Mattress Firm Holding Corp. (NASDAQ: MFRM) today announced its financial results for the fiscal fourth quarter (13 weeks) and fiscal year (52 weeks) ended January 31, 2012.
Fourth Quarter Highlights
- Gross profit increased 61.2% to $75.9 million
- Adjusted EBITDA increased 56.3% to $25.5 million
- Opened 41 stores
- Completed acquisition of 55 specialty mattress stores from Mattress Giant
“We completed fiscal year 2011 with great momentum, producing our highest quarterly sales and comparable-store sales growth in the fourth quarter and accentuating the strong financial results experienced throughout the year,” stated Steve Stagner, Mattress Firm’s chief executive officer. “Our results for the year, driven by solid comparable-store sales growth that has continued for the past two years, reflect the strength and expanding appeal of our brand, customer loyalty, and benefits we derive from selling the leading brands in the bedding industry. In addition, we are encouraged by the consistent sales increases reported by the bedding industry as we believe pent-up consumer demand and product innovations are driving customers into the market.”
Fiscal Fourth Quarter Results
Net income was $17.4 million for the fourth quarter of fiscal year 2011, including a $3.8 million pre-tax loss on early extinguishment of debt in connection with the initial public offering in November 2011 and an after-tax deferred tax benefit of $14.2 million resulting from the release of the valuation allowance on deferred tax assets. Earnings per diluted share (“EPS”) were $0.56 in the fourth quarter of fiscal year 2011 as compared with EPS of $(0.07) in the fourth quarter of fiscal year 2010.
Net sales increased $61.1 million or 47.9% to $188.6 million in the fourth quarter of fiscal year 2011 from $127.5 million in the fourth quarter of fiscal year 2010. The increase in net sales was the result of comparable-store sales growth of 24.8%, adding $30.6 million in net sales, and incremental net sales of $32.0 million from the opening of new stores and acquired stores prior to their inclusion in comparable-stores sales results, with such increases offset by a reduction in net sales of $1.5 million related to closed stores.