Sport Chalet Reports Fourth Quarter and Year End Results LOS
ANGELES, June 28 /PRNewswire-FirstCall/ -- Sport Chalet, Inc.
(NASDAQ:SPCH) today announced the results for its fiscal year ended
March 31, 2005. Sales increased 17.0%, from $264.2 million last
year to $309.1 million this year. The increase is the result of
opening five new stores this year and three last year, as well as a
same store sales increase of 5.7%. The same store sales increase is
due to better inventory assortments compared to the same period
last year and increased customer traffic from the appeal of winter
related merchandise. Sales of winter related merchandise were
driven by record winter weather conditions at the resorts
frequented by our customers. Same store sales excluding winter
related products increased 4.7%. Gross profit margin increased from
30.3% last year to 30.9% this year primarily due to a strong winter
season, which reduced the need for markdowns as well as reduced
costs from more efficient inbound logistics. Selling, general and
administrative expenses ("SG&A"), as a percentage of sales,
increased slightly from 27.4% last year to 27.5% this year
primarily from approximately $1.5 million in: (i) increased
litigation reserves and (ii) professional fees primarily associated
with the recapitalization plan announced today in a separate
release. This increase was partially offset by a decrease in
workers' compensation expense due to a significant reduction in
claim activity resulting from the implementation of a new safety
program. Net income increased $1.5 million, or 32.9%, from $4.6
million, or $0.66 per diluted share last year, to $6.2 million, or
$0.88 per diluted share this year. For the fourth quarter ended
March 31, 2005, sales increased 14.1%, from $69.4 million last year
to $79.2 million this year. The increase is the result of opening
five new stores in fiscal 2005, as well as a same store sales
increase of 4.4%. Comparable store sales excluding winter related
products increased 4.1%. Gross profit margin increased from 29.5%
to 30.8% due to increased sales of higher margin apparel combined
with a reduction in end-of-season markdowns as record winter
weather conditions increased customer demand for winter related
products. SG&A, as a percentage of sales, increased from 28.8%
to 29.3% primarily from approximately $1.2 million in: (i)
increased litigation reserves and (ii) professional fees primarily
associated with the recapitalization plan. This increase was
partially offset by a decrease in workers' compensation expense due
to a significant reduction in claim activity resulting from the
implementation of a new safety program. Net income increased
$392,000, or 118.8%, from $330,000, or $0.05 per diluted share, for
the quarter ended March 31, 2004, to $722,000, or $0.10 per diluted
share, for the same quarter this year. Commenting on the results,
Craig Levra, Chairman and CEO said, "Our outstanding results for
the quarter and the fiscal year reflect the consistent and
effective execution of our strategic plan. The entire Sport Chalet
team contributed to a very successful year during which we made
strides in both enhancing our operational performance and
implementing our growth plans. As we expand into Arizona in the new
fiscal year, we believe we are well positioned for continued strong
performance. "As we announced in a separate release today, the
Company's board of directors has proposed a recapitalization plan
that is designed to facilitate the orderly transition of control
from Norbert Olberz, the principal stockholder, to the Company's
management and increase financial flexibility for the Company and
its stockholders. The proposed recapitalization plan retains
current stockholders' existing voting interests and allows
management to maintain our strong culture and continue to focus on
our growth strategy. Overall, we are pleased with our results for
fiscal 2005 and encouraged about the direction of our business. We
remain committed to our strategy to generate long-term top and
bottom line growth and increase stockholder value." The Company's
Form 10-K with full financial statements will be available before
June 30, 2005. Proposed Recapitalization Plan Sport Chalet also
announced today in a separate release that its board of directors
has proposed a recapitalization plan designed to facilitate the
orderly transition of control from Norbert Olberz, the principal
stockholder, to the Company's management and increase financial
flexibility for the Company and its stockholders. The
recapitalization plan includes transferring a portion of founder
Norbert Olberz's Sport Chalet ownership to Craig Levra, Chairman
and Chief Executive Officer, and Howard Kaminsky, Chief Financial
Officer, and allows current stockholders to retain existing
ownership and voting interests. Teleconference and Webcast
Information Sport Chalet will host a conference call and webcast
today at 2:00 p.m. Pacific Daylight Time/5:00 p.m. Eastern Daylight
Time to discuss the proposed recapitalization plan. To access the
call, please dial 800-821-1449 (domestic) or 973-409-9262
(international), using conference ID Sport Chalet. A replay of the
conference call will be available for 14 days through July 12, 2005
and can be accessed by dialing 877-519-4471 (domestic) or
973-341-3080 (international), using pin number 6220516. The
conference call will also be simultaneously webcast at the
following address:
http://phx.corporate-ir.net/playerlink.zhtml?c=119568&s=wm&e=1090729.
An archive of the webcast will be accessible at the same address
for 14 days through July 12, 2005. About Sport Chalet, Inc. Sport
Chalet, founded in 1959 by Norbert Olberz, is a leading operator of
full service specialty sporting goods stores in California and
Southern Nevada. The Company offers over 40 services for the
serious sports enthusiast, including backpacking, canyoneering, and
kayaking instruction, custom golf club fitting and repair, ski
rental and repair, SCUBA training and certification, SCUBA boat
charters, team sales, racquet stringing, and bicycle tune up and
repair throughout its current 36 locations. The address for Sport
Chalet's web site is http://www.sportchalet.com/. Disclosure
Regarding Forward-Looking Statements Except for historical
information contained herein, the statements in this release are
forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and
uncertainties that may cause the Company's actual results in future
periods to differ materially from forecasted results. Those risks
include, among other things, the effect of the recapitalization
plan on the Company's stock price, the competitive environment in
the sporting goods industry in general and in the Company's
specific market areas, inflation, the challenge of implementing the
Company's expansion plans and maintaining its competitive position,
changes in costs of goods and services, the weather and economic
conditions in general and in specific market areas. These and other
risks are more fully described in the Company's filings with the
Securities and Exchange Commission. SPORT CHALET, INC. CONDENSED
CONSOLIDATED STATEMENTS OF INCOME Three months ended Year ended
March 31, March 31, 2005 2004 2005 2004 Net sales $79,172,304
$69,404,267 $309,089,551 $264,236,923 Cost of goods sold, buying
and occupancy 54,822,746 48,898,721 213,428,269 184,046,770 Gross
profit 24,349,558 20,505,546 95,661,282 80,190,153 Selling, general
and administrative expenses 23,161,970 19,970,500 85,144,702
72,360,528 Income from operations 1,187,588 535,046 10,516,580
7,829,625 Interest expense 26,774 27,854 263,523 189,924 Income
before taxes 1,160,814 507,192 10,253,057 7,639,701 Income tax
provision 439,088 177,050 4,082,000 2,995,625 Net income $721,726
$330,142 $6,171,057 $4,644,076 Earnings per share: Basic $0.11
$0.05 $0.92 $0.70 Diluted $0.10 $0.05 $0.88 $0.66 Weighted average
number of common shares outstanding: Basic 6,680,493 6,645,667
6,680,493 6,645,667 Diluted 7,003,686 7,008,380 7,003,686 7,008,380
SPORT CHALET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS March 31,
2005 2004 Assets Current assets: Cash and cash equivalents
$6,176,689 $3,071,648 Accounts receivable, less allowance of
$182,000 in 2005 and $65,000 in 2004 1,462,042 1,208,934
Merchandise inventories 65,061,142 54,172,055 Prepaid expenses and
other current assets 3,044,153 2,202,036 Deferred income taxes
3,915,079 2,443,945 Total current assets 79,659,105 63,098,618
Furniture, equipment and leasehold improvements: Furniture,
fixtures and office equipment 31,175,598 27,503,694 Rental
equipment 4,454,223 3,955,873 Vehicles 307,366 610,413 Leasehold
improvements 33,583,082 26,186,004 69,520,269 58,255,984 Less
allowance for depreciation and amortization 32,017,691 27,633,846
37,502,578 30,622,138 Deferred income tax 1,550,753 1,234,729 Other
assets 76,960 101,036 Total assets $118,789,396 $95,056,521
Liabilities and stockholders' equity Current liabilities: Accounts
payable $20,883,973 $11,131,473 Salaries and wages payable
5,080,320 3,354,368 Income taxes payable 825,059 35,631 Other
accrued expenses 9,753,575 7,830,961 Total current liabilities
36,542,927 22,352,433 Deferred rent 13,136,303 9,893,581
Commitments and contingencies Stockholders' equity: Preferred
stock, $.01 par value: Authorized shares - 2,000,000 Issued and
outstanding shares - none -- -- Common stock, $.01 par value:
Authorized shares - 15,000,000 Issued and outstanding shares -
6,686,368 in 2005 and 6,673,534 in 2004 66,864 66,735 Additional
paid-in capital 22,959,379 22,830,906 Retained earnings 46,083,923
39,912,866 Total stockholders' equity 69,110,166 62,810,507 Total
liabilities and stockholders' equity $118,789,396 $95,056,521 SPORT
CHALET, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year
ended March 31, 2005 2004 Operating activities Net income
$6,171,057 $4,644,076 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 7,692,015 6,446,657 Loss on disposal of equipment
360,761 354,608 Stock compensation -- 448,918 Deferred income taxes
(1,787,158) (1,073,494) Tax benefit on employee stock options
69,244 34,498 Changes in operating assets and liabilities: Accounts
receivable (253,108) (68,415) Merchandise inventories (10,889,087)
(3,285,425) Prepaid expenses and other current assets (842,117)
(163,448) Refundable income taxes -- 58,990 Bank overdraft --
(5,764,355) Accounts payable 9,752,500 1,778,029 Salaries and wages
payable 1,725,952 1,163,033 Other accrued expenses 1,922,614
2,789,208 Income taxes payable 789,428 35,631 Deferred rent
3,242,722 209,066 Net cash provided by operating activities
17,954,823 7,607,577 Investing activities Purchases of furniture,
equipment and leasehold improvements (15,197,322) (9,001,374) Other
assets 24,076 8,869 Proceeds from sales of assets 264,106 -- Net
cash used in investing activities (14,909,140) (8,992,505)
Financing activities Proceeds from bank borrowings 10,700,000
10,225,000 Repayment of bank borrowings (10,700,000) (10,225,000)
Proceeds from exercise of stock options 59,358 226,573 Net cash
provided by financing activities 59,358 226,573 Increase (decrease)
in cash and cash equivalents 3,105,041 (1,158,355) Cash and cash
equivalents at beginning of year 3,071,648 4,230,003 Cash and cash
equivalents at end of year $6,176,689 $3,071,648 Cash paid during
the year for: Income taxes $3,624,000 $3,940,000 Interest 101,512
189,925 DATASOURCE: Sport Chalet, Inc. CONTACT: Howard Kaminsky,
Exec. VP-CFO of Sport Chalet, Inc., +1-818-949-5386; or Investors,
Cara O'Brien, +1-212-850-5669, or Media, Melissa Merrill,
+1-212-850-5651, both of Financial Dynamics, for Sport Chalet, Inc.
Web site: http://www.sportchalet.com/
Copyright
Grafico Azioni Sport Chalet (NASDAQ:SPCH)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Sport Chalet (NASDAQ:SPCH)
Storico
Da Set 2023 a Set 2024