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DELiA*s, Inc. Announces Second Quarter 2012 Results

The provision for income taxes for fiscal 2012 was $0.1 million, or $0.00 per diluted share, compared to an income tax benefit of $0.9 million, or $0.03 per diluted share, for fiscal 2011.

Conference Call and Webcast Information

A conference call to discuss second quarter 2012 results is scheduled for Monday, August 20, 2012 at 10:00 A.M. Eastern Time. The conference call will be webcast live at www.deliasinc.com. A replay of the call will be available until September 20, 2012 and can be accessed by dialing (877) 870-5176 and providing the pass code number 8727634.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.

About dELiA*s, Inc.

dELiA*s, Inc. is a multi-channel retail company comprised of two lifestyle brands primarily targeting teenage girls and young women. Its brands – dELiA*s and Alloy – generate revenue by selling apparel, accessories and footwear to consumers through direct mail catalogs, websites, and dELiA*s mall-based retail stores.

Forward-Looking Statements

This announcement may contain forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations and beliefs regarding our future results or performance. Because these statements apply to future events, they are subject to risks and uncertainties. When used in this announcement, the words “anticipate”, “believe”, “estimate”, “expect”, “expectation”, “should”, “would”, “project”, “plan”, “predict”, “intend” and similar expressions are intended to identify such forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements. Additionally, you should not consider past results to be an indication of our future performance. For a discussion of risk factors that may affect our results, see the “Risk Factors That May Affect Future Results” section of our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. We do not intend to update any of the forward-looking statements after the date of this announcement to conform these statements to actual results, to changes in management's expectations or otherwise, except as may be required by law.

 
dELiA*s, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
(unaudited)
   
July 28, 2012 July 30, 2011
ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 11,732 $ 22,216
Inventories, net 37,957 39,862
Prepaid catalog costs 2,387 2,955
Other current assets   3,497     4,373  
 
TOTAL CURRENT ASSETS 55,573 69,406
 
PROPERTY AND EQUIPMENT, NET 39,969 46,612
GOODWILL 4,462 4,462
INTANGIBLE ASSETS, NET 2,419 2,419
OTHER ASSETS   820     855  
TOTAL ASSETS $ 103,243   $ 123,754  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable $ 23,668 $ 21,027
Accrued expenses and other current liabilities 14,658 19,697
Income taxes payable   848     833  
TOTAL CURRENT LIABILITIES 39,174 41,557
DEFERRED CREDITS AND OTHER LONG-TERM LIABILITIES   10,461     11,826  
TOTAL LIABILITIES   49,635     53,383  
 
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

Preferred Stock, $.001 par value; 25,000,000 shares authorized, none issued

- -

Common Stock, $.001 par value; 100,000,000 shares authorized; 31,684,387 and 31,432,531 shares issued and outstanding, respectively

32 31
Additional paid-in capital 99,630 98,918
Accumulated deficit   (46,054 )   (28,578 )
TOTAL STOCKHOLDERS' EQUITY   53,608     70,371  
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 103,243   $ 123,754  
 
 
dELiA*s, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
       
For the Thirteen Weeks Ended
July 28, 2012 July 30, 2011
 
 
NET REVENUES $ 48,303 100.0 % $ 44,347 100.0 %
Cost of goods sold   32,169   66.6 %   32,381   73.0 %
 
GROSS PROFIT   16,134   33.4 %   11,966   27.0 %
Selling, general and administrative expenses 21,522 44.6 % 21,426 48.3 %
Other operating income   (383 ) -0.8 %   (34 ) -0.1 %
TOTAL OPERATING EXPENSES   21,139   43.8 %   21,392   48.2 %
OPERATING LOSS (5,005 ) -10.4 % (9,426 ) -21.3 %
Interest expense, net   166   0.3 %   136   0.3 %
LOSS BEFORE INCOME TAXES (5,171 ) -10.7 % (9,562 ) -21.6 %
Provision for income taxes   42   0.1 %   50   0.1 %
NET LOSS $ (5,213 ) -10.8 % $ (9,612 ) -21.7 %
 
BASIC AND DILUTED LOSS PER SHARE:
NET LOSS PER SHARE $ (0.17 ) $ (0.31 )
 
WEIGHTED AVERAGE BASIC AND DILUTED COMMON SHARES OUTSTANDING   31,327,526     31,209,737  
 
 
dELiA*s, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except share and per share data)
(unaudited)
     
For the Twenty-Six Weeks Ended
July 28, 2012 July 30, 2011
 
 
NET REVENUES $ 100,754 100.0 % $ 93,493 100.0 %
 
Cost of goods sold   67,184   66.7 %   65,046   69.6 %
 
GROSS PROFIT   33,570   33.3 %   28,447   30.4 %
Selling, general and administrative expenses 43,068 42.7 % 43,324 46.3 %
Other operating income   (1,015 ) -1.0 %   (72 ) -0.1 %
TOTAL OPERATING EXPENSES   42,053   41.7 %   43,252   46.3 %
OPERATING LOSS (8,483 ) -8.4 % (14,805 ) -15.8 %
Interest expense, net   319   0.3 %   223   0.2 %
LOSS BEFORE INCOME TAXES (8,802 ) -8.7 % (15,028 ) -16.1 %
Provision (benefit) for income taxes   85   0.1 %   (947 ) -1.0 %
NET LOSS $ (8,887 ) -8.8 % $ (14,081 ) -15.1 %
 
BASIC AND DILUTED LOSS PER SHARE:
NET LOSS PER SHARE $ (0.28 ) $ (0.45 )
 
WEIGHTED AVERAGE BASIC AND DILUTED COMMON SHARES OUTSTANDING   31,323,890     31,209,737  
 
   
dELiA*s Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
For the Twenty-Six Weeks Ended
July 28,2012 July 30, 2011
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (8,887 ) $ (14,081 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 4,958 5,722
Stock-based compensation 386 408
Changes in operating assets and liabilities:
Inventories (7,020 ) (7,837 )
Prepaid catalog costs and other assets (200 ) 6,409
Restricted cash - 8,268
Income taxes payable 112 91
Accounts payable, accrued expenses and other liabilities   (3,361 )   (2,870 )
 
Total adjustments   (5,125 )   10,191  
NET CASH USED IN OPERATING ACTIVITIES   (14,012 )   (3,890 )
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures   (2,682 )   (1,968 )
NET CASH USED IN INVESTING ACTIVITIES   (2,682 )   (1,968 )
 
NET DECREASE IN CASH AND CASH EQUIVALENTS (16,694 ) (5,858 )
CASH AND CASH EQUIVALENTS, beginning of period   28,426     28,074  
CASH AND CASH EQUIVALENTS, end of period $ 11,732   $ 22,216  
 
     
dELiA*s, Inc.
SELECTED OPERATING DATA
(in thousands, except number of stores)
(unaudited)
 

 

For The Thirteen Weeks Ended

 

For The Twenty-Six Weeks Ended

 

July 28, 2012

July 30, 2011

 

July 28, 2012

July 30, 2011
 

Channel net revenues:

Retail

$

28,717

$

26,388

$

57,580

$

53,402
Direct   19,586     17,959     43,174     40,091  
Total net revenues $ 48,303   $ 44,347  

$

100,754   $ 93,493  
 
Comparable store sales   14.0 %   7.2 %   10.5 %   3.9 %
 
Catalogs mailed   8,038     7,843     15,580     16,584  
 
Inventory - retail $ 22,323   $ 24,047   $ 22,323   $ 24,047  
Inventory - direct $ 15,634   $ 15,815   $ 15,634   $ 15,815  
 
 

Number of stores:

Beginning of period 112 115 113 114
Opened - 1 ** 1 * 2 **
Closed   3     1   **   5   *   1   **
End of period   109     115     109     115  
Total gross sq. ft @ end
of period   418.4     440.0     418.4     440.0  
 

* Totals include one store that was closed and relocated to an alternative site in the same mall during the first quarter of fiscal 2012.

 

** Totals include one store that was closed, remodeled and reopened during the second quarter of fiscal 2011.




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