LOEH earnings as below.
Loehmann's, Inc. Announces Fourth Quarter and Year End Results
March 11, 1999 07:54 AM
BRONX, New York--(BUSINESS WIRE)--March 11, 1999--
-- Comparable Store Sales Increased 4.4% for the Fourth Quarter --
Loehmann's, Inc. LOEH today announced financial results for the fourth fiscal quarter and year ended January 30, 1999.
For the fourth quarter of fiscal 1998, sales rose 3.5% to $112.7 million compared to $108.9 million in the fourth quarter of 1997. Comparable store sales increased 4.4% from the comparable period in the prior year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter improved to $1.2 million versus $0.2 million in the prior year, representing 1.1% and 0.1% of sales, respectively. The net loss was $5.5 million, or $0.61 per share, compared to a net loss of $15.6 million, or $1.73 per share, for the fourth quarter of 1997. Prior year results include a one-time charge related to store closings of $9.3 million, or $1.03 per share. If adjusted for a 39% effective tax rate, net loss for the quarter would have been $3.4 million, or $0.37 per share, compared to a net loss of $9.5 million, or $1.05 per share, for the comparable period in the prior year.
For the year ended January 30, 1999, sales were $432.0 million compared to $443.3 million last year, a decrease of 2.5%. Comparable store sales decreased 1.6% for the year ended January 30, 1999. EBITDA for the year increased to $22.2 million versus $18.0 million in the prior year, representing 5.1% and 4.1% of sales, respectively. The net loss was $5.1 million, or $0.57 per share, including the extraordinary loss related to the extinguishment of debt of $0.6 million or $0.06 per share, compared to a net loss of $15.7 million, or $1.75 per share, including the charge for store closings, for the prior year. If adjusted for a 39% effective tax rate, the net loss before the extraordinary item for the year would have been $2.7 million, or $0.29 per share, versus the net loss for the prior year of $9.4 million or $1.05 per share.
Commenting on the results, Robert N. Friedman, Chairman and Chief Executive Officer, stated, "We are pleased with the progress we have made to improve customer traffic in our stores. During the quarter, we intensified our marketing programs, an important complement to our new merchandising initiatives, which contributed to solid sales performance and a comp store sales gain of 4.4%. Specifically, our new marketing programs are designed to attract new customers, retain existing customers and reward our best customers. These programs took effect in December and contributed to a comp store sales increase of 8% for the month. During the Spring season, we will continue to implement these programs with the goal of continuing to improve traffic in our stores."
"During the year, we worked hard to reshape our existing business through more diverse product offerings and are excited with the progress we have made. We broadened our appeal through new merchandise classifications, such as the rollout of Men's to 52 stores and the addition of Gifts. We also reduced our emphasis on Designer and Bridge apparel, while strengthening our position in Casual sportswear and refreshing our Dress and Suit businesses. Additionally, we continued to carefully control inventory, which contributed to improved gross margins of 250 and 280 basis points for the fourth quarter and fiscal year, respectively."
"As we look ahead, we believe our new strategic initiatives implemented during the year will help transition Loehmann's to a destination location for a larger and more diverse customer base," Mr. Friedman concluded.
Loehmann's, Inc. is a leading specialty retailer of well known designer and brand name women's and men's fashion apparel, accessories and shoes at prices that are typically 30% to 65% below department store prices. Loehmann's operates 69 stores in major metropolitan markets located in 22 states.
This release contains forward-looking information within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, uncertainties, and other factors which may cause actual results to differ materially from such forward-looking information. Such factors include, among other things, levels of sales and store traffic, general economic and business conditions, competition, development and operating costs, advertising and promotional efforts, brand awareness, and the existence or absence of adverse publicity. For more detail, see the Company's annual and quarterly reports filed with the Securities and Exchange Commission (a copy of which may also be obtained from the Company at (718) 409-2000). Investors and prospective investors are urged to consider the factors discussed above, and to read the Company's annual and quarterly reports filed with the Securities and Exchange Commission.
LOEHMANN'S, INC.
STATEMENT OF OPERATIONS
(Unaudited)
(In thousands except per share amounts)
Thirteen Week Fiscal Years
Periods Ended Ended
January 30, January 31, January 30, January 31,
1999 1998 1999 1998
Sales $ 112,727 $ 108,928 $ 432,017 $ 443,310
Gross Margin(1) 32,050 28,210 138,338 129,402
Selling, General
and Administrative
Expenses 30,813 28,056 116,096 111,370
EBITDA 1,237 154 22,242 18,032
Depreciation and
Amortization 3,151 2,955 12,201 11,433
Charge for Store
Closings and
Impairment
of Assets (1) 0 9,300 0 9,300
Operating Income
(Loss) (1,914) (12,101) 10,041 (2,701)
Interest Expense,
Net 3,633 3,455 14,514 12,845
Income (Loss)
Before Taxes (5,547) (15,556) (4,473) (15,546)
Provision for Income
Taxes (2) (6) 31 115 126
Net (Loss) Income
Before Extraordinary
Item (5,541) (15,587) (4,588) (15,672)
Extraordinary Item -
Loss for Extinguishment
of Debt 0 0 560 0
Net Income (Loss)
Applicable to
Common Stock ($5,541) ($ 15,587) ($ 5,148)($ 15,672)
Basic Earnings Per Share:
Net Income (Loss) per Share
Before Extraordinary
Item ($ 0.61) ($ 1.73) ($ 0.51)($ 1.75)
Extraordinary
Item $ 0.00 $ 0.00 ($ 0.06) $ 0.00
Net Income (Loss)
per Share ($ 0.61) ($ 1.73) ($ 0.57)($ 1.75)
Basic Weighted
Average Shares
Outstanding 9,078 9,024 9,063 8,961
Diluted Earnings Per Share:
Net (Loss) Income per
Share Before
Extraordinary
Item ($ 0.61) ($ 1.73) ($ 0.51) ($ 1.75)
Extraordinary
Item $ 0.00 $ 0.00 ($ 0.06) $ 0.00
Net (Loss) Income
per Share ($ 0.61) ($ 1.73) ($ 0.57) ($ 1.75)
Diluted Weighted
Average Shares
Outstanding 9,078 9,024 9,063 8,961
(1) Includes a charge for store closings and impairment of assets of
approximately $1.2 million and $3.7 million in 1998 and 1997,
respectively, for stores closed in 1998, which will be shown as
part of cost of goods sold in the company's financial statements
(2) Represents state, local and alternative minimum taxes
Adjusted for a 39%
Effective Tax Rate:
Net Income (Loss)
Before Extraordinary
Item ($ 3,387) ($ 9,470) ($ 2,658) ($ 9,406)
Diluted Net Income
(Loss) per
Share ($ 0.37) ($ 1.05) ($ 0.29) ($ 1.05)
Average Shares
Outstanding 9,078 9,024 9,063 8,961
Effect of Extraordinary
Item on:
Net Income
Per Share $ 0.00 $ 0.00 $ 0.06 $ 0.00
Reconciliation to
Adjust for a
39% Effective
Tax Rate
Net (Loss) Income
Before Taxes and
Extraordinary
Item ($ 5,547) ($ 15,556) ($ 4,473) ($ 15,546)
Income Tax
Effect @ 39% 2,160 6,086 1,815 6,140
Adjusted Net
(Loss) Income
Before Extraordinary
Item ($ 3,387) ($ 9,470) ($ 2,658) ($ 9,406)
LOEHMANN'S, INC.
BALANCE SHEET
(Unaudited)
(In thousands)
January 30, January 31,
1999 1998
Assets
Cash & Cash Equivalents $ 1,325 $ 1,767
Inventory 69,606 67,521
Prepaid Expenses and Other
Current Assets 4,883 5,575
Total Current Assets 75,814 74,863
Property, Plant and
Equipment, net 71,462 71,612
Other Assets 41,418 42,751
Total Assets $188,694 $189,226
Liabilities and Equity
Accounts Payable $ 25,544 $ 21,570
Accrued Expenses 18,638 26,128
Current Portion -
Long-term Debt 70 73
Total Current Liabilities 44,252 47,771
Revolving Line of Credit 41,880 33,771
Senior Secured Notes 95,000 95,000
Long-term Debt 2,612 2,589
Other 339 389
Total Liabilities 184,083 179,520
Shareholders' Equity 4,611 9,706
Total Liabilities &
Shareholders' Equity $188,694 $189,226
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