Brookstone Announces Fourth Quarter and Fiscal Year 2009 Financial Results
MERRIMACK, N.H., Feb. 16 /PRNewswire/ -- Innovative product development company and specialty lifestyle retailer Brookstone, Inc. today announced financial results for the fourth quarter and full Fiscal Year ended January 2, 2010.
For the 13-week period ended January 2, 2010, Brookstone reported total net sales of $227.7 million, a 3.4% increase from the 14-week period ended January 3, 2009. Same-store sales for the 13-week period ended January 2, 2010 increased 9.4 % as compared to the comparable 13-week period last year.
For the 13-week period ended January 2, 2010, Brookstone reported income from operations of $48.3 million, compared to a loss from operations of $98.2 million for the 14-week period ended January 3, 2009. Excluding certain non-cash impairment charges, of approximately $2.6 million, for the 13-week period ended January 2, 2010, Brookstone reported income from operations of $50.9 million, compared to income from operations of $20.8 million (which excludes certain non-cash impairment charges of approximately $119.0 million) for the 14-week period ended January 3, 2009.
For the 52-week period ended January 2, 2010, Brookstone reported total net sales of $430.3 million, a 13.4 % decrease from the 53-week period ended January 3, 2009. Same-store sales for the 52-week period ended January 2, 2010 decreased 7.6 % as compared to the comparable 52-week period last year.
For the 52-week period ended January 2, 2010, Brookstone reported income from operations of $4.1 million, compared to a loss from operations of $129.4 million for the 53-week period ended January 3, 2009. Excluding certain non-cash impairment charges, of approximately $2.6 million, for the 52-week period ended January 2, 2010, Brookstone reported income from operations of $6.7 million, compared to a loss from operations of $10.4 million (which excludes certain non-cash impairment charges of approximately $119.0 million) for the 53-week period ended January 3, 2009.
Brookstone, Inc.
Reconciliation of Selected GAAP Measures to
Non-GAAP Measures (Unaudited)
-------------------------------------------
(in millions)
-------------
Thirteen Fourteen Fifty-two Fifty-three
weeks weeks weeks weeks
ended ended ended ended
--------- --------- ---------- -----------
January 2, January 3, January 2, January 3,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Total sales $227.7 $220.1 $430.3 $496.7
====== ====== ====== ======
Income (loss) from
operations (GAAP) $48.3 $(98.2) $4.1 $(129.4)
Non-cash
impairment charges 2.6 119.0 2.6 119.0
--- ----- --- -----
Income (loss) from
operations
(excluding non-
cash impairment
charges) (Non-
GAAP) $50.9 $20.8 $6.7 $(10.4)
===== ===== ==== ======
Ron Boire, Brookstone Chief Executive Officer, said: "Our fourth quarter same store sales performance was among the best in our peer group, and we also raised our product margins materially. As a result, our financial performance improved substantially in the fourth quarter and for the year overall as compared to 2008. While we are pleased with this performance, we remain focused on building sustained improvement in order to ensure the long term health of the Company."
Separately, Brookstone announced that it has engaged The PrinceRidge Group LLC to assist it in a review of its capital structure.
Brookstone, Inc. is an innovative product development and specialty lifestyle retail company that operates 304 Brookstone Brand stores nationwide and in Puerto Rico. Typically located in high-traffic regional shopping malls and airports, the stores feature unique and innovative consumer products. The Company also operates a Direct Marketing business that includes the Brookstone catalog and an e-commerce website at http://www.brookstone.com.
Statements in this release which are not historical facts, including statements about the Company's confidence or expectations, earnings, anticipated operations of its e-commerce sites and those of third-party service providers, and other statements about the Company's operational outlook are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 ("Reform Act") and are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in such forward-looking statements. Such risks and uncertainties include, without limitation, risks of changing market conditions in the overall economy and the retail industry, consumer demand, the effectiveness of e-commerce technology and marketing efforts, availability of products, availability of adequate transportation of such products, and other factors detailed from time to time in the Company's annual and other reports posted to the Company's website. Words such as "estimate", "project", "plan", "believe", "feel", "anticipate", "assume", "may", "will", "should" and similar words and phrases may identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligations to publicly release any revisions to these forward-looking statements or reflect events or circumstances after the date hereof.
BROOKSTONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 2, January 3,
2010 2009
----------- -----------
(Unaudited)
Assets
------
Current assets:
Cash and cash equivalents $31,802 $22,530
Receivables, net 8,159 9,839
Merchandise inventories 86,428 82,095
Prepaid expenses 22,210 16,379
------ ------
Total current assets 148,599 130,843
Property, plant and equipment, net 52,925 66,456
Intangible assets, net 105,000 105,000
Goodwill 99,734 99,734
Other assets 5,942 8,565
----- -----
Total assets $412,200 $410,598
======== ========
Liabilities and Shareholder's Equity
------------------------------------
Current liabilities:
Accounts payable $23,805 $17,033
Other current liabilities 42,993 41,179
------ ------
Total current liabilities 66,798 58,212
Other long-term liabilities 20,814 21,370
Long-term debt 173,468 174,089
Deferred income taxes 38,194 38,430
Total shareholder's equity 112,926 118,497
------- -------
Total liabilities and shareholder's equity $412,200 $410,598
======== ========
BROOKSTONE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
Thirteen weeks Fourteen weeks
ended ended
-------------- --------------
January 2, 2010 January 3, 2009
Net sales $227,662 $220,083
Cost of sales 124,780 148,093
------- -------
Gross profit 102,882 71,990
Selling, general and
administrative expenses 51,979 51,254
Goodwill impairment --- 89,790
Intangible asset impairment --- 24,000
Long-lived asset impairment 2,587 5,181
----- -----
Income (loss) from operations 48,316 (98,235)
Interest expense, net 6,218 6,558
----- -----
Income (loss) before taxes 42,098 (104,793)
Income tax provision (benefit) (12,981) 12,656
------- ------
Consolidated net income (loss) 55,079 (117,449)
Less: Net income attributable to
noncontrolling interests 116 39
------- ------
Net income (loss) attributable to
Brookstone, Inc. $54,963 $(117,488)
======= =========
BROOKSTONE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Fifty-two weeks Fifty-three weeks
ended ended
--------------- -----------------
January 2, 2010 January 3, 2009
--------------- ---------------
(Unaudited)
Net sales $430,258 $496,745
Cost of sales 293,733 355,599
------- -------
Gross profit 136,525 141,146
Selling, general and
administrative expenses 129,857 151,582
Goodwill impairment --- 89,790
Intangible asset impairment --- 24,000
Long-lived asset impairment 2,587 5,181
----- -----
Income (loss) from operations 4,081 (129,407)
Interest expense, net 24,229 24,158
------ ------
Loss before taxes (20,148) (153,565)
Income tax benefit (12,377) (6,246)
------- ------
Consolidated net loss (7,771) (147,319)
Less: Net income attributable to
noncontrolling interests 545 983
------- ------
Net loss attributable to
Brookstone, Inc. $(8,316) $(148,302)
======= =========
Contact:
Philip Roizin
Executive Vice President, Operations & Chief Financial Officer
(603) 880-9500
SOURCE Brookstone, Inc.
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