Capital and Liquidity
As of July 31, 2012, the Company had $231.5 million outstanding, excluding $4.3 million of letters of credit, under its asset-based loan facility. Additionally, as of July 31, 2012, the Company had $135.7 million of immediately available borrowing capacity, and an additional $78.6 million that could become available upon increases in eligible inventory and customer receivable balances under the borrowing base.
Outlook and Guidance
The Company increased earnings guidance for the fiscal year ending January 31, 2013, to diluted earnings per share of $1.40 to $1.50. The following expectations were considered in developing the guidance for the full year:
- Same stores sales up 10% to 15%;
- New store openings of five;
- Retail gross margin between 33.5% and 34.5%;
- An increase in the credit portfolio balance;
- Provision for bad debts of between 5.5% and 6.5% of the average portfolio balance outstanding; and
- Selling, general and administrative expense, as a percent of revenues, between 28.5% and 29.5% of total revenues.
- Home appliance, including refrigerators, freezers, washers, dryers, dishwashers, ranges and room air conditioners;
- Furniture and mattress, including furniture for the living room, dining room, bedroom and related accessories and mattresses;
- Consumer electronic, including LCD, LED, 3-D, plasma and DLP televisions, camcorders, digital cameras, Blu-ray players, video game equipment, portable audio and home theater products; and
- Home office, including desktop and notebook computers, tablets, printers and computer accessories.