The Children's Place Retail Stores, Inc. Reports First Quarter 2006 Financial Results; Earnings Per Share Increased 53% to $0.52 for the First Quarter; Net Sales Increased 16%; Comparable Store Sales Increased 9%
SECAUCUS, N.J.--(BUSINESS WIRE)--May 18, 2006--The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported financial results for the fiscal first quarter ended April 29, 2006.
- Consolidated net sales for the first quarter increased 16% to $426.5 million, compared to $369.2 million last year. First quarter sales were comprised of $322.0 million from The Children's Place brand, a 15% increase over last year's sales of $280.7 million, and $104.5 million from Disney Store, an 18% increase compared to $88.5 million last year.
- Consolidated comparable store sales increased 9% in the quarter. The Children's Place brand's comparable store sales increased 8% on top of last year's 13% increase and Disney Store's comparable store sales increased 14%.
- Net income increased 56% to $15.3 million versus $9.8 million last year.
- Diluted earnings per share increased 53% to $0.52, compared to diluted earnings per share of $0.34 for the first quarter last year. Excluding equity compensation and stock option expense, diluted earnings per share for the quarter were $0.58, a 71% increase over last year. Last year's earnings per share, as reported, were reduced by $0.02 for the adoption of FSP FAS No. 13-1, the expensing of rent during construction. Last year's earnings per share also included a $0.03 non-cash charge related to acquired Disney Store inventory.
- During the first quarter, the Company opened eight Children's Place stores and closed one. In addition, the Company closed one Disney Store.
"Our first quarter results mark a strong start to fiscal 2006," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "This is truly an exciting time for The Children's Place. Our first quarter performance reflects the progress we are making toward our 2006 goals of: increasing market share; enhancing the customer brand experience; and achieving greater expense efficiency. At Disney Store, we are pleased with our first quarter results, which were driven by our increased investment in apparel, a strong inventory position and positive guest response to our merchandise offering."
The Children's Place will host a webcast of its first quarter conference call today at 9:00 a.m., Eastern Time. Interested parties are invited to listen to the call at the Company's web site, www.childrensplace.com. An archive of the webcast will be available on the site through Thursday, May 25, 2006.
The Children's Place Retail Stores, Inc., is a leading specialty retailer of children's merchandise. The Company designs, contracts to manufacture and sells high-quality, value-priced merchandise under the proprietary "The Children's Place" and licensed "Disney Store" brand names. As of April 29, 2006, the Company owned and operated 809 The Children's Place stores and 316 Disney Stores in North America and its online store, www.childrensplace.com.
This press release and above referenced call may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Company's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers or listeners (on the call) are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Children's Place or any other person that the events or circumstances described in such statement are material.
(Tables Follow)
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended:
----------------
April 29, April 30,
2006 2005
---------- ----------
Net sales $ 426,509 $ 369,217
Cost of sales 258,926 227,687
---------- ----------
Gross profit 167,583 141,530
Selling, general and administrative
expenses 129,430 113,424
Depreciation and amortization 14,207 12,124
---------- ----------
Operating income 23,946 15,982
Interest (income) (877) (95)
---------- ----------
Income before income taxes 24,823 16,077
Provision for income taxes 9,482 6,279
---------- ----------
Net income $ 15,341 $ 9,798
========== ==========
Basic net income per common share $ 0.54 $ 0.36
Basic weighted average common shares
outstanding 28,242 27,383
Diluted net income per common share $ 0.52 $ 0.34
Diluted weighted average common shares
and common share equivalents
outstanding 29,410 28,611
Note: Periods presented include the retrospective application of FAS
FSP 13-1.
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 29, January 28, April 30,
2006 2006 2005
----------- ------------- ----------
Current assets:
Cash and investments $ 175,752 $ 173,323 $ 148,982
Accounts receivable 35,301 28,971 21,248
Inventories 215,326 214,702 158,200
Other current assets 42,902 42,998 41,902
---------- ----------- -----------
Total current assets 469,281 459,994 370,332
Property and equipment,
net 260,318 248,628 203,391
Other assets, net 53,542 48,698 20,189
---------- ----------- -----------
Total assets $ 783,141 $ 757,320 $ 593,912
========== =========== ===========
Current liabilities:
Accounts payable $ 92,300 $ 82,826 $ 86,944
Accrued expenses and
other current
liabilities 104,397 143,238 83,113
---------- ----------- -----------
Total current liabilities 196,697 226,064 170,057
Other liabilities 147,686 138,390 106,838
---------- ----------- -----------
Total liabilities 344,383 364,454 276,895
Stockholders' equity 438,758 392,866 317,017
---------- ----------- -----------
Total liabilities and
stockholders' equity $ 783,141 $ 757,320 $ 593,912
========== =========== ===========
Note: Periods presented include the retrospective application of FAS
FSP 13-1.
THE CHILDREN'S PLACE RETAIL STORES, INC.
SEGMENT INFORMATION
(In millions)
(Unaudited)
Thirteen Weeks Ended April 29, 2006
------------------------------------
The
Children's Disney Shared Total
Place Store Services Company
----------- ------- -------- -------
Net sales $ 322.0 $104.5 $ - $ 426.5
Segment operating profit (loss) 52.5 (6.5) (22.1) 23.9
Operating profit as a
percent of net sales 16.3% (6.2)% N/A 5.6%
Thirteen Weeks Ended April 30, 2005
------------------------------------
The
Children's Disney Shared Total
Place Store Services Company
----------- ------ -------- -------
Net sales $ 280.7 $ 88.5 $ - $ 369.2
Segment operating profit (loss) 48.0 (14.0) (18.0) 16.0
Operating profit as a percent
of net sales 17.1% (15.8)% N/A 4.3%
CONTACT: The Children's Place Retail Stores, Inc.
Susan Riley, 201-453-7160
or
Investor Relations
Heather Anthony, 201-558-2865
SOURCE: The Children's Place Retail Stores, Inc.