Kathleen Mason, President and Chief Executive Officer, stated, "We are positioned to meet our goal to profitably grow sales and produce positive operating cash flow in the second quarter."
Net sales for the fiscal year 2008 (July 1, 2007 through June 30, 2008) are projected to be in the range of $987 million to $997 million. Diluted earnings per share for the same period are projected to be $0.85 to $0.90, with the assumption that comparable store sales are flat to positive 1.5%.
Tuesday Morning management will review first quarter fiscal 2008 financial results in a teleconference call on October 31, 2007 at 10:00 a.m. Eastern Time.
About Tuesday Morning
Tuesday Morning is the leading closeout retailer of upscale, decorative home accessories, housewares and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 818 stores in 47 states. Tuesday Morning is nationally known for bringing its more than 9.0 million loyal customers a unique treasure hunt of high-end, first quality, brand name merchandise...never seconds or irregulars...at prices well below those of 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-KT for the six month period ended June 30, 2007 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 Sept. 30, 2007 2006 (unaudited) Net Sales $ 201,656 $194,412 Cost of sales 125,947 121,348 Gross profit 75,709 73,064 Selling, general and administrative expenses 72,544 67,341 Operating income 3,165 5,723 Other income (expense): Interest expense (1,686) (792) Interest income - 5 Other income (expense), net 378 174 Other income (expense) (1,308) (613) Income before income taxes 1,857 5,110 Income tax expense 701 1,947 Net income $ 1,156 $3,163 Earnings Per Share: Net income per common share: Basic $0.03 $0.08 Diluted $0.03 $0.08 Weighted average number of common shares: Basic 41,440 41,392 Diluted 41,585 41,584 Consolidated Balance Sheets (in thousands) Sept. 30, Sept. 30, June 30, 2007 2006 2007 (unaudited) (unaudited) Assets Current assets: Cash and cash equivalents $ 11,918 $ 8,906 $ 10,303 Inventories 346,017 302,533 288,791 Prepaid expenses and other assets 9,991 8,887 5,954 Deferred income taxes - 5,071 1,211 Total current assets 367,926 325,397 306,259 Property and Equipment, net 82,432 86,888 83,776 Other long-term assets: Deferred financing costs 654 556 704 Other assets 3,679 4,781 3,582 Total Assets $ 454,691 $ 417,622 $ 394,321 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 74,000 $ - $ 26,500 Accounts payable 90,334 103,778 82,453 Accrued liabilities 32,555 31,119 31,223 Deferred income taxes 1,372 - - Income taxes payable 441 6,199 712 Total current liabilities 198,702 141,096 140,888 Revolving credit facility, excl. current portion 30,000 47,000 30,000 Deferred rent 4,542 4,571 4,534 Deferred income taxes 3,582 6,267 3,459 Total Liabilities 236,826 198,934 178,881 Stockholders' equity 217,865 218,688 215,440 Total Liabilities and Stockholders' Equity $ 454,691 $ 417,622 $ 394,321 Consolidated Statement of Cash Flows (in thousands) Sept. 30, Sept. 30, 2007 2006 (unaudited) Net cash flows from operating activities: Net income $ 1,156 $ 3,163 Adjustments to reconcile net income to net cash (used in) operating activities: Depreciation and amortization 4,442 4,153 Amortization of financing fees 50 43 Deferred income taxes 2,706 - Amortization of restricted stock compensation 50 - Loss on disposal of fixed assets 169 111 Stock compensation expense 1,292 828 Other non-cash charges 66 (4) Net change in operating assets and liabilities (55,702) (27,075) Net cash used in operating activities (45,771) (18,781) Net cash flows from investing activities: Capital expenditures (3,267) (4,284) Net cash used in investing activities (3,267) (4,284) Net cash flows from financing activities: Borrowings-revolving credit facility 82,500 68,500 Repayments-revolving credit facility (35,000) (42,500) Change in cash overdraft 3,157 - Proceeds from exercise of common stock options and stock purchase plan purchases (4) 205 Other - - Net cash provided by financing act. 50,653 26,205 Net decrease in cash and cash equivalents 1,615 3,140 Cash and cash equivalents, beginning of period 10,303 5,766 Cash and cash equivalents, end of period $ 11,918 $ 8,906
SOURCE Tuesday Morning Corporation
/CONTACT: 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/
/Web site: http://www.tuesdaymorning.com /
|"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.|