Hhgregg Announces Second Fiscal Quarter Operating Results

hhgregg, Inc. (NYSE: HGG):
  Three Months Ended   Six Months Ended
September 30,   September 30,
(unaudited, amounts in thousands, except share and per share data) 2013   2012   2013   2012
Net sales $ 568,315 $ 587,636 $ 1,093,237 $ 1,077,492
Net sales % (decrease) increase (3.3 )% (5.0 )% 1.5 % 2.6 %
Comparable store sales % decrease (1) (6.2 )% (8.8 )% (3.0 )% (7.2 )%
Gross profit as a % of net sales 29.6 % 29.6 % 29.5 % 29.8 %
SG&A as a % of net sales 21.2 % 21.4 % 21.9 % 22.7 %
Net advertising expense as a % of net sales 5.4 % 5.4 % 5.2 % 5.5 %
Depreciation and amortization expense as a % of net sales 1.8 % 1.7 % 2.0 % 1.8 %
Income (loss) from operations as a % of net sales 1.2 % 1.1 % 0.5 % (0.2 )%
Net interest expense as a % of net sales 0.1 % 0.1 % 0.1 % 0.1 %
Net income (loss) $ 3,679 $ 3,760 $ 2,419 $ (1,940 )
Net income (loss) per diluted share $ 0.12 $ 0.11 $ 0.08 $ (0.05 )
Weighted average shares outstanding—diluted 31,240,325 35,291,269 31,427,112 35,685,482
Number of stores open at the end of period 228 223
 

(1)
 

Comprised of net sales at stores in operation for at least 14 full months, including remodeled and relocated stores, as well as net sales for the Company’s e-commerce site.
 

hhgregg, Inc. (“hhgregg” or the “Company”) today reported net income of $3.7 million, or $0.12 per diluted share, for the three month period ended September 30, 2013, compared with net income of $3.8 million, or $0.11 per diluted share, for the comparable prior year period. For the six month period ended September 30, 2013, the Company reported net income of $2.4 million, or $0.08 per diluted share, compared with a net loss of $(1.9) million, or $(0.05) per diluted share for the comparable prior year period. The decrease in net income for the three month period ended September 30, 2013 was largely due to a comparable store sales decrease of 6.2%, partially offset by a decrease in SG&A as a percentage of net sales. The increase in net income for the six month period ended September 30, 2013 was largely the result of an increase in net sales due to the net addition of five stores during the past 12 months, a decrease in SG&A expense as a percentage of net sales and a decrease in net advertising as a percentage of net sales, partially offset by a decrease in gross profit as a percentage of net sales.

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