Net sales and sittings at Sears Portrait Studios ("SPS") for the first
eight weeks of the fourth quarter declined by 14% and 2%, respectively, while
net sales in the Company's PictureMe Portrait Studios ("PMPS") in Wal-Mart
Stores increased by 4% and sittings decreased by 9%. Currency translation
effects related to
Continuing, Cataldo said, "With the digital upgrade and integration of
PictureMe substantially complete and a new six-year deal signed with Sears, we
enter 2009 well positioned to deliver solid results for our customers,
retailer partners and shareholders alike. We expect our enhanced sales, labor
and manufacturing productivity, substantial integration-related cost
reductions, and modest ongoing capital requirements to translate into strong
cash flow for the foreseeable future." The Company presently expects capital
expenditures in 2009 to be between
The Company's disclosure of 2008 holiday sales continues a practice
commenced following the 2004 holiday season in recognition of the importance
of holiday sales to the Company's annual performance. Final results for the
Company's fiscal year 2008, which ends
About CPI Corp.
CPI is the leading portrait studio operator in
Forward-Looking Statements
The statements contained in this press release that are not historical
facts are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and involve risks and uncertainties.
The Company tries to identify forward-looking statements by using words such
as "preliminary," "plan," "expect," "looking ahead," "anticipate," "estimate,"
"believe," "should," "intend," and other similar expressions. Management
wishes to caution the reader that these forward-looking statements, such as
the Company's outlook for portrait studios, net income, future cash
requirements, cost savings, compliance with debt covenants, valuation
allowances, reserves for charges and impairments and capital expenditures, are
only predictions or expectations; actual events or results may differ
materially as a result of risks facing the Company. Such risks include, but
are not limited to: the Company's dependence on Sears and Wal-Mart, the
approval of the Company's business practices and operations by Sears and Wal-
Mart, the termination, breach or increase of the Company's expenses by Sears
under the license agreements, or Wal-Mart under the lease agreements, customer
demand for the Company's products and services, manufacturing interruptions,
dependence on certain suppliers, competition, dependence on key personnel,
fluctuations in operating results, a significant increase in piracy of the
Company's photographs, widespread equipment failure, compliance with debt
covenants, increased debt level due to the acquisition of assets from Portrait
Corporation of America, Inc ("PCA"), implementation of marketing and operating
strategies, and other risks as may be described in the Company's filings with
the Securities and Exchange Commission, including its Form 10-K for the year
ended
SOURCE CPI Corp.