Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: |
| Loren K. Jensen |
|
| Chief Financial Officer |
|
| TUESDAY MORNING CORPORATION |
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| 972/934-7299 |
|
|
|
|
| Laurey Peat |
|
| LAUREY PEAT + ASSOCIATES |
|
| 214/871-8787 |
TUESDAY MORNING CORPORATION
ANNOUNCES 33% INCREASE IN EARNINGS PER SHARE FOR THE FIRST
QUARTER
DALLAS, TX – April 22, 2004 — Tuesday Morning Corporation (NASDAQ: TUES) today reported that net income for the first quarter ending March 31, 2004 increased to $8.2 million, or 20 cents per diluted share, compared to $6.1 million, or 15 cents per diluted share, for the same quarter in 2003, an increase of 33%.
As previously reported, net sales for the first quarter ending March 31, 2004 were $168.6 million, up 12.1% from $150.4 million in the corresponding period the prior year. Comparable store sales increased 1.7% for the quarter.
“We are pleased to report this significant increase in earnings on the heels of announcing our 9th consecutive quarter of comparable store gains,” said Kathleen Mason, President and Chief Executive Officer. “Merchandise availability and flow through the distribution system continues to be good, and a modest acceleration in traffic toward the end of the quarter gives us confidence in opportunities for the upcoming quarter.”
In the first quarter of 2004, Tuesday Morning refined its methodology for calculating comparable store sales gain, in light of changes to the timing of store openings during a quarter. Stores are now included in the same store calculation at the beginning of the quarter following the anniversary date of the store opening. Previously, stores were included in the same store calculation at the beginning of the quarter that contained the anniversary date of the store opening, because prior to the first quarter of 2003 stores were opened only at the beginning of the
quarter. Using this refined methodology, the comparable sales gain for the first quarter of 2003 would have been 4.9% compared to the 4.5% previously reported.
Tuesday Morning Corporation management will review first quarter financial results in a teleconference call April 22, 2004 at 10:00 a.m. Eastern Time.
About Tuesday Morning
Tuesday Morning is the leading closeout retailer of upscale, decorative home accessories and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 594 stores in 42 states during periodic “sale events.” Tuesday Morning is nationally known for bringing its more than 7.0 million loyal customers a treasure hunt of high-end, first quality, brand name merchandise at prices 50% to 80% below department and specialty stores and catalogues.
This press release contains forward-looking statements, within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, estimates and projections. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Such risks and uncertainties include: the success of new store openings, competitive factors, access to merchandise and unanticipated changes in consumer demand and economic trends, as well as other risks detailed in the company’s filings with the Securities and Exchange Commission, including the Company’s Registration Statement on Form S-3 and Annual Report on Form 10-K for the period ending December 31, 2003.
# # #
Tuesday Morning Corporation
Consolidated Statement of Operations
(In thousands, except per share data)
|
| Three Months Ended March 31, |
| ||||||
|
| 2004 |
| 2003 |
| % |
| ||
|
| unaudited |
|
|
| ||||
Net Sales |
| $ | 168,597 |
| $ | 150,355 |
| +12 | % |
Cost of sales |
| 102,585 |
| 93,103 |
| +10 | % | ||
Gross profit |
| 66,012 |
| 57,252 |
| +15 | % | ||
|
|
|
|
|
|
|
| ||
Selling, general and administrative expenses |
| 52,531 |
| 45,194 |
| +16 | % | ||
|
|
|
|
|
|
|
| ||
Operating income |
| 13,481 |
| 12,058 |
| +12 | % | ||
|
|
|
|
|
|
|
| ||
Other income (expense): |
|
|
|
|
|
|
| ||
Interest expense |
| (411 | ) | (2,402 | ) | -83 | % | ||
Interest income |
| 4 |
| 28 |
| -86 | % | ||
Other income (expense), net |
| 241 |
| 219 |
| +10 | % | ||
Other income (expense) |
| (166 | ) | (2,155 | ) | -92 | % | ||
|
|
|
|
|
|
|
| ||
Income before income taxes |
| 13,315 |
| 9,903 |
| +34 | % | ||
|
|
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|
|
|
|
| ||
Income taxes provision (benefit) |
| 5,126 |
| 3,820 |
| +34 | % | ||
|
|
|
|
|
|
|
| ||
Net income |
| $ | 8,189 |
| $ | 6,083 |
| +35 | % |
|
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Earnings Per Share: |
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|
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| ||
Net income per common share: |
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|
|
|
|
|
| ||
Basic |
| $ | 0.20 |
| $ | 0.15 |
|
|
|
Diluted |
| $ | 0.20 |
| $ | 0.15 |
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|
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|
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Weighted average number of common shares: |
|
|
|
|
|
|
| ||
Basic |
| 40,980 |
| 40,273 |
|
|
| ||
Diluted |
| 41,742 |
| 41,193 |
|
|
| ||
Consolidated Balance Sheets
(in thousands)
|
| March 31, |
| Dec 31, |
| |||||
2004 |
| 2003 | ||||||||
|
| unaudited |
|
|
| |||||
Assets |
|
|
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|
|
|
| |||
Current assets: |
|
|
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Cash and cash equivalents |
| $ | 7,096 |
| $ | 17,113 |
| $ | 23,536 |
|
Inventories |
| 195,194 |
| 158,126 |
| 143,023 |
| |||
Prepaid expenses and other assets |
| 5,355 |
| 4,453 |
| 4,948 |
| |||
Deferred income taxes |
| 5,106 |
| 2,934 |
| 5,106 |
| |||
Total current assets |
| 212,751 |
| 182,626 |
| 176,613 |
| |||
|
|
|
|
|
|
|
| |||
Property and Equipment, net |
| 78,484 |
| 68,771 |
| 74,875 |
| |||
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Other long-term assets: |
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|
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Deferred financing costs |
| 806 |
| 2,702 |
| 907 |
| |||
Other assets |
| 998 |
| 841 |
| 999 |
| |||
|
|
|
|
|
|
|
| |||
Total Assets |
| $ | 293,039 |
| $ | 254,940 |
| $ | 253,394 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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| |||
Revolving credit facility, current portion |
| 7,000 |
| — |
| — |
| |||
Accounts payable |
| 83,256 |
| 52,889 |
| 66,091 |
| |||
Other accrued liabilities |
| 30,133 |
| 28,374 |
| 36,321 |
| |||
Income taxes payable |
| 6,490 |
| 4,837 |
| 13,247 |
| |||
Total current liabilities |
| 126,879 |
| 86,100 |
| 115,659 |
| |||
|
|
|
|
|
|
|
| |||
Long-term debt |
| — |
| 69,000 |
| — |
| |||
Revolving credit facility, excl. current portion |
| 20,000 |
| 20,000 |
| — |
| |||
Deferred taxes |
| 5,641 |
| 4,665 |
| 5,641 |
| |||
Total Liabilities |
| 152,520 |
| 179,765 |
| 121,300 |
| |||
|
|
|
|
|
|
|
| |||
Stockholders’ equity |
| 140,519 |
| 75,175 |
| 132,094 |
| |||
Total Liabilities and Stockholders’ Equity |
| $ | 293,039 |
| $ | 254,940 |
| $ | 253,394 |
|
Consolidated Statement of Cash Flows
(in thousands)
|
| Year-To-Date March 31, |
| ||||
|
| 2004 |
| 2003 |
| ||
|
| unaudited |
| ||||
Net cash flows from operating activities: |
|
|
|
|
| ||
Net income |
| $ | 8,189 |
| $ | 6,083 |
|
Adjustments to reconcile net income to net cash (used in) operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 2,670 |
| 2,207 |
| ||
Amortization of financing fees |
| 101 |
| 177 |
| ||
Other non-cash charges |
| (40 | ) | — |
| ||
Net change in operating assets and liabilities |
| (48,459 | ) | (35,589 | ) | ||
|
|
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Net cash used in operating activities |
| (37,539 | ) | (27,122 | ) | ||
|
|
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Net cash flows from investing activities: |
|
|
|
|
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Capital expenditures |
| (6,279 | ) | (3,482 | ) | ||
Other |
| — |
| — |
| ||
|
|
|
|
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| ||
Net cash used in investing activities |
| (6,279 | ) | (3,482 | ) | ||
|
|
|
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Net cash flows from financing activities: |
|
|
|
|
| ||
Proceeds from revolving credit facility |
| 27,000 |
| 20,000 |
| ||
Repayment of long-term debt |
| — |
| (4,224 | ) | ||
Other |
| 378 |
| 12 |
| ||
|
|
|
|
|
| ||
Net cash provided by (used in) financing act. |
| 27,378 |
| 15,788 |
| ||
|
|
|
|
|
| ||
Net decrease in cash and cash equivalents |
| (16,440 | ) | (14,816 | ) | ||
|
|
|
|
|
| ||
Cash and cash equivalents at beginning of period |
| 23,536 |
| 31,929 |
| ||
|
|
|
|
|
| ||
Cash and cash equivalents at end of period |
| $ | 7,096 |
| $ | 17,113 |
|
