.0%, gross margin improvement of 170 basis points,
and net income growth of 40.9%. We move forward focused on
executing our long- term growth plan and dedicated to returning
value to our shareholders." Net sales for the year ended January
31, 2006 increased 7.0% to $325.0 million from $303.8 million for
the comparable prior year period. Gross profit, which is net of
buying and occupancy costs, was $113.3 million resulting in a gross
margin of 34.9% for fiscal 2006 versus gross profit of $100.9
million and a 33.2% gross margin in fiscal 2005. Net income
increased 40.9% to $25.3 million, or $1.78 per diluted share,
versus $17.9 million, or $1.30 per diluted share, for the year
ended January 31, 2005. During the fourth quarter of fiscal 2006,
Deb Shops opened two new stores, remodeled two existing locations
and closed three stores. The Company also added a net of three
plus-size departments and as of January 31, 2006, operated
plus-size departments in 163 Deb Shops stores. Barry Susson, Chief
Financial Officer of Deb Shops added, "Fiscal 2006 was marked by
several important accomplishments, highlighted by our special
one-time dividend payout of $6.00. In addition, we returned $0.50
per share through our regular quarterly dividends and increased our
operating margin 240 basis points to 11.0%. Our ability to deliver
this level of value to our shareholders combined with meaningful
gains in our bottom-line is a direct result of our improved
financial platform and the hard work and dedication of our entire
organization." Based on current information, Deb Shops has
established fiscal 2007 sales guidance in the range of $343 million
to $348 million and fully diluted earnings guidance of between
$1.85 and $1.90 per share. These amounts are based on a projected
low single digit comparable store sales increase and by net store
growth of between 15 and 20 locations. Deb Shops, Inc. is a
national specialty retailer of fashionable apparel, shoes and
accessories for juniors in both regular and plus sizes. The Company
currently operates 329 specialty apparel stores in 41 states under
the DEB and Tops 'n Bottoms names. The Company has made in this
release, and from time to time may otherwise make, "forward-looking
statements" (as that term is defined under federal securities laws)
concerning the Company's future operations, performance,
profitability, revenues, expenses, earnings and financial
condition. This release includes, in particular, forward-looking
statements regarding expectations of future performance, store
openings and closings and other matters. Such forward-looking
statements are subject to various risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors. Such factors may include, but are not
limited to, the Company's ability to improve or maintain sales and
margins, respond to changes in fashion, find suitable retail
locations and attract and retain key management personnel. Such
factors may also include other risks and uncertainties detailed in
the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K/A for the fiscal
year ended January 31, 2005. The Company assumes no obligation to
update or revise its forward-looking statements even if experience
or future changes make it clear that any projected results
expressed or implied therein will not be realized. Income Statement
Highlights (Unaudited) Year Ended Three Months Ended January 31,
January 31, 2006 2005 2006 2005 Net sales $324,963,607 $303,778,103
$88,386,430 $82,560,012 Costs and expenses Cost of sales, including
buying and occupancy costs 211,680,152 202,837,874 49,358,382
47,182,169 Selling and administrative 72,070,465 69,356,328
18,540,204 17,752,656 Depreciation and amortization 5,441,096
5,384,283 1,420,248 1,495,733 289,191,713 277,578,485 69,318,834
66,430,558 Operating income 35,771,894 26,199,618 19,067,596
16,129,454 Other income, principally interest 4,135,410 2,316,312
902,173 739,994 Income before income taxes 39,907,304 28,515,930
19,969,769 16,869,448 Income tax provision 14,617,000 10,572,000
7,120,000 6,275,250 Net income $25,290,304 $17,943,930 $12,849,769
$10,594,198 Net income per common share Basic $1.79 $ 1.30 $ 0.90
$0.77 Diluted $1.78 $ 1.30 $ 0.89 $0.76 Weighted average number of
common shares outstanding Basic 14,125,484 13,729,100 14,320,694
13,756,404 Diluted 14,195,078 13,753,461 14,351,262 13,833,219
EBITDA(1) $41,212,990 $31,583,901 $20,487,844 $17,625,187 Balance
Sheet Highlights (Unaudited) January 31, 2006 January 31, 2005 Cash
and cash equivalents $26,520,757 $30,298,970 Marketable securities
$91,000,000 $146,100,000 Merchandise inventories $32,902,705
$30,560,176 Total current assets $154,851,005 $210,486,220
Property, plant and equipment, net $23,325,292 $23,259,816 Total
assets $187,669,364 $242,880,194 Total current liabilities
$44,602,596 $42,854,832 Total liabilities $56,114,026 $53,969,056
Shareholders' equity $131,555,338 $188,911,138 (1)EBITDA
Reconciliation (Unaudited) Year Ended Three Months Ended January
31, January 31, 2006 2005 2006 2005 Net income $25,290,304
$17,943,930 12,849,769 $10,594,198 Income tax provision 14,617,000
10,572,000 7,120,000 6,275,250 Depreciation and amortization
5,441,096 5,384,283 1,420,248 1,495,733 Other income, principally
interest (4,135,410) (2,316,312) (902,173) (739,994) EBITDA
41,212,990 31,583,901 20,487,844 $17,625,187 (1) EBITDA is a
financial measure that is not recognized under accounting
principles generally accepted in the United States (US GAAP). The
Company believes EBITDA provides a meaningful measure of operating
performance. As required, the Company has presented the
reconciliation of net income, a US GAAP financial measure, to
EBITDA. DATASOURCE: Deb Shops, Inc. CONTACT: Barry Susson, Chief
Financial Officer, Deb Shops, Inc., +1-215-676-6000; or Brendon
Frey or Tom Ryan of Integrated Corporate Relations,
+1-203-682-8200, for Deb Shops, Inc. Web site:
http://www.debshops.com/
Copyright
Deb Shops (NASDAQ:DEBS)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Deb Shops (NASDAQ:DEBS)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024