• The Company expects same-store sales for the second quarter of fiscal 2012 to be flat to a low single digit increase as compared to the second quarter of fiscal 2011. • Total gross margin for the second quarter of fiscal 2012 is expected to decline by approximately 350 to 450 basis points, as compared to the second quarter of fiscal 2011. • The dollar amount of SG&A expense is expected to increase modestly in the second quarter of fiscal 2012, as compared to the first quarter of fiscal 2012, as the Company increases its investment in marketing and store payroll. • Capital expenditures are expected to be approximately $18 million for fiscal 2012. • The Company currently plans to open approximately 31 new stores and close approximately 35 existing stores in fiscal 2012.
Amendment and Extension of Existing Credit Facility
The Company has executed an Amendment to its Amended and Restated Credit and Security Agreement with Wells Fargo Bank, National Association (the “Credit Facility”). The $50 million Credit Facility was extended three years, with a new maturity date of June 30, 2014. Going forward, the interest rate on borrowings under the Credit Facility will consist of the three-month LIBOR plus 2%, reset daily. The Company currently has no borrowings under the Credit Facility and historically has only used the Credit Facility to open letters of credit.