FORT WORTH, Texas, Nov. 16 /PRNewswire-FirstCall/ -- The Bombay
Company, Inc. (NYSE:BBA) reported that revenue for the three months
ended October 28, 2006 decreased 15.5% to $108.2 million compared
to $128.1 million for the three months ended October 29, 2005. Same
store sales for Bombay stores operating for more than one year
decreased 15.5% for the quarter. Revenue from retail stores
declined to $100.2 million from $121.6 million due to the decrease
in same store sales and a lower store count. Bombay's direct-
to-customer business, which includes Internet and Mail Order, grew
to $7.4 million for the quarter compared to $5.5 million last year,
driven primarily by Internet sales. The loss before income taxes
for the quarter ended October 28, 2006 was $16.0 million compared
to $6.5 million for the quarter ended October 29, 2005. The results
for the 2005 quarter include a pre-tax gain of $4.1 million on the
sale of non-operating land and a building. The net loss for the
quarter ended October 28, 2006 was $15.6 million, or $0.43 per
share, compared to a net loss of $4.4 million, or $0.12 per share,
for the corresponding period of the prior year. For the nine-month
period ended October 28, 2006, revenue decreased 7.9% to $348.2
million compared to $378.2 million for the corresponding period of
the prior year. Revenue from retail stores declined to $324.2
million from $354.1 million as a result of a 6.5% decline in same
store sales and the reduced store count. Revenue from Bombay's
direct-to-customer business grew to $21.2 million for the
nine-month period compared to $15.2 million in the comparable
year-ago period, primarily due to higher Internet sales. Results
for the nine-month period ended October 29, 2005 include $6.9
million of revenue from Bailey Street operations, the assets of
which were sold during the second quarter of Fiscal 2005. The loss
before income taxes for the nine months ended October 28, 2006 was
$52.1 million compared to $33.3 million for the nine months ended
October 29, 2005 which included $4.7 million of gains on sales of
the non-operating land and building and the Bailey Street assets.
The net loss for the nine-months ended October 28, 2006 was $51.1
million, or $1.42 per share, compared to a net loss of $21.7
million, or $0.60 per share, for the corresponding period of the
prior year. David B. Stewart, Chief Executive Officer, noted, "We
remain focused on implementing our plan to return Bombay to
positive cash flow and improved operations. We made important
progress with some key initiatives during the third quarter, which
included cost-cutting measures, selling unproductive inventory,
strengthening our merchandise presentation, and concentrating on
our core product. Clearly, we are part of a troubled sector, and
our numbers reflect that. We believe that we added to the problem
by executing an overly zealous inventory reduction program that
cost us sales. The good news is, we have made course corrections to
improve inventory availability in coming quarters. While we are
disappointed with the store results, we continue to be very pleased
with the growth of our direct-to-customer business and in
particular the Internet. Our Canadian subsidiary continues to
outperform the U.S. market. "During the third quarter, we began to
differentiate the merchandising of our mall and off-mall stores for
clearer product focus and a more customer friendly environment with
the objective of improving our store results. We concentrated on
increasing unit volume, and our stores have made progress with key
product presentations. We realized the benefit of a number of the
cost reductions that were identified during the second quarter and
expect to continue to realize the benefit into Fiscal 2007. We
trimmed our print advertising and enhanced our store marketing and
e-marketing and we believe that this change in media has not
adversely affected the business. "We also began to convert square
footage devoted to BombayKIDS into increased square footage for our
core product. During the quarter, a total of 23 stores were
converted, which resulted in all or a portion of the BombayKIDS
product being replaced by core merchandise. We will continue to
monitor the performance of these stores and manage the BombayKIDS
business based upon the results. Key to the success of this
initiative will be the introduction of new core product that is
expected to arrive in stores during the spring of 2007," Mr.
Stewart concluded. The Company ended the quarter with $69.1 million
in borrowings outstanding under its credit facility compared to
$62.2 million last year. During the quarter, the Company entered
into a new credit facility that provides significantly more
liquidity than its previous arrangement. The new facility will fund
working capital requirements and will be used for other corporate
needs, including the initiatives to focus on the Company's core
business. Inventory levels were $151.7 million compared to $176.3
million due to the decision to reduce overall inventory levels and
flow product, including holiday merchandise, closer to the time of
need. In conjunction with this release, you are invited to listen
to Bombay's conference call with management that will be conducted
on Thursday, November 16, 2006 at 10:00 a.m. Central Time.
Interested parties should dial 212-896-6010 ten minutes prior to
the start time. The call will also be broadcast live over the
Internet at http://www.bombaycompany.com/ . For those who are
unable to listen to the live broadcast, a telephone replay will be
available for 72 hours beginning at 12:00 p.m. Central Time at
800-633-8284. The access code is 21274579. The call will also be
available for replay for 45 days on the investor relations page of
the Bombay website. The Bombay Company, Inc. designs, sources and
markets a unique line of home accessories, wall decor and furniture
through 453 retail outlets, specialty catalogs and the Internet in
the U.S. and internationally. Any statements in this press release
that may be considered forward- looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Those risks are described in the Company's public
announcements, reports to stockholders and SEC filings, including
but not limited to Reports on Forms 10-K, 8-K and 10-Q, copies of
which are available from the SEC or may be obtained upon request
from the Company. The Company undertakes no obligation to revise
the forward-looking statements contained therein to reflect events
or circumstances after the date hereof as a result of new
information, future events or otherwise. THE BOMBAY COMPANY, INC.
AND SUBSIDIARIES Consolidated Statements of Operations (In
thousands, except per share amounts) (Unaudited) Three Months Ended
Nine Months Ended October 28, October 29, October 28, October 29,
2006 2005 2006 2005 (as adjusted) (as adjusted) Net revenue
$108,220 $128,062 $348,160 $378,220 Costs and expenses: Cost of
sales, buying and store occupancy costs 86,683 96,842 282,810
294,463 Selling, general & administrative expenses 36,722
40,895 116,025 119,931 Operating loss (15,185) (9,675) (50,675)
(36,174) Gain on sale of assets --- 4,130 --- 4,690 Interest
expense, net (815) (970) (1,464) (1,800) Loss before income taxes
(16,000) (6,515) (52,139) (33,284) Income tax benefit (376) (2,160)
(1,041) (11,608) Net loss ($15,624) ($4,355) ($51,098) ($21,676)
Net loss per basic & diluted share ($0.43) ($0.12) ($1.42)
($0.60) Avg. common shares outstanding 36,253 36,349 36,098 36,169
Avg. common shares outstanding and dilutive potential common shares
36,253 36,349 36,098 36,169 Other Selected Financial and Operating
Data Capital expenditures (net) $5,000 $5,068 $9,143 $16,347
Depreciation and amortization $4,675 $5,171 $13,784 $14,274 Stores
opened 8 8 15 30 Stores closed 27 9 60 38 Store composition: Bombay
core 368 388 Outlet 48 48 KIDS 37 58 Total 453 494 Total
Combination format stores 33 54 Total store square footage (in
thousands) 1,996 2,019 THE BOMBAY COMPANY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (In thousands, except per share
amounts) (Unaudited) Oct. 28, Jan. 28, Oct. 29, 2006 2006 2005
ASSETS (as adjusted) Current assets: Cash and cash equivalents
$3,718 $4,015 $7,688 Inventories 151,717 128,719 176,302 Other
current assets 17,605 14,846 32,521 Total current assets 173,040
147,580 216,511 Property and equipment, net 81,778 84,651 89,601
Deferred taxes 448 456 11,848 Goodwill, net 423 423 423 Other
assets 4,021 5,631 5,079 Total assets $259,709 $238,741 $323,462
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank
borrowings $69,062 $--- $62,218 Accounts payable and accrued
expenses 29,982 29,176 31,669 Gift certificates redeemable 8,541
9,224 8,042 Accrued payroll and bonuses 4,028 6,219 3,134 Accrued
insurance 5,813 5,178 4,997 Customer deposits 6,410 4,526 8,995
Current portion of accrued rent 4,011 3,871 3,905 Other current
liabilities 5,809 5,834 3,301 Total current liabilities 133,656
64,028 126,261 Accrued rent and other long term liabilities 39,838
38,976 37,462 Stockholders' equity: Preferred stock, $1 par value,
1,000,000 shares authorized --- --- --- Common stock, $1 par value,
50,000,000 shares authorized, 38,149,646 shares issued 38,150
38,150 38,150 Additional paid-in capital 80,196 79,817 79,910
Retained earnings (deficit) (27,158) 23,669 48,724 Accumulated
other comprehensive income 2,154 2,077 1,683 Common shares in
treasury, at cost, 1,776,202; 1,715,066 and 1,788,078 shares,
respectively (7,127) (7,038) (7,338) Deferred compensation ---
(938) (1,390) Total stockholders' equity 86,215 135,737 159,739
Total liabilities and stockholders' equity $259,709 $238,741
$323,462 THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Consolidated
Statements of Cash Flows (In thousands, except per share amounts)
(Unaudited) Nine Months Ended October 28, October 29, 2006 2005 (as
adjusted) Cash flows from operating activities: Net loss ($51,098)
($21,676) Adjustments to reconcile net loss to net cash used in
operating activities: Depreciation and amortization 13,784 14,274
Stock-based compensation expense 1,307 1,178 Gain on sale of assets
--- (4,690) Amortization of landlord construction allowances and
other (2,709) (3,224) Change in assets and liabilities: Increase in
inventories (22,668) (30,706) Increase in other assets (2,629)
(9,849) Increase (decrease) in current liabilities 88 (6,247)
Increase in noncurrent liabilities 427 703 Landlord construction
allowances 3,197 6,546 Net cash used in operating activities
(60,301) (53,691) Cash flows from investing activities: Purchases
of property and equipment (9,143) (16,347) Proceeds from sale of
assets 3 5,996 Net cash used in investing activities (9,140)
(10,351) Cash flows from financing activities: Net bank borrowings
69,062 62,218 Increase in outstanding checks in excess of cash
balances 33 --- Proceeds from the exercise of employee stock
options 3 671 Sale of stock to employee benefit plans and other 83
145 Net cash provided by financing activities 69,181 63,034 Effect
of exchange rate change on cash and cash equivalents (37) (472) Net
decrease in cash and cash equivalents (297) (1,480) Cash and cash
equivalents at beginning of period 4,015 9,168 Cash and cash
equivalents at end of period $3,718 $7,688 Supplemental disclosure
of cash flow information: Interest paid $1,254 $1,639 Income taxes
paid 71 327 Non-cash investing and financing activities:
Distributions of restricted stock 73 1,368 Cancellations of
restricted stock (328) (156) Distribution of director fees 59 132
http://www.newscom.com/cgi-bin/prnh/20051026/BOMBAYLOGO
http://photoarchive.ap.org/ DATASOURCE: The Bombay Company, Inc.
CONTACT: Elaine D. Crowley, Sr. Vice President, Chief Financial
Officer of The Bombay Company, Inc., +1-817-347-8200 Web site:
http://www.bombaycompany.com/
Copyright
Bombay (NYSE:BBA)
Historical Stock Chart
From Sep 2024 to Oct 2024
Bombay (NYSE:BBA)
Historical Stock Chart
From Oct 2023 to Oct 2024