Category: Uncategorized
- Published: 29 November -0001
News Release: Le Chateau Reports Strong Second Quarter Results
Le Chateau Inc. (TSX: CTU.A) today reported that sales increased 20.9% to $51,597,000 for the second quarter ended July 27, 2002, compared with sales of $42,675,000 for the same period last year. Comparable store sales increased by 23.9% in the second quarter of 2002 compared with the same period a year ago.
The Company recorded net earnings for the second quarter of $2,422,000 or $0.49 per share, compared to $105,000 or $0.02 per share for the same period the previous year. Net earnings attributable to Canadian operations amounted to $2,364,000 or $0.48 per share, while the U.S. recorded a net profit of $58,000 or $0.01 per share. Earnings before interest, income taxes, depreciation and amortization rose to $5,637,000 or $1.13 per share for the quarter, from $2,014,000 or $0.41 per share the previous year.
SIX-MONTH RESULTS
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Sales rose 16.6% to $94,557,000 for the first half of the year, compared to $81,116,000 last year. Net earnings for the six-month period totalled $2,765,000 or $0.56 per share, compared to a net l oss of $(450,000) or $(0.09) per share the previous year. Comparable store sales were up 20.1% over the same period a year ago.
THIRD QUARTER TO DATE
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For the first six week s of the third quarter, total retail sales increased 14.3% and same store sales increased 15.9% compared to the same period last year. While Canadian comparable store sales increased 16.2% du ring this period, the U.S. comparable store sales increased 7.5%.
PROFILE
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Le Chateau is a leading Canadian specialty retailer offering fashion- forward apparel, accessories and footwear at value prices to style-conscious women and men aged 15 to 35. Our "JUNIOR GIRL" division attracts the rapidly increasing market of "tweens" aged 8 to 14.
Le Chateau brand name clothing is sold exclusively through our 153 retail locations-which average 3,500 square feet in size. In addition, the Company operates eight Le Chateau Fashion Outlet Stores and two Franchised Outlet Stores. All stores are in Canada, except for four locations in the New York City area.
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
CONSOLIDATED BALANCE SHEETS
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(In thousands of (Unaudited) (Unaudited) (Audited)
dollars) As at As at As at
July 27, 2002 July 28, 2001 January 26, 2002
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ASSETS
Current
Cash and cash
equivalents $ - $ - $ 9,830
Accounts receivable
and prepaid expenses 1,795 2,679 1,585
Income taxes
refundable - 674 -
Inventories 34,925 32,604 21,353
Loans to director 120 - 120
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Total current assets 36,840 35,957 32,888
Loans to director 566 686 566
Fixed assets 38,074 37,150 36,461
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$ 75,480 $ 73,793 $ 69,915
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LIABILITIES AND
SHAREHOLDERS' EQUITY
Current
Bank indebtedness $ 2,814 $ 8,306 $ -
Accounts payable and
accrued liabilities 16,486 11,428 13,322
Dividend payable 499 494 494
Income taxes payable 1,125 - 1,925
Current portion of
capital lease
obligations 1,467 1,542 1,537
Current portion of
long-term debt 851 1,119 989
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Total current
liabilities 23,242 22,889 18,267
Capital lease
obligations 316 1,267 988
Long-term debt 536 1,389 970
Future income taxes 1,772 1,469 1,772
Deferred lease
inducements 2,029 2,416 2,224
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Total liabilities 27,895 29,430 24,221
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Shareholders' Equity
Capital stock 13,568 13,428 13,445
Retained earnings 34,017 30,935 32,249
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Total shareholders'
equity 47,585 44,363 45,694
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$ 75,480 $ 73,793 $ 69,915
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CONSOLIDATED STATEMENTS
OF EARNINGS
(Unaudited) For the three months For the six months
(In thousands of ended ended
dollars, except July 27, July 28, July 27, July 28,
per share data) 2002 2001 2002 2001
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Sales $ 51,597 $ 42,675 $ 94,557 $ 81,116
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Cost of sales and expenses
Cost of sales, buying
and occupancy 32,497 28,866 60,608 55,561
Selling, general and
administrative 13,438 11,712 25,921 22,636
Interest 77 215 160 384
Depreciation and
amortization 1,672 1,621 3,288 3,214
Write-off of fixed assets 25 83 25 83
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47,709 42,497 90,002 81,878
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Earnings (loss) before
income taxes 3,888 178 4,555 (762)
Provision for income taxes
(recovered) 1,466 73 1,790 (312)
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Net earnings (loss) $ 2,422 $ 105 $ 2,765 $ (450)
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Net earnings (loss) per
share
Basic 0.49 0.02 0.56 (0.09)
Diluted 0.47 0.02 0.54 (0.09)
Weighted average number
of shares outstanding
('000) 4,984 4,935 4,964 4,935
SEGMENTED INFORMATION
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(Unaudited) For the three months
