Francesca's Reports Fourth Quarter and Fiscal Year 2012 Financial Results

Francesca's Reports Fourth Quarter and Fiscal Year 2012 Financial Results

  Fourth quarter net sales increased 40.6% to $86.7 million

  Fourth quarter comparable boutique sales increased 9.2%

  Fourth quarter diluted earnings per share increased 73.7% to $0.33

HOUSTON, March 19, 2013 (GLOBE NEWSWIRE) -- Francesca's Holdings Corporation
(Nasdaq:FRAN) today reported a 73.7% increase in earnings per diluted share of
$0.33 for the fourth quarter ended February 2, 2013 compared to $0.19 per
diluted share for the same quarter last year. Net sales in the fourth quarter
were $86.7 million, an increase of 40.6% compared with net sales of $61.7
million during the same period in fiscal 2011. Net earnings of $14.9 million
increased 78.0% compared to net earnings of $8.4 million for the same quarter
last year.

Neill Davis, Chief Executive Officer, commented, "We delivered another quarter
of strong growth and profitability as the company's differentiated shopping
experience continues to resonate with new and existing customers. We are well
positioned with the teams and capabilities to continue expansion of our
boutique base, increase boutique productivity and further develop our
direct-to-customer presence. Looking ahead, we continue our growth trajectory
with 80 openings for fiscal 2013, reaching the milestone of over 400 locations
by the end of the first quarter."

Francesca's follows the NRF reporting calendar, which included an extra week
in the fourth quarter of fiscal 2012 (the 53rd week). In the 53rd week, the
Company had net sales of approximately $3.9 million, representing an
approximate $0.03 increase to earnings per diluted share for both the quarter
and fiscal year. The 53rd week is not included in comparable boutique sales
calculations.

FOURTH QUARTER SUMMARY

Net sales for the fourteen weeks increased 40.6% to $86.7 million. Net sales
increases were driven by a 9.2% comparable boutique sales increase following a
14.7% increase in the prior year period and 77 new boutique openings since the
end of the prior year quarter. The comparable sales increase was driven
primarily by increased transactions. In addition, the increase in net sales
was driven by strong growth in our clothing and jewelry categories.

Gross profit, as a percentage of net sales, increased 92 basis points to
53.37%. The increase was attributable to leverage of occupancy costs on
increased sales.

Selling, general and administrative (SG&A) expenses increased 20.8% to $21.6
million. As a percentage of net sales, SG&A decreased 408 basis points to
24.91%, primarily attributable to leverage on increased sales.

Income from operations for the quarter increased 70.6% to $24.7 million and as
a percentage of net sales, increased 500 basis points to 28.45%.

FULL YEAR RESULTS

Net sales increased 45.2% to $296.4 million. Net sales increases were driven
by a 14.9% comparable boutique sales increase and 77 new boutique openings
since the end of the prior year. The comparable sales increase was driven
primarily by increased transactions.

Net income for 53 weeks ending February 2, 2013 was $47.1 million or $1.05 per
diluted share compared to net income for 52 weeks ending January 28, 2012 of
$22.5 million, or $0.52 per diluted share. Adjusted net income for 53 weeks
ending February 2, 2013 was $47.7 million, or $1.06 per diluted share, after
excluding $479,000 pretax charges ($291,000 net of tax) related to a secondary
equity offering, $264,000 pretax charges ($160,000 net of tax) related to
stock option acceleration expenses and $342,000 pretax charges ($208,000 net
of tax) related to the relocation of our headquarters and distribution
facilities. Adjusted net income for 52 weeks full year 2011 was $25.2 million,
or $0.58 per diluted share, after excluding charges of $1.6 million pretax
($958,000 net of tax) related to the early termination of the company's prior
senior secured credit facility, $2.3 million pretax ($1.4 million net of tax)
of option acceleration costs, and $611,000 pretax ($368,000 net of tax)
related to a secondary equity offering.

BALANCE SHEET SUMMARY

Total inventories at the end of the quarter increased by $4.6 million to $19.0
million, a 32% increase versus the prior comparable period.Inventory per
boutique increased 4%.

Total cash and cash equivalents at quarter end were $29.9 million at the
quarter and year-end compared to $14.0 million in the prior year period.

FIRST QUARTER AND FULL YEAR 2013 GUIDANCE

For the first quarter ending May 4, 2013, net sales are expected to be between
$79.5 million and $80.5 million assuming a 4%-5% comparable boutique sales
increase on top of the prior year increase of 15.5% and the opening of
approximately 50 additional new boutiques. Earnings per diluted share are
expected to be in the range of $0.25 to $0.26 an increase of 25.0% to 30.0%
over the prior year diluted earnings per share of $0.20.

For the full fiscal year ending February 1, 2014, net sales are expected to be
in the range of $365.0 million to $370.0 million assuming a 4% to 5%
comparable boutique sales increase and the opening of 80 new boutiques.
Earnings per diluted share are expected to be in the range of $1.27 to $1.30
and increase of 23.3% to 26.2% over the 52-week prior year adjusted diluted
earnings per share.

The number of diluted average shares outstanding is expected to be 44.9
million for both the first quarter and full year.The effective tax rate is
estimated to be 39.3% for both the first quarter and full year. Capital
expenditures are planned in a range of $22.0 to $25.0 million.

Conference Call Information

A conference call to discuss fourth quarter and fiscal year 2012 results is
scheduled for March 19, 2013, at 4:30 p.m. EDT. A live web cast of the
conference call will be available in the investor relations section of the
Company's website, www.francescas.com. In addition, a replay of the call will
be available after the call and remain available until April 19, 2013. To
access the telephone replay, listeners should dial (877) 870-5176. The access
code for the replay is 5021814. A replay of the web cast will also be
available shortly after the call and will remain on the website for ninety
days.

SEC Regulation G — Non-GAAP Information

This press release includes non-GAAP adjusted net income and adjusted diluted
earnings per share, each a non-GAAP financial measure. We have reconciled
these non-GAAP financial measures with the most directly comparable GAAP
financial measures in the text above. We believe that these non-GAAP financial
measures not only provide our management with comparable financial data for
internal financial analysis but also provide meaningful supplemental
information to investors. Specifically, these non-GAAP financial measures
allow investors to better understand the performance of our business and
facilitate a meaningful evaluation of our quarterly and fiscal year 2012
diluted earnings per share and actual results on a comparable basis with our
quarterly and fiscal year 2011 results. These non-GAAP measures should be
considered a supplement to, and not as a substitute for, or superior to,
financial measures calculated in accordance with GAAP.

Forward-Looking Statements

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. Such forward-looking statements reflect the Company's
current expectations or beliefs concerning future events and are subject to
various risks and uncertainties that may cause actual results to differ
materially from those that we expected. For a discussion of these and other
risks and uncertainties that could cause actual results to differ materially
from those contained in our forward-looking statements, please refer to "Risk
Factors" in our Annual Report on Form 10-K and our most recent Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on March
21, 2012 and December 7, 2012, respectively. We undertake no obligation to
publicly update or revise any forward-looking statement. Financial schedules
are attached to this release.

About Francesca's Holdings Corporation

francesca's® is a growing specialty retailer with retail locations designed
and merchandised to feel like independently owned, upscale boutiques providing
customers a fun and differentiated shopping experience. The merchandise
assortment is a diverse and balanced mix of apparel, jewelry, accessories and
gifts. francesca's® appeals to the 18-35 year-old, fashion conscious, female
customers, although the Company finds that women of all ages are attracted to
the eclectic and sophisticated merchandise selection and boutique setting.
francesca's® boutiques carry a broad selection but limited quantities of
individual styles and new merchandise is introduced five days a week. For
additional information on francesca's®, please visit www.francescas.com

The Francesca's Collections logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=15831

Francesca's Holdings Corporation
Consolidated Statements of Operations
                                                               
               For the Fourteen   For the Thirteen
              Weeks Ended        Weeks Ended        Variance
               February 2, 2013   January 28, 2012
               In       As a %    In       As a %    In               As a %
              Dollars  of Net    Dollars  of Net    Dollars %        of Net
                        Sales^(1)          Sales^(1)                  Sales^(1)
              (in thousands, except percentages)
Net sales      $86,700  100.00%   $61,652  100.00%   $25,048 40.6%    0.00%
Cost of goods
sold and       40,430   46.63%    29,317   47.55%    11,113  37.9%    (0.92)%
occupancy
costs
Gross profit   46,270   53.37%    32,335   52.45%    13,935  43.1%    0.92%
Selling,
general and    21,600   24.91%    17,875   28.99%    3,725   20.8%    (4.08)%
administrative
expenses
Income from    24,670   28.45%    14,460   23.45%    10,210  70.6%    5.00%
operations
Interest
income         (125)    (0.14)%   (339)    (0.55)%   214     (63.1)%  0.41%
(expense)
Other income   (27)     (0.03)%   36       0.06%     (63)    (175.0)% (0.09)%
(expense)
Income before
income tax     24,518   28.28%    14,157   22.96%    10,361  73.2%    5.32%
expense
Income tax     9,648    11.13%    5,804    9.41%     3,844   66.2%    1.72%
expense
Net income     $14,870  17.15%    $8,353   13.55%    $6,517  78.0%    3.60%
                                                               
                                                               
Diluted
earnings per   $0.33             $0.19                            
common share
Weighted
average        44,858            44,547                           
diluted shares
outstanding

Comparable
boutique sales 9.2%              14.7%                            
increase
                                                               
                                                               
              Fiscal Year Ended                                    
              February 2, 2013   January 28, 2012   Variance
               In       As a %    In       As a %    In               As a %
              Dollars  of Net    Dollars  of Net    Dollars %        of Net
                        Sales^(1)          Sales^(1)                  Sales^(1)
              (in thousands, except percentages)
Net sales      $296,373 100.00%   $204,158 100.00%   $92,215 45.2%    0.00%
Cost of goods
sold and       137,873  46.52%    97,365   47.69%    40,508  41.6%    (1.17)%
occupancy
costs
Gross profit   158,500  53.48%    106,793  52.31%    51,707  48.4%    1.17%
Selling,
general and    80,560   27.18%    63,262   30.99%    17,298  27.3%    (3.81)%
administrative
expenses
Income from    77,940   26.30%    43,531   21.32%    34,409  79.0%    4.98%
operations
Interest
income         (672)    (0.23)%   (4,868)  (2.38)%   4,196   (86.2)%  2.15%
(expense)
Loss on early
extinguishment --     0.00%     (1,591)  (0.78)%   1,591   (100.0)% 0.78%
of debt
Other income   230      0.08%     284      0.14%     (54)    (19.0)%  (0.06)%
(expense)
Income before
income tax     77,498   26.15%    37,356   18.30%    40,142  107.5%   7.85%
expense
Income tax     30,437   10.27%    14,855   7.28%     15,582  104.9%   2.99%
expense
Net income     $47,061  15.88%    $22,501  11.02%    $24,560 109.2%   4.86%
                                                               
                                                               
Diluted
earnings per   $1.05             $0.52                            
share
Weighted
average        44,807            42,948                           
diluted shares
outstanding

Comparable
boutique sales 14.9%             10.4%                            
increase
                                                               
^(1)^ Percentage totals in the above tables may not equal the sum of the
components due to rounding.


Francesca's Holdings Corporation
Consolidated Balance Sheets
(In thousands)
                                                                 
                                                      February2, January28,
                                                       2013        2012
ASSETS                                                            
Current assets:                                                   
Cash and cash equivalents                              $29,877     $14,046
Accounts receivable                                    1,925       2,156
Inventories                                            19,049      14,462
Deferred income taxes                                  3,506       2,352
Prepaid expenses and other current assets              4,749       3,025
Total current assets                                   59,106      36,041
Property and equipment, net                            49,559      33,199
Deferred income taxes                                  2,357       952
Other assets, net                                      1,573       2,120
TOTAL ASSETS                                           $112,595    $72,312
                                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY                              
Current liabilities:                                              
Accounts payable                                       $7,779      $8,627
Accrued liabilities                                    10,667      9,893
Total current liabilities                              18,446      18,520
Deferred and accrued rents                             22,092      14,890
Long-term debt                                         --          22,000
Total liabilities                                      40,538      55,410
Commitments and contingencies                                     
Shareholders' equity (deficit):                                   
Common stock-$.01 par value, 80.0million shares
authorized, 43.9 million, and 43.5million shares      439         435
issued and outstanding at February 2, 2013 and
January28, 2012, respectively
Additional paid-in capital                             85,161      77,071
Accumulated deficit                                    (13,543)    (60,604)
Total shareholders' equity                             72,057      16,902
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY             $112,595    $72,312


Francesca's Holdings Corporation
Consolidated Statements of Cash flows
(In thousands)
                                                                
                                          For the Fiscal Year Ended
                                          February 2, January28, January29,
                                           2013        2012        2011
Cash Flows Provided by Operating                                 
Activities:
Net income                                 $47,061     $22,501     $16,895
Adjustments to reconcile net income to net                       
cash provided by operating activities:
Depreciation and amortization              7,151       4,936       2,377
Stock-based compensation expense           3,599       4,671       2,400
Excess tax benefit from stock-based        (2,296)     (449)       (1,757)
compensation
Loss on sale of assets                     188         23          25
Loss on early extinguishment of debt       --          1,591       --
Amortization of debt issuance costs        299         537         158
Deferred income taxes                      (2,559)     721         (2,685)
Changes in assets and liabilities:                               
Accounts receivables                       231         1,898       (3,557)
Inventories                                (4,587)     (2,593)     (5,631)
Prepaid expenses and other assets          (1,512)     (445)       (1,499)
Accounts payable                           (848)       2,481       3,443
Accrued liabilities                        3,069       3,932       4,852
Deferred and accrued rents                 7,203       6,667       5,999
Net cash provided by operating activities  56,999      46,471      21,020
Cash Flows Used in Investing Activities:                         
Purchase of property and equipment         (23,663)    (16,894)    (16,208)
Other                                      --          36          --
Net cash used in investing activities      (23,663)    (16,858)    (16,208)
Cash Flows Used in Financing Activities:                         
Proceeds from issuance of stock in initial --          44,245      --
public offering, net of costs
Proceeds from borrowings under the         --          41,000      --
revolving credit facility
Proceeds from borrowings under the senior  --          --          95,000
secured credit facility
Repayment of borrowings under the          (22,000)    (19,000)    --
revolving credit facility
Repayment of borrowings under the senior   --          (93,813)    (1,187)
secured credit facility
Dividends                                  --          --          (100,000)
Payment of debt issuance costs             --          (1,468)     (2,137)
Proceeds from the exercise of stock        2,199       504         504
options
Excess tax benefit from stock-based        2,296       449         1,757
compensation
Net cash used in financing activities      (17,505)    (28,083)    (6,063)
                                                                
Net increase (decrease) in cash and cash   15,831      1,530       (1,251)
equivalents
Cash and cash equivalents, beginning of    14,046      12,516      13,767
year
Cash and cash equivalents, end of year     $29,877     $14,046     $12,516
Supplemental Disclosures of Cash Flow                            
Information:
Cash paid for income taxes                 $32,405     $8,971      $13,509
Interest paid                              448         5,569       163

CONTACT: Investors
        
         ICR, Inc.
         Jean Fontana
         646-277-1214
        
         Company
         Randi Sonenshein, Vice President, Finance and Investor Relations
         832-494-2250

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