As previously reported, total sales for the 13-week fiscal first quarter
decreased 11.8% to
Commenting on the Company's outlook, Mr. Famalette stated, "We will
continue to take a conservative, yet proactive approach to managing our
organization throughout the remainder of 2008. We believe that we have the
right strategies in place as well as a secure financial structure to position
our business in the current challenging environment. We continue to make
progress with our expense management program. We recently completed a
headcount reduction at our corporate headquarters, which we expect will
generate approximately
Earnings Teleconference and Webcast
Gottschalks will host a conference call today at
About Gottschalks
Gottschalks is a regional department store chain, currently operating 59
department stores and three specialty apparel stores in six western states,
including
Business Risks and Forward Looking Statements
This release contains forward-looking statements (within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. In some instances, such statements may be identified by the use of forward-looking terminology such as "may," "will," "expects," "believes," "intends," "projects," "forecasts," "plans," "estimates," "anticipates," "continues," "targets," or similar terms, variations of such terms or the negative of such terms. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, the Company's ability to meet debt obligations and adhere to the restrictions and covenants imposed under its various debt agreements; the timely receipt of merchandise and the Company's ability to obtain adequate trade credit from its key factors and vendors; risks arising from general economic and market conditions (including uncertainties arising from acts of terrorism or war); the ability to improve the profitability and cash flows of its stores or to sell, sublease or close underperforming stores; the ability to modify operations in order to minimize the adverse impact of rising costs, including but not limited to health care, workers' compensation, property and casualty insurance and utilities costs; the effects of seasonality and weather conditions, changing consumer trends and preferences, competition, consumer credit, the Company's dependence on its key personnel and general labor conditions, all of which are described in more detail in Gottschalks' Annual Report on Form 10-K and other reports filed by Gottschalks with the Securities and Exchange Commission. GOTTSCHALKS DOES NOT PRESENTLY INTEND TO UPDATE THESE STATEMENTS AND UNDERTAKES NO DUTY TO ANY PERSON TO EFFECT ANY SUCH UPDATE UNDER ANY CIRCUMSTANCES.
(Tables Follow) GOTTSCHALKS INC. STATEMENTS OF OPERATIONS (In thousands, except share data) (unaudited) Thirteen Weeks Ended May 3, May 5, 2008 2007 Net sales $125,128 $141,788 Net credit revenues 1,762 1,106 Net leased department revenues 550 650 Total revenues 127,440 143,544 Costs and expenses: Cost of sales 83,700 95,204 Selling, general and administrative expenses 46,304 49,236 Depreciation and amortization 3,950 3,909 Gain on disposal of assets (14) (79) New store opening costs 74 - Total costs and expenses 134,014 148,270 Operating loss (6,574) (4,726) Other (income) expense: Interest expense 2,058 2,585 Miscellaneous income (56) (47) 2,002 2,538 Loss before income tax benefit (8,576) (7,264) Income tax benefit (3,480) (2,596) Net loss ($5,096) ($4,668) Net loss per common share: Basic and diluted ($0.38) ($0.34) Weighted average # of common shares outstanding: Basic and diluted 13,283 13,606 GOTTSCHALKS INC. CONDENSED BALANCE SHEETS (In thousands) (unaudited) May 3, February 2, May 5, 2008 2008 2007 ASSETS CURRENT ASSETS: Cash $6,021 $4,032 $6,080 Receivables - net 2,713 7,049 2,750 Merchandise inventories 168,174 149,310 184,013 Other 18,896 18,984 20,031 Total current assets 195,804 179,375 212,874 PROPERTY AND EQUIPMENT - net 138,156 137,931 132,401 OTHER LONG-TERM ASSETS 14,827 14,688 13,564 $348,787 $331,994 $358,839 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Trade accounts payable and other current liabilities $80,950 $72,559 $87,270 Current portion of long-term obligations 3,541 1,525 1,583 Total current liabilities 84,491 74,084 88,853 REVOLVING LINE OF CREDIT 114,507 93,899 90,893 LONG-TERM OBLIGATIONS (less current portion) 11,662 12,049 13,193 DEFERRED INCOME TAXES AND OTHER 17,002 21,837 26,903 SUBORDINATED NOTE PAYABLE TO AFFILIATE 14,180 18,180 18,180 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY 106,945 111,945 120,817 $348,787 $331,994 $358,839
SOURCE Gottschalks Inc.