EX-99 2 ex99_1-f8k060904.txt EX-99.1-PRESS RELEASE Exhibit 99.1 LOEHMANN'S HOLDINGS INC. REPORTS FIRST QUARTER 2004 RESULTS BRONX, N.Y.--(BUSINESS WIRE)--June 9, 2004--Loehmann's Holdings Inc. (NASDAQ: LHMS) today announced financial results for the first quarter of its fiscal year ended January 29, 2005. For the first quarter: o Net sales increased 18.3% to $107.0 million compared to $90.4 million in the first quarter of fiscal 2003; o Comparable store sales increased by 12.4%; o Net income per diluted share increased to $0.69 compared to net income per diluted share of $0.37 in the first quarter of fiscal 2003; and o EBITDA totaled $11.3 million compared to $7.5 million in the first quarter of fiscal 2003. Additionally, during the first quarter of 2004, the Company opened one Loehmann's full line store and one Loehmann's shoe store ending the quarter with 48 stores in 17 states and the District of Columbia. Robert N. Friedman, Chief Executive Officer, stated: "We are pleased with our first quarter results, which demonstrate the success of our merchandising, marketing and store expansion strategies." Loehmann's is a leading specialty retailer of well-known designer and brand name women's and men's fashion apparel, accessories and shoes at prices that are typically 30% to 65% below department store prices. Loehmann's currently operates 48 stores in major metropolitan markets located in 17 states and the District of Columbia. Loehmann's invites investors to visit the Company's web site at www.loehmanns.com. ******************************************************************************** This release contains forward-looking information within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, uncertainties, and other factors which may cause actual results to differ materially from such forward-looking information. Such factors include, among other things, levels of sales and store traffic, general economic and business conditions, competition, development and operating costs, advertising and promotional efforts, brand awareness, and the existence or absence of adverse publicity. For more detail, see the Company's annual and quarterly reports filed with the Securities and Exchange Commission (a copy of which may also be obtained from the Company at (718) 409-2000). Investors and prospective investors are urged to consider the factors discussed above, and to read the Company's annual, quarterly and periodic reports filed with the Securities and Exchange Commission. ******************************************************************************** (Tables to Follow) Loehmann's Holdings Inc. Consolidated Balance Sheet ($ in thousands)
May 1, January 31, 2004 2004 -------- -------- (unaudited) (audited) Assets Cash & cash equivalents $ 11,519 $ 8,046 Accounts receivable and other assets 8,647 7,392 Merchandise inventory 69,139 59,177 -------- -------- Total current assets 89,305 74,615 Property, equipment and leaseholds, net 44,682 43,893 Deferred financing fees and other assets, net 1,977 1,305 Deferred tax asset 8,252 8,252 Reorganization value in excess of identifiable assets, net 11,322 11,243 -------- -------- Total assets $155,538 $139,308 ======== ======== Liabilities and stockholders' equity Accounts payable - trade $ 35,651 $ 28,330 Accrued expenses 18,563 19,041 Income taxes payable 3,278 - -------- -------- Total current liabilities 57,492 47,371 Deferred tax liability 3,441 3,441 Other noncurrent liabilities 8,689 7,870 Stockholders' equity: Common stock 67 67 Additional paid-in-capital 50,361 50,361 Retained earnings 35,488 30,198 -------- -------- Total stockholders' equity 85,916 80,626 -------- -------- Total liabilities & stockholders' equity $155,538 $139,308 ======== ========
Loehmann's Holdings Inc. Consolidated Statement of Operations (Unaudited) ($ in thousands) Quarter Ended ---------------------- May 1, May 3, 2004 2003 -------- -------- Net Sales $107,019 $ 90,428 -------- -------- Gross profit 43,960 36,427 Revenue from leased department 353 329 -------- -------- Operating profit 44,313 36,756 Selling, general and administrative expenses 32,994 29,246 -------- -------- EBITDA(1) 11,319 7,510 Depreciation and amortization 2,436 2,345 -------- -------- Operating income 8,883 5,165 Interest expense, net 38 458 -------- -------- Income before income taxes 8,845 4,707 Provision for income taxes, net 3,555 1,955 -------- -------- Net income $ 5,290 $ 2,752 ======== ======== Earnings Per Share : Basic Earnings per share $ 0.79 $ 0.41 ======== ======== Weighted average shares outstanding 6,729 6,659 ======== ======== Diluted Earnings per share $ 0.69 $ 0.37 ======== ======== Weighted average shares outstanding 7,687 7,510 ======== ======== (1) EBITDA (earnings before interest, taxes, depreciation and amortization) is not a Generally Accepted Accounting Principles (GAAP) measurement, but is being included, as we believe it is a commonly used measure of operating performance in the retail industry. EBITDA is provided to enhance an investor's understanding of our operating results. It should not be construed as an alternative to operating income as an indicator of operating performance or as an alternative to cash flows from operating activities as a measure of liquidity as determined in accordance with GAAP. All companies do not calculate EBITDA in the same manner. As a result, EBITDA as reported may not be comparable to EBITDA as reported by other companies.