The Children's Place Reports 2003 First Quarter Financial Results
SECAUCUS, N.J.--(BUSINESS WIRE)--May 15, 2003--The Children's Place Retail Stores, Inc. (Nasdaq:PLCE) today reported financial results for the first quarter ended May 3, 2003.
-- Net sales for the first quarter increased 5% to $181.0
million, compared with $173.0 million a year earlier.
-- Comparable store sales decreased 13% in the quarter, versus an
11% decrease for the same period last year.
-- Net income was $5.5 million, versus $15.2 million for the same
period in 2002.
-- Diluted earnings per share were $0.21, compared with $0.56 in
the fiscal 2002 period.
-- The Company opened 19 new stores during the first quarter,
including three in Canada.
"Although our financial results are clearly not at the level we would like to see, we are pleased with the progress we have made in the first quarter. We are encouraged that comparable store sales trended significantly better as the quarter developed," said Ezra Dabah, Chairman and Chief Executive Officer. "Our strategic initiatives are on track and yielding positive results - customer conversion rates are on the rise, units per transaction are increasing and most importantly, the number of comparable store transactions increased 9% in the combined March and April Easter selling season. While encouraged by our early signs of improvement, we remain cautious in our overall business outlook."
The Children's Place will host a webcast of its first quarter earnings conference call today at 10:00 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 22, 2003.
The Children's Place Retail Stores, Inc. is a leading specialty retailer of high quality, value-priced apparel and accessories for children, newborn to age ten. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of May 3, 2003, the Company operated 662 stores, including 631 stores in the United States and 31 stores in Canada. The Company also sells its merchandise through its virtual store located at 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 STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended:
---------------
May 3, 2003 May 4, 2002
----------- -----------
Net sales $ 181,010 $ 173,047
Cost of sales 111,120 93,919
----------- -----------
Gross profit 69,890 79,128
Selling, general and administrative expenses 51,391 46,373
Depreciation and amortization 9,528 8,270
----------- -----------
Operating income 8,971 24,485
Interest (income) expense, net (93) (246)
----------- -----------
Income before income taxes 9,064 24,731
Provision for income taxes 3,535 9,523
----------- -----------
Net income $ 5,529 $ 15,208
=========== ===========
Basic income per share $ 0.21 $ 0.58
Basic weighted average number
of shares outstanding 26,599 26,427
Diluted income per share $ 0.21 $ 0.56
Diluted weighted average number
of shares outstanding 26,739 27,348
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEETS
(In thousands)
May 3, 2003 February 1, 2003 May 4, 2002
----------- ---------------- -----------
(Unaudited) (Unaudited)
Current assets:
Cash and cash equivalents $ 47,359 $ 36,645 $ 66,204
Accounts receivable 14,973 13,571 14,439
Inventories 70,374 75,417 49,772
Other current assets 18,462 19,570 18,295
----------- ----------- -----------
Total current assets 151,168 145,203 148,710
Property and equipment, net 156,846 155,000 149,889
Other assets, net 9,308 9,125 6,145
----------- ----------- -----------
Total assets $ 317,322 $ 309,328 $ 304,744
=========== =========== ===========
Current liabilities:
Revolving credit facility $ 442 $ 0 $ 0
Accounts payable 29,020 30,805 22,072
Accrued expenses and other
current liabilities 37,784 35,124 37,844
----------- ----------- -----------
Total current liabilities 67,246 65,929 59,916
Other liabilities 15,047 14,391 11,512
----------- ----------- -----------
Total liabilities 82,293 80,320 71,428
Stockholders' equity 235,029 229,008 233,316
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 317,322 $ 309,328 $ 304,744
=========== =========== ===========
CONTACT: The Children's Place
Chief Financial Officer
Seth Udasin, 201/558-2409
or
Director, Investor Relations
Heather Anthony, 201/558-2865
SOURCE: The Children's Place Retail Stores, Inc.