ST. LOUIS, April 19, 2011 /PRNewswire/ -- CPI Corp.
(NYSE: CPY) today reported results for the fiscal fourth quarter
and year ended February 5,
2011.
- Fiscal 2010 fourth-quarter sales declined 8% to $128.9 million from $140.2
million in the prior-year fourth quarter.
- Fourth-quarter PictureMe Portrait Studio® brand comparable
store sales, as described herein, decreased 11% versus the same
period last year.
- Fourth-quarter Sears Portrait Studio brand comparable store
sales, as described herein, decreased 17% versus the same period
last year.
- Sales from newly opened Kiddie Kandids studios contributed
$8.6 million, excluding net revenue
recognition change, during the 2010 fourth quarter.
- Fiscal 2010 fourth-quarter Adjusted EBITDA and diluted EPS
were $28.0 million and $2.06 per share, respectively, versus
$37.6 million and $3.07, respectively, in the prior-year fourth
quarter. Excluding other charges and impairments in both
periods and a $2.0 million tax
adjustment in the prior year quarter related to foreign tax credits
recorded for a previous year, fourth-quarter diluted EPS declined
to $2.24 versus $2.74 in the prior-year fourth quarter.
- Full-year Adjusted EBITDA and diluted EPS were $41.6 million and $1.64 per share, respectively, versus
$53.3 million and $1.97 in the respective prior-year period.
Excluding other charges and impairments in both periods and a
$2.0 million tax adjustment in the
prior year related to foreign tax credits recorded for a previous
year, full year diluted EPS increased to $2.07 versus $1.97
in the prior fiscal year.
- Net debt declined to $43.5
million as of the 2010 fiscal year end from $58.6 million as of the 2009 fiscal year
end.
- Newly acquired Bella Pictures®, a leading
provider of wedding photography and videography through an
extensive network of contract photographers and videographers,
substantially expands the Company's mobile (on location)
photography capabilities and offers substantial sales and
fulfillment synergies with CPI's core studio operations as well as
a strong growth platform.
Commenting on the fourth quarter, Renato
Cataldo, CPI's President and Chief Executive Officer said,
"Although we are disappointed with our fiscal 2010 fourth quarter
results which reflected very difficult industry and broader
economic conditions in the period, we are pleased with the
underlying fundamentals of our business. Amid a difficult
operating environment in 2010, we improved service levels, loyalty
plan enrollment and sales productivity, reduced operating costs,
strengthened our balance sheet, solidified our host relationships,
re-launched the Kiddie Kandids brand in 171 locations including 21
mall-based locations and 20 expansion stores, and substantially
expanded our event and on-location photography capabilities with
the acquisition of Bella Pictures, a potential game-changer as we
seek to transform our relationships with customers."
Continuing, Mr. Cataldo said, "Looking ahead to 2011, we expect
continued top-line challenges, especially in view of the higher
food and energy prices and job insecurity that are weighing
especially heavily on our core customer. We are,
nevertheless, encouraged about our prospects to sustain solid
profitability and cash generation over the next year based on
already identified cost reductions and operating income improvement
expected from the Kiddie Kandids operations."
Fourth-quarter 2010 Results
Net sales for the fourth quarter of fiscal 2010 decreased 8% to
$128.9 million from the $140.2 million reported in the fiscal 2009 fourth
quarter. Excluding the positive impacts of net store openings
($7.6 million), foreign currency
translation ($1.0 million),
E-commerce ($0.6 million) and other
items totaling $0.4 million, and
negative impacts of net revenue recognition change ($1.7 million) and revenue deferral related to the
Company's loyalty programs ($0.7
million), comparable same-store sales decreased
approximately 14%.
Net income for the fourth quarter in fiscal 2010 was
$14.9 million, or $2.06 per diluted share, compared with
$21.7 million, or $3.07 per diluted share, reported for the fourth
quarter of fiscal 2009. Earnings in the period were
significantly affected by comparable store sales declines, an
adverse commission adjustment related to greater than expected
sales declines and increased employee insurance, pension and
amortization expense. These negative earnings impacts were
partially offset by lower production, labor and advertising costs
as well as lower interest expense and depreciation. Foreign
currency translation effects did not have a material impact on the
Company's net earnings in the fourth quarter of 2010. The
Kiddie Kandids studio operations contributed approximately
$1.8 million of operating income
during the 2010 fourth quarter.
Net sales from the Company's PictureMe Portrait Studio® (PMPS)
brand, on a comparable same-store basis, excluding impacts of net
revenue recognition change, store closures, foreign currency
translation and other items totaling ($0.6
million), decreased 11% in the fourth quarter of fiscal 2010
to $59.1 million from $66.4 million in the fourth quarter of fiscal
2009. The decrease in PMPS sales for the fourth quarter was
the result of a 16% decrease in the number of sittings, offset in
part by a 6% increase in average sale per customer sitting.
Net sales from the Company's Sears Portrait Studio (SPS) brand,
on a comparable same-store basis, excluding impacts of net revenue
recognition change, store closures, loyalty program revenue
deferral and other items totaling ($1.7
million), decreased 17% in the fourth quarter of fiscal 2010
to $52.3 million from $63.1 million in the fourth quarter of fiscal
2009. The decrease in SPS sales for the fourth quarter
of fiscal 2010 was the result of a 14% decline in the number of
sittings and a 4% decline in average sale per customer sitting.
Net sales from the Company's Kiddie Kandids studio operations,
excluding the impact of net revenue recognition change totaling
($0.3 million), contributed
$8.6 million in net sales in the
fourth quarter of fiscal 2010. The Company has opened 171
Kiddie Kandids locations as of April 18,
2011. The Company plans to open an additional 25
locations during fiscal 2011.
Cost of sales, excluding depreciation and amortization expense,
declined to $8.4 million in the
fourth quarter of fiscal 2010, from $9.0
million in the fourth quarter of fiscal 2009 due to lower
overall production levels, as well as continuing productivity
improvements.
Selling, general and administrative (SG&A) expense decreased
to $92.6 million in the fourth
quarter of fiscal 2010 from $93.7
million in the prior-year quarter, primarily due to
reductions in SPS and PMPS studio employment costs from improved
scheduling, selected operating hour reductions and studio closures,
a decline in host commission expense due to lower sales levels, a
reduction in corporate bonuses for fiscal 2010 and reduced
advertising costs. These decreases were offset significantly
by costs associated with the newly opened Kiddie Kandids studios,
an adverse commission adjustment ($0.4
million) arising from greater than expected sales declines,
higher employee insurance and pension costs due to unfavorable
claim activity and changes in discount rates, respectively, and
increased expenses amortized as the result of a higher level of
stock-based compensation performance awards made for the 2009
fiscal year.
Depreciation and amortization expense was $3.9 million in the fourth quarter of fiscal
2010, compared with $4.8 million in
the fourth quarter of fiscal 2009. Depreciation expense
decreased as a result of the full depreciation of certain assets
acquired in connection with the 2007 acquisition of PCA and the
closure of certain PMPS locations during the past two fiscal
years.
In the fourth quarter of fiscal 2010, the Company recognized a
$2.2 million charge in other charges
and impairments, compared with a credit of $0.5 million in the fourth quarter of fiscal
2009. The current-quarter charge primarily includes certain
litigation costs, costs incurred in connection with the acquisition
of assets of Bella Pictures, Inc. and severance costs. The
prior-year credit primarily related to the gain on sale of the
production facility based in Connecticut.
Interest expense declined $0.7
million in the fourth quarter of fiscal 2010 to $0.6 million from $1.3
million in the fourth quarter of fiscal 2009. The
decrease is primarily a result of lower average borrowings and
favorable interest rates as a result of the new credit
facility.
Fiscal 2010 Full-Year Results
For the fiscal year ended February 5,
2011, the Company reported that net sales decreased 4% to
$407.0 million from the $422.4 million reported in the fiscal year 2009.
Excluding the positive impacts of net store openings
($15.3 million), foreign currency
translation ($4.9 million),
E-commerce ($1.5 million) and other
items totaling $0.2 million,
comparable same-store sales decreased approximately 9%.
The Company also reported net income of $11.9 million, or $1.64 per diluted share, for fiscal 2010 compared
with $13.8 million, or $1.97 per diluted share, for fiscal 2009.
Earnings in the period were significantly affected by
comparable store sales declines, an adverse commission adjustment
related to greater than expected sales declines and increased
employee insurance, pension and amortization expense. These
decreases were offset in part by lower production, labor and
advertising costs as well as lower interest expense and
depreciation. Foreign currency translation effects did not
have a material impact on the Company's net earnings in fiscal
2010. The Kiddie Kandids studio operations contributed
approximately $0.9 million in
operating income in fiscal 2010.
Net sales from the Company's PictureMe Portrait Studio®
(PMPS) brand, on a comparable same-store basis, excluding impacts
of store closures, foreign currency translation, E-commerce, net
revenue recognition change and other items totaling $2.7 million, decreased 5% in fiscal 2010 to
$208.0 million from $219.1 million in fiscal 2009. The decrease
in PMPS sales in fiscal 2010 was the result of a 10% decline in the
number of sittings, offset in part by a 6% increase in average sale
per customer sitting.
Net sales from the Company's Sears Portrait Studio (SPS) brand,
on a comparable same-store basis, excluding impacts of store
closures, foreign currency translation, net revenue recognition
change and other items totaling ($0.7
million), decreased 13% in fiscal 2010 to $171.2 million from $197.3
million in fiscal 2009. The decrease in SPS sales
in fiscal 2010 was the result of an 11% decline in the number of
sittings and a 3% decline in average sale per customer sitting.
Net sales from the Company's Kiddie Kandids studio operations,
excluding the impact of net revenue recognition change and other
items totaling ($0.9 million),
contributed $20.8 million in net
sales in fiscal 2010.
Cost of sales, excluding depreciation and amortization expense,
declined to $28.3 million in fiscal
2010, from $30.6 million in fiscal
2009 due to lower overall production levels, as well as continuing
productivity improvements. These declines were offset in part
by a change in product mix and an increase in carrier rates.
Selling, general and administrative (SG&A) expense decreased
to $337.5 million in fiscal 2010 from
$339.1 million in the prior year,
primarily due to reductions in SPS and PMPS studio employment costs
from improved scheduling, selected operating hour reductions and
studio closures, reduced advertising costs, a decline in host
commission expense due to lower sales levels and a reduction in
corporate bonuses for fiscal 2010. These decreases were
offset significantly by costs associated with the newly opened
Kiddie Kandids studios, increased expenses amortized as the result
of a higher level of stock-based compensation performance awards
made for the 2009 fiscal year, an adverse commission adjustment
($1.5 million) arising from greater
than expected sales declines and higher pension, employee insurance
and worker's compensation costs due to changes in discount rates,
unfavorable claim activity and loss experience adjustments,
respectively.
Depreciation and amortization expense was $18.0 million in fiscal 2010, compared with
$22.7 million in fiscal 2009.
Depreciation expense decreased as a result of the full
depreciation of certain assets acquired in connection with the 2005
digital conversion of SPS and 2007 acquisition of PCA and the
closure of certain PMPS locations during the past two fiscal
years.
In fiscal 2010, the Company recognized $5.1 million in other charges and impairments,
compared with $3.3 million in fiscal
2009. The current-year charge includes a $1.9 million downward adjustment to the carrying
value of a large facility previously classified as "held for sale",
the write-off of $1.1 million of debt
fees related to the Company's former credit facility as a result of
its new revolving credit facility, certain litigation costs, costs
incurred in connection with the Kiddie Kandids asset acquisition
and acquisition of assets of Bella Pictures, Inc. and severance
costs. These charges were offset in part by a gain on sale of
the production facility based in Brampton, Ontario and an early termination fee
received from Walmart in relation to certain early PMPS store
closures. The prior-year charge primarily related to certain
PMPS integration charges, including severance and lab closure costs
and impairment, proxy contest costs and litigation costs; offset in
part by a gain on sale of the production facility based in
Connecticut.
Interest expense declined $3.1
million in fiscal 2010 to $3.9
million from $7.0 million in
fiscal 2009. The decrease is primarily a result of lower
average borrowings and favorable interest rates as a result of the
new credit facility, as well as a change in the interest rate swap
value, which expired in the third quarter of fiscal 2010.
Income tax expense was $3.4
million and $5.8 million in
fiscal 2010 and 2009, respectively. The resulting
effective tax rates were 22% and 30% in 2010 and 2009,
respectively. The overall decrease in the effective tax
rate in fiscal 2010 was primarily due to certain tax benefits
recognized related to a previous uncertain tax position and
miscellaneous tax return adjustments.
Acquisition of Assets of Bella Pictures, Inc.
As previously announced, on January 26,
2011, the Company's subsidiary, Bella Pictures Holdings, LLC
acquired substantially all of the assets of Bella Pictures, Inc.
(the "Seller"), a leading provider of branded wedding photography
services. In consideration for the assets purchased, the
subsidiary issued to the Seller shares representing a 5% ownership
in the subsidiary and also assumed certain liabilities (net of cash
of $1.5 million), consisting
primarily of specified customer fulfillment obligations for both
booked and completed weddings.
The acquisition significantly expands the Company's mobile (on
location) photography capabilities and offers customers
high-quality wedding photography and videography services and
products in most major U.S. markets through a network of certified
photographers and videographers. The Company's strong digital
capabilities and infrastructure combined with the outstanding
customer service skills of Bella Pictures® will allow the
Company to provide exceptional value to both wedding and
non-wedding customers across a wide spectrum of offerings and price
points.
Capital Structure
As of February 5, 2011, the
Company has reduced net debt to $43.5
million from $58.6 million as
of February 6, 2010.
As previously announced, the Company has a share repurchase
program in place to purchase up to 1.0 million shares through
August of 2011. During the fourth quarter of fiscal 2010, the
Company repurchased 324,716 shares of common stock under this
program for a total purchase price of $7.2
million. As of April 18,
2011, the Company has repurchased 377,653 shares of common
stock under this program for a total purchase price of $8.3 million.
Preliminary First-Quarter Net Sales
The Company's preliminary net sales on a point-of-sale (POS)
basis for the first 10 weeks of the first quarter of fiscal 2011
declined 11% to $73.7 million from
$83.2 million in the same period last
year due significantly to the shift in the Easter holiday (Easter
2011 is three weeks later than in 2010). On a comparable
same-store POS basis, excluding the impacts of the Kiddie Kandids
operations and foreign currency translation, preliminary net sales
for the first 10 weeks declined approximately 17% compared with the
corresponding period in the prior year. PMPS and SPS net
sales for the first 10 weeks of the first quarter declined 14% and
20%, respectively. The Company expects the negative trend to
moderate moving through the Easter 2011 holiday but still expects
to report negative comparisons for the first quarter.
Conference Call/Webcast Information
The Company will host a conference call and audio webcast on
Tuesday, April 19, 2011, at
10:00 a.m. Central time to discuss
the financial results and provide a Company update. To
participate on the call, please dial 800-561-2601 or 617-614-3518
and reference passcode 58468611 at least five minutes before start
time.
The webcast can be accessed on the Company's own site at
http://www.cpicorp.com as well as http://www.earnings.com. To
listen to a live broadcast, please go to these websites at least 15
minutes prior to the scheduled start time in order to register,
download, and install any necessary audio software. A replay
will be available on the above websites as well as by dialing
888-286-8010 or 617-801-6888 and providing passcode 23183001.
The replay will be available through May 3, 2011, by phone and for 30 days on the
Internet.
CPI Corp. uses the Investor Relations page of its website at
http://www.cpicorp.com to make information available to its
investors and the public. You can sign up to receive e-mail
alerts whenever the Company posts new information to the
website.
About CPI Corp.
For more than 60 years, CPI Corp. (NYSE: CPY) has been dedicated
to helping customers conveniently create cherished photography
portrait keepsakes that capture a lifetime of memories.
Headquartered in St. Louis,
Missouri, CPI Corp. provides portrait photography services
at approximately 3,000 locations in the
United States, Canada,
Mexico and Puerto Rico and offers on location wedding
photography and videography services through an extensive network
of contract photographers and videographers. CPI's conversion
to a fully digital format allows its studios and on location
business to offer unique posing options, creative photography
selections, a wide variety of sizes and an unparalleled assortment
of enhancements to customize each portrait – all for an affordable
price.
Forward-Looking Statements
The statements contained in this press release that are not
historical facts are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, and
involve risks and uncertainties. The Company identifies
forward-looking statements by using words such as "preliminary,"
"plan," "expect," "looking ahead," "anticipate," "estimate,"
"believe," "should," "intend" and other similar expressions.
Management wishes to caution the reader that these
forward-looking statements, such as the Company's outlook with
respect to the integration of the acquisition of the operating
assets and certain liabilities of the Bella Pictures business,
portrait studios, net income, future cash requirements, cost
savings, compliance with debt covenants, valuation allowances,
reserves for charges and impairments, capital expenditures and
other similar statements, are only predictions or expectations;
actual events or results may differ materially as a result of risks
facing the Company. Such risks include, but are not limited
to: the Company's dependence on Walmart, Sears and Toys "R" Us, the
approval of the Company's business practices and operations by
Walmart, Sears and Toys "R" Us, the termination, breach, limitation
or increase of the Company's expenses by Walmart under the lease
and license agreements and Sears and Toys "R" Us under the license
agreements, the integration of the Bella Pictures operations into
the Company and the continued development and operation of the
Bella Pictures business, customer demand for the Company's products
and services, the development and operation of the Kiddie Kandids
business, the economic recession and resulting decrease in consumer
spending, manufacturing interruptions, dependence on certain
suppliers, competition, dependence on key personnel, fluctuations
in operating results, a significant increase in piracy of the
Company's photographs, widespread equipment failure, compliance
with debt covenants, high level of indebtedness, implementation of
marketing and operating strategies, outcome of litigation and other
claims, impact of declines in global equity markets to pension plan
and impact of foreign currency translation. The risks
described above do not include events that the Company does not
currently anticipate or that it currently deems immaterial, which
may also affect its results of operations and financial condition.
The Company undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
CPI
CORP.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Weeks
|
Vs
|
12
Weeks
|
|
52
Weeks
|
Vs
|
52
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
February 5,
2011
|
|
February 6,
2010
|
|
February 5,
2011
|
|
February 6,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
128,949
|
|
$
140,241
|
|
$
407,035
|
|
$
422,371
|
|
|
|
|
|
|
|
|
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
Cost of sales (exclusive
of depreciation and
|
|
|
|
|
|
|
|
|
amortization shown
below)
|
8,381
|
|
8,983
|
|
28,263
|
|
30,626
|
|
Selling, general and
administrative expenses
|
92,570
|
|
93,658
|
|
337,490
|
|
339,138
|
|
Depreciation and
amortization
|
3,874
|
|
4,827
|
|
17,962
|
|
22,740
|
|
Other charges and
impairments
|
2,203
|
|
(458)
|
|
5,092
|
|
3,294
|
|
|
107,028
|
|
107,010
|
|
388,807
|
|
395,798
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
21,921
|
|
33,231
|
|
18,228
|
|
26,573
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
635
|
|
1,345
|
|
3,860
|
|
7,030
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
1
|
|
-
|
|
17
|
|
94
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
100
|
|
(297)
|
|
929
|
|
(44)
|
|
|
|
|
|
|
|
|
|
|
Income from operations before
income tax expense
|
21,387
|
|
31,589
|
|
15,314
|
|
19,593
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
6,496
|
|
9,890
|
|
3,413
|
|
5,796
|
|
|
|
|
|
|
|
|
|
|
Net income
|
14,891
|
|
21,699
|
|
11,901
|
|
13,797
|
|
Net loss attributable to
noncontrolling interest
|
(7)
|
|
-
|
|
(7)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to CPI
Corp.
|
$
14,898
|
|
$
21,699
|
|
$
11,908
|
|
$
13,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share
attributable to CPI Corp. - diluted
|
$
2.06
|
|
$
3.07
|
|
$
1.64
|
|
$
1.97
|
|
|
|
|
|
|
|
|
|
|
Net income per common share
attributable to CPI Corp. - basic
|
$
2.07
|
|
$
3.10
|
|
$
1.64
|
|
$
1.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common and
|
|
|
|
|
|
|
|
|
common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
|
Diluted
|
7,245
|
|
7,068
|
|
7,272
|
|
7,020
|
|
|
|
|
|
|
|
|
|
|
Basic
|
7,208
|
|
7,008
|
|
7,257
|
|
6,993
|
|
|
|
|
|
|
|
|
|
CPI
CORP.
|
|
ADDITIONAL
CONSOLIDATED OPERATING INFORMATION
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Weeks
|
Vs.
|
12
Weeks
|
|
52
Weeks
|
Vs.
|
52
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
February 5,
2011
|
|
February 6,
2010
|
|
February 5,
2011
|
|
February 6,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
1,362
|
|
$
726
|
|
$
13,490
|
|
$
5,234
|
|
|
|
|
|
|
|
|
|
|
EBITDA is calculated as
follows:
|
|
|
|
|
|
|
|
|
Net income attributable to CPI
Corp.
|
14,898
|
|
21,699
|
|
11,908
|
|
13,797
|
|
Income tax expense
|
6,496
|
|
9,890
|
|
3,413
|
|
5,796
|
|
Interest expense
|
635
|
|
1,345
|
|
3,860
|
|
7,030
|
|
Depreciation and
amortization
|
3,874
|
|
4,827
|
|
17,962
|
|
22,740
|
|
Other non-cash
charges
|
(3)
|
|
(41)
|
|
3,128
|
|
1,165
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1) & (5)
|
$
25,900
|
|
$
37,720
|
|
$
40,271
|
|
$
50,528
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
|
$
28,016
|
|
$
37,592
|
|
$
41,558
|
|
$
53,270
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin (3)
|
20.09%
|
|
26.90%
|
|
9.89%
|
|
11.96%
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
(4)
|
21.73%
|
|
26.81%
|
|
10.21%
|
|
12.61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA represents net
earnings from continuing operations before interest expense, income
taxes, depreciation and amortization and other non-cash charges.
EBITDA is included because it is one liquidity measure used by
certain investors to determine a company's ability to service its
indebtedness. EBITDA is unaffected by the debt and equity
structure of the company. EBITDA does not represent cash flow from
operations as defined by GAAP, is not necessarily indicative of
cash available to fund all cash flow needs and should not be
considered an alternative to net income under GAAP for purposes of
evaluating the Company's results of operations. EBITDA is not
necessarily comparable with similarly-titled measures for other
companies.
|
|
|
|
|
|
(2) Adjusted EBITDA is
calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
25,900
|
|
$
37,720
|
|
$
40,271
|
|
$
50,528
|
|
EBITDA
adjustments:
|
|
|
|
|
|
|
|
|
Litigation
costs
|
1,461
|
|
24
|
|
1,461
|
|
557
|
|
Kiddie Kandids integration
costs
|
72
|
|
-
|
|
1,250
|
|
-
|
|
Reserves for severance and
related costs
|
235
|
|
6
|
|
538
|
|
970
|
|
Bella Pictures Acquisition
costs
|
472
|
|
-
|
|
472
|
|
-
|
|
Other transition related
costs - PCA Acquisition
|
45
|
|
(554)
|
|
393
|
|
123
|
|
Gain on sale of Brampton
facility
|
-
|
|
-
|
|
(1,473)
|
|
-
|
|
Translation
gain
|
(77)
|
|
344
|
|
(803)
|
|
61
|
|
Proxy contest
fees
|
-
|
|
(33)
|
|
-
|
|
871
|
|
Other
|
(92)
|
|
85
|
|
(551)
|
|
160
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
28,016
|
|
$
37,592
|
|
$
41,558
|
|
$
53,270
|
|
|
|
|
|
|
|
|
|
|
(3) EBITDA margin represents
EBITDA, as defined in (1), stated as a percentage of
sales.
|
|
|
|
(4) Adjusted EBITDA margin
represents Adjusted EBITDA, as defined in (2), stated as a
percentage of sales.
|
|
|
|
(5) As required by the SEC's
Regulation G, a reconciliation of EBITDA, a non-GAAP liquidity
measure, with the
|
|
most directly
comparable GAAP liquidity measure, cash flow from continuing
operations follows:
|
|
|
|
|
|
|
|
|
|
|
|
12
Weeks
|
Vs.
|
12
Weeks
|
|
52
Weeks
|
Vs.
|
52
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
February 5,
2011
|
|
February 6,
2010
|
|
February 5,
2011
|
|
February 6,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
25,900
|
|
$
37,720
|
|
$
40,271
|
|
$
50,528
|
|
Income tax expense
|
(6,496)
|
|
(9,890)
|
|
(3,413)
|
|
(5,796)
|
|
Interest expense
|
(635)
|
|
(1,345)
|
|
(3,860)
|
|
(7,030)
|
|
Adjustments for items not
requiring cash:
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
5,166
|
|
10,646
|
|
748
|
|
6,195
|
|
Deferred revenues and
related costs
|
(5,474)
|
|
(7,154)
|
|
(441)
|
|
(1,076)
|
|
Other, net
|
950
|
|
(967)
|
|
1,497
|
|
319
|
|
Decrease (increase) in current
assets
|
8,636
|
|
13,560
|
|
2,203
|
|
1,724
|
|
Increase (decrease) in current
liabilities
|
(5,886)
|
|
(10,529)
|
|
540
|
|
(12,583)
|
|
Increase (decrease) in current
income taxes
|
958
|
|
(894)
|
|
1,522
|
|
(992)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from continuing
operations
|
$
23,119
|
|
$
31,147
|
|
$
39,067
|
|
$
31,289
|
|
|
|
|
|
|
|
|
|
CPI
CORP.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
FEBRUARY 5,
2011 AND FEBRUARY 6, 2010
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 5,
2011
|
|
February 6,
2010
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
5,363
|
|
$
18,913
|
|
Other current
assets
|
24,726
|
|
34,642
|
|
Net property and
equipment
|
35,998
|
|
34,169
|
|
Intangible
assets
|
60,736
|
|
60,380
|
|
Other assets
|
16,977
|
|
18,487
|
|
|
|
|
|
|
Total assets
|
$
143,800
|
|
$
166,591
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
$
49,203
|
|
$
62,432
|
|
Long-term debt
obligations
|
48,900
|
|
57,855
|
|
Other
liabilities
|
31,427
|
|
36,116
|
|
Stockholders'
equity
|
14,270
|
|
10,188
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
143,800
|
|
$
166,591
|
|
|
|
|
|
SOURCE CPI Corp.