This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Orchard Supply Hardware Stores Corporation Reports Second Quarter Fiscal 2012 Financial Results

Baker added, “We remain on track with our plans to open three new stores and remodel six Orchard locations in fiscal 2012. On September 1 st, we opened our second new store this year in Torrance, California and expect to have 12 new and remodeled locations operating under the new format by the end of fiscal 2012.”

Balance Sheet and Cash Flow

As of July 28, 2012, inventories totaled $174.4 million compared to $162.3 million at July 30, 2011. Cash and cash equivalents at the end of the second quarter were $33.9 million. The Company generated $11.8 million of cash from operations during the second quarter of fiscal 2012. As of quarter-end, total long-term debt and capital lease obligations was $219.2 million, excluding $7.6 million in debt repayment that occurred subsequent to the close of the quarter. As previously announced, on July 27, 2012, the Company completed a sale-leaseback transaction for six properties, generating gross proceeds of $42.8 million. Approximately $25.2 million of the net proceeds from the sale-leaseback transaction were used to pay-off the Company’s Real Estate Secured Term Loan in its entirety during the quarter, while approximately $7.6 million of the balance of the net proceeds were used to pay-down the Company’s Senior Secured Term Loan in August 2012.

Fiscal 2012 Outlook

Based on the challenging macroeconomic environment and the timing of the impact of our repositioning initiatives, the Company does not have sufficient visibility at this time to reaffirm its previously issued guidance for positive comparable store sales on a 52-week basis in fiscal 2012. The Company continues to expect to open a total of three new stores in fiscal 2012 and remodel up to six existing Orchard locations.

Conference Call Information

The Company will host a conference call on Monday, September 10, 2012 at 1:30 p.m. pacific time/4:30 p.m. eastern time. Mark Baker, Chief Executive Officer and Chris Newman, Chief Financial Officer, will discuss second quarter fiscal 2012 financial results, as well as the Company’s outlook for fiscal 2012, followed by a Q&A session. To listen to the call, please dial (800) 659-1966 and provide passcode 84626748. A telephone replay will be available from September 10, 2012 at approximately 3:30 p.m. pacific time/6:30 p.m. eastern time through September 17, 2012. To access the replay, please dial (888) 286-8010 and enter passcode 88664613. The call will also be broadcast live at and will be archived on the web site for 90 days.


(1) Comparable store sales are calculated using sales of stores open at least twelve months and exclude E-commerce. Additionally, and because of an agreement the Company entered into with Sears Holdings Corporation on October 26, 2011 whereby the Company now sells appliances on a consignment basis and receives commission income for sales of such appliances and related protection agreements, comparable store sales also exclude approximately $4.5 million of net sales of Sears branded appliances in the second quarter of fiscal 2011 and approximately $0.4 million of commission income in the second quarter of fiscal 2012.

About Orchard

Orchard Supply Hardware Stores Corporation is a neighborhood hardware and garden store focused on paint, repair and the backyard. Founded as a purchasing cooperative in San Jose in 1931, today the stores average 44,000 square feet of enclosed retail space and 8,000 square feet of exterior nursery and garden space, carrying a broad assortment of merchandise for repair, maintenance and improvement needs for the home and backyard. As of July 28, 2012, the Company had 88 stores in California.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs