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Kirkland's Reports Second Quarter ResultsJACKSON, Tenn., Aug. 28 /PRNewswire-FirstCall/ -- Kirkland's, Inc. (Nasdaq: KIRK) today reported financial results for the 13-week and 26-week periods ended August 2, 2008. Net sales for the 13-week period ended August 2, 2008, were Net sales for the 26-week period ended August 2, 2008, increased 1.2% to
The Company reported a net loss of "Our plan for fiscal 2008 is to produce year-over-year improvement in financial performance each quarter and leverage our lower cost structure. We remain solidly on track with that plan. Inventories are on plan and exceptionally clean as we head into the third quarter. Our liquidity position is very strong as we continue to fund our inventory purchases from operations and have yet to borrow from our credit line." Investor Conference Call and Web Simulcast Kirkland's will host a conference call on August 28, 2008, at 11:00 a.m. ET to discuss its results of operations for the second quarter of fiscal 2008. The number to call for this interactive teleconference is (303) 262-2130. A replay of the conference call will be available through September 5, 2008, by dialing (303) 590-3000 and entering the confirmation number, 11117855#. The live broadcast of Kirkland's quarterly conference call will be available online at the Company's website, www.kirklands.com , or at http://www.videonewswire.com/event.asp?id=50491 on August 28, 2008, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for one year. Kirkland's, Inc. was founded in 1966 and is a specialty retailer of home decor inthe United States. Although originally focused in the Southeast, the Company has grown beyond that region and currently operates 323 stores in 34 states. The Company's stores present a broad selection of distinctive merchandise, including framed art, mirrors, candles, lamps, picture frames, accent rugs, garden accessories and artificial floral products. The Company's stores also offer an extensive assortment of gifts, as well as seasonal merchandise. More information can be found at www.kirklands.com Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Kirkland's actual results to differ materially from forecasted results. Those risks and uncertainties include, among other things, the competitive environment in the home decor industry in general and in Kirkland's specific market areas, inflation, product availability and growth opportunities, seasonal fluctuations, and economic conditions in general. Those and other risks are more fully described in Kirkland's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed on May 1, 2008. Kirkland's disclaims any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share amounts)
13 Week Period Ended
August 2, August 4,
2008 2007
Net sales $87,684 $87,359
Cost of sales 59,815 63,548
Gross profit 27,869 23,811
Operating expenses:
Other operating expenses 25,132 27,653
Depreciation and amortization 4,473 4,865
Nashville relocation expenses - 552
Store impairment charge - 540
Operating loss (1,736) (9,799)
Interest expense 29 157
Interest income (16) (1)
Other expense (income) (64) 27
Loss before income taxes (1,685) (9,982)
Income tax expense (benefit) 9 (3,517)
Valuation allowance - 2,781
Net loss $(1,694) $(9,246)
Earnings per share:
Basic $(0.09) $(0.47)
Diluted $(0.09) $(0.47)
Shares used to calculate earnings per
share:
Basic 19,623 19,501
Diluted 19,623 19,501
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share amounts)
26 Week Period Ended
August 2, August 4,
2008 2007
Net sales $171,761 $169,673
Cost of sales 116,984 123,630
Gross profit 54,777 46,043
Operating expenses:
Other operating expenses 49,830 57,082
Depreciation and amortization 9,156 9,882
Nashville relocation expenses - 762
Store impairment charge 352 813
Operating loss (4,561) (22,496)
Interest expense 59 185
Interest income (47) (180)
Other income (336) (31)
Loss before income taxes (4,237) (22,470)
Income tax expense (benefit) 9 (8,506)
Valuation allowance - 2,781
Net loss $(4,246) $(16,745)
Earnings per share:
Basic $(0.22) $(0.86)
Diluted $(0.22) $(0.86)
Shares used to calculate earnings per
share:
Basic 19,614 19,492
Diluted 19,614 19,492
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in thousands)
August 2, February 2, August 4,
2008 2008 2007
ASSETS
Current assets:
Cash and cash equivalents $4,699 $5,820 $2,465
Inventories, net 42,718 41,246 47,372
Other current assets 6,646 10,868 15,936
Total current assets 54,063 57,934 65,773
Property and equipment, net 54,188 63,002 68,101
Other long-term assets 1,162 1,196 2,075
Total assets $109,413 $122,132 $135,949
LIABILITIES AND SHAREHOLDERS' EQUITY
Revolving line of credit $- $- $12,911
Accounts payable 13,834 15,786 11,934
Other current liabilities 22,393 25,566 23,475
Total current liabilities 36,227 41,352 48,320
Deferred rent and other long-term
liabilities 34,678 38,210 35,912
Total liabilities 70,905 79,562 84,232
Net shareholders' equity 38,508 42,570 51,717
Total liabilities and shareholders'
equity $109,413 $122,132 $135,949
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(dollars in thousands)
26 Week Period Ended
August 2, August 4,
2008 2007
Net cash provided by (used in):
Operating activities $(155) $(28,283)
Investing activities (1,013) (7,643)
Financing activities 47 13,033
Cash and cash equivalents:
Net decrease $(1,121) $(22,893)
Beginning of the period 5,820 25,358
End of the period $4,699 $2,465
SOURCE Kirkland's, Inc. Tags: ,REA,ERN,ERP,CCA,TN-Kirkl and s-earns _ _     Is your favorite bookmark site missing? Ask for it. |
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