Year-to-Date Financial Results
Net sales were $1,935.1 million for the twenty-six weeks ended June 30, 2012, an increase of $38.7 million, or 2.0% from $1,896.4 million for the twenty-six weeks ended July 2, 2011. The increase primarily reflects the impact of new stores, partially offset by a 2.7% decrease in same-store sales. The same-store sales decrease was due to a 2.0% decrease in the number of customer transactions and 0.7% decrease in the average transaction size. The Company’s same-store sales were negatively impacted by the effect of competitive store openings during the last twelve months as well as a more challenging economic and competitive environment. Same-store sales were also affected by calendar shifts, including the New Year’s holiday, which is traditionally a slow sales day and fell in the first quarter of 2012 and the July 4 th holiday, which shifted more sales into the third quarter this year.
For the twenty-six weeks ended June 30, 2012 net income was $21.2 million, or $0.51 diluted earnings per common share, compared to $26.5 million, or $0.87 diluted earnings per common share, for the twenty-six weeks ended July 2, 2011. Adjusted net income for the twenty-six weeks ended June 30, 2012 was $29.5 million, or $0.71 diluted earnings per common share, compared with $26.5 million, or $0.87 diluted earnings per common share for the twenty-six weeks ended July 2, 2011. Adjusted net income for the current year-to-date period excludes an $8.4 million after-tax charge, or $0.20 per diluted common share, for the early extinguishment of debt and one-time IPO expenses that occurred during the first quarter 2012.
Adjusted EBITDA for the twenty-six weeks ended June 30, 2012 and July 2, 2011 was $109.0 million and $116.1 million, respectively.Fiscal 2012 Guidance The Company updated its guidance for fiscal 2012. The following table provides information on the Company’s current estimated 2012 results:
|Sales growth||1.0% to 2.0%|
|Same-store sales growth||(3.0%) to (2.0%)|
|Adjusted EBITDA||$200 to $210 million|
|Adjusted EBITDA Margin||5.1% to 5.4%|
|Interest Expense (1)||$50.5 to $51.5 million|
|Income Tax Rate||39.5% to 40.0%|
|Capital Expenditures||$65 to $70 million|
New Store Openings
|Replacement Store Openings||2|
|Weighted Average Diluted Common Shares Outstanding (2)||43.4 million|
|Earnings per Share|
|Fully Diluted||$0.91 to $1.05|
|Excluding One-Time Transactional Costs (3)||$1.10 to $1.24|
Includes non-cash interest of approximately $2.5 million and $1.3 million related to amortization of deferred financing fees and original issue discount, respectively.
Represents the weighted average diluted common shares outstanding for the full year, consisting of 38.6 million shares in the first quarter, 45.0 million shares in the second and third quarters and 45.1 million shares in the fourth quarter.
Presented to exclude expenses of approximately $13.8 million ($8.4 million, or $0.19 per share (based on estimated weighted average diluted common shares outstanding for the full year), net of income tax expense) incurred in connection with the debt refinancing and IPO in February 2012.
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