GOTTSCHALKS INC. 
By
For the first six months of fiscal 2008, net loss was
As previously reported, for the second quarter, which consisted of 13
weeks, same store sales decreased 7.3% and total sales decreased 7.8% to
Commenting on the Company's outlook, Mr. Famalette stated, "We will
continue to take a very conservative outlook on our business in the near-term.
However, we believe that we have the right strategies in place and we continue
to work to further strengthen our financial structure to better position our
organization and prepare us for the future. Recently, we completed the
consolidation of our dual Bakersfield East Hills Mall stores into one store
and we continue to identify opportunities to leverage our real estate assets.
We are pleased to have signed an agreement to sell our wholly-owned store in
Antelope Valley Mall, in
Earnings Teleconference and Webcast
Gottschalks will host a conference call today at
About Gottschalks
Gottschalks is a regional department store chain, currently operating 58
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 Twenty-Six Weeks
Ended Ended
August 2, August 4, August 2, August 4,
2008 2007 2008 2007
Net sales $133,695 $144,982 $258,823 $286,770
Net credit revenues 1,975 1,122 3,737 2,229
Net leased department
revenues 577 606 1,127 1,255
Total revenues 136,247 146,710 263,687 290,254
Costs and expenses:
Cost of sales 90,890 96,327 174,590 191,532
Selling, general and
administrative
expenses 46,526 50,413 92,830 99,647
Depreciation and
amortization 4,035 3,687 7,985 7,597
Gain on disposal
of assets (44) 0 (58) (79)
New store opening
costs 139 15 213 15
Store closure costs 12 21 12 53
Total costs and
expenses 141,558 150,463 275,572 298,765
Operating loss (5,311) (3,753) (11,885) (8,511)
Other (income) expense:
Interest expense 2,086 2,525 4,144 5,110
Miscellaneous income (123) (185) (179) (264)
1,963 2,340 3,965 4,846
Loss before income
tax benefit (7,274) (6,093) (15,850) (13,357)
Income tax benefit (2,863) (1,319) (6,343) (3,915)
Net loss ($4,411) ($4,774) ($9,507) ($9,442)
Net loss per common
share:
Basic and diluted ($0.33) ($0.35) ($0.72) ($0.69)
Weighted average # of
common shares
outstanding:
Basic and diluted 13,288 13,682 13,285 13,644
GOTTSCHALKS INC.
CONDENSED BALANCE SHEETS
(In thousands)
(unaudited)
August 2, February 2, August 4,
2008 2008 2007
ASSETS
CURRENT ASSETS:
Cash $5,040 $4,032 $5,424
Receivables - net 3,894 7,049 3,612
Merchandise inventories 146,135 149,310 163,169
Other 14,348 18,984 20,369
Total current assets 169,417 179,375 192,574
PROPERTY AND EQUIPMENT - net 138,114 137,931 133,127
OTHER LONG-TERM ASSETS 15,484 14,688 13,192
$323,015 $331,994 $338,893
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable and
other current liabilities $69,538 $72,559 $76,336
Current portion of long-
term obligations 3,557 1,525 1,514
Total current liabilities 73,095 74,084 77,850
REVOLVING LINE OF CREDIT 106,005 93,899 86,478
LONG-TERM OBLIGATIONS (less
current portion) 11,267 12,049 12,817
OTHER LIABILITIES 15,890 21,837 27,188
SUBORDINATED NOTE PAYABLE TO
AFFILIATE 14,180 18,180 18,180
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY 102,578 111,945 116,380
$323,015 $331,994 $338,893
SOURCE Gottschalks Inc.
