MERRIMACK, N.H., Aug. 16, 2011 /PRNewswire/ -- Innovative product development company and specialty lifestyle retailer Brookstone, Inc. today announced financial results for the second quarter ended July 2, 2011.
For the 13-week period ended July 2, 2011, Brookstone reported total net sales of $85.5 million, a 12.0% increase from the comparable 13-week period of 2010. Same-store sales increased 9.8% as compared to the comparable 13-week period last year.
For the 13-week period ended July 2, 2011, Brookstone reported a loss from operations of $8.6 million, compared to a loss from operations of $12.5 million for the comparable 13-week period last year.
For the 26-week period ended July 2, 2011, Brookstone reported total net sales of $165.6 million, a 13.4% increase from the 26-week period ended July 3, 2010. Same-store sales for the 26-week period ended July 2, 2011 increased 10.0% as compared to the comparable 26-week period last year.
For the 26-week period ended July 2, 2011, Brookstone reported a loss from operations of $22.9 million, compared to a loss from operations of $29.5 million for the 26-week period ended July 3, 2010.
Ron Boire, Brookstone President and Chief Executive Officer, said, "We are encouraged by the improving results in both segments of our business. The second quarter of 2011 marks our seventh consecutive quarter of same-store sales increases in the retail segment, and the seventh consecutive quarter the direct segment has generated increased sales over the comparable quarter of the previous year. This positive trend reflects an expanding product assortment in our direct segment and improved selling efforts in our retail stores. We believe that Brookstone is well-positioned for the remainder of 2011."
About Brookstone:
Brookstone, Inc. is an innovative product development and specialty lifestyle retail company that operates approximately 300 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.
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. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) |
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July 2, 2011 |
January 1, 2011 |
July 3, 2010 |
||||
(Unaudited) |
(Unaudited) |
|||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ 1,384 |
$ 32,097 |
$ 1,253 |
|||
Receivables, net |
10,658 |
7,266 |
6,543 |
|||
Merchandise inventories |
73,635 |
96,004 |
72,392 |
|||
Prepaid expenses |
7,267 |
8,950 |
8,261 |
|||
Total current assets |
92,944 |
144,317 |
88,449 |
|||
Property, plant and equipment, net |
45,923 |
46,362 |
48,821 |
|||
Intangible assets, net |
105,000 |
105,000 |
105,000 |
|||
Goodwill |
99,734 |
99,734 |
99,734 |
|||
Other assets |
4,580 |
5,386 |
6,830 |
|||
Total assets |
$ 348,181 |
$ 400,799 |
$ 348,834 |
|||
Liabilities and Shareholder's Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ 15,347 |
$ 32,836 |
$ 13,207 |
|||
Other current liabilities |
31,618 |
44,435 |
25,493 |
|||
Short-term borrowings |
12,069 |
--- |
6,819 |
|||
Deferred income taxes |
716 |
716 |
762 |
|||
Total current liabilities |
59,750 |
77,987 |
46,281 |
|||
Long-term debt: |
||||||
Senior Notes, at face value net of discount |
135,139 |
135,080 |
169,364 |
|||
Concession on 2010 Note Exchange, net |
11,999 |
13,529 |
--- |
|||
Other long-term debt |
2,889 |
3,408 |
3,793 |
|||
Total long-term debt |
150,027 |
152,017 |
173,157 |
|||
Other long-term liabilities |
18,492 |
19,604 |
20,086 |
|||
Deferred income taxes |
37,819 |
37,819 |
37,773 |
|||
Total liabilities |
266,088 |
287,427 |
277,297 |
|||
Commitments and contingencies |
--- |
--- |
--- |
|||
Equity: |
||||||
Brookstone Shareholder's equity: |
||||||
Common Stock – $0.01 par value, 1,000 shares authorized, one share issued and outstanding |
--- |
--- |
--- |
|||
Additional paid-in capital |
266,824 |
265,485 |
245,277 |
|||
Accumulated other comprehensive loss |
(1,399) |
(1,414) |
(664) |
|||
Retained deficit |
(184,750) |
(151,999) |
(173,995) |
|||
Total Brookstone Shareholder's equity |
80,675 |
112,072 |
70,618 |
|||
Noncontrolling interests |
1,418 |
1,300 |
919 |
|||
Total equity |
82,093 |
113,372 |
71,537 |
|||
Total liabilities and equity |
$ 348,181 |
$ 400,799 |
$ 348,834 |
|||
BROOKSTONE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) (Unaudited) |
||||||||
Thirteen weeks ended |
Twenty-six weeks ended |
|||||||
July 2, 2011 |
July 3, 2010 |
July 2, 2011 |
July 3, 2010 |
|||||
Net sales |
$ 85,535 |
$ 76,388 |
$ 165,631 |
$ 146,120 |
||||
Cost of sales |
64,088 |
59,157 |
128,359 |
117,005 |
||||
Gross profit |
21,447 |
17,231 |
37,272 |
29,115 |
||||
Selling, general and administrative |
30,012 |
29,725 |
60,185 |
58,656 |
||||
Loss from operations |
(8,565) |
(12,494) |
(22,913) |
(29,541) |
||||
Interest expense, net |
4,471 |
6,146 |
8,896 |
12,196 |
||||
Loss before income taxes |
(13,036) |
(18,640) |
(31,809) |
(41,737) |
||||
Income tax provision |
229 |
186 |
351 |
373 |
||||
Consolidated net loss |
(13,265) |
(18,826) |
(32,160) |
(42,110) |
||||
Less: Net income attributable to non- |
351 |
235 |
591 |
353 |
||||
Net loss attributable to Brookstone |
$ (13,616) |
$ (19,061) |
$ (32,751) |
$ (42,463) |
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Contact:
Thomas F. Moynihan
Vice President and Chief Financial Officer
(603) 880-9500
SOURCE Brookstone, Inc.
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