SYMS Syms Corp (MM)

Syms Corp (NASDAQ:SYMS), a leading off-price retailer, announced results today for its fourth quarter and fiscal year ended February 27, 2010.

The Company’s net loss for the fiscal quarter ended February 27, 2010 was $7.4 million or $(0.51) per share as compared to a net loss of $1.9 million or $(0.13) per share for the fiscal quarter ended February 28, 2009. The Company had a net income for the fiscal year ended February 27, 2010 of $8.3 million or $0.57 per share as compared to net loss of $3.4 million or $(0.23) per share for the fiscal year ended February 28, 2009. The year ended February 27, 2010 includes a gain from Officer’s Life Insurance proceeds of $24.8 million and a bargain purchase gain associated with the acquisition of Filene’s Basement of $9.7 million.

Net sales for the fiscal quarter ended February 27, 2010 were $115.4 million compared to $54.0 million for the fiscal quarter ended February 28, 2009, an increase of $61.4 million or 113.6%. Net sales for the fiscal year ended February 27, 2010 were $377.3 million compared to $242.0 million, an increase of $135.3 million or 55.9%. This includes the results from the acquisition of 23 Filene’s Basement stores.

Syms Corp currently operates a chain of fifty “off-price” apparel stores located throughout the Northeastern and Middle Atlantic regions and in the Midwest, Southeast and Southwest. Each Syms store offers a broad range of first quality; in-season merchandise bearing nationally recognized designer and brand-name labels.

Certain information in this press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to the Company that are based on the beliefs of the management of the Company, as well as assumptions made by and information currently available to the management of the Company. When used in this press release, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” and similar expressions as they relate to the Company, identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events, the outcome of which is subject to certain risks, including, among others, general economic and market conditions, decreased consumer demand for the Company’s product, possible disruptions in the Company’s computer or telephone systems, possible work stoppages, or increase in labor costs, effects of competition, possible disruptions or delays in the opening of new stores or inability to obtain suitable sites for new stores, higher than anticipated store closings or relocation costs, higher interest rates, unanticipated increases in merchandise or occupancy costs and other factors which may be outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph.

(Financial Tables to Follow)

SYMS CORP STATEMENTS OF OPERATIONS

(in thousands except per-share amounts)

    Quarter ended Fiscal year ended 2/27/2010   2/28/2009 2/27/2010   2/28/2009   Net Sales $ 115,457 $ 54,052 $ 377,309 $ 242,000   Gross Margin 38,000 22,575 145,102 100,525   Operating expenses 53,794 23,968 173,745 104,589   Other income - - (25,049 ) -   Net(loss)/income after taxes $ (7,414 ) $ (1,887 ) $ 8,308   $ (3,423 )   Net(loss)/income per share(basic) $ (0.51 ) $ (0.13 ) $ 0.57   $ (.23 )   Weighted average shares outstanding (basic)   14,598     14,590     14,593     14,589   SYMS CORP CONSOLIDATED BALANCE SHEETS

(in thousands)

   

February 27, 2010

February 28, 2009

ASSETS

 

Current assets: Cash $ 2,049 $ 1,822 Receivables 3,195 1,589 Merchandise inventories 82,234 52,480 Other current assets   27,949   15,564 Total current assets 115,427 71,455   Property & equipment 118,539 95,956   Other assets   35,113   47,712 Total Assets $ 269,079 $ 215,123    

LIABILITIES & SHAREHOLDERS’ EQUITY

  Current Liabilities: Accounts payable $ 47,356 $ 14,936 Accrued expenses 9,945 9,012 Other current liabilities   5,328   4,292 Total current liabilities 62,629 28,240   Long term liabilities 11,418 840   Shareholders’ equity   195,032   186,043 Total Liabilities and Shareholders’ Equity $ 269,079 $ 215,123