This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Orchard Supply Hardware Stores Corporation Announces Fourth Quarter And Full-Year Fiscal 2011 Financial Results; Reiterates Store Opening Plans And Positive Comparable Store Sales Outlook For Fiscal 2012

“Our teams are continuing to focus on Orchard’s five key priorities: Projecting a consistent and compelling brand identity, driving sales through merchandising and marketing initiatives, improving operational efficiencies, aligning resources and talent, and strengthening our financial position. We made a great deal of progress in fiscal 2011, but we are still in the beginning stage of the turnaround.”

Fourth Quarter 2011

Net sales in the fourth quarter of fiscal 2011 were $141.6 million compared to $141.5 million in the same period last year. Comparable store sales (1) increased 2.3%, reflecting the Company’s second consecutive quarter of positive comp performance.

Fourth quarter net loss was $7.2 million and includes $3.6 million of non-cash loss on sale of real property and store impairment charges. This compares to a net loss of $3.4 million in the fourth quarter of fiscal 2010.

Non-GAAP Adjusted EBITDA (see reconciliation of Non-GAAP Adjusted EBITDA to net loss, below) was $4.9 million in the fourth quarter of 2011 compared to $13.0 million a year ago.

Balance Sheet and Cash Flow

As of January 28, 2012, inventories totaled $157.7 million, a decrease of $14.4 million, or 8.4%, compared to $172.1 million at the end of fiscal 2010. Additionally, the Company generated $57.8 million in proceeds from sale-leaseback transactions on five properties in fiscal 2011. The proceeds were used to pay down debt and renegotiate and amend the Company’s financing agreements. At the end of fiscal 2011, total debt and capital lease obligations had been reduced to $262.4 million from $338.2 million at the end of fiscal 2010.

Fiscal 2012 Store Opening Plans and Comparable Store Sales Expectations

Baker continued, “We are executing on our key strategies to drive traffic and sales. Specifically, in addition to our real estate activity, we’re refurbishing approximately 35 locations with exterior signage and paint in Orchard’s new contemporary logo and colors, and we’re providing direct access from the parking lot to our higher margin nursery and garden centers at approximately 15 additional locations this year. By the end of fiscal 2012, more than half of our store portfolio will have updated signage and paint, and more than 60% will have direct nursery access. At the same time, we’re implementing extensive product line reviews to upgrade our assortment, improve inventory levels and help drive gross margin. Importantly, we are pleased with the early results of our new, productive store format, which we are rolling out this year. Our plans include the opening of up to three new stores and the remodeling of up to six existing Orchard locations during fiscal 2012.”

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs