JCS, Well here it is:
The Bombay Company, Inc. Announces Fourth Quarter and Fiscal Year
Results
FORT WORTH, Texas, March 10 /PRNewswire/ -- The Bombay Company, Inc. (NYSE: BBA - news) reported net income of $11.1 million or $0.30 per share
for the three months ended January 30, 1999 compared to net income of $12.0 million or $0.31 for the same period last year. For the twelve months ended January
30, 1999, net income was $4.0 million or $0.11 per share compared to $4.5 million or $0.12 per share for the prior year.
Sales for the three month period ended January 30, 1999 increased 4% to $130.5 million compared to $125.3 million for the same period last year. Same store sales for Bombay stores increased 2% for the quarter. Sales for the twelve months ended January 30, 1999 increased 7% to $356.7 million compared to $332.6 million for the same period last year with same store sales increasing 6% for the period.
Robert S. Jackson, Chairman and Chief Executive Officer, said, ''The decline in profitability for the quarter and for the year was due almost entirely to lower gross margins on product. As part of the overall upgrade of management and particularly the merchandising team, we took an aggressive stance in cleaning up old and discontinued product and moving it through the system. The short-term result was detrimental to our margins; however, we believe that our inventories are the cleanest that they have been in recent history and that we are well positioned for Fiscal 1999.''
''The management imperative for Fiscal 1999 will be to improve product margins. This will be achieved through a multi-faceted program which includes taking selected price increases on product, leveraging our sourcing competency, and increasing the number of special purchases to support our clearance periods. This spring season's merchandise offerings represent the first time that you will be able to see what the vision of our new management team translates into in sales and in
our margins,'' noted Carmie Mehrlander, President and Chief Operating Officer.
Mr. Jackson further commented, ''Both Carmie and I are very excited about our e-commerce opportunities as we position ourselves to take advantage of the explosive growth in internet selling. I refer you to our separate press release describing the new technology utilized on our website and partnerships that we have formed.''
The Company has repurchased a total of approximately 1.2 million shares of its common stock at a cost of $6.2 million under the Company's on-going stock repurchase program announced in June 1998. The Company continues to have a strong debt-free balance sheet as of the end of the year.
The Bombay Company, Inc. is a specialty retailer marketing classic and traditional furniture, prints and accessories through a network of 412 Bombay Company stores and its mail order operations in the United States and Canada as well as over the internet at htp://www.bombayco.com.
Any statements in this press release that may be considered forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements due to the risk factors discussed in periodic reports filed by the Company with the
Securities and Exchange Commission which the Company urges investors to consider.
THE BOMBAY COMPANY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
January 30, January 31, January 30, January 31,
1999 1998 1999 1998
Net sales $130,483 $125,274 $356,715 $332,577
Costs and expenses:
Cost of sales, buying
and store occupancy
costs 83,790 78,070 252,891 229,927
Selling, general and
administrative expenses 28,565 27,946 98,916 97,663
Interest income, net (454) (516) (1,885) (2,349)
Income before income taxes 18,582 19,774 6,793 7,336
Provision for income taxes 7,440 7,803 2,783 2,886
Net income $11,142 $11,971 $4,010 $4,450
Basic earnings per share $0.30 $0.31 $0.11 $0.12
Diluted earnings per share $0.30 $0.31 $0.11 $0.12
Average common shares
outstanding 37,209 38,109 37,728 38,066
Average common shares
outstanding and dilutive
potential common shares 37,436 38,225 37,784 38,095
SOURCE: The Bombay Company
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