Bakers Footwear Reports First Quarter Fiscal 2007 Results
June 19 2007 - 5:50AM
Business Wire
Bakers Footwear Group, Inc. (Nasdaq: BKRS), a leading specialty
retailer of moderately priced fashion footwear for young women,
with 258 stores, today announced results for the thirteen weeks
ended May 5, 2007. For the first quarter, the thirteen weeks ended
May 5, 2007: Net sales were $49.3 million, compared to $49.8
million for the thirteen-week period ended April 29, 2006.
Comparable store sales for the first quarter of fiscal 2007
decreased 9.3%, compared to a decrease of 0.8% in the prior-year
period; Gross profit in the first quarter was $15.3 million, or
31.0% of net sales, compared to $16.3�million, or 32.7% of net
sales in the first quarter last year; Operating loss was $1.2
million, compared to operating income of $1.2 million in the first
quarter last year; and Net loss was $1.0 million or $0.15 per
share, compared to net income of $0.7 million, or $0.10 per diluted
share in the first quarter last year. Peter Edison, Chairman and
Chief Executive Officer of Bakers Footwear Group said, �Our first
quarter performance reflected a lack of enthusiasm for our fashion
footwear by our core customers and an unfavorable response to our
spring assortments across our key fashion categories. On a positive
note, we did achieve our inventory goals. At quarter end, inventory
declined 1.4% from last year despite adding 13 net new stores since
the first quarter of fiscal 2006.� During the first quarter of
fiscal 2007, the Company opened six new stores in the new Bakers
format and remodeled four Bakers locations, ending the quarter with
258 total stores. Mr. Edison continued: �Our second quarter sales
continue to be soft, with comparable store sales in May down 15.1%.
We hope to show improvement in the fall season, as our efforts to
provide compelling fall/holiday assortments while maintaining tight
management of inventory and expenses bear fruit.� Fiscal 2007
Outlook The Company currently estimates fiscal 2007 EBITDA to be
approximately $5.5 million to $8.0 million, compared to actual
fiscal 2006 EBITDA of $6.1 million. EBITDA is a non-GAAP measure.
See Table 1 below for a reconciliation of net loss to EBITDA and a
discussion regarding the use of EBITDA. The Company anticipates a
net loss for fiscal 2007 in the range of $1.6 million to $3.3
million and a net loss per share in the range of $0.24 to $0.50.
This compares to a net loss of $1.5 million and a net loss per
share of $0.24 in fiscal 2006. Store Opening Plans During fiscal
2007, the Company expects to open between 8 to 10 new stores,
including stores opened in the first quarter. Private Placement By
separate press release, the Company also announced today the entry
into an agreement with private investors relating to a private
placement transaction. Conference Call The Company also announced
that it will conduct a conference call to discuss its first quarter
fiscal 2007 results today, Tuesday, June 19, 2007 at 9:00 a.m.
Eastern Daylight Time. Investors and analysts interested in
participating in the call are invited to dial (888) 868-9083,
approximately five minutes prior to the start of the call. The
conference call will also be web-cast live at
http://viavid.net/dce.aspx?sid=000040E6. A replay of this call will
be available until June 26, 2007 and can be accessed by dialing
(877) 519-4471 and entering code 8916582. The web-cast will remain
available until July 19, 2007 at the same web address. About Bakers
Footwear Group, Inc. Bakers Footwear Group, Inc. is a national,
mall-based, specialty retailer of distinctive footwear and
accessories for young women. The Company�s merchandise includes
private label and national brand dress, casual and sport shoes,
boots, sandals and accessories. The Company currently operates over
250 stores nationwide. Bakers stores focus on women between the
ages of 16 and 35. Wild Pair stores offer fashion-forward footwear
to both women and men between the ages of 17 and 29. THIS PRESS
RELEASE CONTAINS FORWARD-LOOKING STATEMENTS (WITHIN THE MEANING OF
SECTION 27(A) OF THE SECURITIES ACT OF 1933 AND SECTION 21(E) OF
THE SECURITIES EXCHANGE ACT OF 1934). BAKERS FOOTWEAR HAS NO DUTY
TO UPDATE SUCH STATEMENTS. ACTUAL FUTURE EVENTS AND CIRCUMSTANCES
COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THIS STATEMENT DUE
TO VARIOUS FACTORS. FACTORS THAT COULD CAUSE THESE CONDITIONS NOT
TO BE SATISFIED INCLUDE MATERIAL CHANGES IN CAPITAL MARKET
CONDITIONS OR IN BAKERS FOOTWEAR�S BUSINESS, PROSPECTS, RESULTS OF
OPERATIONS OR FINANCIAL CONDITION AND OTHER RISKS AND
UNCERTAINTIES, INCLUDING THOSE DETAILED IN BAKERS FOOTWEAR�S
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. Bakers
Footwear Group, Inc. � � Income Statement Data � � Thirteen Weeks
Ended May 5, 2007 � Thirteen Weeks Ended April 29, 2006 (in
thousands, except per share data) Unaudited Unaudited � Net sales $
49,256� $ 49,805� Cost of merchandise sold, occupancy, and buying
expenses � 33,968� � � 33,508� Gross profit 15,288� 16,297� �
Operating expenses Selling 11,892� 10,398� General and
administrative 4,565� 4,699� Loss on disposal of property and
equipment � 36� � � 15� Operating income (loss) (1,205) 1,185� �
Interest expense (362) (113) Other income, net � 12� � � 23� Income
(loss) before income taxes (1,555) 1,095� � Income tax expense
(benefit) � (589) � � 427� � Net income (loss) $ (965) � $ 668� �
Basic earnings (loss) per share $ (0.15) � $ 0.11� Diluted earnings
(loss) per share $ (0.15) � $ 0.10� � Weighted average shares
outstanding Basic 6,493� 6,332� Diluted 6,493� 6,811� � � Cash Flow
Data Cash used in operating activities $ (4,134) $ (7,179) Cash
used in investing activities (2,526) (4,836) Cash provided by
financing activities 6,412� 8,286� Net decrease in cash (248)
(3,729) � Supplemental Data Comparable store sales decrease (9.3)%
(0.8)% Gross profit percentage 31.0% 32.7% Number of stores at end
of period 258� 245� Bakers Footwear Group, Inc. Balance Sheet Data
� � May 5, 2007 � April 29, 2006 (in thousands) Unaudited Unaudited
Cash $ 159� $ 196� Accounts receivable 2,596� 2,583� Inventories
27,797� 28,199� Other current assets � 7,465� � � 2,665� Current
assets 38,017� 33,643� � Property and equipment, net 51,374�
41,827� Other assets � 1,637� � � 846� $ 91,028� � $ 76,316� �
Accounts payable $ 10,084� $ 10,164� Revolving credit facility
19,588� 6,830� Other current liabilities � 10,788� � � 9,199�
Current liabilities 40,460� 26,193� � Noncurrent liabilities
10,174� 7,276� Shareholders� equity � 40,394� � � 42,847� $ 91,028�
� $ 76,316� Table 1: Reconciliation of the Company�s net loss to
EBITDA: Reconciliation of Net Loss to EBITDA Anticipated Year Ended
February 2, 2008 � Actual Year Ended February 3, 2007 (in
thousands) Net Loss $ (1,550) � (3,250) $ (1,543) Income tax
benefit (950) � (2,050) (910) Interest expense 1,300 � 1,600�
1,005� Depreciation and amortization expense 9,200 � 9,200� �
7,580� EBITDA $ 8,000 � 5,500� � $ 6,132� EBITDA is defined as net
income (loss) plus the provision for income taxes, interest
expense, and depreciation and amortization as presented in the
Company�s Statement of Operations. EBITDA should not be considered
as an alternative to operating income or net income (as determined
in accordance with generally accepted accounting principles (GAAP)
as a measure of our operating performance or to net cash provided
by operating, investing and financing activities (as determined in
accordance with GAAP)) as a measure of our ability to meet cash
needs. The Company believes that EBITDA is a measure commonly
reported and widely used by investors and other interested parties
as a measure of a company's operating performance because it
assists in comparing performance on a consistent basis without
regard to capital structure, depreciation and amortization or
non-operating factors (such as historical cost). This information
has been disclosed here to permit a more complete comparative
analysis of our operating performance relative to other companies.
EBITDA may not, however, be comparable in all instances to other
similar types of measures.
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