Jennifer posts 31.7% gain in sales, plus rare 2Q profit
By Furniture Today Staff -- Furniture Today, April 16, 2006
Woodbury, N.Y. — Jennifer Convertibles said it continued its financial turnaround with earnings of $554,000, or 7 cents per share, in its second quarter ended Feb. 25.
It's the fourth consecutive profitable quarter for the specialty retail chain, which had posted a loss of $5.4 million, or 93 cents per share, in the same period a year ago.
"We are extremely pleased with the results achieved during our second fiscal quarter, traditionally our weakest quarter of the year," said CEO Harley Greenfield. It's the first time since 2001 the company has posted a profit in the second quarter, he said.
Revenue from continuing operations rose 31.7% in the quarter to $33 million. The company closed one store, in Indianapolis, during the quarter and recorded its results as a discontinued operation. In fiscal 2005 it closed 20 stores and has recorded 18 of them as discontinued.
Comparable-store sales were up 31% in the quarter.
In its first half, Jennifer reported a profit of $1.4 million, or 18 cents per share, compared with a loss of $7.8 million, or $1.36 per share, a year earlier. Revenue of $68.8 million was up 24.1%, with same-store sales rising 23.6%.
The company said one of its key suppliers, Caye Home Furnishings and affiliates, had increased Jennifer's credit line from $10 million to $11.5 million at the same terms.
"We are continuing to see strong demand for our product offering and expect to continue to report increased sales and operating margins," Greenfield said. "It is gratifying to see our efforts generating such profitable results, and the willingness of our major supplier to increase our line to accommodate growth."
The retailer operates 176 Jennifer Convertibles and 16 Jennifer Leather stores, of which 168 are company owned and 24 are licensed.
| Jennifer Convertibles | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 2/25 | 2006 | 2005 | Change |
| (a) Includes a $146,000 charge for impairment of goodwill in the 2005 quarter and six months. Includes losses from discontinued operations of $32,000 in the 2006 quarter, $418,000 in the 2006 six months and $818,000 in the 2005 six months, and earnings from discontinued operations of $115,000 in the 2005 quarter. (b) Based on average shares outstanding of 5.8 million in the 2005 periods, 8 million in the 2006 six months and 8.5 million in the 2006 quarter, including potential common shares that could be issued relating to stock options, warrants and preferred stock. |
|||
| Sales | $33,010,000 | $25,062,000 | 31.7% |
| Operating income | 752,000 | (2,814,000) | — |
| Net income (a) | 554,000 | (5,363,000) | — |
| Earnings per share | 0.07 | (0.93) | — |
| 6 months ended 2/25 | 2006 | 2005 | Change |
| Sales | $68,801,000 | $55,434,000 | 24.1% |
| Operating income | 1,616,000 | (4,577,000) | — |
| Net income (a) | 1,401,000 | (7,828,000) | — |
| Earnings per share (b) | 0.18 | (1.36) | — |
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Jennifer posts profit for fourth consecutive quarter
Apr 10, 2006
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