Mothers Work, Inc. Reports Second Quarter Results

Apr 19, 2001, 01:00 ET from Mothers Work, Inc.

    PHILADELPHIA, April 19 /PRNewswire/ -- Mothers Work, Inc. (Nasdaq:   MWRK),
 the Real Time Retailer(R), today announced operating results for the second
 fiscal quarter ended March 31, 2001.
     Net sales for the second quarter increased 6.4% to $89.0 million from
 $83.7 million in the same quarter of the preceding year.  Comparable store
 sales decreased 2.8% during the second quarter of fiscal 2001 (based on
 634 locations) versus a comparable store sales increase of 11.1% during the
 second quarter of fiscal 2000 (based on 539 locations).  The Company opened 10
 new locations, and closed 4 locations, ending the quarter with 751 maternity
 locations compared with 669 on March 31, 2000.
      Earnings before interest, taxes, depreciation and amortization (EBITDA)
 was $3.2 million for the second quarter of fiscal 2001, compared to
 $6.0 million for the second quarter of fiscal 2000.  The net loss for the
 second quarter of fiscal 2001 was $2.3 million or $0.65 per common share
 compared to a net loss for the second quarter of fiscal 2000 of $0.8 million
 or $0.24 per common share.
     Net sales for the first six months of fiscal 2001 increased 9.2% to
 $191.7 million from $175.5 million in the same six months of the preceding
 year.  Comparable store sales decreased 0.6% during the first six months of
 fiscal 2001 (based on 609 locations) versus a comparable store sales increase
 of 9.5% during the first six months of fiscal 2000 (based on 535 locations).
     EBITDA was $12.7 million for the first six months of fiscal 2001, compared
 to $17.3 million for the first six months of fiscal 2000.  The net loss for
 the first six months of fiscal 2001 was $1.3 million or $0.37 per common share
 compared to net income for the first six months of fiscal 2000 of $1.2 million
 or $0.34 per common share.
     Rebecca Matthias, President and Chief Operating Officer of Mothers Work,
 Inc., noted, "We are disappointed with our earnings results for the quarter.
 We, like many other retailers, encountered a very difficult economy combined
 with adverse weather conditions, which negatively impacted sales.
 Additionally, gross margin and SG&A rates compared unfavorably versus the
 March quarter last year.  Recent cost control initiatives have reversed this
 negative SG&A trend.  In the month of March 2001, store operating expenses
 were lower as a percentage of sales than March 2000.
     The Company expects to enjoy the benefits of these lower costs through the
 remainder of the fiscal year and beyond.  We are optimistic that gross margins
 for the Spring season will be ahead of the prior year.  Also, as a result of
 aggressive inventory control, our balance sheet performance was more favorable
 with inventory and line of credit balances decreasing by $4.1 million and
 $6.5 million, respectively, below the prior year.  We remain confident in the
 fundamental strengths of our business and are focused on maximizing our
 results for the remainder of the fiscal year by managing costs and gross
 margins."
     Mothers Work is the Real Time Retailer(R), using its custom TrendTrack(TM)
 computer systems and quick response replenishment process to "give the
 customer what she wants, when she wants it."  Mothers Work operates 751
 maternity locations.
     The Company cautions that any forward-looking statements (as such term is
 defined in the Private Securities Litigation Reform Act of 1995) contained in
 this press release or made from time to time by management of the Company,
 including expected results of operations, involve risks and uncertainties, and
 are subject to change based on various important factors.  The following
 factors, among others, in some cases have affected and in the future could
 affect the Company's financial performance and actual results and could cause
 actual results through the balance of fiscal 2001 and beyond to differ
 materially from those expressed or implied in any such forward-looking
 statements: adverse changes in consumer spending patterns, consumer
 preferences and overall economic conditions, the impact of competition and
 pricing, continued availability of capital and financing, difficulties or
 delays in design, manufacturing and/or sourcing of merchandise, and other
 factors set forth in the Company's filings with the Securities and Exchange
 Commission.
 
                      MOTHERS WORK, INC. AND SUBSIDIARIES
                     Consolidated Statements of Operations
                                  (unaudited)
 
                            Second Quarter Ended        Six Months Ended
                            3/31/01     3/31/00      3/31/01       3/31/00
 
     Net Sales           $89,028,513  $83,683,097 $191,698,245  $175,548,248
     Cost of Goods Sold   45,912,180   42,310,141   98,730,004    88,617,435
 
        Gross Profit      43,116,333   41,372,956   92,968,241    86,930,813
 
     SG&A Expenses, excluding
        Depreciation &
         Amortization     39,874,535   35,334,537   80,262,991    69,600,109
 
     Depreciation &
      Amortization         2,957,661    3,000,111    5,980,859     5,872,852
 
        Operating Income     284,137    3,038,308    6,724,391    11,457,852
     Interest Expense      3,830,695    3,955,142    7,714,172     7,948,808
 
         Net Income (Loss)
          Before Income
          Taxes           (3,546,558)    (916,834)    (989,781)    3,509,044
 
     Income Tax Provision
      (Benefit)           (1,658,057)    (428,048)    (469,156)    1,572,054
 
        Net Income (Loss) (1,888,501)    (488,786)    (520,625)    1,936,990
 
     Preferred Dividends     372,986      347,226      745,649       694,452
 
        Net Income (Loss)
         Available to Common
         Stockholders    $(2,261,487)   $(836,012) $(1,266,274)   $1,242,538
 
     Net Income (Loss) Per
     Common Share             $(0.65)      $(0.24)      $(0.37)        $0.34
 
     Weighted Average Common
      Shares Outstanding   3,453,910    3,437,598    3,453,374     3,655,524
 
     EBITDA               $3,241,798   $6,038,419  $12,705,250   $17,330,704
 
 
                          Selected Balance Sheet Data
 
                                  March 31,      September 30,   March 31,
                                    2001             2000           2000
 
     Cash and Cash Equivalents    $2,429,305      $3,075,987    $3,445,638
     Inventories                  69,692,998      75,747,610    73,754,148
     Property and Equipment, Net  45,199,477      44,260,364    44,041,930
     Line of Credit               28,106,453      30,548,249    34,649,739
     Long-Term Debt               96,036,082      96,087,862    95,958,841
     Stockholders Equity          11,495,590      12,751,272    10,283,013
 
     Mothers Work press releases available through Company News On-Call at
 http://www.prnewswire.com/comp/581877.html or by fax, 800-758-5804,
 ext. 581877
 
 

SOURCE Mothers Work, Inc.
    PHILADELPHIA, April 19 /PRNewswire/ -- Mothers Work, Inc. (Nasdaq:   MWRK),
 the Real Time Retailer(R), today announced operating results for the second
 fiscal quarter ended March 31, 2001.
     Net sales for the second quarter increased 6.4% to $89.0 million from
 $83.7 million in the same quarter of the preceding year.  Comparable store
 sales decreased 2.8% during the second quarter of fiscal 2001 (based on
 634 locations) versus a comparable store sales increase of 11.1% during the
 second quarter of fiscal 2000 (based on 539 locations).  The Company opened 10
 new locations, and closed 4 locations, ending the quarter with 751 maternity
 locations compared with 669 on March 31, 2000.
      Earnings before interest, taxes, depreciation and amortization (EBITDA)
 was $3.2 million for the second quarter of fiscal 2001, compared to
 $6.0 million for the second quarter of fiscal 2000.  The net loss for the
 second quarter of fiscal 2001 was $2.3 million or $0.65 per common share
 compared to a net loss for the second quarter of fiscal 2000 of $0.8 million
 or $0.24 per common share.
     Net sales for the first six months of fiscal 2001 increased 9.2% to
 $191.7 million from $175.5 million in the same six months of the preceding
 year.  Comparable store sales decreased 0.6% during the first six months of
 fiscal 2001 (based on 609 locations) versus a comparable store sales increase
 of 9.5% during the first six months of fiscal 2000 (based on 535 locations).
     EBITDA was $12.7 million for the first six months of fiscal 2001, compared
 to $17.3 million for the first six months of fiscal 2000.  The net loss for
 the first six months of fiscal 2001 was $1.3 million or $0.37 per common share
 compared to net income for the first six months of fiscal 2000 of $1.2 million
 or $0.34 per common share.
     Rebecca Matthias, President and Chief Operating Officer of Mothers Work,
 Inc., noted, "We are disappointed with our earnings results for the quarter.
 We, like many other retailers, encountered a very difficult economy combined
 with adverse weather conditions, which negatively impacted sales.
 Additionally, gross margin and SG&A rates compared unfavorably versus the
 March quarter last year.  Recent cost control initiatives have reversed this
 negative SG&A trend.  In the month of March 2001, store operating expenses
 were lower as a percentage of sales than March 2000.
     The Company expects to enjoy the benefits of these lower costs through the
 remainder of the fiscal year and beyond.  We are optimistic that gross margins
 for the Spring season will be ahead of the prior year.  Also, as a result of
 aggressive inventory control, our balance sheet performance was more favorable
 with inventory and line of credit balances decreasing by $4.1 million and
 $6.5 million, respectively, below the prior year.  We remain confident in the
 fundamental strengths of our business and are focused on maximizing our
 results for the remainder of the fiscal year by managing costs and gross
 margins."
     Mothers Work is the Real Time Retailer(R), using its custom TrendTrack(TM)
 computer systems and quick response replenishment process to "give the
 customer what she wants, when she wants it."  Mothers Work operates 751
 maternity locations.
     The Company cautions that any forward-looking statements (as such term is
 defined in the Private Securities Litigation Reform Act of 1995) contained in
 this press release or made from time to time by management of the Company,
 including expected results of operations, involve risks and uncertainties, and
 are subject to change based on various important factors.  The following
 factors, among others, in some cases have affected and in the future could
 affect the Company's financial performance and actual results and could cause
 actual results through the balance of fiscal 2001 and beyond to differ
 materially from those expressed or implied in any such forward-looking
 statements: adverse changes in consumer spending patterns, consumer
 preferences and overall economic conditions, the impact of competition and
 pricing, continued availability of capital and financing, difficulties or
 delays in design, manufacturing and/or sourcing of merchandise, and other
 factors set forth in the Company's filings with the Securities and Exchange
 Commission.
 
                      MOTHERS WORK, INC. AND SUBSIDIARIES
                     Consolidated Statements of Operations
                                  (unaudited)
 
                            Second Quarter Ended        Six Months Ended
                            3/31/01     3/31/00      3/31/01       3/31/00
 
     Net Sales           $89,028,513  $83,683,097 $191,698,245  $175,548,248
     Cost of Goods Sold   45,912,180   42,310,141   98,730,004    88,617,435
 
        Gross Profit      43,116,333   41,372,956   92,968,241    86,930,813
 
     SG&A Expenses, excluding
        Depreciation &
         Amortization     39,874,535   35,334,537   80,262,991    69,600,109
 
     Depreciation &
      Amortization         2,957,661    3,000,111    5,980,859     5,872,852
 
        Operating Income     284,137    3,038,308    6,724,391    11,457,852
     Interest Expense      3,830,695    3,955,142    7,714,172     7,948,808
 
         Net Income (Loss)
          Before Income
          Taxes           (3,546,558)    (916,834)    (989,781)    3,509,044
 
     Income Tax Provision
      (Benefit)           (1,658,057)    (428,048)    (469,156)    1,572,054
 
        Net Income (Loss) (1,888,501)    (488,786)    (520,625)    1,936,990
 
     Preferred Dividends     372,986      347,226      745,649       694,452
 
        Net Income (Loss)
         Available to Common
         Stockholders    $(2,261,487)   $(836,012) $(1,266,274)   $1,242,538
 
     Net Income (Loss) Per
     Common Share             $(0.65)      $(0.24)      $(0.37)        $0.34
 
     Weighted Average Common
      Shares Outstanding   3,453,910    3,437,598    3,453,374     3,655,524
 
     EBITDA               $3,241,798   $6,038,419  $12,705,250   $17,330,704
 
 
                          Selected Balance Sheet Data
 
                                  March 31,      September 30,   March 31,
                                    2001             2000           2000
 
     Cash and Cash Equivalents    $2,429,305      $3,075,987    $3,445,638
     Inventories                  69,692,998      75,747,610    73,754,148
     Property and Equipment, Net  45,199,477      44,260,364    44,041,930
     Line of Credit               28,106,453      30,548,249    34,649,739
     Long-Term Debt               96,036,082      96,087,862    95,958,841
     Stockholders Equity          11,495,590      12,751,272    10,283,013
 
     Mothers Work press releases available through Company News On-Call at
 http://www.prnewswire.com/comp/581877.html or by fax, 800-758-5804,
 ext. 581877
 
 SOURCE  Mothers Work, Inc.

RELATED LINKS

www.motherswork.com