consumer acceptance of our products, product quality, innovation and brand image; availability of attractive and cost-effective consumer credit options; execution of our retail store distribution strategy; our dependence on significant suppliers, and our ability to maintain relationships with key suppliers, including several sole-source suppliers; the vulnerability of key suppliers to recessionary pressures, labor negotiations, liquidity concerns or other factors; rising commodity costs and other inflationary pressures; industry competition; our ability to continue to improve our product line; warranty expenses; risks of pending and potentially unforeseen litigation; increasing government regulations, which have added or will add cost pressures and process changes to ensure compliance; the adequacy of our management information systems to meet the evolving needs of our business and evolving regulatory standards applicable to data privacy and security; our ability to attract and retain senior leadership and other key employees, including qualified sales professionals; and uncertainties arising from global events, such as terrorist attacks or a pandemic outbreak, or the threat of such events. Additional information concerning these and other risks and uncertainties is contained in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, and other periodic reports filed with the SEC. The company has no obligation to publicly update or revise any of the forward-looking statements in this news release.

		(unaudited)
		July 2, 2011				January 1,  2011
Assets
Current assets:
Cash and cash equivalents		$	57,645			$	76,016
Marketable debt securities – current			19,980				-
Accounts receivable, net of allowance for doubtful accounts of $306 and $302, respectively			7,134				9,909
Inventories			20,579				19,647
Prepaid expenses			7,740				6,388
Deferred income taxes			4,149				4,297
Other current assets			4,728				652
Total current assets			121,955				116,909
Marketable debt securities – non-current			20,012				-
Property and equipment, net			36,232				32,953
Deferred income taxes			12,563				15,965
Other assets			4,518				4,130
Total assets		$	195,280			$	169,957
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$	40,171			$	42,025
Customer prepayments			10,493				12,944
Compensation and benefits			21,854				24,857
Taxes and withholding			4,531				5,359
Other current liabilities			13,159				11,671
Total current liabilities			90,208				96,856
Non-current liabilities:
Warranty liabilities			2,444				2,815
Other long-term liabilities			12,941				12,309
Total non-current liabilities			15,385				15,124
Total liabilities			105,593				111,980
Shareholders’ equity:
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding			-				-
Common stock, $0.01 par value; 142,500 shares authorized, 55,991 and 55,455 shares issued and outstanding, respectively			560				555
Additional paid-in capital			40,659				36,799
Retained earnings			48,495				20,623
Accumulated other comprehensive loss			(27	)			-
Total shareholders’ equity			89,687				57,977
Total liabilities and shareholders’ equity		$	195,280			$	169,957

 

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(unaudited - in thousands)

subject to reclassification

 

		Three Months Ended								Six Months Ended
		July 2, 2011				July 3, 2010				July 2, 2011				July 3, 2010
Percent of sales:
Retail			87.1	%			82.3	%			86.8	%			82.9	%
Direct and E-Commerce			8.7	%			11.7	%			9.1	%			11.7	%
Wholesale			4.2	%			6.0	%			4.1	%			5.4	%
Total			100.0	%			100.0	%			100.0	%			100.0	%
Sales growth rates:
Retail comparable-store sales			25	%			28	%			28	%			29	%
Direct and E-Commerce			(13	%)			6	%			(8	%)			11	%
Company-Controlled comparable sales change			20	%			25	%			23	%			25	%
Net closed stores/other			(2	%)			(7	%)			(2	%)			(6	%)
Total Company-Controlled Channels			18	%			18	%			21	%			19	%
Wholesale			(19	%)			(18	%)			(8	%)			(31	%)
Total			16	%			15	%			19	%			14	%
Stores open:
Beginning of period			375				399				386				403
Opened			5				-				6				-
Closed			(5	)			(4	)			(17	)			(8	)
End of period			375				395				375				395
Other metrics:
Average sales per store ($ in 000's)1		$	1,492			$	1,192
Average sales per square foot1		$	998			$	810
Stores > $1 million net sales1			85	%			64	%
Average mattress sales per mattress unit - Company Controlled Channels2		$	2,223			$	2,027			$	2,157			$	1,986

 

Note -

Our EBITDA calculation is considered a non-GAAP financial measure and is not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.