Mattress Discounters posts loss as '01 sales drop 11.3%
By Furniture Today Staff -- Furniture Today, April 8, 2002
UPPER MARLBORO, Md. — Hurt by a slumping economy and high interest expenses, Mattress Discounters reported a $30.1 million pretax loss in 2001.
The company, which operates about 300 bedding specialty stores, said sales for the year tumbled 11.3% to $244.2 million. Sales at its stores came to $242.4 million, a drop of 6.9% from 2000.
The company's net loss for the year, including a one-time writeoff of $92 million against the value of deferred tax credits, totaled $122.8 million. That compares with a net loss of $687,000 in 2000.
In its Form 10-K filed with the Securities and Exchange Commission, Mattress Discounters said comparable-store sales were down in 2001, but didn't give a specific percentage. However, the company noted the same-store decline was partially offset by an increase in sales from stores opened during the past 12 months.
Interest expenses totaled $21.2 million, up from $20 million in 2000.
The retailer ended 2001 with a working capital deficit of $18.8 million, but it has since renegotiated its senior credit agreement. That resulted in an increase in its revolving credit line from $20 million to $30 million, but the company noted that, as of March 29, it had already borrowed $28 million and no additional funds were available.
According to the SEC filing, Sealy, the retailer's exclusive supplier of branded bedding, loaned the company $12.5 million as part of the new credit agreement.
Both Sealy and Mattress Discounters are owned by investment company Bain Capital.
| Year ended 12/29 | 2001 | 2000 | Change |
|---|---|---|---|
| Sales | $244,212,000 | $275,225,000 | (11.3%) |
| Operating income | (5,919,000) | 19,544,000 | — |
| Net income | (a)(122,821,000) | (687,000) | — |
| (a) Includes a $1.7 million pretax loss on the disposal of assets and a $1.6 million pretax provision for receivables due from Heilig-Meyers. | |||
