Net income was $19.8 million for the two fiscal quarters ended July 31, 2012 and EPS was $0.59. Excluding acquisition-related costs, and related tax effects, adjusted net income was $24.7 million for the two fiscal quarters and adjusted EPS was $0.73. See “Reported to Adjusted Statements of Operations Data” below for a reconciliation of net income as reported to adjusted net income.
The Company expects the pending acquisition of 35 stores from Mattress X-Press to add incremental sales during the second half of fiscal 2012 in the range of $7 million to $9 million. Such sales estimates anticipate temporary closings of the stores while rebranding efforts are undertaken. The impact on EPS during the second half of fiscal 2012 is expected to be a reduction of $0.03 to $0.04 that is attributable to acquisition-related costs. The Company expects that the Mattress X-Press acquisition will be accretive to EPS for the fiscal year (52 weeks) ending January 28, 2014 (“fiscal year 2013”) by $0.09 to $0.12 as a result of expected increases in sales volumes and improvement in operational efficiencies of the rebranded stores.
The Company is updating its outlook for the full fiscal year 2012 to include the anticipated results from the pending acquisition of 35 Mattress X-Press stores and second quarter net income and EPS results that exceeded our previous guidance.Revised Revenue and Diluted Earnings per Share (EPS) Guidance:
Prior Guidance Range
Full Fiscal Year Ending January 29, 2013
|Revenue (in billions)||$1.010 to $1.030||$1.022 to $1.039|
|GAAP EPS||$1.48 to $1.52||$1.47 to $1.50|
|Acquisition-related costs||$0.17 to $0.19||$0.20 to $0.23|
|As Adjusted EPS||$1.65 to $1.71||$1.67 to $1.73|
|Comparable-store sales increase||High single digits||7% to 9%|
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