MERRIMACK, N.H., Feb. 20, 2008 -- Innovative product development company and specialty lifestyle retailer Brookstone, Inc. today announced financial results for the fourth quarter and full Fiscal Year ended December 29, 2007.
For the 13-week period ended December 29, 2007, Brookstone reported total net sales of $288.5 million, a 12.6 % increase from the comparable 13-week period of 2006. Same-store sales increased 5.2 % as compared to the comparable 13-week period last year.
For the 13-week period ended December 29, 2007, Brookstone reported income from continuing operations of $64.6 million, compared to income from continuing operations of $60.8 million for the comparable 13-week period last year.
For the 52-week period ended December 29, 2007, Brookstone reported total net sales of $562.8 million, a 9.9 % increase from the comparable 52-week period of 2006. Same-store sales increased 5.0 % as compared to the comparable 52-week period last year.
For the 52-week period ended December 29, 2007, Brookstone reported income from continuing operations of $39.9 million, compared to income from continuing operations of $30.6 million for the comparable 52-week period last year.
Lou Mancini, Brookstone Chief Executive Officer, said: "We are pleased with our fourth quarter and full year results, which were driven by the efforts and accomplishments of our associates. We believe we offered an appealing and affordable product mix, improved our selling culture particularly at the stores, enacted several successful Direct Marketing initiatives, and introduced many successful new products, including exclusive OSIM healthy lifestyle products."
Brookstone, Inc. is an innovative product development and specialty lifestyle retail company that operates 314 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 an e-commerce website at http://www.brookstone.com.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
----------- -----------
December 29, December 30,
2007 2006
----------- -----------
(Unaudited)
Assets
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Current assets:
Cash and cash equivalents $ 70,857 $ 71,738
Receivables, net 12,816 12,472
Merchandise inventories 106,400 95,253
Deferred income taxes, net 4,166 3,841
Prepaid expenses 2,232 7,478
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Total current assets 196,471 190,782
Property, plant and equipment, net 71,918 72,638
Intangible assets, net 129,500 131,354
Goodwill 189,524 189,524
Other assets 13,622 16,080
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Total assets $ 601,035 $ 600,378
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Liabilities and Shareholder's Equity
------------------------------------
Current liabilities:
Accounts payable $ 33,599 $ 23,410
Other current liabilities 61,214 56,240
----------- -----------
Total current liabilities 94,813 79,650
Other long-term liabilities 21,137 20,954
Long-term debt 174,777 190,253
Deferred income taxes 42,999 44,512
Other party interests in consolidated
entities 1,250 1,114
Total shareholder's equity 266,059 263,895
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Total liabilities and shareholder's
equity $ 601,035 $ 600,378
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BROOKSTONE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
Thirteen Weeks Ended
-------------------------
December 29, December 30,
2007 2006
----------- -----------
Net sales $ 288,461 $ 256,110
Cost of sales 157,349 140,112
----------- -----------
Gross profit 131,112 115,998
Selling, general and administrative
expenses 66,517 55,180
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Income from continuing operations 64,595 60,818
Loss on early extinguishment of debt 383 --
Interest expense, net 6,970 7,019
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Income before taxes, other party interests
in consolidated entities and discontinued
operations 57,242 53,799
Other party interests in consolidated
entities 303 183
----------- -----------
Income before taxes and discontinued
operations 56,939 53,616
Income tax 22,563 19,371
Loss on discontinued operations, net of
income tax benefit (130) (99)
----------- -----------
Net income $ 34,246 $ 34,146
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BROOKSTONE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
Fiscal Year Ended
-------------------------
December 29, December 30,
2007 2006
----------- -----------
(Unaudited)
Net sales $ 562,835 $ 511,914
Cost of sales 360,793 333,979
----------- -----------
Gross profit 202,042 177,935
Selling, general and administrative
expenses 162,138 147,368
----------- -----------
Income from continuing operations 39,904 30,567
Loss on early extinguishment of debt 506 --
Interest expense, net 25,711 25,389
----------- -----------
Income before taxes, other party interests
in consolidated entities and
discontinued operations 13,687 5,178
Other party interests in consolidated
entities 1,320 1,133
----------- -----------
Income before taxes and discontinued
operations 12,367 4,045
Income tax 5,610 1,934
Loss on discontinued operations, net of
income tax benefit (337) (479)
----------- -----------
Net income $ 6,420 $ 1,632
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