Attached files

file filename
8-K - 8-K - BODY CENTRAL CORPa10-21522_18k.htm

Exhibit 99.1

 

 

Body Central Corp. Announces Third Quarter 2010 Financial Results

 

Jacksonville, FL - November 18, 2010 - Body Central Corp. (Nasdaq: BODY) today announced financial results for the third quarter and year-to-date 2010.

 

Highlights for the third quarter ended October 2, 2010:

 

·                  Net revenues for the quarter increased 26.9% to $56.9 million, compared to $44.9 million for the third quarter of 2009.

 

·                  Store sales rose 31.0% to $50.3 million driven by a comparable-store sales increase of 17.6% and net store unit growth of 14.0%.

 

·                  Operating margin increased to 5.2% of net revenues from 3.0% of net revenues for the same period last year.

 

·                  Net income was $1.3 million, or $0.11 per diluted share based on 12.6 million weighted average shares outstanding as compared to net income of $0.3 million or $0.02 per diluted share based on 12.2 million weighted average shares outstanding for the third quarter of 2009.

 

·                  The Company opened five new stores during the third quarter and operated 204 stores as of October 2, 2010.

 

Highlights for the thirty-nine weeks ended October 2, 2010:

 

·                  Net revenues increased 21.0% to $176.3 million from $145.6 million for the same period a year ago.

 

·                  Store sales rose 25.4% to $149.0 million and comparable-store sales increased 14.8% from the same period in 2009.

 

·                  Operating margin increased to 7.8% of net revenues from 3.4% of net revenues for the same prior last year.

 

·                  Diluted earnings per share were $0.57 on net income of $7.1 million compared to diluted earnings per share of $0.11 on net income of $1.3 million for the comparable period in 2009.

 

Allen Weinstein, Body Central’s President and CEO, stated: “We delivered solid results in the third quarter with net revenue growth of nearly 27% and operating margin expansion of 220 basis points. By the end of the third quarter we opened 22 new stores and closed three. New stores are performing above plan.  We remain focused on offering on-trend fashion at value prices, executing our multi-channel strategy, building the Body Central brand, and delivering increased sales and profitability to our shareholders.”

 



 

Balance Sheet highlights as of October 2, 2010:

 

Cash and cash equivalents were $5.8 million at the end of the third quarter compared to $706,000 at the end of the third quarter in the prior year.

 

Inventories at the end of the third quarter were $17.2 million compared to $16.2 million at the end of the third quarter of 2009. Average store inventories were down 3.5% versus a year ago.

 

Total long-term debt was $31.5 million versus $40.5 million at the end of the third quarter of 2009. These amounts do not reflect the use of net proceeds from the Company’s IPO to repay this debt in the fourth quarter.

 

Conference Call Information

 

A conference call to discuss third quarter financial results is scheduled for today, November 18, 2010, 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 5744545.  The replay is available until December 2, 2010.  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 October 2, 2010, the Company operated 204 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.

 

CONTACT:

ICR, Inc.

Investor Relations for Body Central Corp.

Jean Fontana/Joseph Teklits

203-682-8200

Jean.fontana@icrinc.com

 

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. Examples of forward-looking statements include, but are not limited to, statements regarding delivery of trend-right merchandise, the performance of (new) stores and delivery of sales and profitability, as well as any other statement that does not directly relate to any historical or current fact. 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 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.

 

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our Registration Statement on Form S-1 (File No. 333-168014), as amended, quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

 



 

BODY CENTRAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 

 

Thirteen Weeks Ended

 

Thirty-Nine Weeks Ended

 

 

 

October 2,

 

October 3,

 

October 2,

 

October 3,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

56,943

 

$

44,860

 

$

176,288

 

$

145,647

 

Cost of goods sold, including occupancy, buying, distribution center and catalog costs

 

38,768

 

31,225

 

118,358

 

103,678

 

Gross profit

 

18,175

 

13,635

 

57,930

 

41,969

 

Selling, general and administrative expenses

 

14,004

 

11,062

 

40,621

 

33,550

 

Depreciation and amortization

 

1,238

 

1,206

 

3,510

 

3,518

 

Income from operations

 

2,933

 

1,367

 

13,799

 

4,901

 

Interest expense, net of interest income

 

794

 

965

 

2,581

 

2,985

 

Other income, net of other expense

 

(49

)

(49

)

(105

)

(157

)

Income before income taxes

 

2,188

 

451

 

11,323

 

2,073

 

Provision for income taxes

 

845

 

167

 

4,260

 

769

 

Net income

 

$

1,343

 

$

284

 

$

7,063

 

$

1,304

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

6.43

 

$

1.22

 

$

34.20

 

$

5.86

 

Diluted

 

$

0.11

 

$

0.02

 

$

0.57

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

203,235

 

203,235

 

203,235

 

203,235

 

Diluted

 

12,582,920

 

12,157,590

 

12,447,417

 

12,157,590

 

 



 

BODY CENTRAL CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

October 2,

 

January 2,

 

October 3,

 

 

 

2010

 

2010

 

2009

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,823

 

$

7,226

 

$

706

 

Accounts receivable, net of allowance for doubtful accounts

 

842

 

910

 

883

 

Inventories

 

17,180

 

12,898

 

16,248

 

Prepaid expenses and other current assets

 

4,287

 

3,814

 

3,845

 

Total current assets

 

28,132

 

24,848

 

21,682

 

Property and equipment, net of accumulated depreciation and amortization

 

17,367

 

14,912

 

14,085

 

Goodwill

 

21,508

 

21,508

 

21,508

 

Intangible assets, net of accumulated amortization

 

17,275

 

17,824

 

18,007

 

Other assets

 

116

 

117

 

245

 

Total assets

 

$

84,398

 

$

79,209

 

$

75,527

 

 

 

 

 

 

 

 

 

Liabilities, Redeemable Preferred Stock and Stockholders’ Deficit

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

$

11,618

 

$

9,078

 

$

8,424

 

Accrued expenses and other current liabilities

 

11,731

 

12,487

 

10,770

 

Current portion of long-term debt

 

6,000

 

5,250

 

6,000

 

Total current liabilities

 

29,349

 

26,815

 

25,194

 

Other liabilities

 

5,883

 

4,361

 

4,330

 

Deferred tax liability, long-term

 

3,083

 

1,886

 

 

Long-term debt, less current portion

 

25,518

 

33,000

 

34,500

 

Total liabilities

 

63,833

 

66,062

 

64,024

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable Preferred Stock

 

50,151

 

50,038

 

50,001

 

Stockholders’ deficit

 

(29,586

)

(36,891

)

(38,498

)

Total liabilities, redeemable preferred stock and stockholders’ deficit

 

$

84,398

 

$

79,209

 

$

75,527

 

 



 

BODY CENTRAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

 

Thirty-Nine Weeks Ended

 

 

 

October 2,

 

October 3,

 

 

 

2010

 

2009

 

 

 

(in thousands)

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

7,063

 

$

1,304

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

3,510

 

3,518

 

Deferred income taxes

 

1,197

 

(159

)

Other non-cash charges

 

(361

)

(723

)

Changes in assets and liabilities:

 

 

 

 

 

Accounts receivable

 

106

 

43

 

Income taxes

 

(500

)

1,192

 

Inventories

 

(4,282

)

(1,636

)

Prepaid expenses and other current assets

 

(481

)

(516

)

Other assets

 

5

 

(75

)

Accounts payable and accrued expenses

 

2,254

 

(2,534

)

Other liabilities

 

2,312

 

1,765

 

Net cash provided by operating activities

 

10,823

 

2,179

 

Cash flows from investing activities

 

 

 

 

 

Purchases of property and equipment

 

(5,494

)

(2,725

)

Net cash used in investing activities

 

(5,494

)

(2,725

)

Cash flows from financing activities

 

 

 

 

 

Principal payments on long-term debt

 

(6,732

)

(2,750

)

Net cash used in financing activities

 

(6,732

)

(2,750

)

Net decrease in cash and cash equivalents

 

(1,403

)

(3,296

)

Cash and cash equivalents

 

 

 

 

 

Beginning of year

 

7,226

 

4,002

 

End of period

 

$

5,823

 

$

706