We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
HHGREGG Inc (CE) | USOTC:HGGGQ | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.0012 | 0.00 | 01:00:00 |
hhgregg, Inc. (NYSE: HGG) today announced operating results for the first quarter ended June 30, 2015 as compared to the first quarter ended June 30, 2014.
First Quarter Summary
Dennis May, President and Chief Executive Officer, commented, “We were pleased to have a solid start to our fiscal year and to see an immediate impact from our fiscal 2016 initiatives on our financial results, highlighted by generating positive EBITDA for the quarter. Our transformation investments have been focused on both cost cutting efforts and revenue generation. While comps were still negative in the first fiscal quarter, we saw a positive sequential improvement in our sales and traffic trend despite a significant reduction in our advertising expense. Though we were pleased with the traction of the transformation initiatives, we still have a lot of work in front of us.”
Three Months Ended
June 30,(unaudited, amounts in thousands, except share and per share data)
2015 2014 Net sales $ 441,063 $ 472,293 Net sales % decrease (6.6 )% (10.0 )% Comparable store sales % decrease (1) (6.3 )% (10.2 )% Gross profit as a % of net sales 30.5 % 29.7 % SG&A as a % of net sales 25.2 % 24.7 % Net advertising expense as a % of net sales 5.2 % 5.8 % Depreciation and amortization expense as a % of net sales 1.9 % 2.2 % Loss from operations as a % of net sales (1.9 )% (3.0 )% Net interest expense as a % of net sales 0.1 % 0.1 % Net loss $ (8,755 ) $ (10,269 ) Net loss per diluted share $ (0.32 ) $ (0.36 ) EBITDA $ 199 $ (3,474 ) Weighted average shares outstanding—diluted 27,680,209 28,444,948 Number of stores open at the end of period 227 229(1)
Comprised of net sales at stores in operation for at least 14 full months, including remodeled and relocated stores, as well as net sales for the Company’s e-commerce site.
HIGHLIGHTS FOR THE FIRST QUARTER
Revenue Highlights
Our net sales performance in the quarter was driven primarily by a comparable store sales decline, although we sequentially improved our comparable sales in appliances, consumer electronics and home products categories from fourth quarter of fiscal 2015 to first quarter of fiscal 2016. Net sales mix and comparable store sales percentage changes by product category for the three month periods ended June 30, 2015 and 2014 were as follows:
Net Sales Mix Comparable Store SummarySales Summary
Three Months Ended
Three Months Ended
June 30,
June 30,
2015 2014 2015 2014 Appliances 59 % 57 % (2.2 )% (2.0 )% Consumer electronics (1) 30 % 31 % (8.3 )% (18.7 )% Computers and tablets 5 % 7 % (42.0 )% (29.5 )% Home products (2) 6 % 5 % 12.1 % (0.5 )% Total 100 % 100 % (6.3 )% (10.2 )%(1)
Primarily consists of televisions, audio, personal electronics and accessories.
(2)
Primarily consists of furniture and mattresses.
Our comparable store sales drivers for the three months ended June 30, 2015 are summarized below:
Comparable Store
Comparable Store
Sales Excluding
Sales
Mobile and Fitness
Average Selling Price
Sales Volume Appliances (2.2 )% (2.2 )% Decrease DecreaseConsumer electronics (1)
(8.3 )% (8.3 )% Increase Decrease Computers and tablets (42.0 )% (38.6 )% Decrease Decrease Home products (2) 12.1 % 17.4 % Increase Increase Total (6.3 )% (5.7 )%(1)
Primarily consists of televisions, audio, personal electronics and accessories.
(2)
Primarily consists of furniture and mattresses.
Gross Margin Highlights
Our gross profit margin, expressed as gross profit as a percentage of net sales, increased approximately 80 basis points for the three month period ended June 30, 2015 to 30.5% from 29.7% for the comparable prior year period.
Cost Structure Highlights
We continue to manage our cost structure to align with our expected sales levels and to keep our company positioned for EBITDA growth.
The increase in SG&A as a percentage of net sales to 25.2% from 24.7% for the comparable prior year period was a result of:
These increases were partially offset by the result of:
Stock Repurchase Plan
During the first quarter ended June 30, 2015, the Company did not repurchase any shares under the Company’s $40 million share repurchase program that was authorized by the Company’s Board of Directors and was effective on May 20, 2014. The Company acquired a total of $5.3 million under the program. This share repurchase program expired on May 20, 2015.
Teleconference and Webcast
hhgregg will be conducting a conference call to discuss operating results for the three months ended June 30, 2015, on Thursday, August 6, 2015 at 9:00 a.m. (Eastern Time). Our call will be hosted by Dennis May, our President and CEO, Robert Riesbeck, our CFO, and Lance Peterson, our Director of Finance & Investor Relations.
Interested investors and other parties may listen to a simultaneous webcast of the conference call by logging onto hhgregg’s website at www.hhgregg.com. The on-line replay will be available for a limited time immediately following the call. The call can also be accessed live over the phone by dialing (877) 304-8963. Callers should reference the hhgregg earnings call.
About hhgregg
hhgregg is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer currently with 227 stores in 20 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com.
Forward Looking Statements
The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release includes forward-looking statements, including with respect to the Company’s financial performance, ability to manage costs, ability to execute our 2016 initiatives, innovation in the video industry, the impact and amount of non-cash charges, and shifts in the Company’s sales mix. hhgregg has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While hhgregg believes these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These and other important factors may cause hhgregg’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from hhgregg’s expectations are: the ability to successfully execute its strategies and initiatives, particularly in the sales mix shift and consumer electronics category; its ability to maintain a positive brand perception and recognition; the failure of manufacturers to introduce new products and technologies; competition in existing, adjacent and new metropolitan markets; its ability to maintain the security of customer, associate and Company information; its ability to roll out new financing offers to customers; its ability to effectively manage and monitor its operations, costs and service quality; its ability to maintain and upgrade its information technology systems; its ability to maintain and develop multi-channel sales and marketing strategies; competition from internet retailers; its ability to meet delivery schedules; the effect of general and regional economic and employment conditions on its net sales; its ability to attract and retain qualified sales personnel; its ability to meet financial performance guidance; its ability to generate sufficient cash flows to recover the fair value of long-lived assets and recognize deferred tax assets; its reliance on a small number of suppliers; its ability to negotiate with its suppliers to provide product on a timely basis at competitive prices; changes in legal and/or trade regulations, currency fluctuations and prevailing interest rates and the potential for litigation.
Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described in the “Risk Factors” section in the Company’s Annual Report on Form 10-K filed May 15, 2015. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. hhgregg does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.
HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, June 30, 2015 2014 (In thousands, except share and per share data) Net sales $ 441,063 $ 472,293 Cost of goods sold 306,706 331,954 Gross profit 134,357 140,339 Selling, general and administrative expenses 111,104 116,589 Net advertising expense 23,054 27,224 Depreciation and amortization expense 8,369 10,475 Loss from operations (8,170 ) (13,949 ) Other expense (income): Interest expense 590 629 Interest income (5 ) (5 ) Total other expense 585 624 Loss before income taxes (8,755 ) (14,573 ) Income tax benefit — (4,304 ) Net loss $ (8,755 ) $ (10,269 ) Net loss per share Basic $ (0.32 ) $ (0.36 ) Diluted $ (0.32 ) $ (0.36 ) Weighted average shares outstanding-basic and diluted 27,680,209 28,444,948 HHGREGG, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (AS A PERCENTAGE OF NET SALES) (UNAUDITED) Three Months Ended June 30, 2015 June 30, 2014 Net sales 100.0 % 100.0 % Cost of goods sold 69.5 70.3 Gross profit 30.5 29.7 Selling, general and administrative expenses 25.2 24.7 Net advertising expense 5.2 5.8 Depreciation and amortization expense 1.9 2.2 Loss from operations (1.9 ) (3.0 ) Other expense (income): Interest expense 0.1 0.1 Interest income — — Total other expense 0.1 0.1 Loss before income taxes (2.0 ) (3.1 ) Income tax benefit — (0.9 ) Net loss (2.0 )% (2.2 )%Certain percentage amounts do not sum due to rounding
HHGREGG, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2015, MARCH 31, 2015 AND JUNE 30, 2014 (UNAUDITED) June 30, 2015March 31, 2015
June 30, 2014(In thousands, except share data)
Assets
Current assets: Cash and cash equivalents $ 9,742 $ 30,401 $ 3,147 Accounts receivable—trade, less allowances of $13, $19 and $137 as of June 30, 2015, March 31, 2015 and June 30, 2014, respectively 17,178 11,901 20,026 Accounts receivable—other 16,109 16,715 17,244 Merchandise inventories, net 324,551 257,469 364,252 Prepaid expenses and other current assets 10,229 6,581 6,548 Income tax receivable 5,345 5,326 14,690 Total current assets 383,154 328,393 425,907 Net property and equipment 123,985 128,107 188,229 Deferred financing costs, net 1,661 1,796 2,200 Deferred income taxes 7,816 6,489 37,613 Other assets 2,914 2,844 2,243 Total long-term assets 136,376 139,236 230,285 Total assets $ 519,530 $ 467,629 $ 656,192Liabilities and Stockholders’ Equity
Current liabilities: Accounts payable $ 167,108 $ 112,143 $ 167,261 Customer deposits 49,737 48,742 48,395 Accrued liabilities 52,161 46,723 54,695 Deferred income taxes 7,816 6,489 5,339 Total current liabilities 276,822 214,097 275,690 Long-term liabilities: Deferred rent 66,107 67,935 71,731 Other long-term liabilities 10,870 12,009 11,540 Total long-term liabilities 76,977 79,944 83,271 Total liabilities 353,799 294,041 358,961 Stockholders’ equity: Preferred stock, par value $.0001; 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2015, March 31, 2015 and June 30, 2014, respectively — — — Common stock, par value $.0001; 150,000,000 shares authorized; 41,204,660, 41,161,753 and 41,158,041 shares issued; and 27,707,978, 27,665,071 and 28,394,164 outstanding as of June 30, 2015, March 31, 2015, and June 30, 2014, respectively 4 4 4 Additional paid-in capital 302,578 301,680 298,541 Retained earnings 13,377 22,132 144,609 Common stock held in treasury at cost 13,496,682, 13,496,682 and 12,763,877 shares as of June 30, 2015, March 31, 2015, and June 30, 2014, respectively (150,228 ) (150,228 ) (145,923 ) Total stockholders’ equity 165,731 173,588 297,231 Total liabilities and stockholders’ equity $ 519,530 $ 467,629 $ 656,192 HHGREGG, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED JUNE 30, 2015 AND 2014 (UNAUDITED) Three Months Ended June 30, 2015 June 30, 2014 (In thousands) Cash flows from operating activities: Net loss $ (8,755 ) $ (10,269 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 8,369 10,475 Amortization of deferred financing costs 135 134 Stock-based compensation 898 1,469 Gain on sales of property and equipment (78 ) (27 ) Deferred income taxes — 9,128 Tenant allowances received from landlords 580 — Changes in operating assets and liabilities: Accounts receivable—trade (5,277 ) (4,905 ) Accounts receivable—other 46 (736 ) Merchandise inventories (67,082 ) (65,710 ) Income tax receivable (19 ) (13,310 ) Prepaid expenses and other assets (3,645 ) 98 Accounts payable 55,081 24,685 Customer deposits 995 6,877 Income tax payable — (122 ) Accrued liabilities 5,438 3,670 Deferred rent (1,848 ) (1,803 ) Other long-term liabilities (1,072 ) (385 ) Net cash used in operating activities (16,234 ) (40,731 ) Cash flows from investing activities: Purchases of property and equipment (4,304 ) (4,430 ) Proceeds from sales of property and equipment 11 33 Purchases of corporate-owned life insurance (73 ) (218 ) Net cash used in investing activities (4,366 ) (4,615 ) Cash flows from financing activities: Purchases of treasury stock — (976 ) Net (repayments) borrowings on inventory financing facility (59 ) 1,305 Net cash (used in) provided by financing activities (59 ) 329 Net decrease in cash and cash equivalents (20,659 ) (45,017 ) Cash and cash equivalents Beginning of period 30,401 48,164 End of period $ 9,742 $ 3,147 Supplemental disclosure of cash flow information: Interest paid $ 459 $ 489 Income taxes paid $ 19 $ — Capital expenditures included in accounts payable $ 1,352 $ 1,533 HHGREGG, INC. AND SUBSIDIARIES NON-GAAP RECONCILIATION OF EBITDA (UNAUDITED) Three Months Ended June 30, June 30,(Amounts in thousands)
2015 2014 Net loss as reported $ (8,755 ) $ (10,269 ) Adjustments: Depreciation and amortization 8,369 10,475 Interest expense, net 585 624 Income tax expense (benefit) — (4,304 ) EBITDA $ 199 $ (3,474 )EBITDA represents net income (loss) before income tax expense, interest income, interest expense, depreciation and amortization. We have presented EBITDA because we consider it an important supplemental measure of our performance and believe it is frequently used by analysts, investors and other interested parties in the evaluation of companies in our industry. Management uses EBITDA as a measurement tool for evaluating our actual operating performance compared to budget and prior periods. EBITDA is not a measure of performance under generally accepted accounting principles (GAAP) and should not be considered as a substitute for net loss prepared in accordance with GAAP. EBITDA has limitations as an analytical tool, and you should not consider these in isolation or as a substitute for analysis of our results as reported under GAAP.
Some of the limitations of EBITDA measures are:
We compensate for these limitations by relying primarily on our GAAP results and using EBITDA only as a supplement.
HHGREGG, INC. AND SUBSIDIARIES Store Count by Quarter for Fiscal Years 2014, 2015 and 2016 (Unaudited) FY2014 FY2015 FY2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Beginning Store Count 228 228 228 228 228 229 228 228 228 Store Openings — — — — 1 — — — 1 Store Closings — — — — — (1 ) — — (2 ) Ending Store Count 228 228 228 228 229 228 228 228 227Note: hhgregg, Inc.'s fiscal year is comprised of four quarters ending June 30th, September 30th, December 31st and March 31st.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150806005238/en/
hhgregg, Inc.Lance Peterson, Director, Finance & Investor Relations, 317-848-8710investorrelations@hhgregg.com
1 Year HHGREGG (CE) Chart |
1 Month HHGREGG (CE) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions