EX-99.1 2 c44444_ex99-1.txt ANTONE F. MOREIRA ----------------- Vice President, Treasurer And Chief Financial Officer (201) 902-9600 SYMS CORP REPORTS RESULTS FOR THE SECOND QUARTER SECAUCUS, NEW JERSEY, SEPTEMBER 28, 2006 - Syms Corp (NYSE:SYM), a leading off-price retailer, announced results today for its second quarter ended August 26, 2006. For the second quarter ended August 26, 2006, the Company had a net loss of $1.4 million ($0.09 per share) as compared to a net loss of $1.2 million ($0.08 per share) for the 13-week period ended August 27, 2005. For the 26-week period ended August 26, 2006, the net profit was $4.4 million ($0.30 per share) as compared to a net loss of $.1 million ($0.01 per share) for the comparable period last year. In the first quarter ended May 27, 2006, the Company recorded a pre-tax gain on the sale of real estate amounting to approximately $10,424,000. This resulted from the sale of its stores located in Dallas, Texas and Rochester, New York. The Dallas store has been replaced by a leased property located in Plano, Texas. For the second quarter ended August 26, 2006 same store sales increased 3.2% compared to the same period last year. For the 26-week period ended August 26, 2006, same store sales increased .5% compared to the same period last year. Net sales for the second quarter ended August 26, 2006 increased 2.0% to $62.7 million, compared to $61.5 million for the same period last year. Net sales for the 26-week period ended August 26, 2006 were $128.9 million, the same as the period last year. The Company announced today that it has agreed to purchase the Westchester property from Sy Syms. The price is based upon independent appraisals and was authorized by the Board of Directors. The Company will fund the purchase using cash on hand. Syms Corp currently operates a chain of thirty six "off-price" apparel stores located throughout the Northeastern and Middle Atlantic regions and in the Midwest, Southeast and Southwest. Each Syms store offers a broad range of first quality, in-season merchandise bearing nationally recognized designer and brand-name labels. ----------------------------------------------------------------------- CERTAIN INFORMATION IN THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS (AS SUCH TERM IS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995) AND INFORMATION RELATING TO THE COMPANY THAT ARE BASED ON THE BELIEFS OF THE MANAGEMENT OF THE COMPANY, AS WELL AS ASSUMPTIONS MADE BY AND INFORMATION CURRENTLY AVAILABLE TO THE MANAGEMENT OF THE COMPANY. WHEN USED IN THIS PRESS RELEASE, THE WORDS "ANTICIPATE", "BELIEVE", "ESTIMATE", "EXPECT", "INTEND", "PLAN" AND SIMILAR EXPRESSIONS AS THEY RELATE TO THE COMPANY, IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS REFLECT THE CURRENT VIEWS OF THE COMPANY WITH RESPECT TO FUTURE EVENTS, THE OUTCOME OF WHICH IS SUBJECT TO CERTAIN RISKS, INCLUDING, AMONG OTHERS, GENERAL ECONOMIC AND MARKET CONDITIONS, DECREASED CONSUMER DEMAND FOR THE COMPANY'S PRODUCT, POSSIBLE DISRUPTIONS IN THE COMPANY'S COMPUTER OR TELEPHONE SYSTEMS, POSSIBLE WORK STOPPAGES, OR INCREASE IN LABOR COSTS, EFFECTS OF COMPETITION, POSSIBLE DISRUPTIONS OR DELAYS IN THE OPENING OF NEW STORES OR INABILITY TO OBTAIN SUITABLE SITES FOR NEW STORES, HIGHER THAN ANTICIPATED STORE CLOSINGS OR RELOCATION COSTS, HIGHER INTEREST RATES, UNANTICIPATED INCREASES IN MERCHANDISE OR OCCUPANCY COSTS AND OTHER FACTORS WHICH MAY BE OUTSIDE THE COMPANY'S CONTROL. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS OR OUTCOMES MAY VARY MATERIALLY FROM THOSE DESCRIBED HEREIN AS ANTICIPATED, BELIEVED, ESTIMATED, EXPECTED, INTENDED OR PLANNED. SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO THE COMPANY OR PERSONS ACTING ON ITS BEHALF ARE EXPRESSLY QUALIFIED IN THEIR ENTIRETY BY THE CAUTIONARY STATEMENTS IN THIS PARAGRAPH. (FINANCIAL TABLES TO FOLLOW) SYMS CORP UNAUDITED BALANCE SHEETS (IN THOUSANDS) AUGUST 26, AUGUST 27, 2006 2005 ---- ---- ASSETS: ------- Current Assets Cash $ 37,543 $ 16,345 Receivables 2,323 4,113 Merchandise Inventory 68,846 76,239 Other Current Assets 9,884 18,186 -------- -------- Total Current Assets 118,596 114,883 Property & Equipment - Net 105,784 106,636 Other Assets 24,594 23,954 -------- -------- Total Assets $248,974 $245,473 ======== ======== Liabilities & Shareholder's Equity: ----------------------------------- Accounts Payable $ 30,150 $ 26,537 Accrued Expenses 7,147 6,523 Other Current Liabilities 4,859 3,350 -------- -------- Total Current Liabilities 42,156 36,410 Other Long Term Liability 1,740 1,563 Shareholders' Equity 205,078 207,500 -------- -------- Total Liabilities & Capital $248,974 $245,473 ======== ======== SYMS CORP UNAUDITED STATEMENT OF OPERATIONS (IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Thirteen Thirteen Twenty Six Twenty Six Weeks Weeks Weeks Weeks Ended Ended Ended Ended 8/26/2006 8/27/2005 8/26/2006 8/27/2005 --------- --------- --------- --------- Net Sales $ 62,683 $ 61,457 $ 128,876 $ 128,889 Gross Margin 23,185 23,985 50,896 52,827 Operating Expenses 26,208 26,143 54,621 53,509 Gain on Sale of Real Estate 0 0 (10,424) 0 Net Profit (Loss) After Taxes $ (1,373) $ (1,203) $ 4,365 $ (148) ========= ========= ========= ========= Net Profit (Loss) Per Share - Basic $ (0.09) $ (0.08) $ 0.30 $ (0.01) ========= ========= ========= ========= Weighted Average Shares Outstanding - Basic 14,495 14,961 14,710 14,990 ========= ========= ========= =========