Brookstone Announces Fourth Quarter and Fiscal Year 2010 Financial Results

Mar 31, 2011, 06:00 ET from Brookstone, Inc.

MERRIMACK, N.H., March 31, 2011 /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 1, 2011.  

For the 13-week period ended January 1, 2011, Brookstone reported total net sales of $249.4 million, a 9.5% increase from the 13-week period ended January 2, 2010.  Same-store sales for the 13-week period ended January 1, 2011 increased 5.7% as compared to the comparable 13-week period last year.

For the 13-week period ended January 1, 2011, Brookstone reported income from operations of $48.4 million, compared to income from operations of $48.3 million for the 13-week period ended January 2, 2010.  

For the 52-week period ended January 1, 2011, Brookstone reported total net sales of $468.2 million, an 8.8% increase from the 52-week period ended January 2, 2010.  Same-store sales for the 52-week period ended January 1, 2011 increased 6.7 % as compared to the comparable 52-week period last year.

For the 52-week period ended January 1, 2011, Brookstone reported income from operations of $4.7 million, compared to income from operations of $4.1 million for the 52-week period ended January 2, 2010.  

Ron Boire, Brookstone Chief Executive Officer, said:  "We are encouraged by our improving top line results. This quarter marks our fifth consecutive quarter of same-store sales increases. This positive trend reflects an exciting product assortment and improved selling efforts.  We believe this progress, along with our successful 2010 capital restructuring, positions Brookstone favorably for 2011."    

Brookstone, Inc. is an innovative product development and specialty lifestyle retail company that operates over 300 Brookstone branded 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.

Brookstone is principally owned by three sponsors, Osim International, J.W. Childs, and Temasek Holdings.  In accordance with the terms governing its publicly-held debt, the Company issues quarterly and annual reports under SEC guidelines.

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 1, 2011


January 2, 2010



(Unaudited)




Assets










Current assets:





   Cash and cash equivalents

$        32,097


$        31,802


   Receivables, net

7,656


8,159


   Merchandise inventories

96,004


86,428


   Prepaid expenses

8,950


22,210







       Total current assets

144,707


148,599












Property, plant and equipment, net

46,362


52,925


Intangible assets, net

105,000


105,000


Goodwill

99,734


99,734


Other assets

5,386


5,942







Total assets

$      401,189


$      412,200







Liabilities and Shareholder's Equity










Current liabilities:










   Accounts payable

$    32,836


$    23,805


   Other current liabilities

44,825


42,912


   Deferred income taxes

716


762







      Total current liabilities

78,377


67,479







Other long-term liabilities

19,604


20,554



Long-term Debt:





  Senior Notes, at face value net of discount

135,080


169,222


  Concession on 2010 Note Exchange, net

13,529


---


  Other long-term debt

3,408


4,246


      Total long-term debt

152,017


173,468







Deferred income taxes

37,819


37,773






        Total shareholder's equity

113,372


112,926






Total liabilities and shareholder's equity

$     401,189


$     412,200





BROOKSTONE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands)

(Unaudited)









Thirteen weeks ended


Thirteen weeks ended


January 1, 2011


January 2, 2010





Net sales

$               249,402


$               227,662





Cost of sales

143,291


124,780





Gross profit

106,111


102,882





Selling, general and administrative expenses

57,745


51,979





Long-lived asset impairment

---


2,587





Income from operations

48,366


48,316





Interest expense, net

5,409


6,218





Income before taxes

42,957


42,098





Income tax provision (benefit)

120


(12,981)





Consolidated net income

42,837


55,079





Less: Net income attributable to noncontrolling interests

330


116





Net income attributable to Brookstone, Inc.

$                42,507


$                54,963








BROOKSTONE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands)









Fifty-two weeks ended


Fifty-two weeks ended


January 1, 2011


January 2, 2010


(Unaudited)







Net sales

$               468,191


$               430,258





Cost of sales

319,254


293,733





Gross profit

148,937


136,525





Selling, general and administrative expenses

144,216


129,857





Long-lived asset impairment

---


2,587





Income from operations

4,721


4,081





Interest expense, net

23,808


24,229





Loss before taxes

(19,087)


(20,148)





Income tax provision (benefit)

481


(12,377)





Consolidated net loss

(19,568)


(7,771)





Less: Net income attributable to noncontrolling interests

899


545





Net loss attributable to Brookstone, Inc.

$              (20,467)


$                (8,316)








Contact:
Thomas F. Moynihan
Vice President, Chief Financial Officer
(603) 880-9500

SOURCE Brookstone, Inc.



RELATED LINKS

http://www.brookstone.com