For Information Contact:
Company Contact:
Jeff Unger, Investor Relations
(561) 514-0115
Andrew Bard, Weber Shandwick
212-445-8368
Casual Male Retail Group, Inc. Reports Improved Operating Results
For the First Quarter of Fiscal 2005
CANTON, MA, May 19, 2005 -- Casual Male Retail Group, Inc. (NASDAQ/NMS:
"CMRG"), retail brand operator of Casual Male Big & Tall, Rochester Big
& Tall, and the exclusive distributor and retailer of George Foreman's
clothing collection, today announced its operating results for the
first quarter of fiscal 2005.
For the first quarter of fiscal 2005, net loss was $(1.9) million, or
$(0.05) per diluted share, compared to a net loss of $(5.1) million, or
$(0.15) per diluted share, for the first quarter of fiscal 2004.
Assuming a normalized tax rate of 37%, the net loss per share for the
first quarter of fiscal 2005 was $(0.03) per diluted share compared to
a net loss per diluted share of $(0.09) per diluted share for the first
quarter of fiscal 2004.
Results for the first quarter of fiscal 2005 include the operating
results of the Company's Rochester Big & Tall stores which were
acquired by the Company in October 2004. Results from continuing
operations for the first quarter of fiscal 2004 included sales of $6.1
million and an operating loss of $(0.3) million from the Ecko Unltd.(r)
outlet stores, divested in July 2004.
"Our operating results were a substantial improvement over last year,"
said David Levin, President and Chief Executive Officer. "This is our
first quarter where the Company's efforts were entirely focused on its
core big & tall businesses."
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), our above discussion
refers to a normalized tax rate, which is a non-GAAP measure.
Normalized tax basis reflects a 37% effective tax rate on pre-tax loss.
The Company believes that the inclusion of this non-GAAP measure helps
investors to gain a better understanding of the Company's performance,
especially when comparing such results to previous periods or
forecasts. However, this non-GAAP financial measure included in this
press release is not meant to be considered superior to or as a
substitute for results of operations prepared in accordance with GAAP.
The following table shows the reconciliation of the net loss of $(0.05)
per diluted share for the first quarter of fiscal 2005 as compared to
net loss of $(0.15) per diluted share for the first quarter of fiscal
2004 on a GAAP basis effected for the adjustment for normalized taxes:
For the three months ended: April 30, 2005 May 1, 2004
(in millions, except for per
share amounts) Net Loss Net Loss
Per Share Per Share
---------------------- --------------------
Net loss, as reported $ (1.9) $(0.05) $ (5.1) $(0.15)
Income tax benefit, assuming
normalized tax rate of 37% 0.7 0.02 1.8 0.06
---------------------- --------------------
Adjusted net loss, after
normalized tax benefit $ (1.2) $(0.03) $ (3.3) $(0.09)
---------------------- ---------------------
Weighted average shares
outstanding - diluted 34.2 35.1
Casual Male will host a conference call with security analysts
beginning at 11:00 a.m. ET today, Thursday, May 19, 2005, to review the
operating results for the first quarter ended April 30, 2005. The call
is being webcast by CCBN and can be accessed at
www.casualmale.com/investor. During the conference call the Company
may discuss and answer questions concerning business and financial
developments and trends. The Company's responses to questions, as well
as other matters discussed during the conference call, may contain or
constitute information that has not been disclosed previously.
Casual Male Retail Group, Inc., the largest retailer of big and tall
men's apparel with retail operations throughout the United States,
Canada and London, England, operates 495 Casual Male Big & Tall stores,
the Casual Male e-commerce site, Casual Male catalog business, 13
Casual Male at Sears-Canada stores and 22 Rochester Big & Tall stores
and a direct to consumer business. The Company is headquartered in
Canton, Massachusetts and its common stock is listed on the Nasdaq
National Market under the symbol "CMRG."
The discussion of forward-looking information requires management of
the Company to make certain estimates and assumptions regarding the
Company's strategic direction and the effect of such plans on the
Company's financial results. The Company's actual results and the
implementation of its plans and operations may differ materially from
forward-looking statements made by the Company. The Company encourages
readers of forward-looking information concerning the Company to refer
to its prior filings with the Securities and Exchange Commission,
including without limitation ,its Current Report Form 8-K filed on
April 8, 2005, that set forth certain risks and uncertainties that may
have an impact on future results and direction of the Company.
CASUAL MALE RETAIL GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
For the three months ended
April 30, 2005 May 1, 2004
-------------- -----------
Sales $ 97,298 $ 84,175
Cost of goods sold including occupancy 57,059 50,449
------------ ----------
Gross profit 40,239 33,726
Expenses:
Selling, general and administrative 37,162 33,153
Depreciation and amortization 2,978 2,221
------------ ----------
Total expenses 40,140 35,374
Operating income (loss) 99 (1,648)
Interest expense, net (1,980) (2,179)
------------ ----------
Loss from continuing operations
before minority interest and income taxes (1,881) (3,827)
Minority interest - (347)
Income taxes - -
------------ -----------
Loss from continuing operations $ (1,881) $ (3,480)
Loss from discontinued operations - (1,614)
------------- -----------
Net loss $ (1,881) $ (5,094)
Net loss per share - basic and diluted
Loss from continuing operations ($0.05) ($0.10)
Loss from discontinued operations $0.00 ($0.05)
------------- -----------
Net loss ($0.05) ($0.15)
Weighted-average number of common shares outstanding:
Basic and diluted 34,234 35,126
CASUAL MALE RETAIL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
April 30, 2005 and January 29, 2005
(In thousands)
April 30, 2005 January 29, 2005
ASSETS
Cash and investments $ 5,816 $ 5,731
Inventories 92,160 79,858
Other current assets 7,097 9,178
Property and equipment, net 73,716 74,651
Goodwill and other intangibles 89,217 89,349
Other assets 9,037 9,021
---------- ---------
Total assets $ 277,043 $ 267,788
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, accrued expenses
and other liabilities $ 57,561 $ 53,729
Notes payable 27,401 19,311
Long-term debt, net of current portion 116,820 117,784
Stockholders' equity 75,261 76,964
---------- -----------
Total liabilities and stockholders' equity $ 277,043 $ 267,788