Hancock Fabrics, Inc announced improved financial results for its fourth quarter ended January 26, 2013 and full fifty-two weeks of fiscal 2012.
Fiscal 2012 financial results include:
- Net sales for the year increased $6.0 million to $278.0 million compared to $272.0 million for last year. Comparable store sales for the year increased 2.9% compared to a decrease of 0.8% for last year.
-Gross profit was 40.3% compared to 41.4% for last year, a deleverage of 110 basis points. The deleverage for the year, was mainly driven by promotional activity in the first three quarters of the year. As reported above, the gross profit for the fourth quarter improved over the same period last year.
- Selling, general and administrative expenses for the year, including depreciation and amortization, improved 310 basis points to 40.7% of sales down from 43.8% of sales in the prior year.
- Operating results for 2012 improved by $5.3 million to an operating loss of $1.2 million compared to an operating loss of $6.5 million in the previous year.
- EBITDA, which is earnings before interest, taxes, depreciation and amortization, a non-GAAP measure, increased $4.5 million to a positive $4.1 million from a negative $0.4 million for the prior year.
- Net loss was $8.5 million or $0.42 per basic share, for fiscal 2012, compared to a net loss of $11.3 million, or $0.57 per basic share for fiscal 2011.
Financial results for the fourth quarter include:
- Net sales for the quarter increased to $81.7 million compared to $81.4 million for the fourth quarter of last year. Comparable store sales for the quarter increased 1.4% on top of a 4.5% increase for the fourth quarter last year.
- Gross profit for the quarter increased by 330 basis points to 39.1% compared to 35.8% in the prior year.
- Selling, general and administrative expenses for the quarter, including depreciation and amortization, improved this quarter by 510 basis points to 35.6% of sales down from 40.7% of sales in the prior year quarter.
- Operating income increased 171% to $2.8 million compared to an operating loss of $4.0 million in the fourth quarter last year, this is an increase of $6.8 million.
- EBITDA, which is earnings before interest, taxes, depreciation and amortization, a non-GAAP measure, increased $6.4 million or 290% to a positive $4.2 million this quarter from a negative $2.2 million for the fourth quarter of last year.
- Net loss was $0.6 million, or $0.03 per basic share, in the fourth quarter of fiscal 2012 compared to a net loss of $5.2 million, or $0.26 per basic share in the fourth quarter of fiscal 2011.
- The Company refinanced its revolver and subordinated debt during the quarter. At quarter end, the Company had outstanding borrowings under its revolving line of credit of $41.4 million, $15.0 million on term loans and outstanding letters of credit of $6.0 million.
Additional amounts available to borrow under its revolving line of credit at the end of the quarter were $20.0 million. The balance of the Company's subordinated debt was $13.3 million at quarter end, and the remaining unamortized warrant discount on this debt was $379,000.
