KIRKLAND, Wash., Jan. 3 /PRNewswire-FirstCall/ -- Celebrate
Express, Inc. (NASDAQ:BDAY), a leading online and catalog retailer
of celebration products for families, today reported financial
results for its second quarter of fiscal 2008 ended November 30,
2007. Second quarter fiscal 2008 highlights -- Gross margin for the
second quarter of fiscal 2008 increased 290 basis points from the
prior year to 53.1%. -- Revenue from the Costume Express brand for
the second quarter of fiscal 2008 increased 45% from the prior
year. -- Fulfillment expenses, consisting of costs associated with
our distribution center and customer service operations, decreased
160 basis points from the prior year to 10.4% of net sales. --
229,000 new customers were added to the database during the second
quarter of fiscal 2008, bringing the total customer file to 3.8
million at November 30, 2007. Celebrate Express reported net sales
of $31.3 million in the second quarter of fiscal 2008, an increase
of 10% from net sales of $28.5 million during the same period last
year. Income from operations in the second quarter of fiscal 2008
was $407,000, an increase of 22% over the second quarter of fiscal
2007. Net income for the second quarter of fiscal 2008 was
$430,000, or $0.05 per diluted share, compared with net income of
$568,000, or $0.07 per diluted share, in the second quarter of
fiscal 2007. Weighted average diluted shares outstanding were 8.0
million for both the second quarter of fiscal 2008 and the second
quarter of fiscal 2007. Kevin Green, chief executive officer of
Celebrate Express stated, "We aggressively pursued the Halloween
seasonal business in the second quarter as a vehicle to expand
consumer awareness across all of our brands, to expand market share
in what was a very competitive Halloween season and to build our
customer file, not only in preparation for the Halloween season
next year but to support our Birthday Express brand contact
strategies throughout the year. The cross-promotion of the new
Costume Express customers to the Birthday Express brand began in
January. This will partially offset the circulation we've been able
to trim in the Birthday Express brand due to higher postage costs
and combined with our ability to identify and eliminate
unprofitable customer and prospect mailing segments." The change in
revenue for the second quarter of fiscal 2008 from the prior year
was due in part to an increase in Costume Express brand net sales,
which were up from the second quarter of the prior year by 45%.
This increase was primarily due to an 80% increase in catalog
circulation. The increase in Costume Express brand net sales was
offset by a decrease in Birthday Express brand net sales of 14% due
in part to a decrease in catalog circulation of 21% from the prior
year. Mr. Green continued, "We are pleased we were able to increase
gross margins and reduce fulfillment expense ratios while managing
through the late season spike in sales that most retailers of
Halloween products experienced this year. Unfortunately, that
sharp, late season spike in sales resulted in a temporary shipping
backlog that did create a disappointing shopping experience for
some customers. Our new Warehouse Management System, the first such
system to be deployed at Celebrate Express, was launched in
December, which historically has represented a period of lower
sales volume for the Company. We anticipate this will help
streamline our warehouse processes going forward and in turn create
an improved customer experience. Approximately nine months have
passed since we ended the process of exploring strategic
alternatives to focus on building the business. In this period, we
have focused on filling out the management team and initiating the
systems work necessary to develop a solid foundation to support
strong, consistent customer service. We believe this approach,
while it pressures short term results, will go a longer way to
creating the broad, positive word-of-mouth advertising so critical
to our business." During the second quarter of fiscal 2008, the
Company attracted approximately 229,000 new customers, bringing the
total customer database to 3.8 million customers. This represents
growth of 18% from the end of the second quarter of fiscal 2007 and
continued strong customer acquisition. Net sales per order were
$68.41 in the second quarter of 2008, compared with $72.65 in the
same quarter last year. Revenue from our repeat customers
represented approximately 46% of revenue during the second quarter
of fiscal 2008 which was the same as the prior year. Orders taken
over the Company's website increased to approximately 81% of total
orders in the quarter just ended, up from approximately 73% in the
same quarter of the prior year, helping to create efficiencies in
customer service operations. Mr. Green stated, "In an evergreen
business such as ours, where new kids are born every year,
prospecting for new customers is mission critical. Our investments
in new customer acquisition via the multiple catalog and online
contact opportunities available to us will position us well for the
future." Gross margin increased to 53.1% of net sales during the
quarter just ended from 50.2% in the same quarter of the prior
year. The year-over-year improvement in gross margin percentage was
driven by increases in our merchandise margin due to improved
sourcing opportunities, including volume discounts. We remain
focused on further sourcing opportunities to continue improving
upon margins across all of our brands. Fulfillment costs decreased
to 10.4% of net sales during the second quarter of fiscal 2008,
compared with 12.0% during the same quarter last year. This
quarter-over-quarter decrease was due to a continued reduction in
distribution center and customer service labor costs as a
percentage of revenue. These reductions were driven by continued
operational process improvements, as well as the increase in web
orders as a percentage of total revenue. The Company reduced
fulfillment labor and related costs by 5% from the same quarter
last year, while shipping 16% more orders. The Company shipped
453,000 orders in the second quarter of fiscal 2008. Selling and
marketing expenses increased to 31.0% of net sales during the
quarter just ended, compared with 27.2% of net sales in the same
quarter last year. The increase as a percentage of net sales for
the quarter was driven by multiple factors: increased online search
fees due to higher website traffic, the increase in catalog postage
rates and generally lower than anticipated response rates,
partially related to an increase in prospecting circulation.
General and administrative costs were $3.3 million in the quarter
just ended, up from $2.8 million in the same quarter last year, due
primarily to increased bad debt related to our deferred billing
program, merchant fees, and systems-related consulting fees. Other
income declined to $482,000 in the six months ended November 30,
2007, compared with other income of $810,000 in the six months
ended November 30, 2006. This change is due to a reduction in
interest income resulting from a decrease in the cash balance. The
reduction in cash is largely due to the approximately $9.9 million
dividend paid in April 2007. The Company's net cash used in
investing activities, which represented payments for purchases of
fixed assets, was $2.2 million for the six months ended November
30, 2007. These capital expenditures include our new warehouse
management system, data center improvements and Costume Express and
other website enhancements. Mr. Green concluded, "Since we ended
the process of exploring strategic alternatives in March 2007,
we've taken a very aggressive approach to putting in place the
infrastructure necessary to support entering fiscal 2009 strongly.
This includes accepting the investments and short term bumps and
bruises that come with taking on so much at once. Projects underway
in addition to the Warehouse Management System and PCI and SOX
compliance work include our first Christmas season test, a new data
center, a new phone system, a new customer database and developing
an implementation plan for our next generation website which,
pending finalization and board approval, will be deployed in phases
throughout fiscal 2009. As those investments come on line, we will
increasingly leverage our core assets, which include but may not be
limited to our robust customer file; our strong brand awareness; a
new, talented and experienced management team just reaching its
stride; our strong balance sheet; our product bank; and our
portfolio of valuable licenses." Conference Call Company management
will be holding a conference call to discuss financial results for
its second quarter of fiscal year 2008 on Friday, January 4, 2008
at 8:30 a.m. ET/ 5:30 a.m. PT. The conference call will be
broadcast via live webcast and may be accessed at
http://investor.celebrateexpress.com/. Listeners may also access
the call by dialing 1-866-713-8563 and entering password 80327576.
A replay of the call will be available for 30 days by dialing
1-888-286-8010, password 27566754. Forward-looking Statements This
press release contains forward-looking statements, including,
without limitation, all statements related to plans, future events
and financial performance. Forward-looking statements are
identifiable by words such as "believe," "anticipate," "expect,"
"intend," "plan," "will," "may," "suggest," and other similar
expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances are forward-looking statements.
Forward-looking statements involve risks and uncertainties, which
could cause actual results to vary materially from those expressed
in or indicated by the forward-looking statements. Our actual
results and timing of events could differ materially, including
demand for our products, our ability to manage our costs, our
ability to manage our distribution and fulfillment operations,
competition from other retailers, the strength of our brands, our
ability to recruit and maintain senior management and other key
personnel, and other risks detailed in our filings with the
Securities and Exchange Commission, including our most recent
Annual Report on Form 10-K. Additional information will also be set
forth in our Quarterly Report on Form 10-Q for the quarter ended
November 30, 2007, which we expect to file on or before January 11,
2008. You are cautioned not to place undue reliance on these
forward-looking statements, which reflect only an analysis and
speak only as of the date of this press release. Celebrate Express
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date
hereof. About Celebrate Express, Inc. Celebrate Express is a
leading online and catalog retailer of celebration products serving
families with young children. The Company currently operates two
brands: Birthday Express markets children's party products, and
Costume Express markets costumes and accessories. The Company
utilizes its branded website Celebrateexpress.com, complemented by
its branded catalogs, to offer products as complete coordinated
solutions. The Company's goal is to help families celebrate the
special moments in their lives. For more information, please visit
http://www.celebrateexpress.com/. CELEBRATE EXPRESS, INC. CONDENSED
BALANCE SHEETS (in thousands) November 30, May 31, 2007 2007
(unaudited) ASSETS Current assets: Cash and cash equivalents
$18,724 $21,224 Accounts receivable, net 1,914 1,490 Inventories
10,234 9,039 Prepaid expenses 2,408 3,693 Deferred income taxes 414
347 Total current assets 33,694 35,793 Fixed assets, net 5,791
4,454 Deferred income taxes 7,818 7,772 Other assets, net 101 101
Total assets $47,404 $48,120 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Accounts payable $1,873 $2,752 Accrued
liabilities 3,054 3,648 Current portion of capital leases 21 -
Total current liabilities 4,948 6,400 Long-term capital lease
obligations 43 - Shareholders' equity Common stock and additional
paid-in capital 67,962 67,122 Accumulated deficit (25,549) (25,402)
Total shareholders' equity 42,413 41,720 Total liabilities and
shareholders' equity $47,404 $48,120 CELEBRATE EXPRESS, INC.
CONDENSED STATEMENTS OF OPERATIONS (unaudited) (in thousands,
except per share data) Three-Months Ended Six-Months Ended November
November November November 30, 30, 30, 30, 2007 2006 2007 2006 Net
sales $31,323 $28,511 $48,885 $48,453 Cost of sales (1) 14,689
14,193 22,652 24,137 Gross margin 16,634 14,318 26,233 24,316
Operating expenses: Fulfillment (1) 3,258 3,433 5,627 6,412 Selling
and marketing (1) 9,706 7,751 15,205 13,069 General and
administrative (1) 3,263 2,801 6,108 5,243 Total operating expenses
16,227 13,985 26,940 24,724 Income (loss) from operations 407 333
(707) (408) Other income, net: Interest income, net 241 427 482 810
Net income (loss) before income taxes 648 760 (225) 402 Income tax
benefit (expense) (218) (192) 78 (160) Net income (loss) 430 568
(147) 242 Net income (loss) per share: Basic $0.05 $0.07 ($0.02)
$0.03 Diluted $0.05 $0.07 ($0.02) $0.03 Weighted average shares
outstanding: Basic 7,973 7,818 7,967 7,804 Diluted 7,985 7,956
7,967 7,948 (1) Stock-based compensation is included in the expense
line items above in the following amounts: Cost of Sales $2 $9 $4
$18 Fulfillment 11 18 27 32 Selling and marketing 46 43 92 105
General and administrative 259 262 572 457 $318 $332 $695 $612
CELEBRATE EXPRESS, INC. CONDENSED STATEMENTS OF CASH FLOWS
(unaudited) (in thousands) Six months ended November 30, November
30, 2007 2006 Cash flows from operating activities: Net income
(loss) $(147) $242 Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating activities: Deferred
income taxes (96) 160 Depreciation and amortization 929 777
Stock-based compensation 695 612 Excess tax benefit from exercise
of stock options (17) (41) Loss on disposal of fixed assets 12 -
Changes in operating assets and liabilities: Accounts receivable
(423) (458) Inventories (1,197) 1,350 Prepaid expenses and other
assets 1,285 1,562 Accounts payable (878) (1,096) Accrued
liabilities (595) (586) Net cash provided by (used in) operating
activities (432) 2,522 Cash flows from investing activities:
Payments for purchases of fixed assets (2,205) (500) Net cash used
in investing activities (2,205) (500) Cash flows from financing
activities: Principal payments on capital lease obligation (7) -
Employee stock purchase plan shares issued 36 25 Proceeds from
exercise of stock options 91 133 Excess tax benefit from exercise
of stock options 17 41 Net cash provided by financing activities
137 199 Net increase (decrease) in cash and cash equivalents
(2,500) 2,221 Cash and cash equivalents: Beginning of period 21,224
31,327 End of period $18,724 $33,548 CONTACT: Celebrate Express,
Inc. Evelyn Mackey (Investor Relations), 425-250-1064 x186
DATASOURCE: Celebrate Express, Inc. CONTACT: Evelyn Mackey,
investor relations of Celebrate Express, Inc., +1-425-250-1064,
ext. 186, Web site: http://www.celebrateexpress.com/
Copyright
Celebrate Express (MM) (NASDAQ:BDAY)
Gráfico Histórico do Ativo
De Ago 2024 até Set 2024
Celebrate Express (MM) (NASDAQ:BDAY)
Gráfico Histórico do Ativo
De Set 2023 até Set 2024