MERRIMACK, N.H., April 23, 2008 -- Innovative product development company and specialty lifestyle retailer Brookstone, Inc. today announced financial results for the first quarter ended March 29, 2008.
For the 13-week period ended March 29, 2008, Brookstone reported total net sales of $89.8 million, an 8.0% increase from the comparable 13-week period last year. Same-store sales increased 1.1 percent as compared to the comparable 13-week period last year.
For the 13-week period ending March 29, 2008 Brookstone reported a loss from continuing operations of $13.0 million, compared to a loss from continuing operations of $11.7 million for the comparable 13-week period of 2007.
Brookstone ended the first quarter with approximately $17.0 million in cash and no cash borrowings under our asset-backed lending agreement.
Lou Mancini, Brookstone Chief Executive Officer, said: "We are pleased with our first quarter 2008 results and our continuing trend of same-store sales increases, particularly given the current economic environment. In the second quarter, we will continue to launch new merchandise, including exclusive OSIM healthy lifestyle products, which we believe will continue to contribute positively to our performance."
Brookstone, Inc. is an innovative product development and specialty lifestyle retail company that operates 312 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 the Brookstone catalog and 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.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
-----------------------------------
March 29, December 29, March 31,
2008 2007 2007
----------- ---------- ----------
(Unaudited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 16,958 $ 70,857 $ 30,794
Receivables, net 9,130 12,816 8,416
Merchandise inventories 93,815 106,400 99,238
Deferred income taxes, net 11,388 4,166 11,432
Prepaid expenses 9,667 4,020 8,844
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Total current assets 140,958 198,259 158,724
Property, plant and equipment, net 69,381 71,918 70,790
Intangible assets, net 129,333 129,500 131,125
Goodwill 189,524 189,524 189,524
Other assets 11,045 11,834 14,586
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Total assets $ 540,241 $ 601,035 $ 564,749
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Liabilities and Shareholder's Equity
Current liabilities:
Accounts payable $ 11,501 $ 33,599 $ 14,822
Other current liabilities 34,827 61,214 40,001
---------- ---------- ----------
Total current liabilities 46,328 94,813 54,823
Other long-term liabilities 20,497 21,137 21,439
Long-term debt 174,622 174,777 190,037
Deferred income taxes 43,001 42,999 44,530
Commitments and contingencies - - -
Other party interests in
consolidated entities 1,317 1,250 1,256
Shareholder's equity:
Common stock - $0.01 par value
1,000 shares authorized, one
share issued and outstanding - - -
Additional paid-in capital 240,588 240,380 245,021
Accumulated other comprehensive
income 533 593 150
Retained earnings 13,355 25,086 7,493
---------- ---------- ----------
Total shareholder's equity 254,476 266,059 252,664
---------- ---------- ----------
Total liabilities and
shareholder's equity $ 540,241 $ 601,035 $ 564,749
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BROOKSTONE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
Thirteen weeks ended
----------------------
March 29, March 31,
2008 2007
---------- ----------
Net sales $ 89,801 $ 83,140
Cost of sales 68,016 64,140
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Gross profit 21,785 19,000
Selling, general and administrative expenses 34,735 30,671
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Loss from continuing operations (12,950) (11,671)
Interest expense, net 5,622 5,931
---------- ----------
Loss before taxes, other party interests in
consolidated entities
and discontinued operations (18,572) (17,602)
Other party interests in consolidated
entities 266 308
---------- ----------
Loss before taxes and discontinued
operations (18,838) (17,910)
Income tax benefit (7,107) (6,808)
Loss on discontinued operations, net of tax
benefit - (71)
---------- ----------
Net loss $ (11,731) $ (11,173)
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