Hhgregg Announces First Fiscal Quarter Operating Results

Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described in the “Risk Factors” section in the Company’s fiscal 2012 Form 10-K filed May 23, 2012, and in the “Risk Factors” section in the Company’s fiscal 2013 Form 10-Q filed August 2, 2012. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. hhgregg does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.

HHGREGG, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
					Three Months Ended
					June 30, 2012				June 30, 2011
					(In thousands, except share and per share data)
Net sales					$	489,856			$	431,455
Cost of goods sold						343,197				301,141
Gross profit						146,659				130,314
Selling, general and administrative expenses						118,773				103,244
Net advertising expense						27,616				20,195
Depreciation and amortization expense						9,414				7,287
Loss from operations						(9,144)				(412)
Other expense (income):
Interest expense						478				512
Interest income						(2)				(4)
Total other expense						476				508
Loss before income taxes						(9,620)				(920)
Income tax benefit						(3,920)				(159)
Net loss					$	(5,700)			$	(761)
Net loss per share
Basic					$	(0.16)			$	(0.02)
Diluted					$	(0.16)			$	(0.02)
Weighted average shares outstanding-basic						36,138,688				39,501,518
Weighted average shares outstanding-diluted						36,138,688				39,501,518

HHGREGG, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (AS A PERCENTAGE OF NET SALES) (UNAUDITED)
					Three Months Ended
					June 30, 2012				June 30, 2011
Net sales					100.0	%			100.0	%
Cost of goods sold					70.1				69.8
Gross profit					29.9				30.2
Selling, general and administrative expenses					24.3				23.9
Net advertising expense					5.6				4.7
Depreciation and amortization expense					1.9				1.7
Loss from operations					(1.9)				(0.1)
Other expense (income):
Interest expense					0.1				0.1
Interest income					-				-
Total other expense					0.1				0.1
Loss before income taxes					(2.0)				(0.2)
Income tax benefit					0.8				-
Net loss					(1.2)	%			(0.2)	%

Certain percentage amounts do not sum due to rounding

HHGREGG, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2012, MARCH 31, 2012 AND JUNE 30, 2011 (UNAUDITED)
					June 30, 2012				March 31, 2012				June 30, 2011
					(In thousands, except share data)
Assets
Current assets:
Cash and cash equivalents					$	4,289			$	59,244			$	1,910
Accounts receivable—trade, less allowances of $27, $25 and $96, respectively						28,603				19,467				13,150
Accounts receivable—other						23,067				18,630				23,280
Merchandise inventories, net						326,892				282,409				291,600
Prepaid expenses and other current assets						5,707				5,562				5,632
Income tax receivable						7,743				-				6,456
Deferred income taxes						9,775				9,639				6,487
Total current assets						406,076				394,951				348,515
Net property and equipment						214,150				204,273				180,896
Deferred financing costs, net						2,490				2,656				3,154
Deferred income taxes						38,093				38,970				46,327
Other assets						1,059				1,934				1,159
Total long-term assets						255,792				247,833				231,536
Total assets					$	661,868			$	642,784			$	580,051
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable					$	144,859			$	122,596			$	131,815
Line of credit						-				-				5,850
Customer deposits						36,239				28,993				27,969
Accrued liabilities						46,339				43,735				43,369
Income tax payable						-				4,358				-
Total current liabilities						227,437				199,682				209,003
Long-term liabilities:
Deferred rent						73,520				71,304				63,380
Other long-term liabilities						12,241				12,278				12,136
Total long-term liabilities						85,761				83,582				75,516
Total liabilities						313,198				283,264				284,519
Stockholders’ equity:
Preferred stock, par value $.0001; 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2012, March 31, 2012 and June 30, 2011, respectively						-				-				-
Common stock, par value $.0001; 150,000,000 shares authorized; 40,559,245, 40,066,005 and 39,749,739 shares issued; and 35,768,882, 36,351,716 and 38,241,499 shares outstanding as of June 30, 2012, March 31, 2012 and June 30, 2011, respectively						4				4				4
Additional paid-in capital						283,891				277,846				270,534
Retained earnings						123,581				129,281				47,147
Common stock held in treasury at cost,4,790,363, 3,714,289 and 1,508,240 shares as of June 30, 2012, March 31, 2012 and June 30, 2011, respectively						(58,765)				(47,570)				(22,112)
						348,711				359,561				295,573
Note receivable for common stock						(41)				(41)				(41)
Total stockholders’ equity						348,670				359,520				295,532
Total liabilities and stockholders’ equity					$	661,868			$	642,784			$	580,051

HHGREGG, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED JUNE 30, 2012 AND 2011 (UNAUDITED)
					Three Months Ended
					June 30, 2012				June 30, 2011
					(In thousands)
Cash flows from operating activities:
Net Loss					$	(5,700)			$	(761)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization						9,414				7,287
Amortization of deferred financing costs						166				166
Stock-based compensation						1,694				1,623
Excess tax benefits from stock-based compensation						(546)				(13)
Gain on sales of property and equipment						(76)				(64)
Deferred income taxes						741				5,177
Tenant allowances received from landlords						1,984				6,120
Changes in operating assets and liabilities:
Accounts receivable—trade						(9,136)				(4,219)
Accounts receivable—other						(2,801)				(1,400)
Merchandise inventories						(44,483)				(79,592)
Income tax receivable						(12,101)				(8,355)
Prepaid expenses and other assets						730				5,311
Accounts payable						2,235				30,232
Customer deposits						7,246				6,178
Accrued liabilities						3,150				(3,948)
Deferred rent						(1,404)				(54)
Other long-term liabilities						30				(273)
Net cash used in operating activities						(48,857)				(36,585)
Cash flows from investing activities:
Purchases of property and equipment						(15,221)				(28,991)
Proceeds from sales of property and equipment						17				1
Net cash used in investing activities						(15,204)				(28,990)
Cash flows from financing activities:
Purchases of treasury stock						(11,195)				(22,112)
Proceeds from exercise of stock options						3,805				221
Excess tax benefits from stock-based compensation						546				13
Net increase in bank overdrafts						4,824				10,807
Net borrowings on line of credit						-				5,850
Net borrowings on inventory financing facility						11,126				-
Payment of financing costs						-				(88)
Net cash provided by (used in) financing activities						9,106				(5,309)
Net decrease in cash and cash equivalents						(54,955)				(70,884)
Cash and cash equivalents
Beginning of period						59,244				72,794
End of period					$	4,289			$	1,910
Supplemental disclosure of cash flow information:
Interest paid					$	29			$	21
Income taxes paid					$	6,894			$	3,045
Capital expenditures included in accounts payable					$	5,294			$	2,994

HHGREGG, INC. AND SUBSIDIARIES Store Count by Quarter for Fiscal Years 2011, 2012 and 2013 (Unaudited)
					FY2011												FY2012												FY2013
					Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1
Beginning Store Count					131			157			169			173			173			180			204			208			208
Store Openings					26			12			4			1			7			24			4						2
Store Closures					-			-			-			(1)			-			-			-			-			-
Ending Store Count					157			169			173			173			180			204			208			208			210

Note: hhgregg, Inc.'s fiscal year is comprised of four quarters ending June 30th, September 30th, December 31st and March 31st.

« First ‹ Previous 1 2 3 4 5 6 7 Next › Last »