FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from............... to ...............
Commission File Number: 0-10345
CACHE, INC.
(Exact Name of registrant as specified in its Charter)
Florida 59-1588181
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1460 Broadway, New York, New York 10036
(Address of principal executive offices) (zip code)
212-840-4242
(Registrant's telephone number, including area code)
------
(Former name, address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
YES [X] NO
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each issuer's classes
of common stock, as of the latest practicable date.
Common Stock, $.01 9,091,338
Class of Stock Outstanding Outstanding at November 8, 1995
CACHE, INC. AND SUBSIDIARIES
INDEX
PAGE
CONSOLIDATED FINANCIAL STATEMENTS
BALANCE SHEETS, SEPTEMBER 30, 1995
AND DECEMBER 31, 1994 3
STATEMENTS OF OPERATIONS
THIRTY-NINE WEEKS ENDED SEPTEMBER 30, 1995
AND OCTOBER 1, 1994 4
THIRTEEN WEEKS ENDED SEPTEMBER 30, 1995
AND OCTOBER 1, 1994 5
STATEMENTS OF CASH FLOWS
THIRTY-NINE WEEKS ENDED SEPTEMBER 30, 1995
AND OCTOBER 1, 1994 6
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7-9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 10-13
OTHER INFORMATION:
EXHIBIT INDEX AND REPORTS ON FORM 8-K 13
SIGNATURES 14
2
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
1995 1994
-------------- -------------
ASSETS
Current assets:
Cash and equivalents $ 690,000 $ 814,000
Receivables 1,718,000 1,481,000
Notes receivable from related parties 250,000 913,000
Inventories 16,609,000 14,935,000
Deferred income taxes 2,437,000 1,677,000
Prepaid expenses 349,000 583,000
------------- --------------
Total current assets 22,053,000 20,403,000
Property and equipment, net 16,664,000 14,172,000
Other assets 190,000 195,000
------------- ---------------
$38,907,000 $ 34,770,000
============= ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,272,000 $ 9,333,000
Accrued compensation 1,148,000 644,000
Accrued liabilities 2,605,000 2,860,000
-------------- --------------
Total current liabilities 13,025,000 12,837,000
Long-term bank debt 4,100,000 1,650,000
Subordinated indebtedness to related party 2,000,000 2,000,000
Other liabilities 1,987,000 1,853,000
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, par value $.01; authorized,20,000,000
shares; issued and outstanding 9,091,338 shares
at September 30, 1995 and December 31, 1994 91,000 91,000
Additional paid-in capital 18,994,000 18,276,000
Accumulated deficit (1,290,000) (1,937,000)
-------------- ---------------
Total stockholders' equity 17,795,000 16,430,000
-------------- ---------------
$ 38,907,000 $ 34,770,000
============== ===============
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets.
3
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THIRTY-NINE WEEKS ENDED
(Unaudited)
September 30, October 1,
1995 1994
--------------- ---------------
Net sales $ 84,000,000 $ 73,255,000
--------------- ---------------
Costs and expenses
Cost of sales, including occupancy and buying costs 56,096,000 47,924,000
Selling, general and administrative expenses 26,485,000 22,002,000
-------------- ---------------
82,581,000 69,926,000
-------------- ---------------
Operating income 1,419,000 3,329,000
Interest expense
Related party 105,000 105,000
Other 305,000 87,000
-------------- ---------------
410,000 192,000
-------------- ---------------
Income before income taxes 1,009,000 3,137,000
Income tax provision 362,000 18,000
-------------- ---------------
Net income $ 647,000 $ 3,119,000
============== ===============
Net income per share $.07 $.34
============== ===============
Weighted average number of shares and
share equivalents outstanding 9,091,000 8,802,000
============== ================
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
4
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED
(Unaudited)
September 30, October 1,
1995 1994
--------------- ---------------
Net sales $ 27,168,000 $ 25,443,000
--------------- ---------------
Costs and expenses
Cost of sales, including occupancy and buying costs 18,693,000 17,054,000
Selling, general and administrative expenses 9,081,000 7,614,000
--------------- ---------------
27,774,000 24,668,000
--------------- ---------------
Operating income (loss) (606,000) 775,000
Interest expense
Related party 35,000 35,000
Other 121,000 38,000
--------------- ---------------
156,000 73,000
--------------- ---------------
Income (loss) before income taxes (762,000) 702,000
Income tax provision (benefit) (285,000) 33,000
--------------- ---------------
Net income (loss) $ (477,000) $ 669,000
=============== ===============
Net income (loss) per share ($.05) $.07
=============== ===============
Weighted average number of shares and
share equivalents outstanding 9,091,000 8,802,000
=============== ===============
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
5
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEKS ENDED
(Unaudited)
September 30, October 1,
1995 1994
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 647,000 $ 3,119,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,137,000 1,701,000
Deferred income taxes (42,000) (225,000)
Accrual of future rent escalations 164,000 194,000
Change in assets and liabilities:
(Increase) decrease in receivables (237,000) 23,000
(Increase) decrease in notes receivable from related parties 663,000 ---
(Increase) decrease in inventories (1,674,000) (3,759,000)
(Increase) decrease in prepaid expenses 234,000 (142,000)
Increase (decrease) in accounts payable (61,000) 753,000
Increase (decrease) in accrued liabilities
and accrued compensation 249,000 (265,000)
------------ ------------
Total changes in assets and liabilities (826,000) (3,390,000)
------------ ------------
Net cash provided by operating activities 2,080,000 1,399,000
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from property and equipment disposals 22,000 294,000
Payments for property and equipment (4,647,000) (3,162,000)
------------- --------------
Net cash used in investing activities (4,625,000) (2,868,000)
------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term bank debt additional borrowings 61,500,000 32,450,000
Long-term bank debt principal repayments (59,050,000) (32,250,000)
Proceeds from issuance of Common Stock --- 500,000
Other, net (29,000) (22,000)
------------- --------------
Net cash provided by financing activities 2,421,000 678,000
------------- --------------
Net increase (decrease) in cash (124,000) (791,000)
Cash at beginning of period 814,000 1,288,000
------------- --------------
Cash at end of period $ 690,000 $ 497,000
============= ==============
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
6
CACHE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
---------------------
In the opinion of the Company, the accompanying consolidated
financial statements include all adjustments necessary, which are
considered normal and recurring to present fairly the financial
position of the Company at September 30, 1995 and December 31, 1994,
and the results of operations for the thirty-nine and thirteen week
periods ended September 30, 1995 and October 1, 1994 and consolidated
statements of cash flows for the thirty-nine weeks then ended.
Certain financial information which is normally included in
financial statements prepared in accordance with generally accepted
accounting principles, but which is not required for interim reporting
purposes, has been condensed or omitted. The accompanying consolidated
financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's latest annual
report on Form 10-K for the fiscal year ended December 31, 1994.
2. NET INCOME OR LOSS PER SHARE
-----------------------------
Net income or loss per share has been computed based on the
weighted average number of shares of common stock outstanding for the
thirty-nine and thirteen weeks ended September 30, 1995 and October 1,
1994.
The approximate number of shares used in the computations of
income per common share were 9,091,000 and 8,802,000, for the thirty-
nine week and thirteen week periods ended September 30, 1995 and
October 1, 1994, respectively.
3. PROPERTY AND EQUIPMENT
----------------------
September 30, December 31,
1995 1994
------------- ------------
Leasehold improvements $16,338,000 $15,567,000
Furniture, fixtures and
equipment 12,830,000 9,348,000
------------- ------------
29,168,000 24,915,000
Less: accumulated depreciation
and amortization 12,504,000 10,743,000
------------- ------------
$16,664,000 $14,172,000
============= ============
4. ACCRUED LIABILITIES
September 30, December 31,
1995 1994
============== ============
Operating Expenses $ 832,000 $ 968,000
Taxes, other than income taxes 631,000 888,000
Leasehold additions 459,000 295,000
Other 683,000 709,000
------------- ------------
$2,605,000 $2,860,000
============= ============
7
5. BANK DEBT
----------
The Company's current Revolving Credit Facility may be used for
either working capital or for letters of credit and will expire on
January 31, 1997. Pursuant to the amended Revolving Credit Facility,
$8,500,000 is available from August 10, 1995 until expiration at
January 31, 1997. The amounts outstanding thereunder bear interest at
a maximum per annum rate up to 1.00% above the bank's prime rate. The
agreement contains selected financial and other covenants including
covenants to maintain a minimum current ratio, a maximum debt to equity
and total equity ratio, a maximum capital expenditure covenant, a
minimum earnings to bank interest coverage ratio and certain
restrictions on the repayment of principal amounts due to related
parties. The agreement prohibits the payment of any dividends on the
Company's common stock. Effective upon the occurrence of an Event of
Default under the Revolving Credit Facility, the Company grants to the
bank a security interest in the Company's inventory and certain
receivables.
The outstanding balances on the line of credit at September 30,
1995 and December 31, 1994 were $4,100,000 and $1,650,000,
respectively. The related party debt is subordinated to the bank debt
and therefore will not be paid prior to expiration of the bank line of
credit.
6. INDEBTEDNESS TO RELATED PARTY
-----------------------------
As of September 30, 1995 and December 31, 1994 the Company had
outstanding, (i) a $250,000 long-term loan from a major stockholder
bearing interest payable quarterly with principal due upon demand at
any time after January 31, 1997; and (ii) a $1,750,000 loan made by the
same stockholder bearing interest payable quarterly with principal due
upon demand at any time after January 31, 1997. Interest on both notes
accrue at 7% per year through January 31, 1997.
In December 1994, the Company loaned a total of $913,000 to
several executive officers of the Company. The loans, which are
payable upon demand, are evidenced by secured promissory notes, which
bear interest at the rate of 9% per annum. In September 1995, two
executive officers repaid a total of $663,000 to the Company, $250,000
remains outstanding at September 30, 1995.
7. INCOME TAXES
-------------
Effective January 3, 1993, the Company adopted Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes"
(SFAS 109). In accordance with this statement, the Company recognized
deferred tax assets of $5,333,000, less a valuation allowance of
$4,216,000, thereby creating a net deferred tax asset of $1,117,000,
which reflected the cumulative effect of the accounting change for the
benefit expected to be realized from the utilization of net operating
loss carryforwards ("NOL'S") and deductible temporary differences.
8
At December 31, 1994 and September 30, 1995, the Company had net
operating loss carryforwards of $4,275,000 and $3,037,000, respectively, for
federal income tax reporting purposes. The net operating loss carryforwards
expire at various dates through 2007. The tax benefit created by stock
option exercises is reflected in additional paid-in capital as realized. In
December 1994, April 1995 and July 1995, the Company realized for financial
reporting purposes $512,000, $318,000 and $400,000, respectively, of income
tax benefits from stock option exercises. The Company had available at
December 31, 1994 approximately $207,000 of alternative minimum tax
carryforwards for tax reporting purposes only. At December 31, 1994 and
September 30, 1995, the Company's deferred tax assets were $3,503,000 and
$2,790,000, respectively, also, there was no deferred tax liability. The
major components of the Company's net deferred taxes at September 30, 1995
and December 31, 1994 are as follows:
September 30, December 31,
1995 1994
------------ ------------
Net operating loss carryforwards ("NOL'S") and
alternative minimum tax carryforwards.......... $ 484,000 $ 539,000
NOL'S resulting from stock option exercises..... 1,112,000 1,827,000
Deferred rent................................... 658,000 621,000
Inventory cost capitalization................... 330,000 315,000
Other........................................... 206,000 201,000
----------- -----------
2,790,000 3,503,000
Less: Valuation allowance....................... ( 670,000) (1,831,000)
----------- -----------
$2,120,000 $1,672,000
=========== ===========
Statement No. 109 requires that the net operating loss carryforwards and
other deductible temporary differences be recorded as an asset to the extent
that management assesses the utilization of such carryforwards and the
realization of the deductible temporary differences to be more likely than
not. The Company recorded a valuation allowance against the deferred tax
asset based on the Company's history of prior operating earnings and its
expectations for the future, whether the operating income of the Company will
more likely than not be sufficient to fully utilize the carryforwards and the
realization of the benefit related to the deductible temporary differences
prior to their ultimate expiration before 2007. During the fourth quarter of
Fiscal 1993 and during 1994 and 1995, the Company reversed portions of the
valuation allowance on the strength of the Company's operating results which
increased the probability the net operating loss carryforwards will be
realized.
8. CONTINGENCIES
--------------
The Company is exposed to a number of asserted and unasserted potential
claims. In the opinion of management, the resolution of these matters is not
presently expected to have a material adverse effect upon the Company's
financial position and results of operations.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- --------------------------------
The Company's primary need for capital is to finance new store
merchandise inventories, as well as the construction of new stores. During
the thirty-nine weeks ended September 30, 1995, the Company generated
$2,080,000 in cash from operating activities. The Company utilized a portion
of its existing bank credit facilities by increased bank borrowings
($2,450,000) to finance inventory purchases ($1,674,000), and the Company's
new store expansion and remodeling program.
The Company plans to open a total of approximately twenty-four new
stores during 1995. Twenty-two new stores have already opened and the
remaining two stores are expected to be opened during November 1995. After
deducting construction allowances paid to the Company by its landlords, the
Company has spent $4,647,000 through September 30, 1995 and expects to spend
an additional $1,000,000 in 1995 for both new store and existing store
construction and remodeling. The Company anticipates that it will finance
new store construction and remodeling in 1995 primarily by cash flow from
operations and its existing credit facilities.
Bank debt rose by $2,450,000, as the Company paid for inventory, new
fixed assets and liabilities accrued at year-end. Inventories increased
$1,674,000, principally due to the addition of twenty-two new stores in 1995.
Property and equipment increased $4,647,000, primarily due to the above
mentioned new store expansion and store remodeling. Notes receivable
decreased $663,000 due to the repayment of loans made to several executive
officers in December 1994 (See footnote 6). The Company believes that given
the sources of credit discussed above, its financial resources will be
sufficient to meet anticipated requirements.
RESULTS OF OPERATIONS
- ----------------------
The Company's results of operations for the thirteen and thirty-nine
week periods ended September 30, 1995 declined as compared to the same period
in 1994. The increase in sales and related increases in gross profits did
not offset the increase in operating expenses for the thirteen and thirty-
nine week periods, as compared to 1994.
10
Certain financial data concerning the Company's results of operations for
the thirty-nine and thirteen week periods ended September 30, 1995 and
October 1, 1994 expressed as a percentage of net sales, are as follows:
Thirty-nine Weeks Ended Thirteen Weeks Ended
----------------------- --------------------
Sept. 30, Oct. 1, Sept. 30, Oct. 1,
1995 1994 1995 1994
--------- ---------- --------- --------
Sales 100.0% 100.0% 100.0% 100.0%
Cost of sales, including
occupancy and buying expenses 66.8% 65.4% 68.8% 67.0%
Selling, general and
administrative expenses 31.5% 30.0% 33.4% 30.0%
Operating income (loss) 1.7% 4.5% (2.2%) 3.0%
Interest expense .5% .2% .6% .3%
Pre-tax income (loss) 1.2% 4.3% (2.8%) 2.7%
Income taxes (benefit) .4% -- (1.0%) .1%
Net income (loss) .8% 4.3% (1.8%) 2.6%
Sales
- -----
Net sales increased $10,745,000 or 14.7% and $1,725,000 or 6.8%
respectively, during the thirty-nine and thirteen week periods ended
September 30, 1995 versus the comparable periods in 1994. The increases were
primarily due to the greater number of stores open during the 1995 periods.
Same store sales (sales for stores open at least one year or more) decreased
6% as compared to the comparable thirteen week period in 1994 and was flat as
compared to the comparable thirty-nine week period in 1994.
Historically, sales at new stores do not achieve the same levels as
existing, established stores. New stores generally begin to perform as well
as existing stores during their second and third year of operation. Sales on
a weighted average basis for the thirty-nine and thirteen week periods ended
September 30, 1995 and October 1, 1994 were as follows:
Thirty-nine Weeks Ended Thirteen Weeks Ended
----------------------- ---------------------
Sept. 30, Oct. 1, Sept. 30, Oct. 1,
1995 1994 1995 1994
----------- ----------- ----------- -----------
Sales $84,000,000 $73,255,000 $27,168,000 $25,443,000
Weighted Average Stores
Open During Period 136.9 114.7 142.3 119.5
Net Sales Per Weighted
Average Number of Stores $ 613,000 $ 639,000 $ 191,000 $ 213,000
Net Weighted Average Sales
per Square Foot $ 296.00 $ 311.00 $ 92.00 $ 108.00
Stores Open at End
of Period 147 122 147 122
11
Costs and expenses
- -------------------
Cost of sales, including occupancy and buying costs, increased
$8,172,000 or 17.1% for the thirty-nine weeks ended September 30, 1995
versus the similar period in 1994. The increase was primarily due to
the increase in sales and the related cost of merchandise for those
sales, as well as a $2,087,000 increase in occupancy expenses primarily
due to the additional stores in operation during 1995 versus 1994. As
a percentage of sales, cost of sales, including occupancy expenses,
increased 1.4%, (66.8% versus 65.4%) for the thirty-nine week period
ended September 30, 1995 versus the comparable period in 1994. The
increase was primarily due to higher occupancy costs, both in dollars
and as a percent of sales, versus the comparable period in 1994.
Markdowns, as a percentage of sales, decreased slightly in 1995 as
compared to the 1994 period. The Company takes markdowns for several
reasons such as; changes in customer preference, seasonal adaptation,
changes in style or if it is determined merchandise in stock will not
sell at its currently marked price.
Cost of sales, including occupancy and buying costs, increased
$1,639,000 or 9.6% for the thirteen weeks ended September 30, 1995
versus the similar 1994 period. The increase was primarily due to the
increase in sales and the related cost of the merchandise for those
sales, and a $644,000 increase in occupancy expenses due to the
additional stores in operation during 1995 versus 1994. As a
percentage of sales, cost of sales, including occupancy and buying
expenses, increased 1.8% (68.8% versus 67.0%) for the thirteen weeks
ended September 30, 1995 versus the comparable period in 1994. The
increase was primarily due to higher occupancy costs, both in dollars
and as a percent of sales, versus the comparable period in 1994 and was
partially offset by a reduction in markdowns for the thirteen weeks
ended September 30, 1995, which decreased slightly as compared to the
1994 period.
Selling, general and administrative expenses
- --------------------------------------------
Selling, general and administrative expenses increased $4,483,000
or 20.4% during the thirty-nine week period ended September 30, 1995,
versus the comparable period in 1994. The increase was primarily due
to greater payroll and payroll taxes ($3,110,000), credit card fees
($165,000), travel($117,000), depreciation ($435,000) and licenses and
taxes ($182,000). As a percentage of sales these expenses increased
1.5% (31.5% versus 30.0%) for the thirty-nine weeks ended September 30,
1995 versus the similar 1994 period. The increase, as a percent of
sales, was due primarily to flat comparable store sales experienced in
the current thirty-nine week period.
Selling, general and administrative expenses increased $1,467,000
or 19.3% during the thirteen weeks ended September 30, 1995 versus the
comparable period in 1994. The increase was due to greater payroll and
payroll taxes ($1,038,000), credit card fees ($33,000), travel
($29,000) and depreciation ($150,000). As a percentage of sales these
expenses increased 3.4% (33.4% versus 30.0%) for the thirteen weeks
ended September 30, 1995 versus the similar 1994 period. The increase,
as a percent of sales, was due primarily to the decrease in comparable
store sales experienced in the current thirteen week period. In
addition, the Company recorded a $100,000 one time charge related to
the resignation of two officers.
12
Interest Expense
- -----------------
Interest expense increased $218,000 (113.5%) and $83,000 (113.7%),
respectively, for the thirty-nine and thirteen week periods ended
September 30, 1995 versus the comparable period in 1994, primarily due
to higher average borrowing levels in 1995, caused by the retirement of
preferred stock ($2,695,000) in December 1994. Increased interest
expense was also due to higher average borrowing rates in 1995, as
compared to 1994.
Income Taxes
- -------------
Income tax expense increased to $362,000 for the thirty-nine week
period ended September 30, 1995, due to the realization of all prior
net operating loss carryforwards in 1994. An income tax benefit of
$285,000 was recorded for the thirteen week period ended September 30,
1995, as compared to an income tax provision of $33,000 in 1994, which
was primarily due to state tax accruals and federal alternative minimum
tax provisions. In 1995, the Company's effective tax rate is
approximately 37.0%. In 1994, the Company was still able to realize
net operating loss carryforwards and as a result reversed $1,150,000
and $250,000 of valuation allowances for the thirty-nine and thirteen
week periods. This resulted in the Company having no income tax
expenses in 1994. The only major remaining deferred tax assets in 1995
are attributable to stock options and are realized in paid-in capital.
As a result, $718,000 and $ 0 were realized during the thirty-nine and
thirteen week periods in 1995.
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
11.1 Calculation of primary and fully diluted earnings per
common share.
(b) Reports on Form 8-K
Form 8-K dated September 13, 1995 was filed, regarding the
Company's press release announcing the resignation of Mr. Michael A.
Warner from his positions as President, General Merchandise Manager and
member of the Company's Board of Directors, effective on September 13,
1995. Concurrently, Cache's Board of Directors promoted Ms. Mae Soo
Hoo, a vice president of Cache to Executive Vice President - General
Merchandise Manager; promoted Mr. Thomas E. Reinckens, a vice president
and the chief financial officer of Cache, to Executive Vice and Chief
Financial Officer and appointed Ms. Soo Hoo to the Board of Directors.
No new President has been named.
13
Signature
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
CACHE, INC.
(Registrant)
November 8, 1995 BY: /s/ Thomas E. Reinckens
-------------------------
Thomas E. Reinckens
On behalf of Cache, Inc.
and in his capacity as
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Principal Accounting Officer)
14
EXHIBIT 11.1
CALCULATION OF PRIMARY AND FULLY DILUTED EARNINGS PER COMMON SHARE
(In thousands except per share data)
THIRTY-NINE THIRTEEN
WEEKS ENDED WEEKS ENDED
-------------------------------- -------------------------------
September 30, October 1, September 30, October 1,
1995 1994 1995 1994
--------------- -------------- --------------- ---------------
EARNINGS
---------
Net Income (Loss) Applicable
to Common Stockholders $ 647,000 $ 3,008,000 $ (477,000) $ 632,000
=============== =============== =============== ================
PRIMARY SHARES
Weighted Average Number of
Common Shares Outstanding 9,091,000 8,263,000 9,091,000 8,296,000
Assuming Conversion of
Outstanding Stock Options --- 749,000 --- 716,000
Less Assumed Repurchase
of Common Stock Pursuant
to the Treasury Stock Method --- (210,000) --- (210,000)
---------------- ---------------- --------------- ----------------
Weighted Average Number of
Common Shares Outstanding
As Adjusted 9,091,000 8,802,000 9,091,000 8,802,000
================ ================ =============== ================
Primary Earnings (Loss) Per Share $0.07 $0.34 ($0.05) $0.07
================ ================ =============== =================
FULLY DILUTED EARNINGS PER SHARE
Weighted Average Number of
Common Shares Outstanding 9,091,000 8,263,000 9,091,000 8,296,000
Assuming Conversion of
Outstanding Stock Options --- 749,000 --- 716,000
Less Assumed Repurchase
of Common Stock Pursuant
to the Treasury Stock Method --- (210,000) --- (210,000)
---------------- ---------------- --------------- --------------
Weighted Average Number of
Common Shares Outstanding
As Adjusted 9,091,000 8,802,000 9,091,000 8,802,000
================ ================ =============== ==============
Fully Diluted Earnings (Loss) Per Share $0.07 $0.34 ($0.05) $0.07
================ ================ =============== ===============
15