Vera Bradley Announces Fiscal 2014 First Quarter Financial Results *Net revenues increased 5% to $123.0 million. *Direct net revenues increased 24%, including an increase of 0.9% in comparable-store sales; Indirect net revenues decreased 15%. *Diluted EPS were $0.23 compared to $0.31 in the first quarter of fiscal 2013. FORT WAYNE, Ind., June 5, 2013 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq:VRA) today announced its financial results for the fiscal 2014 first quarter ended May 4, 2013. The Company reported net revenues of $123.0 million for the first quarter, compared to $117.2 million in the first quarter of fiscal 2013, an increase of $5.8 million, or 5.0%. Diluted earnings per share for the quarter were $0.23, a decrease of 26% over diluted earnings per share in the first quarter of fiscal 2013. Mike Ray, Chief Executive Officer commented, "We delivered on our expectations for the first quarter. Net revenue slightly exceeded our guidance, with comparable store sales growth of 0.9%, and indirect performance in line with expectations, while gross margin was slightly ahead. We also continue to be pleased with our new store performance as well as the growth in our e-commerce channel.Looking forward, in light of our outlook, we have narrowed our focus to ensure that we can execute our strategies as quickly as possible, both to address our challenges and to achieve our longer-term vision for the brand." In the Direct segment, revenues increased 24% to $73.7 million, as a result of growth across all of our channels.In our stores, net revenues grew 34% during the quarter, due to the opening of 19 full-price and four outlet stores since the first quarter of fiscal 2013. Comparable store sales increased 0.9%.E-commerce revenue grew 23% primarily due to continued growth in website traffic. Indirect revenues decreased 15% to $49.3 million, primarily due to cautious ordering from our specialty retailers in this challenging retail environment. Gross profit for the first quarter increased 4.8% to $68.5 million, resulting in a gross profit margin of 55.6%, in line with the first quarter of fiscal 2013. Total SG&A expense was $55.2 million for the first quarter, compared to $47.2 million in the prior year.SG&A as a percentage of net revenues was 44.9%, unfavorable by 460 basis points compared to the prior year, primarily due to lower revenues in the Indirect segment and full-price stores and annualization of employee-related expenses. Operating income decreased 27% to $15.2 million, or 12.3% of net revenues, in the first quarter, compared to operating income of $20.8 million, or 17.8% of net revenues in the first quarter of fiscal 2013. The effective tax rate was 38.9% for the quarter, in line with the prior year. Net income for the quarter was $9.2 million, or $0.23 per diluted share, compared to $12.6 million, or $0.31 per diluted share, in the first quarter of fiscal 2013. Cash flow from operations during the first quarter totaled $14.9 million, compared to $30.7 million for the first quarter of fiscal 2013, with the decrease primarily a result of increased inventory.Cash flow for the quarter was used to pay down the Company's debt facility to $5.0 million at quarter end. Outlook For the second quarter of fiscal 2014, the Company expects net revenues to be in a range of $123 million to $126 million, compared to $123 million in the second quarter of fiscal 2013.Gross margin for the second quarter is expected to expand by approximately 200 basis points. Diluted earnings per share are expected to be in a range of $0.31 to $0.33.The earnings per share estimate assumes an effective tax rate of 38.5% and fully diluted weighted average shares outstanding of 40.6 million. For fiscal 2014, the Company now expects net revenues to be in a range of $570 million to $575 million.Gross margin is expected to decline up to 20 basis points for the full year. Diluted earnings per share for the full year are now expected to be in a range of $1.74 to $1.78.This guidance includes an effective tax rate of 38.5% and fully diluted weighted average shares outstanding of 40.7 million.Capital spending for the full year remains at approximately $20 million. Other Company Developments Vera Bradley also announced today in a separate press release that Michael Ray has informed the Board of Directors that he plans to retire as CEO. The Board is conducting a search for his successor, and Mr. Ray will continue to serve as CEO until a successor is in place. Call Information A conference call to discuss fiscal 2014 first quarter results is scheduled for today, June 5, 2013, at 4:30 p.m. Eastern Time.A broadcast of the call will be available via Vera Bradley's Investor Relations section of its website, www.verabradley.com. In addition, a replay of the call will be available shortly after the conclusion of the call and remain available through June 19, 2013. To access the recording, listeners should dial (877) 870-5176, and enter the access code, 9551028. About Vera Bradley, Inc. Vera Bradley is a leading designer of women's handbags and accessories, luggage and travel items, eyewear, stationery and gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand's iconic designs and versatile styles offer women of all ages a colorful way to accessorize every look. Vera Bradley offers a unique, multi-channel sales model as well as a focus on service and a high level of engagement with fans.Fiscal 2013 net revenues increased by 17% to $541 million. The company's commitment to breast cancer research continues to increase its reach through the Vera Bradley Foundation for Breast Cancer. For more information about Vera Bradley (Nasdaq:VRA), visit www.verabradley.com/mediaroom. Website Information We routinely post important information for investors on our website www.verabradley.com in the "Investor Relations" section.We intend to use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts.The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. Vera Bradley Safe Harbor Statement 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, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brand; possible inability to successfully implement our growth strategies or manage our growing business; possible inability to successfully open new stores as planned; and possible inability to sustain levels of comparable-store sales. 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 Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended February 2, 2013. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release. Vera Bradley, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) May 4, February 2, April 28, 2013 2013 2012 Assets Current assets: Cash and cash equivalents $8,229 $9,603 $6,022 Accounts receivable, net 26,758 34,811 36,109 Inventories 138,949 131,562 98,231 Prepaid expenses and other current assets 9,211 11,016 8,447 Deferred income taxes 11,860 11,348 8,203 Total current assets 195,007 198,340 157,012 Property, plant, and equipment, net 79,652 77,211 61,535 Other assets 1,630 1,768 766 Total assets $276,289 $277,319 $219,313 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $17,768 $14,853 $31,195 Accrued employment costs 9,571 14,162 8,047 Other accrued liabilities 18,335 16,532 16,613 Income taxes payable 5,761 7,094 7,374 Current portion of long-term debt 42 58 90 Total current liabilities 51,477 52,699 63,319 Long-term debt 5,030 15,037 7,322 Deferred income taxes 6,102 6,078 4,243 Other long-term liabilities 10,134 9,250 7,619 Total liabilities 72,743 83,064 82,503 Shareholders' equity: Additional paid-in capital 76,032 75,675 73,950 Retained earnings 128,379 119,190 62,946 Accumulated other comprehensive (loss) (865) (610) (86) income Total shareholders' equity 203,546 194,255 136,810 Total liabilities and shareholders' equity $276,289 $277,319 $219,313 Vera Bradley, Inc. Condensed Consolidated Statements of Income (in thousands, except per share amounts) (unaudited) Thirteen Weeks Ended May 4, April 28 2013 2012 Net revenues $123,033 $117,201 Cost of sales 54,567 51,899 Gross profit 68,466 65,302 Selling, general, and administrative expenses 55,227 47,191 Other income 1,951 2,699 Operating income 15,190 20,810 Interest expense, net 141 191 Income before income taxes 15,049 20,619 Income tax expense 5,860 7,993 Net income $9,189 $12,626 Basic weighted-average shares outstanding 40,580 40,515 Diluted weighted-average shares outstanding 40,624 40,547 Basic earnings per share $0.23 $0.31 Diluted earnings per share $0.23 $0.31 Vera Bradley, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited) Thirteen Weeks Ended May 4, April 28, 2013 2012 Cash flows from operating activities Net income $9,189 $12,626 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation of property, plant, and equipment 3,323 2,268 Provision for doubtful accounts (213) 195 Loss on disposal of property, plant, and equipment 2 21 Stock-based compensation 806 625 Deferred income taxes (548) (155) Changes in assets and liabilities: Accounts receivable 8,266 1,793 Inventories (7,567) 8,587 Prepaid expenses and other assets 1,943 (8) Accounts payable 2,915 3,919 Income taxes payable (1,333) 5,669 Accrued and other liabilities (1,904) (4,857) Net cash provided by operating activities 14,879 30,683 Cash flows from investing activities Purchases of property, plant, and equipment (5,811) (11,512) Net cash used in investing activities (5,811) (11,512) Cash flows from financing activities Payments on financial-institution debt (35,000) (32,750) Borrowings on financial-institution debt 25,000 15,000 Payments on vendor-financed debt (23) (22) Tax withholdings for equity compensation (389) (265) Net cash used in financing activities (10,412) (18,037) Effect of exchange rate changes on cash and cash (30) (34) equivalents Net increase (decrease) in cash and cash equivalents (1,374) 1,100 Cash and cash equivalents, beginning of period 9,603 4,922 Cash and cash equivalents, end of period $8,229 $6,022 CONTACT: Investors: Vera Bradley Paul G. Blair email@example.com (260) 207-5183 Media: 877-708-VERA (8372) Mediacontact@verabradley.com
Vera Bradley Announces Fiscal 2014 First Quarter Financial Results
Press spacebar to pause and continue. Press esc to stop.