Sport Chalet Reports Increased Net Income and Comparable Store Sales Growth for Second Quarter of Fiscal 2013

Sport Chalet Reports Increased Net Income and Comparable Store Sales Growth
for Second Quarter of Fiscal 2013

Best Second Quarter Results in Five Years

LOS ANGELES, Nov. 7, 2012 (GLOBE NEWSWIRE) -- Sport Chalet, Inc.
(Nasdaq:SPCHA) (Nasdaq:SPCHB), a leading operator of full-service, specialty
sporting goods stores, today announced its financial results for the second
quarter and six months ended September 30, 2012.

Second Quarter Summary

  *Net income was $0.8 million compared to net income of $0.6 million in the
    second quarter of the prior year;
    
  *Comparable store sales increased 5.5% for the 13 weeks ended September 30,
    2012 compared to the same period last year;
    
  *Team Sales division sales increased 23.7% from the second quarter of last
    year; and
    
  *Online sales increased 15.6% from the second quarter of last year.

Second Quarter Results

Sales increased $3.5 million, or 3.9%, to $91.5 million for the 13 weeks ended
September 30, 2012 from $88.0 million for the 13 weeks ended October 2, 2011.
The sales increase is primarily due to a 5.5% increase in comparable store
sales, an improvement on top of the 3.1% increase in the same period last
year. Team Sales division and Online sales increased 23.7% and 15.6%,
respectively.These sales increases were partially offset by one store closure
which contributed $1.5 million in sales in the prior year.

Gross profit decreased $0.5 million, or 1.9%, and as a percent of sales
decreased to 27.6% from 29.2%.The 1.6% decrease as a percent of sales is
primarily due to 0.8% from a promotional campaign in August, 0.3% in costs
related to ongoing customer satisfaction initiatives implemented in August
2011, and changes in merchandise costs and in the product mix.

Selling, general and administrative ("SG&A") expenses decreased $0.4 million,
or 1.9%, primarily due to $0.4 million in savings from labor-related expenses,
such as self-insurance for employee health insurance coverage and stock option
expense.As a percent of sales, SG&A decreased to 24.0% from 25.4%.
Depreciation decreased $0.3 million as a result of the low level of capital
expenditures in recent fiscal years with no new store openings or significant
remodels.

Net income for the quarter ended September 30, 2012 increased $0.2 million to
$0.8 million, or $0.05 per diluted share, compared to net income of $0.6
million, or $0.04 per diluted share, for the quarter ended October 2, 2011.

Craig Levra, Chairman and CEO, stated, "We are pleased with our second quarter
results as we continued to grow top line sales and increased profitability
with sequential and year-over-year improvements in both.The momentum we
experienced during the first quarter continued in the second quarter, and we
believe that we are well positioned to have a profitable fiscal 2013.Our
recent results reflect the steps we have taken over the past few years to
strengthen our financial position and adjust our operations.We are optimistic
as we head into our most important holiday season with more technical
merchandise available compared to last year from the most innovative brands
from across the globe and our focus on expanding our Experts' knowledge in our
technical offerings has never been greater."

Six-Month Results

For the six months ended September 30, 2012, total sales increased 2.6% to
$175.3 million from $170.8 million for the first half of the prior fiscal
year.The sales increase is primarily due to a comparable store sales increase
of 4.1%, an improvement on top of the 2.7% increase in the same period last
year, Team Sales division and Online sales increased 18.8% and 11.1%,
respectively, partially offset by one store closure which contributed $3.2
million in sales in the prior year.

Gross profit as a percent of sales decreased to 27.7% from 29.0% for the first
six months of last year.The 1.3% decrease as a percent of sales is primarily
due to 0.5% from a promotional campaign in August, 0.3% in costs related to
ongoing customer satisfaction initiatives implemented in August 2011, and
changes in merchandise costs and in the product mix.

SG&A expenses decreased $1.3 million, or 2.9%, primarily due to $1.4 million
in savings from labor-related expenses, such as self-insurance for employee
health insurance coverage, incentive payments largely for store employees and
stock option expense.SG&A expenses as a percent of sales decreased to 24.3%
from 25.7%. Depreciation decreased $0.8 million as a result of the low level
of capital expenditures in recent fiscal years with no new store openings or
significant remodels.

The Company's net income for the six months ended September 30, 2012 improved
by $1.1 million to $0.9 million, or $0.06 per diluted share, from a net loss
of $0.2 million, or $0.02 per diluted share, for the same period last year.

Conference Call Info

The Company will be hosting a conference call and audio webcast, both open to
the public, today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to review
its financial results for the second quarter and six months ended September
30, 2012. Investors will have the opportunity to listen to the earnings
conference call over the internet through an audio webcast located at
http://www.media-server.com/m/p/bs9rtc39.To listen to the live call, please
go to the website at least fifteen minutes early to register and download and
install any necessary audio software.The conference call also may be accessed
by dialing (800) 561-2813 and entering passcode 99230773.A dial-in replay of
the call will be available approximately two hours after the conference call
through Midnight Pacific Time on Thursday, December 6, 2012 by dialing (888)
286-8010 and entering passcode 19330352.

New Store Opening

As previously announced, the Company currently plans to open a store in May
2013 in Downtown Los Angeles.Sport Chalet will be an anchor tenant at
Brookfield Office Properties' FIGat7th, the destination retail center at the
intersection of Figueroa Street and 7th Street that has undergone a $40
million redevelopment.The store will occupy 27,300 square feet of space at
the lower courtyard level, and will join City Target as the first new anchors
at the redeveloped FIGat7th. This store will incorporate a new design template
of enhanced displays, fixtures, and graphics to reinforce the Sport Chalet
brand and its market positioning as a destination for premium brands,
technical merchandise and the highest quality service offerings.

About Sport Chalet, Inc.

Sport Chalet, founded in 1959 by Norbert Olberz, is a leading, full service
specialty retailer with 54 stores in Arizona, California, Nevada and Utah;
Sport Chalet online at www.sportchalet.com; and a Team Sales division.The
Company offers over 50 specialty services for the sports enthusiast, including
climbing, backcountry skiing, ski mountaineering, avalanche education, and
mountain trekking instruction, car rack installation, snowboard and ski rental
and repair, Scuba training and certification, Scuba boat charters, team sales,
gait analysis, baseball/softball glove steaming and lacing, racquet stringing,
and bicycle tune-up and repair at its store locations.

The Sport Chalet, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10020

Forward-Looking Statements

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 that may cause
the Company's actual results in future periods to differ materially from
forecasted results. Those risks include, among other things, the negative
effect of the economic downturn on the Company's sales, limitations on
borrowing under the Company's bank credit facility, the Company's ability to
control operating expenses and costs, the competitive environment of the
sporting goods industry in general and in the Company's specific market areas,
inflation, the challenge of maintaining its competitive position, changes in
costs of goods and services, and the weather and economic conditions in
general and in specific market areas. These and other risks are more fully
described in the Company's filings with the Securities and Exchange
Commission.

Sport Chalet, Inc.

Consolidated Statements of Operations (Unaudited)
                                                                
                            13 weeks ended         26 weeks ended
                            September 30, October 2, September 30, October 2,
                             2012          2011       2012          2011
                            (in thousands, except per share amounts)
Net sales                   $91,452     $87,980  $175,301    $170,804
Cost of goods sold, buying   66,233       62,281    126,714      121,281
and occupancy costs
Gross profit                25,219       25,699    48,587       49,523
                                                                
Selling, general and         21,924       22,340    42,662       43,955
administrative expenses
Depreciation and             2,041        2,329     4,110        4,897
amortization
Income from operations      1,254        1,030     1,815        671
                                                                
Interest expense            492          431       950          896
Income (loss) before income  762          599       865          (225)
taxes
                                                                
Income tax provision         2            --       2            2
Net income (loss)            $760        $599     $863        $(227)
                                                                
Earnings (loss) per share:                                       
Basic                        $0.05       $0.04    $0.06       $(0.02)
Diluted                      $0.05       $0.04    $0.06       $(0.02)
                                                                
Weighted average number of                                       
common shares outstanding:
Basic                        14,190       14,190    14,190       14,190
Diluted                      14,203       14,223    14,201       14,190



Sport Chalet, Inc.

Consolidated Balance Sheets
                                                             
                                         September 30,        April 1,
                                          2012                 2012
                                         (Unaudited)          
Assets                                    (in thousands, except share amounts)
Current assets:                                               
Cash and cash equivalents                 $3,663             $2,811
Accounts receivable, net                  7,564               2,777
Merchandise inventories                   105,879             98,181
Prepaid expenses and other current assets 1,898               1,603
Total current assets                      119,004             105,372
                                                             
Fixed assets, net                         19,723              22,081
Total assets                              $138,727           $127,453
                                                             
Liabilities and stockholders' equity                          
Current liabilities:                                          
Accounts payable                          $35,676            $28,220
Loan payable to bank                      44,894              41,255
Salaries and wages payable                3,353               2,980
Other accrued expenses                    17,593              17,370
Total current liabilities                 101,516             89,825
                                                             
Deferred rent                             17,919              19,340
Commitments and contingencies                                 
                                                             
Stockholders' equity:                                         
Preferred stock, $.01 par value:                              
Authorized shares – 2,000,000                                 
Issued and outstanding shares – none      --                 --
Class A Common Stock, $.01 par value:                         
Authorized shares – 46,000,000                                
Issued and outstanding shares –                               
12,414,490 at
September 30, 2012 and 12,414,490 at      124                 124
April 1, 2012
Class B Common Stock, $.01 par value:                         
Authorized shares – 2,000,000                                 
Issued and outstanding shares – 1,775,821                     
at
September 30, 2012 and 1,775,821 at April 18                  18
1, 2012
Additional paid-in capital                37,162              37,021
Accumulated deficit                       (18,012)            (18,875)
Total stockholders' equity                19,292              18,288
Total liabilities and stockholders'       $138,727           $127,453
equity



Sport Chalet, Inc.

Consolidated Statements of Cash Flows (Unaudited)
                                                             
                                           26 weeks ended
                                           September 30, 2012 October 2, 2011
                                           (in thousands)
Operating activities                                          
Net income (loss)                           $863             $(227)
Adjustments to reconcile net income (loss)
to net cash (used in) provided by operating
activities:
Depreciation and amortization              4,110             4,897
Loss on disposal of property and equipment  (16)              --
Share-based compensation                    141               564
Changes in operating assets and                               
liabilities:
Accounts receivable                        (4,787)           (3,122)
Merchandise inventories                    (7,698)           (2,303)
Prepaid expenses and other current assets  (295)             (99)
Accounts payable                           6,880             6,416
Salaries and wages payable                 373               271
Other accrued expenses                     (21)              (1,856)
Deferred rent                               (1,421)           (1,418)
Net cash (used in) provided by operating    (1,871)           3,123
activities
                                                             
Investing activities                                          
Purchase of fixed assets                   (932)             (1,389)
Proceeds from sale of assets                16                --
Net cash used in investing activities      (916)             (1,389)
                                                             
Financing activities                                          
Proceeds from bank borrowing                187,025           181,119
Repayment of bank borrowing                 (183,386)         (180,899)
Net cash provided by financing activities   3,639             220
                                                             
Increase in cash and cash equivalents      852               1,954
Cash and cash equivalents at beginning of   2,811             51
period
Cash and cash equivalents at end of period  $3,663           $2,005
                                                             
Supplemental disclosure of cash flow                          
information
Cash paid during the period for:                             
Interest                                   $950             $906
Income tax                                  $2               $2
                                                             
Supplemental disclosure of non-cash                           
investing and financing activities
Purchases of fixed assets on credit         732               --
Fixed assets acquired under capital leases  $244             $722

CONTACT: Howard Kaminsky, Chief Financial Officer
         investorrelations@sportchalet.com
         (818) 949-5300 ext. 5728

Sport Chalet
 
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