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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tilly’s, Inc. Announces Third Quarter Fiscal 2012 Results

For a description of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the accompanying table titled " Supplemental Information - Consolidated Statements of Operations; Reconciliation of GAAP to Non-GAAP Financial Measures" contained in this press release.

Forward Looking Statements

Certain statements in this press release and oral statements made from time to time by our representatives are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements regarding our guidance, future financial and operating results and any other statements about our future expectations, plans, intentions, beliefs or prospects expressed by management are forward-looking statements. These forward-looking statements are based on management’s current expectations and beliefs, but they involve a number of risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to, our ability to respond to changing customer preferences, execute our growth strategy, expand into new markets, effectively compete with other retailers, enhance our brand image and other factors that are detailed in our registration statement on Form S-1 (333-175299), including those detailed in the section titled “Risk Factors” contained that registration statement, which is available from the SEC’s website at www.sec.gov and from our website at www.tillys.com under the heading “Investor Relations”. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. This release should be read in conjunction with our financial statements and notes thereto contained in our registration statement and our Forms 10-Q.

       

TILLY’S, Inc.

 CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 
October 27,

2012

January 28,

2012

 
ASSETS
Current assets:
Cash and cash equivalents $ 24,883 $ 25,091
Marketable securities 24,891 -
Receivables 8,139 6,605
Merchandise inventories 49,870 36,531
Prepaid expenses and other current assets   10,405     5,616
Total current assets 118,188 73,843
Property and equipment, net 74,869 64,077
Other assets   3,902     2,899
Total assets $ 196,959   $ 140,819
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 25,307 $ 16,830
Deferred revenue 3,490 4,865
Accrued compensation and benefits 6,464 7,536
Accrued expenses 9,849 12,935
Current portion of deferred rent 4,327 3,335
Current portion of capital lease obligation/Related party   701     669
Total current liabilities 50,138 46,170
Long-term portion of deferred rent 36,699 30,256
Long-term portion of capital lease obligation/Related party   3,440     3,969
Total long-term liabilities   40,139     34,225
Total liabilities 90,277 80,395
 
Commitments and contingencies
 
Stockholders' equity:
Common stock, $0.001 par value; October 27, 2012 - no shares authorized, issued or outstanding;
January 28, 2012 - 21,600 shares authorized, 20,000 shares issued and outstanding - 20
Common stock (Class A), $0.001 par value; October 27, 2012 - 100,000 shares authorized, 9,282
shares issued and outstanding; January 28, 2012 - 100,000 shares authorized, 1 shares issued and
outstanding 9 -
Common stock (Class B), $0.001 par value; October 27, 2012 - 35,000 shares authorized, 18,400 shares
issued and outstanding; January 28, 2012 - 35,000 shares authorized, no shares issued or outstanding 18 -
Preferred stock, $0.001 par value; October 27, 2012 and January 28, 2012 - 10,000 shares authorized,
no shares issued or outstanding - -
Additional paid-in capital 116,630 150
Retained earnings (deficit) (9,981 ) 60,254
Accumulated other comprehensive income   6     -
Total stockholders' equity   106,682     60,424
Total liabilities and stockholders' equity $ 196,959   $ 140,819
 
         

TILLY’S, Inc.

 CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 27,

2012

    October 29,

2011

October 27,

2012

  October 29,

2011

 
Net sales $ 124,895 $ 107,304 $ 326,521 $ 277,695
Cost of goods sold (includes buying, distribution, and occupancy costs)   83,087   71,446   223,150   189,910
Gross profit 41,808 35,858 103,371 87,785
Selling, general and administrative expenses   27,940   23,514   86,795   66,915
Operating income 13,868 12,344 16,576 20,870
Interest expense, net   42   49   46   150
Income before income taxes 13,826 12,295 16,530 20,720
Income tax provision   4,532   140   2,478   236
Net income $ 9,294 $ 12,155 $ 14,052 $ 20,484
 
Basic earnings per share $ 0.34 $ 0.61 $ 0.56 $ 1.02
Diluted earnings income per share $ 0.33 $ 0.59 $ 0.55 $ 1.00
Weighted average basic shares outstanding 27,658 20,000 24,979 20,000
Weighted average diluted shares outstanding 28,079 20,530 25,403 20,489
 
       

TILLY’S, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 
Thirty-Nine Weeks Ended
October 27,

2012

October 29,

2011

 
Cash flows from operating activities
Net income $ 14,052 $ 20,484
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 12,299 11,255
Loss on disposal of assets 153 227
Loss on sales of marketable securities 28 -
Deferred income taxes 6,325 -
Stock-based compensation expense 8,893 -
Excess tax benefit from stock-based compensation (94 ) -
Changes in operating assets and liabilities:
Receivables (2,184 ) (680 )
Merchandise inventories (13,202 ) (11,582 )
Prepaid expenses and other assets (12,121 ) (2,202 )
Accounts payable 8,477 10,417
Accrued expenses (1,048 ) (1,273 )
Accrued compensation and benefits (1,072 ) 3,613
Deferred rent 7,435 2,726
Deferred revenue   (1,375 )   (1,166 )
Net cash provided by operating activities   26,566     31,819  
 
Cash flows from investing activities
Purchase of property and equipment (25,585 ) (14,246 )
Insurance proceeds from casualty loss 799 -
Proceeds from sale of property and equipment 17 18
Purchases of marketable securities (60,419 ) -
Sales of marketable securities   35,510     -  
Net cash used in investing activities   (49,678 )   (14,228 )
 
Cash flows from financing activities
Payment of capital lease obligation (497 ) (468 )
Net proceeds from initial public offering 106,789 -
Proceeds from exercise of stock options, net of tax withholdings 805 -
Excess tax benefit from stock-based compensation 94 -
Distributions   (84,287 )   (30,794 )
Net cash provided by (used in) financing activities   22,904     (31,262 )
 
Change in cash and cash equivalents (208 ) (13,671 )
Cash and cash equivalents, beginning of period   25,091     29,338  
Cash and cash equivalents, end of period $ 24,883   $ 15,667  
 
 

TILLY’S, Inc. Supplemental Information - Consolidated Statements of Operations Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited)

The tables below reconcile the non-GAAP financial measures of adjusted selling, general and administrative expenses (“SG&A”), adjusted operating income, adjusted income before income taxes, adjusted income tax provision, adjusted net income, and adjusted basic and diluted earnings per share, with the most directly comparable GAAP financial measures of actual SG&A, actual operating income, actual income before income taxes, actual income tax provision, actual net income, and actual basic and diluted earnings per share.

         
Q3 Current Year Q3 Prior Year
(quarter ended October 27, 2012)   (quarter ended October 29, 2011)
Reported (GAAP)     Adjustments     Adjusted Reported (GAAP)     Adjustments     Adjusted
               
Selling, general and administrative expenses (1 ) 27,940 - 27,940 23,514 673 24,187
Operating income 13,868 - 13,868 12,344 (673 ) 11,671
Income before income taxes 13,826 - 13,826 12,295 (673 ) 11,622
Income tax provision (2 ) 4,532 998 5,530 140 4,509 4,649
Net income $9,294 ($998 ) 8,296 12,155 (5,182 ) 6,973
 
Basic earnings per share $0.34 ($0.04 ) $0.30 $0.61 ($0.26 ) $0.35
Diluted earnings per share $0.33 ($0.04 ) $0.30 $0.59 ($0.25 ) $0.34
 
 
Notes:
(1) Current year GAAP SG&A includes a charge for stock-based compensation for the quarter; prior year adjustment reflects a charge for stock-based compensation expense equal to the charge in the current year's quarter. The result of this adjustment to prior year is to reflect a similar on-going stock-based compensation expense as if the Company had recognized stock-based compensation expense in both years' third quarters.
(2) Tax provision adjusted to the expected long-term effective tax rate of 40% for both years; GAAP provision rate in the current year was impacted by the conversion in the second quarter of 2012 from an "S" Corporation to a "C" Corporation and the prior year GAAP tax rate reflected an "S" Corporation rate.
 
         
YTD Current Year YTD Prior Year
(nine months ended October 27, 2012)   (nine months ended October 29, 2011)
Reported (GAAP)     Adjustments     Adjusted Reported (GAAP)     Adjustments     Adjusted
               
Selling, general and administrative expenses (1 ) 86,795 (7,615 ) 79,180 66,915 1,277 68,192
Operating income 16,576 7,615 24,191 20,870 (1,277 ) 19,593
Income before income taxes 16,530 7,615 24,145 20,720 (1,277 ) 19,443
Income tax provision (2 ) 2,478 7,180 9,658 236 7,541 7,777
Net income 14,052 435 14,487 20,484 (8,818 ) 11,666
 
Basic earnings per share $0.56 $0.02 $0.58 $1.02 ($0.44 ) $0.58
Diluted earnings per share $0.55 $0.02 $0.57 $1.00 ($0.43 ) $0.57
 
 
Notes:
(1) Current year adjustment excludes a charge for life-to-date stock-based compensation expense covering periods up to the May 2012 IPO date; prior year adjustment reflects the add-back of stock-based compensation expense starting in Q2 consistent with the ongoing expense starting in Q2 of the current year. The result of these adjustments to both the current and prior years is to reflect a similar ongoing stock-based compensation expense as if the Company had recognized only ongoing stock-based compensation expense starting in both years' second quarters.
(2) Tax provision adjusted to the expected long-term effective tax rate of 40% for both years; GAAP provision rate in the current year was impacted by the conversion in the second quarter of 2012 from an "S" Corporation to a "C" Corporation and the prior year GAAP tax rate reflected an "S" Corporation rate.
 
 
Tilly's
Store Count and Square Footage
                           
Total Gross
Stores Stores Stores Store Store Stores Square Footage
Open at Opened Closed Remodels- Remodels- Open at End of Qtr
Beg of Qtr During Qtr During Qtr Closed Reopened End of Qtr (in thousands)
2011 Q1 125 1 0 0 0 126 977
2011 Q2 126 6 1 0 0 131 1,015
2011 Q3 131 4 0 1 0 134 1,044
2011 Q4 134 5 0 0 1 140 1,094
 
2012 Q1 140 5 0 0 0 145 1,134
2012 Q2 145 10 0 0 0 155 1,215
2012 Q3 155 7 1 0 0 161 1,272




5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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