Syms Corp announces repayment of short-term credit facility
Syms Corp, a leading off-price retailer, announced results for its fourth quarter and full fiscal year ended February 26, 2011. In addition, the Company announced that it closed on the sale-leaseback of the Company's property located in Rockville, Maryland, and used a portion of the proceeds from the transaction to pay in full the balance of its short-term loan under a credit facility with Bank of America, N.A.
For the fourth quarter (13 week period) ended February 26, 2011, the Company had a net loss of $17.8 million ($1.23 per share) as compared to a net loss of $7.4 million ($0.51 per share) for the quarter ended February 27, 2010. For the fiscal year (52 week period) ended February 26, 2011, the net loss was $32.9 million ($2.27 per share) as compared to net income of $8.3 million ($0.57 per share) for the fiscal year ended February 27, 2010.
The current and prior year periods include one-time items that affect comparability, including a gain on life insurance proceeds, a bargain purchase gain associated with the acquisition of Filene's Basement and acquisition costs related to that transaction in the prior year, and restructuring-related costs in the current year. Excluding these one-time items, the Company's adjusted net loss for the quarter ended February 26, 2011 would have been $12.1 million ($0.84 per share), compared to last year's adjusted net loss of $7.3 million ($0.50 per share). The adjusted net loss after excluding these items for the year ended February 26, 2011 would have been $24.8 million ($1.72 per share), compared to last year's adjusted net loss of $21.2 million ($1.46 per share).
Net sales for the fiscal quarter ended February 26, 2011 were $100.9 million compared to $115.5 million for the fiscal quarter ended February 27, 2010, a decline of $14.6 million, or 13%. For the year ended February 26, 2011, net sales increased by $67.8 million, or 18%, to $445.1 million, up from $377.3 million last year. The increase in sales was primarily the result of the acquisition of Filene's Basement in June 2009. Comparable store sales were flat for the year and decreased 7% in the thirteen week period ended February 26, 2011.
Adjusted net profit and loss excluding items that affect comparability is a non-GAAP measure. The Company believes the excluded items are not indicative of the recurring performance of the business and that by providing this supplemental disclosure it will facilitate a more meaningful comparison of its operating performance. A reconciliation of net profit and loss as reported to the adjusted net profit and loss is included as a schedule in this press release.
As of February 26, 2011, the Company and its wholly-owned subsidiary Filene's Basement, LLC collectively owned and operated 47 "off-price" apparel stores located predominantly on the east coast of the United States under the "Syms" name (which, together with co-branded Syms/Filene's Basement stores, are owned and operated by the Company) and the "Filene's Basement" name (which are owned and operated by Filene's Basement, LLC). Each Syms and Filene's Basement store offers a broad range of first quality, in season merchandise bearing nationally recognized designer and brand-name labels.