 | Press Release| Aeropostale Reports Strong Second Quarter Results | | Earnings Per Share of $0.07 Versus Loss Per Share of ($0.06) in Prior Year; Revenues Increase 44% Versus Prior Year NEW YORK, Aug 21, 2003 (BUSINESS WIRE) -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of
active and casual apparel for the teen market, today reported results
for the fiscal second quarter ended August 2, 2003.
Net income for the quarter ended August 2, 2003 was $2.7 million
or $0.07 per diluted share versus a net loss of ($2.0) million or
($0.06) per diluted share in the comparable quarter in the prior year.
In the comparable quarter last year, the company recorded a $3.9
million non-cash charge related to equity based compensation.
Excluding the charge, the company reported $0.01 per diluted share in
the 2002 quarter. (See Exhibit D).
Net sales for the quarter increased 44.2% to $129.9 million versus
$90.1 million in the comparable period. Comparable sales for the
second quarter of fiscal 2003 increased 9.2% compared to an increase
of 11.2% in the same period in the prior year.
Julian R. Geiger, Chairman and Chief Executive Officer, said, "We
are very pleased with the vitality of our business in the second
quarter. Our sales were driven by above-plan results for both new
stores and same stores sales. We executed well, utilized inventory
effectively, transitioned into fall assortments smoothly, and
positioned our company for a successful back-to-school."
The company also today updated guidance for the third quarter. For
the third quarter, the company is comfortable with current consensus
of $0.51 per diluted share.
The company will be holding a conference call today at 4:15 P.M.
to review its fiscal 2003 second quarter results. The broadcast will
be available through the 'Investor Relations' link at
www.aeropostale.com and at www.companyboardroom.com. To listen to the
broadcast, your computer must have Windows Media Player installed. If
you do not have Windows Media Player, go to the latter site prior to
the call, where you can download the software for free.
About Aeropostale, Inc.
Aeropostale, Inc. (www.aeropostale.com) is a mall-based specialty
retailer of casual apparel and accessories that targets both young
women and young men aged 11 to 20. The company provides customers with
a selection of high-quality, active-oriented, fashion basic
merchandise in a high-energy store environment. The company maintains
complete control over the proprietary brand by designing and sourcing
all of its own merchandise. Aeropostale products can be purchased only
in its stores, which sell Aeropostale merchandise exclusively.
The first Aeropostale store was opened in 1987. The company
currently operates 427 stores in 40 states.
Special Note: Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995: Except for historical information
contained herein, the statements made in this release constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Such forward-looking statements involve certain risks and
uncertainties, including statements regarding the company's strategic
direction, prospects and future results. Certain factors, including
factors outside of our control, may cause actual results to differ
materially from those contained in the forward-looking statements.
These factors include the company's ability to implement its growth
strategy successfully, changes in consumer fashion preferences,
economic and other conditions in the markets in which we operate,
competition, seasonality and the other risks discussed in the
company's prospectus dated July 28, 2003 filed with the Securities and
Exchange Commission, which discussions are incorporated in this
release by reference.
EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in Thousands)
August 2, February 1, August 3,
2003 2003 2002
----------- ---------- -----------
(Unaudited) (1) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $76,222 $87,475 $8,818
Merchandise inventory 91,760 46,645 95,440
Other current assets 23,812 10,669 16,139
----------- --------- ---------
Total current assets 191,794 144,789 120,397
FIXTURES, EQUIPMENT AND
IMPROVEMENTS -- Net 85,990 69,448 64,162
OTHER ASSETS 8,781 8,795 8,449
----------- --------- ---------
TOTAL ASSETS $286,565 $223,032 $193,008
=========== ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving credit facility $-- $-- $16,983
Accounts payable 59,159 17,954 25,712
Accrued expenses 35,262 40,044 22,608
----------- --------- ---------
Total current liabilities 94,421 57,998 65,303
OTHER NONCURRENT LIABILITIES 45,548 37,075 33,700
COMMITMENT AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock -- par value, $0.01
per share; 200,000 shares authorized,
37,054, 35,306 and 34,997 shares issued
and outstanding 371 353 350
Additional paid-in capital 55,422 41,657 40,382
Retained earnings 90,803 85,949 53,273
----------- --------- ---------
Total stockholders' equity 146,596 127,959 94,005
----------- --------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 286,565 $ 223,032 $ 193,008
=========== ========== ==========
Note (1) Balance sheet derived from audited consolidated financial
statements
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
SELECTED FINANCIAL DATA
(Unaudited)
(in Thousands, except per share and store data)
13 weeks ended 13 weeks ended
August 2, 2003 August 3, 2002
----------------- ---------------
% of %
Sales Sales
NET SALES $129,944 100.0% $90,141 100.0%
COST OF SALES 94,362 72.6 66,047 73.3
--------- ------- -------- -------
GROSS PROFIT 35,582 27.4 24,094 26.7
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 31,342 24.1 27,410 30.4
--------- ------- -------- -------
INCOME (LOSS) FROM OPERATIONS 4,240 3.3 (3,316) (3.7)
INTEREST (INCOME) -- Net (253) (0.2) (19) --
--------- ------- -------- -------
INCOME (LOSS) BEFORE INCOME TAXES 4,493 3.5 (3,297) (3.7)
PROVISION (BENEFIT) FOR INCOME TAXES 1,751 1.3 (1,319) (1.5)
--------- ------- -------- ------
NET INCOME (LOSS) $2,742 2.1% $(1,978) (2.2)%
========= =======
BASIC NET INCOME (LOSS) PER COMMON
SHARE $ 0.08 $ (0.06)
========= =======
DILUTED NET INCOME (LOSS) PER COMMON
SHARE $ 0.07 $ (0.06)
========= =======
Basic weighted average shares
outstanding 36,027 34,568
Diluted weighted average shares
outstanding 38,763 38,133
STORE DATA:
Comparable store sales 9.2% 11.2%
Stores open at end of period 427 335
Total gross square footage at
end of period 1,498,920 1,165,445
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
SELECTED FINANCIAL DATA
(Unaudited)
(in Thousands, except per share and store data)
26 weeks ended 26 weeks ended
August 2, 2003 August 3, 2002
---------------- -----------------
% of %
Sales Sales
NET SALES $242,155 100.0% $175,271 100.0%
COST OF SALES 176,323 72.8 127,028 72.5
---------- ------ --------- -------
GROSS PROFIT 65,832 27.2 48,243 27.5
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 58,309 24.1 50,623 28.9
---------- ------ --------- ------
INCOME (LOSS) FROM OPERATIONS 7,523 3.1 (2,380) (1.4)
INTEREST (INCOME) -- Net (434) (0.2) (69) --
--------- ------ --------- -------
INCOME (LOSS) BEFORE INCOME TAXES 7,957 3.3 (2,311) (1.3)
PROVISION (BENEFIT) FOR INCOME TAXES 3,103 1.3 (925) (0.5)
--------- ------ --------- -------
NET INCOME (LOSS) $4,854 2.0% $(1,386) (0.8)%
========= ========
BASIC NET INCOME (LOSS) PER COMMON
SHARE $ 0.14 $ (0.05)
========= =========
DILUTED NET INCOME (LOSS) PER COMMON
SHARE $ 0.13 $ (0.05)
========= =========
Basic weighted average shares
outstanding 35,724 33,610
Diluted weighted average shares
outstanding 38,617 37,293
STORE DATA:
Comparable store sales 5.5% 16.4%
Stores open at end of period 427 335
Total gross square footage at
end of period 1,498,920 1,165,445
EXHIBIT D: The following adjusted condensed consolidated
statements of operations for the 13 weeks and 26 weeks ended August 3,
2002 exclude equity based compensation of $3.9 million and $4.5
million, respectively.
ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in Thousands, except per share date)
(Unaudited)
13 weeks ended 26 weeks ended
---------------- ---------------
August August August August
2, 3, 2, 3,
2003 2002 2003 2002
------- ------- ------ --------
NET INCOME (LOSS) $2,742 $(1,978) $4,854 $(1,386)
Equity based compensation -- 3,853 -- 4,473
Income tax effect (a) -- (1,541) -- (1,789)
------- -------- ------ --------
ADJUSTED NET INCOME $2,742 $334 $4,854 $1,298
======= ======== ====== ========
ADJUSTED NET INCOME PER SHARE $0.07 $0.01 $0.13 $ 0.03
======= ======== ====== ========
(a) Assumes a tax rate of 40%
SOURCE: Aeropostale, Inc.
Aeropostale, Inc.
Michael J. Cunningham, 888/363-2825
or
Integrated Corporate Relations
Investor Relations:
James Palczynski/Chad A. Jacobs, 203/222-9013
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