Brookstone Announces Fourth Quarter and Fiscal Year 2010 Financial Results
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.
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