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Cache Reports Third Quarter Fiscal 2012 Results

Stocks in this article: CACH

2012 Outlook

For the fourth quarter of fiscal 2012, the Company currently expects comparable store sales to be flat or to increase in the low-to-mid single-digit range. This follows a 12.4% increase in comparable store sales in the fourth quarter of fiscal 2011. The Company currently expects fourth quarter fiscal 2012 net earnings per diluted share in the range of $0.01 to $0.03, exclusive of any potential asset impairment costs and potential tax valuation allowance. In the fourth quarter of fiscal 2011, the Company reported net income of $0.15 per diluted share, or $0.12 per diluted share excluding tax valuation allowance reversal, store impairment charges and gain on note payable settlement.

Conference call information

The Company announced that it will conduct a conference call to discuss its third quarter fiscal 2012 results today, November 6, 2012 at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 705-6003 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at www.cache.com. A replay of this call will be available at 7:30 p.m. Eastern Time on November 6, 2012 until 11:59 p.m. Eastern Time on November 13, 2012 and can be accessed by dialing (877) 870-5176 and entering PIN number 402811.

About Cache, Inc.

Cache is a nationwide, mall-based specialty retailer of sophisticated sportswear and social occasion dresses targeting style-conscious women who have a youthful attitude and are self-confident. The Company currently operates 261 stores, primarily situated in central locations in high traffic, upscale malls in 42 states, the Virgin Islands and Puerto Rico.

Forward-Looking Statements

Certain matters discussed within this press release may constitute forward-looking statements within the meaning of the federal securities laws. Although Cache, Inc. believes the statements are based on reasonable assumptions, there can be no assurance that these expectations will be attained. Actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, industry trends, merchandise and fashion trends, competition, seasonality and changes in general economic conditions and consumer spending patterns, the ability to successfully recruit a new President, reliance on foreign manufacturers, dependence on management, dependence on vendors and distributors, material weakness in our internal controls, as well as other risks outlined from time to time in the filings of Cache, Inc. with the Securities and Exchange Commission.

           
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
 
September 29, December 31, October 1,
ASSETS 2012 2011 2011
 
Current assets:
Cash and equivalents $ 10,374,000 $ 22,509,000 $ 13,816,000
Marketable securities 3,009,000 4,008,000 7,563,000
Certificate of deposits - restricted 3,000,000 3,000,000 3,000,000
Receivables, net 2,294,000 3,403,000 2,304,000
Income tax receivable 245,000 162,000 -
Inventories, net 23,806,000 22,075,000 22,232,000
Prepaid expenses and other current assets   2,068,000     1,572,000     5,323,000  
Total current assets 44,796,000 56,729,000 54,238,000
 
 
Equipment and leasehold improvements, net 20,522,000 18,937,000 20,651,000
Intangible assets, net 102,000 102,000 102,000
Other assets   10,708,000     8,877,000     9,380,000  
 
Total assets $ 76,128,000   $ 84,645,000   $ 84,371,000  
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable $ 10,974,000 $ 9,565,000 $ 11,777,000
Note payable - - 1,463,000
Accrued compensation 1,420,000 2,579,000 1,306,000
Accrued liabilities   9,609,000     10,217,000     8,697,000  
Total current liabilities 22,003,000 22,361,000 23,243,000
 
 
Other liabilities 9,628,000 11,487,000 12,280,000
 
 
Commitments and contingencies
 
 
STOCKHOLDERS' EQUITY
 
 
Common stock 166,000 165,000 165,000
Additional paid-in capital 48,671,000 48,419,000 48,346,000
Retained earnings 35,455,000 42,008,000 40,132,000
Treasury stock, at cost   (39,795,000 )   (39,795,000 )   (39,795,000 )
Total stockholders' equity   44,497,000     50,797,000     48,848,000  
 
Total liabilities and stockholders' equity $ 76,128,000   $ 84,645,000   $ 84,371,000  
 
   
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
   
 
39 Weeks Ended 39 Weeks Ended
September 29, October 1,
2012 2011
 
Net sales $ 163,417,000 $ 161,024,000
 
Cost of sales, including buying and occupancy   100,176,000     91,829,000  
 
Gross profit   63,241,000     69,195,000  
 
Expenses
Store operating expenses 57,727,000 55,996,000
General and administrative expenses   13,969,000     13,342,000  
Total expenses   71,696,000     69,338,000  
 
Operating loss   (8,455,000 )   (143,000 )
 
 
Other income (expense):
Interest expense - (38,000 )
Interest income   62,000     68,000  
 
Loss before income taxes (8,393,000 ) (113,000 )
 
Income tax benefit   (1,840,000 )   (318,000 )
 
 
Net income (loss) $ (6,553,000 ) $ 205,000  
 
 
 
Basic earnings (loss) per share $ (0.51 ) $ 0.02  
 
Diluted earnings (loss) per share $ (0.51 ) $ 0.02  
 
 
 
Basic weighted average shares outstanding   12,882,000     12,831,000  
 
Diluted weighted average shares outstanding   12,882,000     12,859,000  
 
       
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
13 Weeks Ended 13 Weeks Ended
September 29, October 1,
2012 2011
 
Net sales $ 45,789,000 $ 48,659,000
 
Cost of sales, including buying and occupancy   31,128,000     28,899,000  
 
Gross profit   14,661,000     19,760,000  
 
Expenses
Store operating expenses 18,268,000 18,463,000
General and administrative expenses   4,502,000     4,339,000  
Total expenses   22,770,000     22,802,000  
 
Operating loss   (8,109,000 )   (3,042,000 )
 
 
Other income (expense):
Interest expense - (7,000 )
Interest income   20,000     24,000  
 
Loss before income taxes (8,089,000 ) (3,025,000 )
 
Income tax benefit   (1,713,000 )   (1,203,000 )
 
 
Net loss $ (6,376,000 )

$

(1,822,000 )
 
 
 
Basic loss per share $ (0.49 ) $ (0.14 )
 
Diluted loss per share $ (0.49 ) $ (0.14 )
 
 
 
Basic weighted average shares outstanding   12,892,000     12,849,000  
 
Diluted weighted average shares outstanding   12,892,000     12,849,000  




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