Net loss for fiscal 2007 was
As previously reported, total sales for the 13-week fiscal fourth quarter
decreased 14.2% to
Total sales for the 52-week fiscal 2007 decreased 8.1% to
Jim Famalette, Chairman and Chief Executive Officer of Gottschalks, stated, "Our financial performance in fiscal 2007 reflects persistent challenges in the retail environment. Difficult economic conditions, including the weak housing market and high gas prices, also more heavily affected consumers in California where the majority of our stores are located. Like many other retailers, we conducted deep discounting during the year, which negatively impacted our gross margin. However, we reduced our SG&A expenditures on a year over year basis. We were pleased with our ability to increase our credit card sales penetration and grow our credit card revenue during the year. Importantly, in the latter stages of 2007 we began the implementation of our Value Improvement Program (V.I.P.), which is designed to improve our operating performance and maximize shareholder value over the long-term."
Commenting on the Company's outlook,
Earnings Teleconference and Webcast
Gottschalks will host a conference call today at
About Gottschalks
Gottschalks is a regional department store chain, currently operating 59 department stores and three specialty apparel stores in six western states, including California (39), Washington (7), Alaska (5), Oregon (4), Nevada (2) and Idaho (2). Gottschalks offers better to moderate brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise. Gottschalks offers corporate information and selected merchandise on its website located at http://www.gottschalks.com.
Business Risks and Forward Looking Statements
This release contains forward-looking statements (within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. In some instances, such statements may be identified by the use of forward-looking terminology such as "may," "will," "expects," "believes," "intends," "projects," "forecasts," "plans," "estimates," "anticipates," "continues," "targets," or similar terms, variations of such terms or the negative of such terms. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, the Company's ability to meet debt obligations and adhere to the restrictions and covenants imposed under its various debt agreements; the timely receipt of merchandise and the Company's ability to obtain adequate trade credit from its key factors and vendors; risks arising from general economic and market conditions (including uncertainties arising from acts of terrorism or war); the ability to improve the profitability and cash flows of its stores or to sell, sublease or close underperforming stores; the ability to modify operations in order to minimize the adverse impact of rising costs, including but not limited to health care, workers' compensation, property and casualty insurance and utilities costs; the effects of seasonality and weather conditions, changing consumer trends and preferences, competition, consumer credit, the Company's dependence on its key personnel and general labor conditions, all of which are described in more detail in Gottschalks' Annual Report on Form 10-K and other reports filed by Gottschalks with the Securities and Exchange Commission. GOTTSCHALKS DOES NOT PRESENTLY INTEND TO UPDATE THESE STATEMENTS AND UNDERTAKES NO DUTY TO ANY PERSON TO EFFECT ANY SUCH UPDATE UNDER ANY CIRCUMSTANCES.
(Tables Follow)
Supplemental Operating Data:
In accordance with accounting standards generally accepted in the
Pro Forma Financial Information Fourth Quarter Fiscal Year Ended Ended February February February February 2, 3, 2, 3, 2008 2007 2008 2007 Sales Continuing operations $204,428 $238,147 $628,550 $680,966 Discontinued operations 0 0 0 2,921 Total $204,428 $238,147 $628,550 $683,887 Gross Margin Continuing operations $65,375 $78,910 $207,663 $234,347 Discontinued operations 0 0 0 500 Total $65,375 $78,910 $207,663 $234,847 Selling, general and administrative expenses Continuing operations $59,465 $60,563 $209,552 $212,355 Discontinued operations 0 0 0 1,533 Total $59,465 $60,563 $209,552 $213,888 Net income (loss) Continuing operations $1,133 $8,872 ($12,433) $3,441 Discontinued operations 0 0 0 (792) Total $1,133 $8,872 ($12,433) $2,649 GOTTSCHALKS INC. CONDENSED STATEMENTS OF OPERATIONS (In thousands, except share data) (unaudited) Fourth Quarter Fiscal Year Ended Ended February February February February 2, 3, 2, 3, 2008 2007 2008 2007 Net sales $204,428 $238,147 $628,550 $680,966 Net credit revenues 1,461 853 4,868 3,087 Net leased department revenues 1,209 1,417 3,000 3,428 Total revenues 207,098 240,417 636,418 687,481 Costs and expenses: Cost of sales 139,053 159,237 420,887 446,619 Selling, general and administrative expenses 59,465 60,563 209,552 212,355 Gain on sale of aircraft 0 0 0 (946) Depreciation and amortization 3,959 4,021 15,173 15,276 Loss on disposal of assets 0 0 418 0 VEBA litigation 0 60 0 60 New store opening costs 98 0 485 376 Total costs and expenses 202,575 223,881 646,515 673,740 Operating income (loss) 4,523 16,536 (10,097) 13,741 Other (income) expense: Interest expense 2,959 2,668 10,807 10,058 Miscellaneous income (102) (322) (489) (1,389) 2,857 2,346 10,318 8,669 Income (loss) before income taxes 1,666 14,190 (20,415) 5,072 Income tax expense (benefit) 533 5,318 (7,982) 1,631 Income (loss) from continuing operations 1,133 8,872 (12,433) 3,441 Discontinued operations: Loss from operation of closed stores 0 0 0 (1,102) Loss on store closures 0 0 0 (98) Income tax benefit 0 0 0 408 Loss from discontinued operations 0 0 0 (792) Net income (loss) $1,133 $8,872 ($12,433) $2,649 Net income (loss) per common share: Basic Income (loss) from continuing operations $0.08 $0.66 ($0.91) $0.26 Loss from discontinued operations $0.00 $0.00 $0.00 ($0.06) Net income (loss) per common share $0.08 $0.66 ($0.91) $0.20 Diluted Income (loss) from continuing operations $0.08 $0.64 ($0.91) $0.25 Loss from discontinued operations $0.00 $0.00 $0.00 ($0.06) Net income (loss) per common share $0.08 $0.64 ($0.91) $0.19 Weighted average # of common shares outstanding: Basic 13,432 13,514 13,601 13,428 Diluted 13,493 13,885 13,601 13,758 GOTTSCHALKS INC. CONDENSED BALANCE SHEETS (In thousands) (unaudited) February 2, February 3, 2008 2007 ASSETS CURRENT ASSETS: Cash $4,032 $6,051 Receivables - net 7,049 8,198 Merchandise inventories 149,310 168,702 Other 18,984 19,421 Total current assets 179,375 202,372 PROPERTY AND EQUIPMENT - net 137,931 134,696 OTHER LONG-TERM ASSETS 14,688 12,998 $331,994 $350,066 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Trade accounts payable and other current liabilities $72,559 $83,395 Current portion of long-term obligations 1,525 1,676 Total current liabilities 74,084 85,071 REVOLVING LINE OF CREDIT 93,899 83,762 LONG-TERM OBLIGATIONS (less current portion) 12,049 13,592 DEFERRED INCOME TAXES AND OTHER 21,837 23,869 SUBORDINATED NOTE PAYABLE TO AFFILIATE 18,180 19,180 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY 111,945 124,592 $331,994 $350,066
SOURCE Gottschalks Inc.