SECAUCUS, N.J., Jan. 6, 2011 /PRNewswire/ -- Syms Corp , a leading off-price retailer, announced results today for its third quarter ended November 27, 2010.
For the third quarter (13 week period) ended November 27, 2010, the Company had a net loss of $3.3 million ($0.23 per share) as compared to a net profit of $25.6 million ($1.76 per share) for the quarter ended November 28, 2009. For the year-to-date (39 week period) ended November 27, 2010, the net loss was $15.1 million ($1.04 per share) as compared to a net profit of $15.7 million ($1.08 per share) for the comparable period last year. Current and prior year periods included certain one-time items that affect comparability, including a gain on life insurance proceeds, a bargain purchase gain associated with the Filene's Basement acquisition and acquisition costs related to that transaction in the prior year, and certain restructuring related costs in the current year. Excluding these one-time items, the Company's adjusted net loss for the quarter ended November 27, 2010 would have been $1.8 million ($0.12 per share), compared to last year's adjusted net profit of $0.8 million ($0.05 per share). The adjusted net loss after excluding those items for the thirty-nine weeks ended November 27, 2010 would have been $12.7 million ($0.88 per share), compared to last year's adjusted net loss of $14.0 million ($0.96 per share).
Adjusted net profit and loss excluding items that affect comparability is a non-GAAP measure. The Company believes the excluded items are not indicative of the recurring performance of the business and that by providing this supplemental disclosure it will facilitate a more meaningful comparison of its operating performance. A reconciliation of net profit and loss as reported to the adjusted net profit and loss is included as a schedule in this press release.
Net sales for the fiscal quarter ended November 27, 2010 were $120.7 million compared to $135.2 million for the fiscal quarter ended November 28, 2009, a decline of $14.4 million or 11%. For the year-to-date (39 week period) ended November 27, 2010, net sales increased by $82.4 million or 31% to $344.3 million from $261.9 million last year. The increase in sales was primarily the result of the acquisition of Filene's Basement in June 2009. Comparable store sales increased 3% in the thirty-nine week period and decreased 6% in the thirteen week period ended November 27, 2010.
As of November 27, 2010, the Company owned and operated 48 "off-price" apparel stores located predominantly on the east coast of the United States under the Syms and Filene's Basement names. Each Syms and Filene's Basement store offers a broad range of first quality, in season merchandise bearing nationally recognized designer and brand-name labels.
Forward-Looking Statements
Certain information in this press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to Syms Corp and its subsidiaries that are based on the beliefs of Syms' management, as well as assumptions made by and information currently available to Syms' management. When used in this press release, the words "anticipate", "believe", "estimate", "expect", "intend", "plan" and similar expressions as they relate to Syms Corp and its subsidiaries, identify forward-looking statements. Such statements reflect the current views of Syms Corp with respect to future events, the outcome of which is subject to certain risks, including, among others, general economic and market conditions, decreased consumer demand for Syms' and Filene's Basement's products, possible disruptions in Syms' computer or telephone systems, possible work stoppages or increase in labor costs, effects of competition, the impact of integrating Filene's Basement's business and Syms Corp's existing business, possible disruptions or delays in the opening of new stores or inability to obtain suitable sites for new stores, higher than anticipated store closings or relocation costs, higher interest rates and borrowing costs, unanticipated increases in merchandise or occupancy costs, and other factors which may be outside the control of Syms Corp. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to Syms Corp or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph.
For further information, please contact Davia Temin of Temin and Company at 212-588-8788.
SYMS CORP STATEMENTS OF OPERATIONS (in thousands except per-share amounts) Thirteen Weeks Ended Thirty-Nine Weeks Ended -------------------- ----------------------- 11/27/2010 11/28/2009 11/27/2010 11/28/2009 ---------- ---------- ---------- ---------- Net Sales $120,739 $135,159 $344,257 $261,852 Gross Profit 51,345 57,868 142,211 107,102 Operating Expenses 54,620 32,080 164,429 95,432 Net Income (Loss) $(3,315) $25,646 $(15,054) $15,722 ======= ======= ======== ======= Net Income (Loss) per share (basic & diluted) $(0.23) $1.76 $(1.04) $1.08 ====== ===== ====== ===== Weighted average shares outstanding (basic & diluted) 14,448 14,593 14,458 14,591 ====== ====== ====== ====== SYMS CORP CONSOLIDATED BALANCE SHEETS (in thousands) 11/27/2010 11/28/2009 ---------- ---------- ASSETS Current Assets: Cash $3,739 $10,997 Receivables 7,810 36,362 Merchandise inventories 103,093 102,830 Other current assets 22,991 21,113 ------ ------ Total current assets 137,633 171,302 Property & equipment 120,355 124,988 Other Assets 46,041 27,262 ------ ------ Total Assets $304,029 $323,552 ======== ======== LIABILITIES & SHAREHOLDERS EQUITY Current Liabilities: Accounts payable $50,439 $66,148 Accrued expenses 20,529 15,304 Other current liabilities 5,320 5,240 ----- ----- Total current liabilities 76,288 86,692 Long term debt 42,977 32,977 Other long term liabilities 5,991 2,073 Shareholders' Equity 178,773 201,810 ------- ------- Total Liabilities and Shareholders' Equity $304,029 $323,552 ======== ======== SYMS CORP RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (in thousands except per-share amounts) Thirteen Weeks Ended Thirty-Nine Weeks Ended -------------------- ----------------------- 11/27/2010 11/28/2009 11/27/2010 11/28/2009 ---------- ---------- ---------- ---------- GAAP Net Income (Loss) $(3,315) $25,646 $(15,054) $15,722 Transactions affecting comparability: Gain on life insurance proceeds - (24,764) - (24,764) Bargain purchase gain on Filene's acquisition - (307) - (9,714) Acquisition costs related to Filene's acquisition - 194 - 4,762 Asset impairment charge 1,721 - 1,721 - Restructuring charge 831 - 2,133 - --- --- ----- --- Total impact of transactions affecting comparability 2,552 (24,877) 3,854 (29,716) Income tax effect 1,037 - 1,548 - ----- --- ----- --- Net impact of transactions affecting comparability 1,515 (24,877) 2,306 (29,716) Adjusted Net Income (Loss) $(1,800) $769 $(12,748) $(13,994) ======= ==== ======== ======== GAAP Net Income (Loss) per share (basic & diluted) $(0.23) $1.76 $(1.04) $1.08 Adjusted Net Income (Loss) per share (basic & diluted) $(0.12) $(0.05) $(0.88) $(0.96) CONTACT: Davia Temin of Temin and Company at 212-588-8788 for SYMS CORP.
Syms Corp
CONTACT: Davia Temin of Temin and Company for SYMS CORP,
+1-212-588-8788
