-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IjH6fYvX353qez6mU5DBKHTBjfnrAy8DEGK3S8583fSmXGa5eoS+9t+oTuUOF9RR DV39aOTjURS/6whOf2klFA== 0001144204-06-016860.txt : 20060426 0001144204-06-016860.hdr.sgml : 20060426 20060426144228 ACCESSION NUMBER: 0001144204-06-016860 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060426 DATE AS OF CHANGE: 20060426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: E COM VENTURES INC CENTRAL INDEX KEY: 0000880460 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS RETAIL [5900] IRS NUMBER: 650026340 STATE OF INCORPORATION: FL FISCAL YEAR END: 0205 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19714 FILM NUMBER: 06780772 BUSINESS ADDRESS: STREET 1: 251 INTERNATIONAL PARKWAY CITY: SUNRISE STATE: FL ZIP: 33325 BUSINESS PHONE: 3058891600 MAIL ADDRESS: STREET 1: 251 INTERNATIONAL PARKWAY CITY: SUNRISE STATE: FL ZIP: 33325 FORMER COMPANY: FORMER CONFORMED NAME: PERFUMANIA INC DATE OF NAME CHANGE: 19930328 8-K 1 v041372_8k.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 25, 2006 E COM VENTURES, INC. -------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Florida 0-19714 65-0977964 ---------------------------- ------------ ------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 251 International Parkway Sunrise, Florida 33325 -------------------------------------------------------------------- (Address of Principal Executive Office) (Zip Code) (954) 335-9100 -------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable -------------------------------------------------------------------- (Former Name or Former Address, If Changed Since Last Report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION Attached hereto as Exhibit 99.1 and incorporated by reference herein is E Com Ventures, Inc.'s news release dated April 25, 2006, announcing its financial results for the fiscal year ended January 28, 2006. This information is furnished pursuant to Item 2.02 of Form 8-K. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS Exhibit 99.1 News release of E Com Ventures, Inc. issued on April 25, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. E COM VENTURES, INC. Date: April 26, 2006 By: /s/ A. Mark Young ----------------------------- A. Mark Young Chief Financial Officer EX-99.1 2 v041372_ex99-1.txt [LOGO] E Com Ventures, Inc. FOR IMMEDIATE RELEASE Company Contact: A. Mark Young Chief Financial Officer E Com Ventures, Inc. 954-335-9030 E COM VENTURES INC. REPORTS FISCAL YEAR 2005 RESULTS Sunrise, Fl. - April 25, 2006. E Com Ventures, Inc., (NASDAQ: ECMV) announced today the results of operations for its fiscal year ended January 28, 2006. Total revenues for fiscal year 2005 were $234 million, an increase of 3.9% over the $225 million reported for the prior year. Retail sales for fiscal year 2005 were $216 million, a 7.2% increase over the prior year. Of this increase, 5.8% resulted from comparable stores sales improvements. Gross profit for fiscal year 2005 was $96.5 million, a 5.7% increase over the prior year amount of $91.3 million. The increase in gross profit was largely due to improvements in retail sales volume. During fiscal year 2005 operating expenses increased by a modest $1.3 million and represented 36.8% of net sales as compared to 37.6% of net sales for fiscal year 2004. This improvement in operating expenses as a percentage of net sales is primarily attributable to improvement in the scheduling of hours for store personnel, which resulted in a reduction in store payroll costs as a percentage of net sales. The increase in gross profit, better control of operating costs and an increased number of stores resulted in income from operations of $10.5 million compared to $6.6 million in the prior year. In fiscal year 2005 the Company achieved income before income taxes of $6.6 million, an increase of 101% over fiscal year 2004. In addition, management has determined that it is now more likely than not that the Company will realize the benefit of certain of its deferred tax assets and therefore has reversed a portion of the prior year's tax asset valuation allowance resulting in an income tax benefit of $7.6 million in fiscal year 2005 and a net income of approximately $14.3 million. The Company does not expect a similar tax benefit in fiscal year 2006. "In fiscal year 2005, we began seeing the benefits of our programs to better control store operating expenses while growing sales through comparable store improvement and opening new stores," said Michael W. Katz, the Company's President and Chief Executive Officer. "We continue to improve our product offerings both in fragrances and complimentary products to improve our sales dollars per retail transaction. The hard work and dedication of our employees was vital to bringing about this record-breaking year. We remain focused on our mission to make Perfumania the retail place of choice when buying fragrances and beauty products." E COM VENTURES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE FISCAL YEAR ENDED -------------------------------------------------------- January 28, 2006 January 29, 2005 January 31, 2004 ---------------- ---------------- ---------------- Net sales $ 233,694,081 $ 225,003,201 $ 212,567,569 Cost of goods sold 137,192,922 133,666,605 129,190,549 ---------------- ---------------- ---------------- Gross profit 96,501,159 91,336,596 83,377,020 ---------------- ---------------- ---------------- Operating expenses: Selling, general and administrative expenses 80,677,406 78,521,215 82,297,031 Provision for impairment of assets and store closings 162,370 313,888 593,109 Depreciation and amortization 5,155,645 5,874,591 6,102,823 Expenses incurred in connection with change of control -- -- 4,931,221 ---------------- ---------------- ---------------- Total operating expenses 85,995,421 84,709,694 93,924,184 ---------------- ---------------- ---------------- Income (loss) from operations 10,505,738 6,626,902 (10,547,164) ---------------- ---------------- ---------------- Other expenses: Interest expense, net: Affiliates (371,458) (248,124) (93,510) Other (3,506,018) (3,077,497) (2,059,347) ---------------- ---------------- ---------------- (3,877,476) (3,325,621) (2,152,857) ---------------- ---------------- ---------------- Realized loss on investments -- -- (171,679) ---------------- ---------------- ---------------- Income (loss) before income taxes 6,628,262 3,301,281 (12,871,700) Income tax benefit (provision) 7,637,000 (150,000) -- ---------------- ---------------- ---------------- Net income (loss) $ 14,265,262 $ 3,151,281 $ (12,871,700) ================ ================ ================ Basic income (loss) per common share $ 4.84 $ 1.11 $ (5.24) ================ ================ ================ Diluted income (loss) per common share $ 4.23 $ 1.06 $ (5.24) ================ ================ ================ Weighted average number of shares outstanding: Basic 2,949,146 2,832,107 2,454,340 ================ ================ ================ Diluted 3,463,480 3,001,844 2,454,340 ================ ================ ================
The Company's fiscal year ends on the Saturday closest to January 31. Fiscal year 2005 ended on January 28, 2006, fiscal year 2004 ended on January 29, 2005 and fiscal year 2003 ended on January 31, 2004. Each of the fiscal years presented contain fifty-two weeks. # # # This press release may include information presented which contains forward-looking information, including statements regarding the strategic direction of the Company. Some of these statements, including those that contain the words "anticipate," "believe," "plan," "estimate," "expect," "should," "intend," and other similar expressions, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements of those of our industry to be materially different from any future results, performance or achievements expressed or implied by those forward-looking statements. Among the factors that could cause actual results, performance or achievements to differ materially from those described or implied in the forward-looking statements are our ability to service our obligations, our ability to comply with the covenants in our credit facility, general economic conditions, competition, potential technology changes, changes in or the lack of anticipated changes in the regulatory environment in various countries, the ability to secure partnership or joint-venture relationships with other entities, the ability to raise additional capital to finance expansion, the risks inherent in new product and service introductions and the entry into new geographic markets and other factors included in our filings with the Securities and Exchange Commission. -----END PRIVACY-ENHANCED MESSAGE-----