The Company’s effective income tax rate for the three months ended June 30, 2012 increased to 40.8% from 17.2% in the comparable prior year period. The increase in the effective income tax rate is primarily the result of a charge to reduce deferred tax assets in the comparable prior year period which reduced the income tax benefit recognized. The reduction in the deferred state income tax rate in the comparable prior year period was the result of a scheduled reduction in Indiana’s corporate income tax rate beginning July 1, 2012.
During the fiscal quarter ended June 30, 2012, the Company repurchased 1,076,074 shares of its common stock at a total cost of $11.2 million. The shares were repurchased under the Company’s $50 million share repurchase program that was authorized by the Company’s Board of Directors on May 24, 2012 and expires on May 23, 2013. As of June 30, 2012, the Company had approximately $38.8 million authorized to repurchase shares of common stock remaining under the current share repurchase program.
Consistent with the Company’s pre-release on July 10, 2012, the Company expects net income per diluted share will be within a range of $0.90 to $1.05 for fiscal 2013.
Included in the Company's guidance are the following annual assumptions:
- fiscal 2013 comparable store sales of negative 6% to negative 4%
- fiscal 2013 net sales increase of 3% to 6%
- 20 to 22 new store openings in fiscal 2013
- the impact of fiscal first quarter share repurchase activity of 1.1 million shares at a cost of $11.2 million
Jeremy Aguilar, Chief Financial Officer commented, “Though our industries have been challenged over the past several years, we have consistently maintained a solid liquidity position, with no long-term debt. Despite a volatile sales environment, we have been able to manage our inventory very well and are pleased with our current inventory levels. We continue to remain focused on driving long term shareholder value while maintaining a strong liquidity position.”