"Our flexibility in product categories, inventory allocation, real estate locations and in-store layout allow us to remain a strong performer despite the on-going challenges in the home furnishings sector," said Kathleen Mason, President and Chief Executive Officer. "The dividend declared by our Board and the banking syndicates approval of our credit facility amendment both reflect the strength of our balance sheet, our ability to generate positive cash flow and the continued execution of our operating plan by management."
Net income for the first quarter ended March 31, 2007 was $1.0 million or $0.03 per diluted share, compared to $6.5 million or $0.16 per diluted share for the first quarter of 2006, a decrease of $5.5 million or $0.13 per diluted share.
Guidance Guidance for the fiscal year 2007 is as follows: * net sales are projected to be in the range of $975 to $985 million; * comparable store sales are projected to be flat to negative 2.0%; and * diluted earnings per share projected to be in the range of $0.85 to $0.90.
Tuesday Morning management will review first quarter financial results in a teleconference call on May 1, 2007 at 10:00 a.m. Eastern Time.
About Tuesday Morning
Tuesday Morning is the leading closeout retailer of upscale home furnishings, housewares and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 799 stores in 47 states during periodic "sale events." Tuesday Morning is nationally known for bringing its more than 8.0 million loyal customers a treasure hunt of high- end, first quality, brand name merchandise at prices 50% to 80% below department and specialty stores and catalogues.
This press release contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which are based on management's current expectations, estimates and projections. Forward-looking statements typically are identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "believe," "estimate," "intend" and similar words, although some forward- looking statements are expressed differently. You should carefully consider statements that contain these words carefully because they describe our expectations, plans, strategies and goals and our beliefs concerning future business conditions, our future results of operations, our future financial positions, and our business outlook or state other "forward-looking" information.
Reference is hereby made to "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2006 for examples of risks, uncertainties and events that could cause our actual results to differ materially from the expectations expressed in our forward-looking statements. These risks, uncertainties and events also include, but are not limited to, the following: uncertainties regarding our ability to open stores in new and existing markets and operate these stores on a profitable basis; conditions affecting consumer spending; inclement weather; changes in our merchandise mix; timing and type of sales events, promotional activities and other advertising; increased or new competition; loss or departure of one or more members of our senior management, as well as experienced buying and management personnel; an increase in the cost or a disruption in the flow of our products; seasonal and quarterly fluctuations; fluctuations in our comparable store results; our ability to operate information systems and implement new technologies effectively; our ability to generate strong cash flows from our operations; our ability to maintain internal control over financial reporting; and our ability to anticipate and respond in a timely manner to changing consumer demands and preferences. The forward-looking statements made in this press release relate only to events as of the date on which the statements were made. We undertake no obligations to update our forward-looking statements to reflect events and circumstances after the date on which the statements were made or to reflect the occurrence of unanticipated events.
Tuesday Morning Corporation Consolidated Statement of Income (In thousands, except per share data) Three Months Ended Mar. 31, 2007 2006 (unaudited) Net Sales $ 189,156 $ 187,759 Cost of sales 118,288 114,168 Gross profit 70,868 73,591 Selling, general and administrative expenses 69,289 63,163 Operating income 1,579 10,428 Other income (expense): Interest expense (234) (186) Interest income 143 99 Other income (expense), net 203 133 Other income (expense) 112 46 Income before income taxes 1,691 10,474 Income tax expense 644 3,934 Net income $ 1,047 $ 6,540 Earnings Per Share: Net income per common share: Basic $ 0.03 $ 0.16 Diluted $ 0.03 $ 0.16 Weighted average number of common shares: Basic 41,427 41,376 Diluted 41,650 41,674 Tuesday Morning Corporation (continued) Consolidated Balance Sheets (in thousands) Mar 31, Mar 31, Dec 31, 2007 2006 2006 (unaudited) (unaudited) Assets Current assets: Cash and cash equivalents $ 9,563 $ 5,330 $ 49,633 Inventories 280,987 252,723 242,674 Prepaid expenses and other assets 7,508 8,370 5,617 Deferred income taxes 3,162 5,071 3,162 Total current assets 301,220 271,494 301,086 Property and Equipment, net 85,149 86,164 86,397 Other long-term assets: Deferred financing costs 471 642 514 Other assets 3,383 4,628 5,137 Total Assets $ 390,223 $ 362,928 $ 393,134 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 89,682 $ 79,547 $ 88,514 Accrued liabilities 32,680 30,747 35,934 Income taxes payable 540 3,831 15,543 Total current liabilities 122,902 114,125 139,991 Revolving credit facility, excl. current portion 45,500 28,000 --- Deferred rent 4,629 4,486 4,618 Deferred income taxes 4,648 6,267 4,648 Total Liabilities 177,679 152,878 149,257 Stockholders' equity 212,544 210,050 243,877 Total Liabilities and Stockholders' Equity $ 390,223 $ 362,928 $ 393,134 Consolidated Statement of Cash Flows (in thousands) Mar 31, Mar 31, 2007 2006 (unaudited) Net cash flows from operating activities: Net income $ 1,047 $ 6,540 Adjustments to reconcile net income to net cash (used in) operating activities: Depreciation and amortization 4,363 4,007 Amortization of financing fees 43 43 Loss on disposal of fixed assets 289 --- Stock compensation expense 1,033 809 Other non-cash charges (140) 52 Net change in operating assets and liabilities (55,656) (42,229) Net cash used in operating activities (49,021) (30,778) Net cash flows from investing activities: Capital expenditures (3,404) (2,385) Net cash used in investing activities (3,404) (2,385) Net cash flows from financing activities: Net borrowings-revolving credit facility 45,500 28,000 Payment of cash dividend (33,144) (33,102) Proceeds from exercise of common stock options and stock purchase plan purchases (1) 48 Other --- --- Net cash provided by (used in) financing act. 12,355 (5,054) Net decrease in cash and cash equivalents (40,070) (38,217) Cash and cash equivalents, beginning of period 49,633 43,547 Cash and cash equivalents, end of period $ 9,563 $ 5,330
SOURCE Tuesday Morning Corporation
Elizabeth Schroeder, Chief Financial Officer of Tuesday Morning Corporation, +1-972-934-7299; or Laurey Peat of Laurey Peat + Associates, +1-214-871-8787, for Tuesday Morning Corporation
|"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Tuesday Morning Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.|