Robert L. LaPenta, Jr.
Vice President - Chief Accounting Officer and Treasurer
(609) 387-7800 ext. 1216
Burlington,
NJ – August 22, 2005 – Burlington Coat Factory Warehouse Corporation
(NYSE-BCF) today reported its Net Income and Sales for its fourth quarter and
year ended May 28, 2005.
For the three months ended May 28, 2005, Net Income was
$15.3 million or $0.34 per share compared with Net Income of $21.6 million or
$0.48 per share for last year's fourth quarter. Net Income from Continuing Operations was $15.9 million or $0.35
per share compared with $22.5 million or $0.50 per share for last year's fourth
quarter. Net Sales for the fourth
quarter ended May 28, 2005 were $756.9 million compared with Net Sales of
$678.1 million for the fourth quarter ended May 29, 2004. For the fourth quarter ended May 28, 2005
compared with the same period last year, total sales increased 11.6%, and
comparative store sales increased 7.9%.
Income from Continuing Operations Before Provision for
Income Taxes for the fourth quarter of fiscal 2005 decreased $9.0 million to
$24.7 million from $33.7 million for the fourth quarter of fiscal 2004. This decrease was due primarily to three
items. First, as compared with the
fourth quarter of fiscal 2005, the fourth quarter of fiscal 2004 had a greater
benefit of $2 million from the annual adjustment to reconcile the estimated
shrinkage percentage used during the first three fiscal quarters to the actual
shrinkage based on the year-end physical inventory. Second, the fourth quarter of fiscal 2004 benefited from the gain
on the sale of two properties for $3.3 million. Third, in the fourth quarter of fiscal 2005, the Company incurred
one-time expense charges of $7.2 million related to the pending settlement of a
lawsuit, disputed freight expenses and an adjustment for changing the accrual
period for personal property taxes. These three items in the fourth quarter of
fiscal 2005 were offset by improved profitability from increases in comparative
store sales realized during the quarter.
For the year ended May 28, 2005, Net Income was $105.0
million or $2.35 per share. This compares with Net Income of $68.0 million or
$1.52 per share for the year ended May 29, 2004. Net Income from Continuing Operations was $106.0 million or $2.37
per share compared with $72.3 million or $1.62 per share for the last fiscal
year. Net Sales from Continuing
Operations for the year ended May 28, 2005 were $3.2 billion compared with $2.8
billion for the prior year ended May 29, 2004, an 11.9 % increase. These results reflect a 6.3% comparative
store sales increase for the twelve-month period.
During the year ended May 28, 2005, the Company opened nine
Burlington Coat Factory stores, four free standing MJM Designer Shoe stores and
one Super Baby Depot store, and converted the last Totally 4 Kids store into a
Super Baby Depot store. An additional
six Burlington Coat Factory stores were relocated during the 2005 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
closed two Burlington Coat Factory stores and one Luxury Linens store in the
same fiscal year.
As of May 28, 2005, Burlington Coat Factory operated 362
stores in 42 states principally under the name “Burlington Coat Factory.”
The Company will be holding a conference call regarding the
fourth quarter results at 11:00 A.M. Eastern time on August 23, 2005. To listen
to the call, visit the Company's web site at www.coat.com. The call will be
available for replay on the web site.
Statements made in this 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.