Body Central Corp. Announces Fiscal 2012 Earnings

Body Central Corp. Announces Fiscal 2012 Earnings

JACKSONVILLE, Fla., Feb. 28, 2013 (GLOBE NEWSWIRE) -- Body Central Corp.
(Nasdaq:BODY) today announced financial results for the fourth quarter and
fiscal year 2012.

Highlights for the fourth quarter ended December 29, 2012:

  *Net revenues for the quarter increased 0.3% to $81.0 million, compared to
    $80.7 million last year.
  *Store sales increased 1.2% to $73.8 million and comparable store sales
    decreased by 11.6%.
  *Operating income was $3.9 million or 4.8% of net revenues, compared to
    $9.8 million or 12.2% of net revenues for last year.
  *Net income was $2.4 million, or $0.15 per diluted share based on 16.3
    million weighted average shares outstanding, as compared to net income of
    $6.1 million, or $0.38 per diluted share based on 16.2 million weighted
    average shares outstanding for the fourth quarter of 2011.
  *The Company opened 13 new stores during the fourth quarter and operated
    276 stores as of December 29, 2012.

Highlights for the fiscal year ended December 29, 2012:

  *Net revenues increased 4.9% to $311.0 million from $296.5 million for the
    same period a year ago.
  *Store sales rose 5.1% to $275.1 million driven by a 15% increase in store
    count which was offset by a comparable store sales decrease of 8.1%.
  *Operating income was $19.1 million or 6.2% of net revenues, compared to
    $31.4 million or 10.6% of net revenues for the same period last year.
  *Net income was $11.9 million or $0.73 per diluted share based on 16.3
    million weighted average shares outstanding, as compared to net income of
    $19.7 million, or $1.22 per diluted share based on 16.2 million weighted
    average shares outstanding for fiscal 2011.
  *The Company opened 39 new stores during fiscal year 2012.

Brian P. Woolf, Body Central's CEO, stated: "While the Company had a tough
sales year in 2012, many initiatives were undertaken to build the
infrastructure to support continued growth. In addition to those steps taken
in 2012, we are pleased to have announced earlier this week four very
significant personnel additions to our merchandising team. We have much to
accomplish and an urgency to improve the product offering. In addition, we
will be focused on building the brand, improving our customers' shopping
experience in our stores, and unifying our direct and store marketing to
become a true multi-channel business.As we redesign our new store prototype
in support of these initiatives, we will be modifying our 2013 new store
opening target to 25 stores.Lastly, we expect current trends in our business
to continue to be weak through the first half of this year with pressure on
gross margins. Longer term, we are optimistic about our business model and the
niche we can continue to develop in the fast fashion segment."

Balance Sheet highlights as of December 29, 2012:

Cash and cash equivalents were $41.1 million at the end of the fourth quarter
compared to $42.0 million in the prior year.

The Company had no long-term debt at the end of the fourth quarter in either
2012 or 2011.

Total Company inventories at the end of the fourth quarter were $23.0 million
compared to $21.1 million at the end of the fourth quarter of 2011. Average
store inventories decreased 4.6% from one year ago.

Reported results are preliminary and not final until the filing of our Annual
Report Form 10-K with the SEC and remain subject to adjustment.

Conference Call Information

A conference call to discuss fourth quarter financial results is scheduled for
today, February 28, 2013, at 4:30 PM Eastern Time. The conference call will
also be webcast live at To access the replay of this call,
please dial (877) 870-5176 and enter pin number 8554090. The replay is
available until March 14, 2013. A replay of this call will also be available
on the Investor Relations section of the Company's website,,
within two hours of the conclusion of the call and will remain on the website
for ninety days.

About Body Central

Founded in 1972, Body Central Corp. is a growing, multi-channel, specialty
retailer offering on trend, quality apparel and accessories at value prices.
As of December 31, 2012 the Company operated 276 specialty apparel stores in
26 states under the Body Central and Body Shop banners, as well as a direct
business comprised of a Body Central catalog and an e-commerce website at The Company targets women in their late teens and twenties from
diverse cultural backgrounds who seek the latest fashions and a flattering
fit. Stores feature an assortment of tops, dresses, bottoms, jewelry,
accessories and shoes sold primarily under the Company's exclusive Body
Central® and Lipstick® labels.

Safe Harbor Language

Certain statements in this release are "forward-looking statements" made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Words such as "guidance," "expects," "intends,"
"projects," "plans," "believes," "estimates," "targets," "anticipates," and
similar expressions are used to identify these forward-looking statements.
Forward-looking statements are based on our current expectations and
assumptions, which may not prove to be accurate. These statements are not
guarantees and are subject to risks, uncertainties and changes in
circumstances that are difficult to predict. Many factors could cause actual
results to differ materially and adversely from these forward-looking
statements. Among these factors are (1) our ability to identify and respond to
new and changing fashion trends, customer preferences and other related
factors; (2) our ability to execute successfully our growth strategy; (3)
changes in consumer spending and general economic conditions; (4) changes in
the competitive environment in our industry and the markets we serve,
including increased competition from other retailers; (5) our new stores or
existing stores achieving sales and operating levels consistent with our
expectations; (6) the success of the malls and shopping centers in which our
stores are located; (7) our dependence on a strong brand image; (8) our direct
business growing consistently with our growth strategy; (9) our information
technology systems supporting our current and growing business, before and
after our planned upgrades; (10) disruptions to our information systems in the
ordinary course or as a result of systems upgrades; (11) our dependence upon
key executive management or our inability to hire or retain additional
personnel; (12) disruptions in our supply chain and distribution facility;
(13) our lease obligations; (14) our reliance upon independent third-party
transportation providers for all of our product shipments; (15) hurricanes,
natural disasters, unusually adverse weather conditions, boycotts and
unanticipated events; (16) the seasonality of our business; (17) increases in
costs of fuel, or other energy, transportation or utilities costs and in the
costs of labor and employment; (18) the impact of governmental laws and
regulations and the outcomes of legal proceedings; (19) our maintaining
effective internal controls; and (20) our ability to protect our trademarks or
other intellectual property rights.


                          Thirteen Weeks Ended      Fiscal Year Ended
                          December 29, December 31, December 29, December 31,
                          2012         2011         2012         2011
                          (in thousands, except share and per share data)
Net revenues               $81,002     $80,736     $310,958    $296,500
Cost of goods sold,
including occupancy,       56,473       52,700       210,913      193,101
buying, distribution
center and catalog costs
Gross profit               24,529       28,036       100,045      103,399
Selling, general and       18,830       16,830       74,650       66,803
administrative expenses
Depreciation and           1,804        1,389        6,273        5,204
Income from operations     3,895        9,817        19,122       31,392
Interest income, net of    (3)          2            7            16
interest (expense)
Other income, net of other 101          31           205          237
Income before income       3,993        9,850        19,334       31,645
Provision for income taxes 1,587        3,711        7,387        11,925
Net income                 $2,406      $6,139      $11,947     $19,720
Net income per common                                          
Basic                      $0.15      $0.38      $0.74      $1.25
Diluted                    $0.15      $0.38      $0.73      $1.22
Weighted-average common                                        
shares outstanding:
Basic                      16,240,458   16,014,571   16,187,530   15,780,908
Diluted                    16,312,796   16,243,016   16,342,859   16,218,382
Other comprehensive                                            
Unrealized gain on
short-term investments,    2           --         --         --
net of tax
Other comprehensive        2           --         --         --
income, net of tax
Comprehensive income       $2,408     $6,139      $11,947     $19,720

                                                    December 29, December 31,
                                                    2012         2011
Assets                                               (In thousands)
Current assets                                                   
Cash and cash equivalents                            $41,136     $41,993
Accounts receivable                                  4,710        2,607
Inventories                                          22,971       21,141
Prepaid expenses and other current assets            6,966        4,293
Deferred tax asset, current                          1,959        1,953
Total current assets                                 77,742       71,987
Property and equipment, net of accumulated           33,515       22,159
depreciation and amortization
Goodwill                                             21,508       21,508
Intangible assets, net of accumulated amortization   16,574       16,542
Other assets                                         246          106
Total assets                                         $149,585    $132,302
Liabilities and Stockholders' Equity                             
Current liabilities                                              
Accounts payable                                     $13,715     $16,498
Accrued expenses and other current liabilities       19,732      18,608
Total current liabilities                            33,447       35,106
Other liabilities                                    10,494       7,899
Deferred tax liability, long-term                    5,298        4,225
Total liabilities                                    49,239       47,230
Commitments and contingencies                                    
Stockholders' equity                                 100,346      85,072
Total liabilities and stockholders' equity           $149,585    $132,302

                                                    Fiscal Year Ended
                                                    December 29, December 31,
                                                    2012         2011
                                                    (in thousands)
Cash flows from operating activities
Net income                                           $11,947     $19,720
Adjustments to reconcile net income to net cash                  
provided by operating activities:
Depreciation and amortization                        6,273        5,204
Stock-based compensation                             2,028        1,060
Amortization of premiums and discounts on            460          --
investments, net
Deferred income taxes                                1,067        (523)
Excess tax benefits from stock-based compensation    (757)        (3,453)
Loss on disposal of property and equipment           84           29
Loss on short-term investments                       4            --
Changes in assets and liabilities:                               
Accounts receivable                                  (2,103)      (1,349)
Inventories                                          (1,830)      (2,772)
Prepaid expenses and other current assets            (459)        (360)
Other assets                                         (140)        (4)
Accounts payable                                     (2,783)      1,618
Accrued expenses and other current liabilities       1,124        4,238
Income taxes                                         (1,457)      3,218
Other liabilities                                    2,905        2,822
Net cash provided by operating activities            16,363       29,448
Cash flows from investing activities                             
Purchases of property and equipment                  (17,905)     (9,806)
Proceeds from sales of assets                        29           --
Purchases of short-term investments                  (25,104)     --
Proceeds from sales of short-term investments        10,880       --
Proceeds from maturities of short-term investments   13,760       --
Purchase of intangible assets                        (179)        --
Net cash used in investing activities                (18,519)     (9,806)
Cash flows from financing activities                             
Excess tax benefits from stock-based compensation    757          3,453
Proceeds from public offerings, net of issuance      --           1,143
Proceeds from the issuance of stock options          542          1,553
Net cash provided by financing activities            1,299        6,149
Net (decrease) increase in cash and cash equivalents (857)        25,791
Cash and cash equivalents                                        
Beginning of year                                    41,993       16,202
End of period                                        $41,136     $41,993

CONTACT: Tom Stoltz
         Body Central Corp.
         COO and CFO
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