EX-99 2 qtr1earn06.txt EX For Information Contact: Company Contact: Jeff Unger, Investor Relations (561) 514-0115 Andrew Bard, Weber Shandwick 212-445-8368 Casual Male Retail Group, Inc. Reports Improved Operating Results For the First Quarter of Fiscal 2005 CANTON, MA, May 19, 2005 -- Casual Male Retail Group, Inc. (NASDAQ/NMS: "CMRG"), retail brand operator of Casual Male Big & Tall, Rochester Big & Tall, and the exclusive distributor and retailer of George Foreman's clothing collection, today announced its operating results for the first quarter of fiscal 2005. For the first quarter of fiscal 2005, net loss was $(1.9) million, or $(0.05) per diluted share, compared to a net loss of $(5.1) million, or $(0.15) per diluted share, for the first quarter of fiscal 2004. Assuming a normalized tax rate of 37%, the net loss per share for the first quarter of fiscal 2005 was $(0.03) per diluted share compared to a net loss per diluted share of $(0.09) per diluted share for the first quarter of fiscal 2004. Results for the first quarter of fiscal 2005 include the operating results of the Company's Rochester Big & Tall stores which were acquired by the Company in October 2004. Results from continuing operations for the first quarter of fiscal 2004 included sales of $6.1 million and an operating loss of $(0.3) million from the Ecko Unltd.(r) outlet stores, divested in July 2004. "Our operating results were a substantial improvement over last year," said David Levin, President and Chief Executive Officer. "This is our first quarter where the Company's efforts were entirely focused on its core big & tall businesses." In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), our above discussion refers to a normalized tax rate, which is a non-GAAP measure. Normalized tax basis reflects a 37% effective tax rate on pre-tax loss. The Company believes that the inclusion of this non-GAAP measure helps investors to gain a better understanding of the Company's performance, especially when comparing such results to previous periods or forecasts. However, this non-GAAP financial measure included in this press release is not meant to be considered superior to or as a substitute for results of operations prepared in accordance with GAAP. The following table shows the reconciliation of the net loss of $(0.05) per diluted share for the first quarter of fiscal 2005 as compared to net loss of $(0.15) per diluted share for the first quarter of fiscal 2004 on a GAAP basis effected for the adjustment for normalized taxes: For the three months ended: April 30, 2005 May 1, 2004 (in millions, except for per share amounts) Net Loss Net Loss Per Share Per Share ---------------------- -------------------- Net loss, as reported $ (1.9) $(0.05) $ (5.1) $(0.15) Income tax benefit, assuming normalized tax rate of 37% 0.7 0.02 1.8 0.06 ---------------------- -------------------- Adjusted net loss, after normalized tax benefit $ (1.2) $(0.03) $ (3.3) $(0.09) ---------------------- --------------------- Weighted average shares outstanding - diluted 34.2 35.1 Casual Male will host a conference call with security analysts beginning at 11:00 a.m. ET today, Thursday, May 19, 2005, to review the operating results for the first quarter ended April 30, 2005. The call is being webcast by CCBN and can be accessed at www.casualmale.com/investor. During the conference call the Company may discuss and answer questions concerning business and financial developments and trends. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously. Casual Male Retail Group, Inc., the largest retailer of big and tall men's apparel with retail operations throughout the United States, Canada and London, England, operates 495 Casual Male Big & Tall stores, the Casual Male e-commerce site, Casual Male catalog business, 13 Casual Male at Sears-Canada stores and 22 Rochester Big & Tall stores and a direct to consumer business. The Company is headquartered in Canton, Massachusetts and its common stock is listed on the Nasdaq National Market under the symbol "CMRG." The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results. The Company's actual results and the implementation of its plans and operations may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its prior filings with the Securities and Exchange Commission, including without limitation ,its Current Report Form 8-K filed on April 8, 2005, that set forth certain risks and uncertainties that may have an impact on future results and direction of the Company. CASUAL MALE RETAIL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the three months ended April 30, 2005 May 1, 2004 -------------- ----------- Sales $ 97,298 $ 84,175 Cost of goods sold including occupancy 57,059 50,449 ------------ ---------- Gross profit 40,239 33,726 Expenses: Selling, general and administrative 37,162 33,153 Depreciation and amortization 2,978 2,221 ------------ ---------- Total expenses 40,140 35,374 Operating income (loss) 99 (1,648) Interest expense, net (1,980) (2,179) ------------ ---------- Loss from continuing operations before minority interest and income taxes (1,881) (3,827) Minority interest - (347) Income taxes - - ------------ ----------- Loss from continuing operations $ (1,881) $ (3,480) Loss from discontinued operations - (1,614) ------------- ----------- Net loss $ (1,881) $ (5,094) Net loss per share - basic and diluted Loss from continuing operations ($0.05) ($0.10) Loss from discontinued operations $0.00 ($0.05) ------------- ----------- Net loss ($0.05) ($0.15) Weighted-average number of common shares outstanding: Basic and diluted 34,234 35,126 CASUAL MALE RETAIL GROUP, INC. CONSOLIDATED BALANCE SHEETS April 30, 2005 and January 29, 2005 (In thousands) April 30, 2005 January 29, 2005 ASSETS Cash and investments $ 5,816 $ 5,731 Inventories 92,160 79,858 Other current assets 7,097 9,178 Property and equipment, net 73,716 74,651 Goodwill and other intangibles 89,217 89,349 Other assets 9,037 9,021 ---------- --------- Total assets $ 277,043 $ 267,788 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable, accrued expenses and other liabilities $ 57,561 $ 53,729 Notes payable 27,401 19,311 Long-term debt, net of current portion 116,820 117,784 Stockholders' equity 75,261 76,964 ---------- ----------- Total liabilities and stockholders' equity $ 277,043 $ 267,788