Gadzooks Reports Third Quarter Operating Results
18 November 2003 - 11:58PM
PR Newswire (US)
Gadzooks Reports Third Quarter Operating Results DALLAS, Nov. 18
/PRNewswire-FirstCall/ -- Gadzooks, Inc. today reported a net loss
of $22.1 million for the third quarter ended November 1, 2003.
Significantly impacting the loss was an $8.7 million non- cash
valuation allowance recognized during the quarter to reduce the
Company's deferred tax assets. In addition, the Company did not
recognize a tax benefit during the quarter for the operating loss
generated. While this tax accounting treatment materially impacts
the Company's reported operating results, there is no cash impact
and any net operating loss carry forwards generated during the
current year would be deductible against future taxable income. The
Company recorded a net loss of $856,000 for the third quarter of
fiscal 2002. The Company reported a net loss per share of $2.42 for
the quarter compared to a net loss of $0.09 per share for the
corresponding period a year ago. Net sales for the quarter
decreased 33.2 percent to $49.2 million from $73.7 million a year
ago. Same store sales for the quarter declined 31.4 percent
compared to a 5.1 percent decrease for the third quarter of last
year. The Company reported a year-to-date net loss of $34.1 million
compared to net income of $1.0 million for the first three quarters
of fiscal 2002. On a diluted basis for the year-to-date period, the
Company reported a net loss per share of $3.73 compared to net
income of $0.11 per share for the same period last year.
Year-to-date net sales decreased 17.6 percent to $188.4 million
from $228.7 million for the comparable fiscal 2002 period. Same
store sales decreased 17.0 percent for the first three quarters of
fiscal 2003 versus a 3.6 percent decline for the comparable period
of the prior year. Today at 9:30 a.m. CT, the Company's management
team will host a conference call to review the financial results.
To listen to the call, please dial 719-457-2692 and reference
confirmation number 137519, or go to the Company's website at
http://www.gadzooks.com/ . For a replay of the call, dial
719-457-0820 and enter confirmation code 137519, or visit the
Company's website. Dallas-based Gadzooks is a specialty retailer of
casual clothing, accessories and shoes for 16-22 year-old females.
Gadzooks currently operates 411 Gadzooks stores and four Orchid
stores, for a total of 415 stores in 41 states. This material
includes "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking
statements include estimates, targets, plans, expectations,
opinions, forecasts, projections, guidance or other statements that
are not statements of fact. Although the Company believes that the
expectations reflected in such forward- looking statements are
reasonable, it can give no assurance that such expectations will
prove to have been correct. There are many factors that could cause
forward-looking statements not to be correct, including the
cautionary statements contained in this material and risks and
uncertainties inherent in the Company's business set forth in the
filings of the Company with the Securities and Exchange Commission,
including without limitation the Company's most recent Annual
Report on Form 10-K. The Company does not undertake any obligation
to update any forward-looking statements contained in this
material. Gadzooks, Inc. Consolidated Statements of Operations (In
thousands, except per share data - unaudited) Third Quarter Ended
Nine Months Ended Nov. 1, Nov. 2, Nov. 1, Nov. 2, 2003 2002 2003
2002 Net sales $49,190 $73,734 $188,405 $228,706 Cost of goods sold
including buying, distribution and occupancy costs 43,747 56,785
160,028 170,823 Gross profit 5,443 16,949 28,377 57,883 Selling,
general and administrative Expenses 18,683 18,360 61,120 56,308
Operating income (loss) (13,240) (1,411) (32,743) 1,575 Interest
income (expense), net (208) 19 (225) 85 Income (loss) before income
taxes (13,448) (1,392) (32,968) 1,660 Provision (benefit) for
income taxes 8,659 (536) 1,144 644 Net income (loss) $(22,107)
$(856) $(34,112) $1,016 Net income (loss) per share Basic $(2.42)
$(0.09) $(3.73) $0.11 Diluted $(2.42) $(0.09) $(3.73) $0.11 Average
shares outstanding Basic 9,132 9,132 9,135 9,121 Diluted 9,132
9,132 9,135 9,255 Balance Sheet Highlights November 1, November 2,
2003 2002 Cash and investments $1,723 $2,347 Inventory 53,204
66,402 Accounts payable 22,796 23,407 Line of credit 4,363 ---
Notes payable 12,650 --- DATASOURCE: Gadzooks, Inc. CONTACT: Jim
Motley, VP, CFO of Gadzooks, Inc., +1-972-307-5555 Web site:
http://www.gadzooks.com/
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