Body Central Corp. Announces Third Quarter 2013 Financial Results

Body Central Corp. Announces Third Quarter 2013 Financial Results

JACKSONVILLE, Fla., Oct. 31, 2013 (GLOBE NEWSWIRE) -- Body Central Corp.
(Nasdaq:BODY) today announced financial results for the third quarter of 2013.

Highlights for the thirteen weeks ended September 28, 2013:

  *Net revenues for the quarter decreased 10.4% to $60.8 million, compared to
    $67.9 million for the third quarter of 2012.
  *Store sales decreased 10.1% to $55.7 million due to a comparable-store
    sales decrease of 18.3%, partially offset by a net increase of 28 stores
    from the same quarter last year.
  *Direct sales decreased by 13.6% to $5.1 million from $5.9 million in the
    same quarter last year.
  *The loss from operations was $15.5 million, as compared to income from
    operations of $196,000 for the third quarter in 2012.
  *The net loss was $9.0 million, or $(0.55) per diluted share based on 16.4
    million weighted average shares outstanding. Net income for the third
    quarter of 2012 was $153,000, or $0.01 per diluted share based on 16.3
    million weighted average shares outstanding.
  *The Company opened 5 new stores during the third quarter and operated 291
    stores as of September 28, 2013.

Brian Woolf, Body Central's CEO, stated: "Our third quarter results reflect
the continued difficulty of driving traffic into our stores and the overall
traffic slowdown within our segment. While our comparable sales decreased 18%
for the quarter, we realized positive comp sales performance in our bottoms
and shoe businesses. In addition, the eCommerce component of our direct
business continues to grow rapidly as we shift our marketing spend to online
traffic drivers such as email campaigns, display ads, and affiliate programs.
During the third quarter, we saw direct business revenue attributed to
eCommerce increase approximately threefold from prior year levels. We are also
confident that our focus on nightlife and club wear will resonate with our
customers this holiday season. The introduction of our Sexy Stretch line
performed well and we have plans to expand the offering. Our priorities
continue to be to improve merchandise assortments, customer messaging and
store traffic. We are initiating several key marketing actions during the
holiday season to expand our customer base and reactivate former customers."

Mr. Woolf further stated: "Due to the longer transition period, we have
reduced our corporate staff by 11% effective immediately, and have initiated
other cost cutting measures that will be fully deployed by year end with the
expectation that these initiatives will reduce our annualized SG&A exposure by
$5 million."

In closing, Mr. Woolf said: "We believe our strategic direction and
initiatives will support the re-engagement of our customer base while driving
long-term sales growth and profitability."

Balance Sheet highlights as of September 28, 2013:

Cash, cash equivalents and short-term investments were $20.0 million at the
end of the third quarter of 2013 compared to $36.9 million at the end of the
third quarter in the prior year.

Average per store inventory at cost decreased 12.4% and average per store
inventory units increased 4.0% from one year ago.

The Company had no long-term debt as of the end of the third quarter 2013 and
2012.

Reported results are preliminary and remain subject to adjustment until the
filing of our Form 10-Q with the SEC.

Conference Call Information

A conference call to discuss third quarter financial results is scheduled for
today October 31, 2013 at 4:30 PM Eastern Time. The conference call will also
be webcast live at www.bodycentral.com. To access the replay of this call,
please dial (877) 870-5176 and enter pin number 1108801. The replay is
available until November 14, 2013. A replay of this web cast will also be
available on the Investor Relations section of the Company's website,
www.bodycentral.com, 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 October 31, 2013 the Company operated 292 specialty apparel stores in 28
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
www.bodycentral.com. The Company targets women in their late teens to early
thirties from diverse cultural backgrounds who seek the latest fashions and a
flattering fit. The Company's 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) our ability to obtain financing or to generate sufficient
cash flow to support operations; (7) the success of the malls and shopping
centers in which our stores are located; (8) our dependence on a strong brand
image; (9) our direct business growing consistently with our growth strategy;
(10) our information technology systems supporting our current and growing
business, before and after our planned upgrades; (11) disruptions to our
information systems in the ordinary course or as a result of systems upgrades;
(12) our dependence upon key executive management or our inability to hire or
retain additional personnel; (13) disruptions in our supply chain and
distribution facility; (14) our lease obligations; (15) our reliance upon
independent third-party transportation providers for all of our product
shipments; (16) hurricanes, natural disasters, unusually adverse weather
conditions, boycotts and unanticipated events; (17) the seasonality of our
business; (18) increases in costs of fuel, or other energy, transportation or
utilities costs and in the costs of labor and employment; (19) the impact of
governmental laws and regulations and the outcomes of legal proceedings; (20)
our maintaining effective internal controls; and (21) our ability to protect
our trademarks or other intellectual property rights.



BODY CENTRAL CORP.
NON-GAAP CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED)
                                                            
(ADJUSTED FOR SECOND QUARTER DIRECT BUSINESS GOODWILL IMPAIRMENT LOSS)
                                                            
                                            Thirty-Nine Weeks Ended
                                            September 28,    September 29,
                                            2013             2012
                                            (Inthousands,exceptsharedata)
Net (loss) income, as reported               $(19,053)      $9,541
Direct business impairment                   10,358         —
Net (loss) income, as adjusted               $(8,695)       $9,541
Net (loss) income per common share, as                       
reported:
Basic                                        $(1.17)        $0.59
Diluted                                      $(1.17)        $0.58
Net (loss) income per common share, as                       
adjusted:
Basic                                        $(0.53)        $0.59
Diluted                                      $(0.53)        $0.58
Weighted-average common shares outstanding:                  
Basic                                        16,318,046      16,169,953
Diluted                                      16,318,046      16,350,690



BODY CENTRAL CORP.
CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED)
                                                             
                      Thirteen Weeks Ended        Thirty-Nine Weeks Ended
                      September 28, September 29, September 28, September 29,
                       2013          2012          2013          2012
                      In Thousands Except Per Share Data
Net revenues           $60,833    $67,920    $217,383   $229,956
Cost of goods sold,
including occupancy,
buying, distribution   49,692      46,399      157,977     154,440
center and catalog
costs
Gross profit           11,141      21,521      59,406      75,516
Selling, general and
administrative         24,480      19,718      69,406      55,820
expenses
Depreciation           2,154       1,607       6,438       4,469
Impairment of          —            —            10,358      —
long-lived assets
(Loss) income from     (15,493)     196         (26,796)     15,227
operations
Interest income, net   2           3           11          10
Other (loss) income,   (259)        45          747         104
net
(Loss) income before   (15,750)     244         (26,038)     15,341
income taxes
Benefit (provision)    6,769       (91)         6,985       (5,800)
for income taxes
Net (loss) income      $(8,981)    $153       $(19,053)   $9,541
                                                             
Net (loss) income per                                         
common share:
Basic                  $(0.55)     $0.01      $(1.17)     $0.59
Diluted                $(0.55)     $0.01      $(1.17)     $0.58
Weighted-average
common shares                                                 
outstanding:
Basic                  16,363,633   16,205,845   16,318,046   16,169,953
Diluted                16,363,633   16,305,557   16,318,046   16,350,690



BODY CENTRAL CORP.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                                               
                                                  September 28, September 29,
                                                   2013          2012
                                                  In Thousands
Assets                                             
Current assets                                                  
Cash and cash equivalents                          $15,597     $22,679
Short-term investments                             4,356         14,265
Accounts receivable                                1,479        1,536
Inventories                                        24,464       20,860
Prepaid expenses and other current assets          12,221       7,516
Deferred tax asset                                 3,289        2,168
Total current assets                               61,406       69,024
Property and equipment, net of accumulated         40,479       30,860
depreciation
Goodwill                                           11,150       21,508
Intangible assets, net of accumulated amortization 16,574       16,574
Other assets                                       333          108
Total assets                                       $129,942    $138,074
Liabilities and Stockholders' Equity                            
Current liabilities                                             
Merchandise accounts payable                       $10,585     $8,547
Accrued expenses and other current liabilities     21,155       19,674
Total current liabilities                          31,740       28,221
Other liabilities                                  10,167       7,900
Deferred tax liability                             4,392        4,577
Total liabilities                                  46,299       40,698
Commitments and contingencies                                   
Stockholders' equity                                            
Total stockholders' equity                         83,643       97,376
Total liabilities and stockholders' equity         $129,942    $138,074



BODY CENTRAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                                               
                                                  Thirty-Nine Weeks Ended
                                                  September 28, September 29,
                                                   2013          2012
                                                  In Thousands
Cash flows from operating activities                            
Net (loss) income                                  $(19,053)   $9,541
Adjustments to reconcile net income to net cash                 
provided by operating activities:
Depreciation                                       6,438       4,469
Deferred income taxes                              (2,236)      137
Excess tax benefits from stock-based compensation  (39)         (751)
Stock-based compensation                           2,061       1,473
Amortization of premiums and discounts on          147         263
investments, net
Loss on disposal of property and equipment         422         82
Impairment of long-lived assets                    10,358      —
Changes in assets and liabilities:                              
Accounts receivable                                3,231       1,071
Inventories                                        (1,493)      281
Prepaid expenses and other assets                  (5,342)      (490)
Merchandise accounts payable                       (3,130)      (7,951)
Accrued expenses and other current liabilities     362         (1,626)
Other liabilities                                  (380)        732
Net cash (used in) provided by operating           (8,654)      7,231
activities
Cash flows from investing activities                            
Proceeds from sale of property and equipment       --            29
Purchases of property and equipment                (12,709)     (13,158)
Purchases of intangible assets                     —            (179)
Purchases of short-term investments                (12,786)     (24,582)
Proceeds from sales of short-term investments      2,310       1,051
Proceeds from maturities of short-term investments 5,973       9,000
Net cash used in investing activities              (17,212)     (27,839)
Cash flows from financing activities                            
Proceeds from exercise of stock options            327         543
Excess tax benefits from stock-based compensation  —            751
Net cash provided by financing activities          327         1,294
Net decrease in cash and cash equivalents          (25,539)     (19,314)
Cash and cash equivalents                                       
Beginning of year                                  41,136      41,993
End of period                                      $15,597    $22,679

CONTACT: Tom Stoltz
         Chief Operating Officer and Chief Financial Officer
         904-207-6720
         tstoltz@bodyc.com
 
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