Jennifer Convertibles Reports First Quarter Results

WOODBURY, N.Y., Jan. 11, 2011 /PRNewswire/ -- Jennifer Convertibles, Inc. (Pink Sheets: JENNQ) announced today its financial results for the first fiscal quarter ended November 27, 2010.

For the first quarter, revenue from continuing operations increased by 3.6% to $18,520,000 from the $17,877,000 reported for the same period last year.

For the first quarter, the Company had a net loss of $3,360,000, or ($0.48) per basic and diluted share, compared to net loss of $6,870,000, or ($0.97) per basic and diluted share for the same period last year.

For the first quarter, operating margins from continuing operations decreased to 24.7% as a percentage of revenue from continuing operations compared to 28.0% for the same period last year.  

For the first quarter, selling, general and administrative expenses from continuing operations decreased by 6.7% to $7,073,000 from $7,580,000 reported for the same period last year.

During the first quarter, the Company closed ten stores of which four were located in New York, three in New Jersey, two in California and one in Virginia compared to one store closing in Arizona in the same period last year.  The operating results of the closed stores in New York, New Jersey, California and Virginia are recorded in continuing operations based on management's judgment that there will be significant continuing sales to customers of the closed stores in other stores in the area.  The operating results of the closed store in Arizona were reported as discontinued operations.   Income (loss) from discontinued operations was $62,000 and ($967,000) during the thirteen-week periods ended November 27, 2010 and November 28, 2009.  

Harley J. Greenfield Chief Executive Officer of Jennifer commenting on the results of the quarter said, "During the quarter we continued to restructure our leases, close and consolidate unprofitable stores, and continue to focus our attention on our stronger markets. Most importantly we focused on our customers, providing them with products that have incredible value and not allowing the bankruptcy to impact them in any way. We intend to exit bankruptcy as a stronger company continuing to satisfy our customer's needs."

Mr. Greenfield added, "We are pleased with the growth of our Ashley Furniture HomeStores Division, increasing revenue in the quarter by almost 80% to $6.85 million from the $3.815 million recorded in the same period last year. In addition, operating income for the Division, before corporate overhead increased by 149% to $419,000 from the $168,000 recorded in the same period last year.

Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with 65 Jennifer Convertibles® stores and is the largest specialty retailer of leather furniture with 8 Jennifer Leather stores. As of January 11, 2011, the Company owned 73 stores and operates six licensed Ashley Furniture HomeStores.

Statements in this press release other than the statements of historical fact are "forward-looking statements."  Such statements are subject to certain risks and uncertainties, including changes in retail demand, vendor performance and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from any forward-looking statements.  These forward-looking statements represent the Company's judgment as of the date of the release.  The Company disclaims, however, any interest or obligations to update these forward-looking statements.

SOURCE Jennifer Convertibles, Inc.