News Releases
Brookstone Announces Third Quarter and Year-to-Date 2007 Financial Results
MERRIMACK, N.H., October 24, 2007 -- Innovative product development company and specialty lifestyle retailer Brookstone, Inc. today announced financial results for the third quarter ended September 29, 2007.
For the 13-week period ended September 29, 2007, Brookstone reported total net sales of $91.3 million, a 4.0% increase from the comparable 13-week period of 2006. Same-store sales increased 4.2 % as compared to the comparable 13-week period last year
For the 13-week period ending September 29, 2007 Brookstone reported a loss from continuing operations of $9.4 million, compared to a loss from continuing operations of $9.5 million for the comparable 13-week period last year.
For the 39-week period ended September 29, 2007, Brookstone reported total net sales of $274.4 million, a 7.3% increase from the comparable 39-week period of 2006. Same-store sales increased 4.9 % as compared to the comparable 39-week period last year
For the 39-week period ending September 29, 2007 Brookstone reported a loss from continuing operations of $24.7 million, compared to a loss from continuing operations of $30.3 million for the comparable 39-week period last year.
Lou Mancini, Brookstone Chief Executive Officer, said: "We are pleased with our third quarter and year-to-date results. This quarter marks our sixth consecutive quarter of same-store sales increases. We are pleased with the performance of our new product introductions including exclusive OSIM healthy lifestyle products. We believe that we are well positioned for the fourth quarter"
Brookstone, Inc. is an innovative product development and specialty lifestyle retail company that operates 314 Brookstone Brand stores nationwide and in Puerto Rico. Typically located in high-traffic regional shopping malls and airports, the stores feature unique and innovative consumer products. The Company also operates a Direct Marketing business that includes an e-commerce website at http://www.brookstone.com.
Statements in this release which are not historical facts, including statements about the Company's confidence or expectations, earnings, anticipated operations of its e-commerce sites and those of third-party service providers, and other statements about the Company's operational outlook are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 ("Reform Act") and are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in such forward-looking statements. Such risks and uncertainties include, without limitation, risks of changing market conditions in the overall economy and the retail industry, consumer demand, the effectiveness of e-commerce technology and marketing efforts, availability of products, availability of adequate transportation of such products, and other factors detailed from time to time in the Company's annual and other reports filed with the Securities and Exchange Commission. Words such as "estimate", "project", "plan", "believe", "feel", "anticipate", "assume", "may", "will", "should" and similar words and phrases may identify forward-looking statements. Statements about a possible sale or divestiture of its Gardeners Eden business constitute forward-looking statements. The Company may not be able to complete a divestiture on acceptable terms because of a number of factors, including failure to reach agreement with a purchaser. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligations to publicly release any revisions to these forward-looking statements or reflect events or circumstances after the date hereof.
BROOKSTONE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
Thirteen Thirty-nine
weeks ended weeks ended
------------------- --------------------
Sept 29, Sept 30, Sept 29, Sept 30,
2007 2006 2007 2006
------- -------- --------- ---------
Net sales $ 91,309 $ 87,773 $ 274,374 $ 255,804
Cost of sales 67,941 66,516 203,444 193,867
------ ------ ------ ------
Gross profit 23,368 21,257 70,930 61,937
Selling, general and
administrative expenses 32,755 30,712 95,621 92,189
------ ------ ------ ------
Loss from continuing
operations (9,387) (9,455) (24,691) (30,252)
Loss on early extinguishment
of debt 123 --- 123 ---
Interest expense, net 6,575 6,394 18,741 18,370
------ ------ ------ ------
Loss before taxes, other
party interests in
consolidated entities
and discontinued
operations (16,085) (15,849) (43,555) (48,622)
Other party interests in
consolidated entities 330 302 1,017 950
------ ------ ------ ------
Loss before taxes and
discontinued operations (16,415) (16,151) (44,572) (49,572)
Income tax benefit (6,292) (5,925) (16,954) (17,438)
Loss on discontinued
operations, net of tax
benefit of $40, $37,
$120 and $210. (68) (62) (208) (380)
------ ------ ------ ------
Net loss $(10,191) $(10,288) $(27,826) $(32,514)
========== ========= ========= =========
BROOKSTONE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
Sept. 29, Dec. 30, Sept. 30,
2007 2006 2006
--------- --------- ----------
(Unaudited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,489 $ 71,738 $ 1,189
Receivables, net 7,890 12,472 11,783
Merchandise inventories 120,824 95,253 95,898
Deferred income taxes, net 21,860 3,841 20,896
Prepaid expenses 11,157 7,478 9,054
--------- --------- ---------
Total current assets 163,220 190,782 138,820
Property, plant and equipment, net 70,449 72,638 73,051
Intangible assets, net 130,666 131,354 131,583
Goodwill 190,329 190,329 190,942
Other assets 18,318 16,080 19,570
--------- --------- ---------
Total assets $ 572,982 $ 601,183 $ 553,966
========= ========= =========
Liabilities and Shareholder's Equity
Current liabilities:
Accounts payable $ 29,420 $ 23,410 $ 26,891
Other current liabilities 34,543 56,240 42,070
Short-term borrowings 25,000 --- ---
--------- --------- ---------
Total current liabilities 88,963 79,650 68,961
Other long-term liabilities 21,073 20,954 19,637
Long-term debt 185,343 190,253 190,402
Deferred income taxes 45,327 45,317 43,869
Commitments and contingencies
Other party interests in
consolidated entities 1,127 1,114 1,397
Shareholder's equity:
Common Stock - $0.01 par value
1,000 shares authorized,
one share issued and outstanding -- -- --
Additional paid-in capital 240,169 245,071 245,028
Accumulated other
comprehensive income 140 158 152
Retained earnings (deficit) (9,160) 18,666 (15,480)
--------- --------- ---------
Total shareholder's equity 231,149 263,895 229,700
--------- --------- ---------
Total liabilities and
shareholder's equity $ 572,982 $ 601,183 $ 553,966
========= ========= =========
Contact: Philip Roizin
EVP of Finance and Administration
(603) 880-9500