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Cache Reports Third Quarter Fiscal 2011 Results

Stocks in this article: CACH

2011 Outlook

For the fourth quarter of fiscal 2011, the Company currently expects comparable store sales to increase in the low double-digit range. This follows a 6.4% decline in comparable store sales in the fourth quarter of fiscal 2010. The Company continues to expect fourth quarter fiscal 2011 net earnings per diluted share in the range of $0.24 to $0.30, exclusive of any potential asset impairment costs. In the fourth quarter of fiscal 2010 the Company reported a net loss of $1.11 per share, or $0.16 per diluted share excluding charges related to a tax valuation allowance, non-cash impairment charges and legal costs, in the fourth quarter of fiscal 2010.

Conference call information

The Company announced that it will conduct a conference call to discuss its third quarter fiscal 2011 results today, November 3, 2011 at 9:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 705-6003 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at www.cache.com. A replay of this call will be available until November 10, 2011 and can be accessed by dialing (877) 870-5176 and entering PIN number 381056.

About Cache, Inc.

Cache is a nationwide, mall-based specialty retailer of sophisticated sportswear and social occasion dresses targeting style-conscious women who have a youthful attitude and are self-confident. We currently operate 279 stores, primarily situated in central locations in high traffic, upscale malls in 43 states, the Virgin Islands and Puerto Rico.

Certain matters discussed within this press release may constitute forward-looking statements within the meaning of the federal securities laws. Although Cache, Inc. believes the statements are based on reasonable assumptions, there can be no assurance that these expectations will be attained. Actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, industry trends, merchandise and fashion trends, competition, seasonality and changes in general economic conditions and consumer spending patterns, the ability to successfully open new stores, reliance on foreign manufacturers, dependence on management, dependence on vendors and distributors, material weakness in our internal controls, as well as other risks outlined from time to time in the filings of Cache, Inc. with the Securities and Exchange Commission.

         
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
 
October 1, January 1, October 2,
ASSETS   2011   2011 2010
 
Current assets:
Cash and equivalents $ 13,816,000 $ 4,609,000 $ 2,483,000
Marketable securities 7,563,000 20,923,000 21,865,000
Certificate of deposits - restricted 3,000,000 2,500,000 2,500,000
Receivables, net 2,304,000 2,855,000 2,020,000
Income tax receivable, net - 50,000 81,000
Inventories, net 22,232,000 15,789,000 19,243,000
Prepaid expenses and other current assets   5,323,000   5,029,000   6,041,000
Total current assets 54,238,000 51,755,000 54,233,000
 
 
Equipment and leasehold improvements, net 20,651,000 24,753,000 26,836,000
Goodwill - - 9,092,000
Intangible assets, net 102,000 102,000 102,000
Other assets   9,380,000   9,380,000   7,965,000
 
Total assets $ 84,371,000 $ 85,990,000 $ 98,228,000
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable $ 11,777,000 $ 8,273,000 $ 8,949,000
Note payable 1,463,000 1,518,000 1,751,000
Accrued compensation 1,306,000 2,551,000 1,222,000
Accrued liabilities   8,697,000   11,150,000   9,321,000
Total current liabilities 23,243,000 23,492,000 21,243,000
 
 
Note payable - 319,000 476,000
Other liabilities 12,280,000 13,867,000 14,103,000
 
 
Commitments and contingencies
 
 
STOCKHOLDERS' EQUITY
 
 
Common stock 165,000 165,000 165,000
Additional paid-in capital 48,346,000 48,015,000 47,888,000
Retained earnings 40,132,000 39,927,000 54,148,000
Treasury stock, at cost   (39,795,000)   (39,795,000)   (39,795,000)
Total stockholders' equity   48,848,000   48,312,000   62,406,000
 
Total liabilities and stockholders' equity $ 84,371,000 $ 85,990,000 $ 98,228,000
 
       
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
39 Weeks Ended 39 Weeks Ended
October 1, October 2,
  2011   2010
 
Net sales $ 161,024,000 $ 150,649,000
 
Cost of sales, including buying and occupancy   91,829,000   93,099,000
 
Gross profit   69,195,000   57,550,000
 
Expenses
Store operating expenses 55,996,000 55,766,000
General and administrative expenses   13,342,000   15,048,000
Total expenses   69,338,000   70,814,000
 
Operating loss   (143,000)   (13,264,000)
 
 
Other income (expense):
Interest expense (38,000) (94,000)
Interest income   68,000   117,000
 
Loss before income taxes (113,000) (13,241,000)
 
Income tax benefit   (318,000)   (5,030,000)
 
 
Net income (loss) $ 205,000 $ (8,211,000)
 
 
 
Basic income (loss) per share $ 0.02 $ (0.64)
 
Diluted income (loss) per share $ 0.02 $ (0.64)
 
 
 
Basic weighted average shares outstanding   12,831,000   12,774,000
 
Diluted weighted average shares outstanding   12,859,000   12,774,000
 
       
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
13 Weeks Ended 13 Weeks Ended
October 1, October 2,
  2011   2010
 
Net sales $ 48,659,000 $ 45,524,000
 
Cost of sales, including buying and occupancy   28,899,000   29,622,000
 
Gross profit   19,760,000   15,902,000
 
Expenses
Store operating expenses 18,463,000 17,959,000
General and administrative expenses   4,339,000   6,033,000
Total expenses   22,802,000   23,992,000
 
Operating loss   (3,042,000)   (8,090,000)
 
 
Other income (expense):
Interest expense (7,000) (27,000)
Interest income   24,000   32,000
 
Loss before income taxes (3,025,000) (8,085,000)
 
Income tax benefit   (1,203,000)   (3,058,000)
 
 
Net loss $ (1,822,000) $ (5,027,000)
 
 
 
Basic loss per share $ (0.14) $ (0.39)
 
Diluted loss per share $ (0.14) $ (0.39)
 
 
 
Basic weighted average shares outstanding   12,849,000   12,780,000
 
Diluted weighted average shares outstanding   12,849,000   12,780,000




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