SECAUCUS, N.J., May 13, 2011 /PRNewswire/ -- Syms Corp (NASDAQ:
SYMS) (the "Company"), a leading off-price retailer, announced
results today for its fourth quarter and full fiscal year ended
February 26, 2011. In addition, the
Company announced that it closed on the sale-leaseback of the
Company's property located in Rockville,
Maryland, and used a portion of the proceeds from the
transaction to pay in full the balance of its short-term loan under
a credit facility with Bank of America, N.A.
For the fourth quarter (13 week period) ended February 26, 2011, the Company had a net loss of
$17.8 million ($1.23 per share) as compared to a net loss of
$7.4 million ($0.51 per share) for the quarter ended
February 27, 2010. For the
fiscal year (52 week period) ended February
26, 2011, the net loss was $32.9
million ($2.27 per share) as
compared to net income of $8.3
million ($0.57 per share) for
the fiscal year ended February 27,
2010. The current and prior year periods include
one-time items that affect comparability, including a gain on life
insurance proceeds, a bargain purchase gain associated with the
acquisition of Filene's Basement and acquisition costs related to
that transaction in the prior year, and restructuring-related costs
in the current year. Excluding these one-time items, the
Company's adjusted net loss for the quarter ended February 26, 2011 would have been $12.1 million ($0.84 per share), compared to last year's
adjusted net loss of $7.3 million
($0.50 per share). The adjusted
net loss after excluding these items for the year ended
February 26, 2011 would have been
$24.8 million ($1.72 per share), compared to last year's
adjusted net loss of $21.2 million
($1.46 per share).
Net sales for the fiscal quarter ended February 26, 2011 were $100.9 million compared to $115.5 million for the fiscal quarter ended
February 27, 2010, a decline of
$14.6 million, or 13%. For the
year ended February 26, 2011, net
sales increased by $67.8 million, or
18%, to $445.1 million, up from
$377.3 million last year. The
increase in sales was primarily the result of the acquisition of
Filene's Basement in June 2009.
Comparable store sales were flat for the year and decreased
7% in the thirteen week period ended February 26, 2011.
Adjusted net profit and loss excluding items that affect
comparability is a non-GAAP measure. The Company believes the
excluded items are not indicative of the recurring performance of
the business and that by providing this supplemental disclosure it
will facilitate a more meaningful comparison of its operating
performance. A reconciliation of net profit and loss as
reported to the adjusted net profit and loss is included as a
schedule in this press release.
As of February 26, 2011, the
Company and its wholly-owned subsidiary Filene's Basement, LLC
collectively owned and operated 47 "off-price" apparel stores
located predominantly on the east coast of the United States under the "Syms" name
(which, together with co-branded Syms/Filene's Basement stores, are
owned and operated by the Company) and the "Filene's Basement" name
(which are owned and operated by Filene's Basement, LLC). Each Syms
and Filene's Basement store offers a broad range of first quality,
in season merchandise bearing nationally recognized designer and
brand-name labels.
Forward-Looking Statements
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 Syms Corp and its subsidiaries that are based on the beliefs of
Syms' management, as well as assumptions made by and information
currently available to Syms' management. When used in this press
release, the words "anticipate", "believe", "estimate", "expect",
"intend", "plan" and similar expressions as they relate to Syms
Corp and its subsidiaries, identify forward-looking statements.
Such statements reflect the current views of Syms Corp 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 Syms' and Filene's Basement's
products, possible disruptions in Syms' computer or telephone
systems, possible work stoppages or increase in labor costs,
effects of competition, the impact of integrating Filene's
Basement's business and Syms Corp's existing business, 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 and borrowing
costs, unanticipated increases in merchandise or occupancy costs,
and other factors which may be outside the control of Syms Corp.
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 Syms Corp or persons acting on its behalf are expressly
qualified in their entirety by the cautionary statements in this
paragraph.
For further information, please contact Davia Temin of Temin and Company at
212-588-8788.
SYMS
CORP
STATEMENTS
OF OPERATIONS
(in
thousands except per-share amounts)
|
|
|
Thirteen Weeks Ended
|
|
Fifty-Two
Weeks Ended
|
|
|
2/26/2011
|
|
2/27/2010
|
|
2/26/2011
|
|
2/27/2010
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
100,876
|
|
$
115,457
|
|
$
445,133
|
|
$
377,309
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
31,581
|
|
38,000
|
|
173,792
|
|
145,102
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
59,743
|
|
54,512
|
|
224,172
|
|
149,944
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
$
(17,803)
|
|
$
(7,414)
|
|
$
(32,857)
|
|
$
8,308
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per share
(basic & diluted)
|
$
(1.23)
|
|
$
(0.51)
|
|
$
(2.27)
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (basic & diluted)
|
14,448
|
|
14,598
|
|
14,456
|
|
14,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYMS
CORP
CONSOLIDATED
BALANCE SHEETS
(in
thousands)
|
|
|
2/26/2011
|
|
2/27/2010
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash
|
$
2,298
|
|
$
2,049
|
|
Receivables
|
2,619
|
|
3,195
|
|
Merchandise
inventories
|
76,595
|
|
82,234
|
|
Other
current assets
|
18,425
|
|
27,949
|
|
Total current assets
|
99,937
|
|
115,427
|
|
|
|
|
|
|
Property &
equipment
|
117,200
|
|
118,539
|
|
Other Assets
|
53,637
|
|
35,113
|
|
Total Assets
|
$
270,774
|
|
$
269,079
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS
EQUITY
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Accounts
payable
|
$
41,701
|
|
$
47,356
|
|
Accrued
expenses
|
21,114
|
|
9,945
|
|
Other
current liabilities
|
5,559
|
|
5,328
|
|
Total current liabilities
|
68,374
|
|
62,629
|
|
|
|
|
|
|
Long term debt
|
30,192
|
|
8,402
|
|
Other long term
liabilities
|
11,229
|
|
3,016
|
|
|
|
|
|
|
Shareholders' Equity
|
160,979
|
|
195,032
|
|
Total Liabilities and
Shareholders' Equity
|
$
270,774
|
|
$
269,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYMS
CORP
RECONCILIATION OF NON-GAAP
FINANCIAL INFORMATION TO GAAP
(in
thousands except per-share amounts)
|
|
|
Thirteen
Weeks Ended
|
|
Fifty-Two
Weeks Ended
|
|
|
2/26/2011
|
|
2/27/2010
|
|
2/26/2011
|
|
2/27/2010
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
(Loss)
|
$
(17,803)
|
|
$
(7,414)
|
|
$
(32,857)
|
|
$
8,308
|
|
|
|
|
|
|
|
|
|
|
Transactions affecting
comparability:
|
|
|
|
|
|
|
|
|
Gain on life insurance
proceeds
|
-
|
|
-
|
|
-
|
|
(24,764)
|
|
Bargain purchase gain on
Filene's acquisition
|
-
|
|
-
|
|
-
|
|
(9,714)
|
|
Acquisition costs related
to Filene's acquisition
|
-
|
|
95
|
|
-
|
|
4,857
|
|
Asset impairment
charge
|
2,534
|
|
80
|
|
4,255
|
|
80
|
|
Restructuring
charge
|
7,173
|
|
-
|
|
9,306
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total impact of transactions
affecting comparability
|
9,707
|
|
175
|
|
13,561
|
|
(29,541)
|
|
|
|
|
|
|
|
|
|
|
Income tax effect
|
3,970
|
|
72
|
|
5,546
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net impact of transactions
affecting comparability
|
5,737
|
|
103
|
|
8,015
|
|
(29,541)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net (Loss)
|
$
(12,066)
|
|
$
(7,311)
|
|
$
(24,842)
|
|
$
(21,233)
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income (Loss) per share
(basic & diluted)
|
$
(1.23)
|
|
$
(0.51)
|
|
$
(2.27)
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net (Loss) per share
(basic & diluted)
|
$
(0.84)
|
|
$
(0.50)
|
|
$
(1.72)
|
|
$
(1.46)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Syms Corp