UNITED STATES
SECURITIES AND EXCHANG COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 29, 2004
CACHE INC.
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(Exact name of registrant as specified in its charter)
Florida 0-10345 59-1588181
- ----------------- ---------------------- ----------------
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
1440 Broadway, New York, NY 10018
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(Address of principal executive offices)
Registrant's telephone number: (212) 575-3200
ITEM 5. OTHER EVENTS
See the attached press release, which is incorporated herein by reference,
regarding 2004 first quarter earnings, filed as Exhibit 99.1
ITEM 12. FINANCIAL STATEMENTS AND EXHIBITS
(1) Financial Statements of Businesses Acquired
None
(2) Pro Forma Financial Information
None
(3) Exhibits
99.1 Press release issued by Cache, Inc. on April 29, 2004
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 29, 2004 CACHE INC.
By: /s/ Brian Woolf
--------------------------------------------
Brian Woolf
On behalf of Cache, Inc. and his capacity as
Chairman and Chief Executive Officer
(Principal Executive Officer)
By: /s/ Thomas E. Reinckens
--------------------------------------------
Thomas E. Reinckens
On behalf of Cache, Inc. and in his capacity
as President and Chief Operating Officer
(Principal Financial and Accounting Officer)
INDEX OF EXHIBITS
Exhibit Description Page
- ------- ---------------------------------- ----
99.1 Press Release issued by Cache Inc. 4
on April 29, 2004
APRIL 29, 2004
FOR IMMEDIATE RELEASE
CACHE, INC.
NASDAQ COMMON STOCK SYMBOL CACH.
CACHE REPORTS RECORD FIRST QUARTER RESULTS
Diluted Earnings Per Share Increases 82.4% to $0.31
Raises Fiscal 2004 Earnings Guidance Range to $1.36 - $1.40
Announces April 2004 Comparable Store Sales Increases 8%
Declares 3 for 2 stock split
New York, New York - April 29, 2004 - Cache Inc., (NASDAQ: CACH), a
specialty chain of women's apparel stores with 260 stores currently open,
reported results for the thirteen week period ended March 27, 2004.
For the thirteen week period ended March 27, 2004:
* Net sales increased 18.9% to $57.2 million compared to $48.1 million
in the first quarter of 2003 and comparable store sales gained 13%;
* Operating income rose to $5.2 million, or 9.0% of net sales, as
compared to $2.6 million, or 5.4% of net sales in the first quarter
of 2003;
* Net income doubled to $3.2 million, or 5.7% of net sales, as compared
to $1.6 million, or 3.4% of net sales in the first quarter of 2003;
and
* Diluted earnings per share increased 82.4% to $0.31 compared to $0.17
in the first quarter of 2003.
Mr. Brian Woolf, Cache's Chairman commented: "We are delighted to begin
the year strongly, reporting record levels of sales and earnings in our first
quarter. Consumers reacted favorably to our spring merchandise selections,
which drove our better-than-expected results. In addition, we continue to be
pleased with the performance of our new and remodeled stores, which are
generating productivity levels above our chain average."
Additionally, during the first quarter, the Company:
* Opened four Cache stores and at quarter-end operated 258 stores in 42
states;
* Remodeled five stores with 33.9% of its Cache store base in the new
store format at quarter-end; and
* Completed a secondary offering, increasing the Company's float by 2.3
million shares.
Gross profit in the first quarter rose by 28.2% to $25.7 million, or 44.9%
of net sales, compared to $20.0 million, or 41.7% of net sales, in the first
quarter of 2003. The improvement in gross profit margin reflected higher
initial merchandise markups on new products versus the prior period. In total,
operating expenses were $20.5 million, or 35.9% of net sales compared to $17.5
million, or 36.3% of net sales in the first quarter of 2003.
At March 27, 2004, cash and marketable securities totaled $40.7 million,
rising $19.3 million from $21.4 million at March 29, 2003. Inventory was
current at $29.8 million, as compared to $27.9 million at March 29, 2003.
Working capital increased by $21.0 million to $48.3 million from $27.3 million
at March 29, 2003.
Mr. Woolf continued: "As we look ahead, we believe 2004 will be another
record year. Our proven strategy to provide the missy customer with
distinctive and stylish merchandise in a unique store format has served us
well during the quarter and we believe is driving increased market share and
customer loyalty within both our Cache and Lillie Rubin concepts. This along
with our strong balance sheet and solid infrastructure provides us with a great
platform to execute our store expansion plans."
A table summarizes financial results follows:
Thirteen Weeks Ended
--------------------
Mar. 27, Mar. 29,
2004 2003
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($ Thousands, except for per share data)
Sales $ 57,194 $ 48,098
Operating income $ 5,151 $ 2,583
Net income $ 3,249 $ 1,641
Basic earnings per share $ 0.32 $ 0.18
Diluted earnings per share $ 0.31 $ 0.17
Basic weighted average
shares outstanding 10,292,000 9,120,000
Diluted weighted average
shares outstanding 10,638,000 9,597,000
Guidance
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The Company currently estimates Fiscal 2004 net sales in the range of
$253 million to $260 million compared to its previous guidance of $250 million
to $260 million and versus actual sales of $216.3 million in Fiscal 2003.
Fiscal 2004 diluted earnings per share is currently estimated in the range of
$1.36 - $1.40 compared to the Company's previous guidance range of
$1.32 - $1.35 and actual Fiscal 2003 diluted earnings per share of $1.13.
This represents growth of approximately 22% at the mid-point of the Company's
current earnings guidance range. For the second quarter, the Company estimates
net sales to range between $62 million and $64 million compared to actual sales
of $56.2 million in the second quarter of Fiscal 2003. The Company estimates
second quarter diluted earnings per share in the range of $0.41 to $0.43, as
compared to actual diluted earnings per share of $0.37 in the second quarter of
Fiscal 2003. The Company also noted that its guidance is not reflective of the
3 for 2 stock split announced today.
Store opening plans
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The Company continues to plan 35 Cache and 10 Lillie Rubin store openings
for a total of 45 new stores in Fiscal 2004. During the first quarter, the
Company opened four new Cache stores:
The Shops at Columbus Circle, New York;
Ridgedale Center in Minnetonka, Minnesota;
Rockaway Town Square Mall in Rockaway, New Jersey; and
Coastal Grand Mall in Myrtle Beach, South Carolina.
Following quarter end, the Company opened two new Cache stores and has
scheduled a total of 14 store openings for the second quarter. At Fiscal
year-end, the Company continues to expect to operate approximately 300 stores,
expanding square footage by approximately 18% to 600,000 square feet.
Subsequent Events
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Separately, the Company announced:
* April 2004 comparable store sales rose 8%.
* The Board of Directors approved a 3 for 2 stock split in the form
of a 50% stock dividend.
Comparable store sales (sales for stores open at least one year or more)
increased 8.0% during the four week April 2004 period, as compared to the same
period in 2003. Total sales for the four-week period ended April 24, 2004
increased $3.2 million, or 15.6%, to $23.4 million. Comparable store sales
increased 11.0% during the 17 week period ended April 24, 2004, as compared to
the same period in 2003. Total sales for the 17 week period increased $12.2
million, or 17.9%, to $80.6 million.
The Board of Directors has declared a three for two stock split in the
form of a 50% stock dividend for stockholders of record at the close of
business on May 21, 2004, payable on June 18, 2004. As of April 28, 2004,
approximately 10,422,000 shares of common stock of Cache were outstanding.
"April comparable stores sales growth of 8% reflected the continued momentum
in our business and included strong and broad based acceptance of our product
assortments," Mr. Woolf added. "Also, the stock split we have announced today
is another signal of our confidence in the Company's growth potential. With
this move we expect to improve trading liquidity and broaden the ownership base
of our stock. We are committed to a strategy that forwards shareholder value
and believe our strategies and the results we reported today support this
objective."
Interested stockholders and other persons are invited to listen to the
first quarter earnings conference call scheduled for today, Thursday, April
29, 2004 at 9:00 a.m. Eastern Time. To participate in Cache's conference call
dial 1-877-692-2592 approximately five minutes prior to the 9:00am Eastern
start time. The call will also be broadcast live over the Internet at
http://www.cache.com. An online archive will be available immediately following
the call and will be accessible until May 6, 2004.
Certain matters discussed within this press release may constitute
forward-looking statements within the meaning of the federal securities law.
Although Cache, Inc. believes the statements are based on reasonable
assumptions, there can be no assurance that these expectations will be
attained. Actual results and timing of certain events could differ materially
from those projected in or contemplated by the forward-looking statements due
to a number of factors, including, without limitation, industry trends,
merchandise and fashion trends, competition, changes in general economic
conditions and consumer spending patterns, vendor procurement issues and the
ability to obtain financing, as well as other risks outlined from time to
time in the filings of Cache, Inc., with the Securities and Exchange
Commission.
Financial Tables Follow:
For further information contact Thomas E. Reinckens, President, Chief
Operating Officer, Cache, Inc., 1440 Broadway, New York, New York 10018,
(212) 575-3246.
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 27, December 27, March 29,
ASSETS 2004 2003 2003
-------------- -------------- --------------
(Unaudited) (Unaudited)
Current assets:
Cash and equivalents $ 26,585,000 $ 16,887,000 $ 15,737,000
Marketable securities 14,153,000 19,746,000 5,690,000
Receivables, net 3,865,000 4,614,000 3,185,000
Notes receivable from related parties --- --- 321,000
Inventories 29,824,000 26,724,000 27,892,000
Deferred income taxes 930,000 936,000 751,000
Prepaid expenses and other current assets 1,000,000 1,239,000 1,101,000
-------------- --------------- --------------
Total current assets 76,357,000 70,146,000 54,677,000
Equipment and leasehold improvements, net 26,984,000 25,010,000 19,812,000
Other assets 832,000 873,000 826,000
Deferred income taxes, net --- --- 286,000
-------------- --------------- ---------------
Total assets $ 104,173,000 $ 96,029,000 $ 75,601,000
============== =============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 16,259,000 $ 14,362,000 $ 17,761,000
Income taxes payable 224,000 --- 690,000
Accrued compensation 1,719,000 4,675,000 931,000
Accrued liabilities 9,822,000 10,075,000 8,006,000
-------------- ------------ -------------
Total current liabilities 28,024,000 29,112,000 27,388,000
Other liabilities 1,129,000 1,088,000 1,068,000
Deferred income taxes, net 701,000 687,000 ---
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock 104,000 100,000 91,000
Additional paid-in capital 34,285,000 28,361,000 19,821,000
Retained earnings 39,930,000 36,681,000 27,233,000
------------- ------------ -------------
Total stockholders' equity 74,319,000 65,142,000 47,145,000
------------- ------------ -------------
Total liabilities and stockholders' equity $ 104,173,000 $ 96,029,000 $ 75,601,000
============= ============ =============
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEKS ENDED
(Unaudited)
March 27, March 29,
2004 2003
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Net sales $ 57,194,000 $ 48,098,000
Cost of sales, including occupancy and buying costs 31,506,000 28,061,000
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Gross profit 25,688,000 20,037,000
Expenses
Store operating expenses 16,889,000 14,604,000
General and administrative expenses 3,648,000 2,850,000
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Total expenses 20,537,000 17,454,000
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Operating income 5,151,000 2,583,000
Other income:
Interest income 95,000 74,000
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Income before income taxes 5,246,000 2,657,000
Income tax provision 1,997,000 1,016,000
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Net income $ 3,249,000 $ 1,641,000
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Basic earnings per share $0.32 $0.18
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Diluted earnings per share $0.31 $0.17
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Basic weighted average shares outstanding 10,292,000 9,120,000
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Diluted weighted average shares outstanding 10,638,000 9,597,000
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Number of stores open at end of period 258 237
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