Net revenues up 17.9% at Body Central in Q3

15 Nov '11

4 min read

Body Central Corp. announced financial results for the third quarter and year-to-date 2011.

Highlights for the third quarter ended October 1, 2011:
• Net revenues for the quarter increased 17.9% to $67.1 million, compared to $56.9 million for the third quarter of 2010.
• Store sales rose 21.2% to $61.0 million driven by a comparable-store sales increase of 8.2% and net store unit growth of 10.8%.
• Operating income increased 58.9% to $4.7 million as compared to $2.9 million in the third quarter of 2010. Operating margin increased to 6.9% from 5.2% for the same period last year. Excluding $350,000 in severance costs related to the departure of the Company's former CFO, operating income for the third quarter of 2011 was $5.0 million or 7.5% of net revenues.
• Net income was $2.8 million, or $0.18 per diluted share based on 16.2 million weighted average shares outstanding as compared to net income of $1.3 million, or $0.11 per diluted share based on 12.8 million weighted average shares outstanding for the third quarter of 2010. Excluding the severance costs net income for the third quarter of 2011 was $3.1 million or $0.19 per diluted share.
• The Company opened 5 new stores during the third quarter and operated 226 stores as of October 1, 2011.

Highlights for the thirty-nine weeks ended October 1, 2011:
• Net revenues increased 22.4% to $215.8 million from $176.3 million for the same period a year ago.
• Store sales rose 26.8% to $188.9 million and comparable-store sales increased 13.0% from the same period in 2010.
• Operating margin increased to 10.0% of net revenues from 7.8% of net revenues for the same period last year. Excluding the above-mentioned severance costs related to the departure of the Company's former CFO, operating margin was 10.2% for the thirty-nine weeks ended October 1, 2011.
• Net income was $13.6 million or $0.85 per diluted share, as compared to net income of $7.1 million, or $0.56 per diluted share for the third quarter of 2010. Excluding the severance costs, net income for the thirty-nine weeks ended October 1, 2011 was $13.8 million or $0.86 per diluted share.
• The Company opened 17 new stores during the thirty-nine weeks ended October 1, 2011.

Allen Weinstein, Body Central's President and CEO, stated: "Our solid momentum continued in the third quarter as we consistently delivered fashionable merchandise at value prices. Our comparable store sales performance demonstrates the strength of our existing stores while our new stores are also performing ahead of expectations.

"We are on target to open 33 new stores in 2011 -- a record for our Company. In addition, we remain focused on enhancing our infrastructure and have made several strategic additions to our management team that we believe will better position us to execute on our long term growth objectives."

Balance Sheet highlights as of October 1, 2011:
Cash and cash equivalents were $31.7 million at the end of the third quarter compared to $5.8 million at the end of the third quarter in the prior year.

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