COMPANY
CONTACT:
Robert L. LaPenta, Jr.
(609) 387-7800 ext. 1216
THIRD QUARTER SALES AND NET INCOME
Burlington, NJ – April 12,
2005 --- Burlington Coat Factory Warehouse Corporation (NYSE-BCF) today
reported its net income and sales for the third quarter ended February 26,
2005.
For the three months ended February 26, 2005, net income was
$66.7 million or $1.49 per share. This compares with net income of $36.0 million or $0.84 per share for the
corresponding period ended February 28, 2004.
Net sales from continuing operations for the three months
ended February 26, 2005 were $969.5 million compared with $851.0 million during
the corresponding period ended February 28, 2004. Comparative store sales for the quarter increased 8.4%.
For the nine months ended February 26 2005 net income was
$89.7 million or $2.01 per share. This
compares with the prior fiscal year’s nine-month net income of $46.4 million or
$1.04 per share.
Net sales from continuing operations for the nine months
ended February 26, 2005 were $2.418 billion compared with $2.159 billion during
the corresponding period ended February 28, 2004. Comparative store sales for the nine month period ended February
26, 2005 increased 5.8%.
The increase in comparative store sales is due primarily to
a colder fall and winter this year as well as a stronger economic climate
compared to last year. The double-digit
comparative sales increase in the month of December, as well as the strong
sales in the remainder of the quarter helped reduce gross margins as a
percentage of sales from 64.5% a year ago to 63.1% this fiscal quarter. Selling and administrative expenses also
declined as a percentage of sales from 26.5% to 24.5%.
The Company had cash and cash equivalents of $72.7 million,
merchandise inventory of $727 million, long term debt (including capitalized
lease obligations) of $132.5 million and stockholders’ equity of $910.4 million
at February 26, 2005. This compares
with cash and cash equivalents of $149.3 million, merchandise inventory of
$608.2 million, long term debt (including capitalized lease obligations) of
$133.7 million and stockholders’ equity of
$845.4 million at February 28, 2004.
All financial information contained in this press release
regarding the three and nine month periods ended February 28, 2004 has been
modified to reflect the restatement of the Company’s condensed consolidated
financial statements for the three and nine month periods ended February 28,
2004 in respect computation of depreciation/amortization, straight-line rent
expense and the related deferred rent liability, as well as the
reclassification of its other income items, including investment income, gains
or losses on disposition of fixed assets and other miscellaneous income items.
During the nine months ended February 26, 2005 the Company
opened six Burlington Coat Factory stores, three free standing MJM Designer
Shoe stores and one Super Baby Depot store.
An additional four Burlington Coat Factory stores were relocated during
the current fiscal year to locations within the same trading market. Two store locations, previously operated as
Decelle stores, were converted to Cohoes Fashion stores. The
Company expects to open an additional three Burlington Coat Factory stores, one
MJM Designer Shoe store and one Super Baby Depot store during the remainder of
the current fiscal year. In addition,
two locations are expected to be relocated to new locations within the same
trading market.
As of the end of the third fiscal quarter, Burlington Coat
Factory operated 358 stores in 42 states, principally under the name of
Burlington Coat Factory.
The Company will be holding a conference call regarding the
third quarter results at 10:00 EST on April 13, 2005. To listen to the call, visit our web site at http://www.coat.com.
Statements made on the press release that are
forward-looking (within the meaning of the Private Securities Litigation Reform
Act of 1995) are not historical facts and involve a number of risks and
uncertainties. Among the factors that
could cause actual results to differ materially are the following: general economic
conditions; consumer demand; consumer preferences; weather patterns;
competitive factors, including pricing and promotional activities of major
competitors; the availability of desirable store locations on suitable terms;
the availability, selection and purchasing of attractive merchandise on
favorable terms; import risks; the Company’s ability to control costs and
expenses; unforeseen computer related problems; any unforeseen material loss or
casualty; the effect of inflation; and other factors that may be described in
the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly
update or revise its forward-looking statements even if experience or future
changes make it clear that any projected results expressed or implied will not
be realized.