EX-99.1 2 a05-7076_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

CONTACT:

 

Loren K. Jensen

 

 

Chief Financial Officer

 

 

TUESDAY MORNING CORPORATION

 

 

972/934-7299

 

 

 

 

 

Laurey Peat

 

 

LAUREY PEAT + ASSOCIATES

 

 

214/871-8787

 

TUESDAY MORNING CORPORATION

ANNOUNCES FIRST QUARTER 2005 RESULTS; SALES UP 10%

 

DALLAS, TX – April 21, 2005 — Tuesday Morning Corporation (NASDAQ: TUES) today reported that net income for the first quarter ended March 31, 2005 was $6.7 million, which included a $2.4 million after-tax charge related to lease accounting adjustments, compared to $8.2 million reported in the same prior-year quarter. Diluted earnings per share for the March 31, 2005 quarter were 16 cents, including the lease adjustment charge, compared to 20 cents in the same quarter last year.  Net income and diluted earnings per share, excluding the after-tax lease adjustment, were $9.1 million and 22 cents, representing an 11% and 10% increase over last year’s first quarter net income and diluted earnings per share, respectively.

 

As previously reported, net sales increased 10% to $185.6 million for the first quarter of 2005, compared to $168.6 million for the same period in 2004.

 

“We are pleased to report that Tuesday Morning has once again delivered favorable earnings results in spite of a difficult home furnishings environment. This demonstrates our ability to anticipate and respond effectively to opportunities and changes in the marketplace,” said Kathleen Mason, President and Chief Executive Officer. “Traffic improved from the fourth quarter, and our inventories are in excellent shape for the spring and summer shopping seasons.”

 

Tuesday Morning management will review first quarter financial results in a teleconference call April 21, 2005 at 10:00 a.m. Eastern Time.

 


 

About Tuesday Morning

Tuesday Morning is the leading closeout retailer of upscale, decorative home accessories and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 673 stores in 43 states during periodic “sale events.” Tuesday Morning is nationally known for bringing its more than 7.5 million loyal customers a treasure hunt of high-end, first quality, brand name merchandise at prices 50% to 80% below department and specialty stores and catalogues.

 

This press release contains forward-looking statements, within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, estimates and projections.  Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements.  Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking statements.  Such risks and uncertainties include: the success of new store openings, competitive factors, access to merchandise and unanticipated changes in consumer demand and economic trends, as well as other risks detailed in the company’s filings with the Securities and Exchange Commission, including the company’s Registration Statement on Form S-3 and Annual Report on Form 10-K for the period ending December 31, 2004.

 

# # #

 


 

Tuesday Morning Corporation

 

Consolidated Statement of Income
(In thousands, except per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2005

 

2004

 

 

 

unaudited

 

Net Sales

 

$

185,594

 

$

168,597

 

Cost of sales

 

113,036

 

102,585

 

Gross profit

 

72,558

 

66,012

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

62,122

 

52,531

 

 

 

 

 

 

 

Operating income

 

10,436

 

13,481

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

Interest expense

 

(206

)

(411

)

Interest income

 

34

 

4

 

Other income (expense), net

 

193

 

241

 

Other income (expense)

 

21

 

(166

)

 

 

 

 

 

 

Income before income taxes

 

10,457

 

13,315

 

 

 

 

 

 

 

Income taxes provision (benefit)

 

3,791

 

5,126

 

 

 

 

 

 

 

Net income

 

$

6,666

 

$

8,189

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

Net income per common share:

 

 

 

 

 

Basic

 

$

0.16

 

$

0.20

 

Diluted

 

$

0.16

 

$

0.20

 

 

 

 

 

 

 

Weighted average number of common shares:

 

 

 

 

 

Basic

 

41,129

 

40,980

 

Diluted

 

41,740

 

41,742

 

 

Consolidated Balance Sheet
(in thousands)

 

 

 

March 31,

 

Dec 31,
2004

 

 

 

2005

 

2004

 

 

 

 

unaudited

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,295

 

$

7,096

 

$

45,067

 

Inventories

 

212,587

 

195,194

 

189,132

 

Prepaid expenses and other assets

 

7,388

 

5,355

 

5,169

 

Deferred income taxes

 

5,991

 

5,106

 

5,991

 

Total current assets

 

240,261

 

212,751

 

245,359

 

 

 

 

 

 

 

 

 

Property and Equipment, net

 

86,920

 

78,484

 

86,332

 

 

 

 

 

 

 

 

 

Other long-term assets:

 

 

 

 

 

 

 

Deferred financing costs

 

809

 

806

 

877

 

Other assets

 

3,189

 

998

 

3,552

 

 

 

 

 

 

 

 

 

Total Assets

 

$

331,179

 

$

293,039

 

$

336,120

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current portion, long-term debt

 

—

 

7,000

 

—

 

Accounts payable

 

76,568

 

83,256

 

72,722

 

Other accrued liabilities

 

32,477

 

30,133

 

39,714

 

Income taxes payable

 

4,952

 

6,490

 

17,483

 

Total current liabilities

 

113,997

 

126,879

 

129,919

 

 

 

 

 

 

 

 

 

Long-term debt, excluding current portion

 

—

 

20,000

 

—

 

Deferred rent - long-term

 

4,249

 

—

 

—

 

Deferred taxes - long-term

 

9,051

 

5,641

 

9,051

 

Total Liabilities

 

127,297

 

152,520

 

138,970

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

203,882

 

140,519

 

197,150

 

Total Liabilities and Stockholders’ Equity

 

$

331,179

 

$

293,039

 

$

336,120

 

 


 

Consolidated Statement of Cash Flows
(in thousands)

 

 

 

Three Months ended March 31,

 

 

 

2005

 

2004

 

 

 

unaudited

 

Net cash flows from operating activities:

 

 

 

 

 

Net income

 

$

6,666

 

$

8,189

 

Adjustments to reconcile net income to net cash (used in) operating activities:

 

 

 

 

 

Depreciation and amortization

 

3,459

 

2,670

 

Amortization of financing fees

 

43

 

101

 

Cumulative effect of lease accounting adj.

 

3,898

 

—

 

Other non-cash charges

 

(28

)

—

 

Net change in operating assets and liabilities

 

(40,857

)

(48,499

)

 

 

 

 

 

 

Net cash used in operating activities

 

(26,819

)

(37,539

)

 

 

 

 

 

 

Net cash flows from investing activities:

 

 

 

 

 

Capital expenditures

 

(4,047

)

(6,279

)

Other

 

—

 

—

 

 

 

 

 

 

 

Net cash used in investing activities

 

(4,047

)

(6,279

)

 

 

 

 

 

 

Net cash flows from financing activities:

 

 

 

 

 

Proceeds from revolving credit facility

 

—

 

27,000

 

Repayment of long-term debt

 

—

 

—

 

Other

 

94

 

378

 

 

 

 

 

 

 

Net cash provided by (used in) financing act.

 

94

 

27,378

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(30,772

)

(16,440

)

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

45,067

 

23,536

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

14,295

 

$

7,096