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Select Comfort announces Q4 & full-year 2009 results
11 Feb '10
5 min read
Cash flows from operating activities were $66.6 million for full-year 2009, which includes $26.1 million in tax refunds associated with prior-year losses. This compares to $3.0 million of cash flows from operating activities for full-year 2008. The company reduced 2009 capital expenditures to $2.5 million, compared to $32.2 million in the prior year. As of year-end 2009, cash and cash equivalents totaled $17.7 million and the company had no borrowings under its revolving credit agreement as compared to outstanding debt of $79.2 million at 2008 year-end. The company is in compliance with all bank covenants.
Net sales for 2009 totaled $544.2 million, a decrease of 11 percent as compared to $608.5 million in 2008. The company reported a net profit of $35.6 million, or $0.77 per diluted share in 2009, compared to a net loss of $70.2 million, or $1.59 per diluted share in 2008.
Both 2008 and 2009 periods included valuation allowance adjustments for income taxes and asset impairment charges while 2009 also included costs associated with a terminated financing transaction. Adjusting for these items, net income would have been $0.25 per share in fiscal 2009 as compared to a net loss of $0.51 per share in the same period a year ago. A reconciliation is provided at the end of this news release.
Fiscal 2010 Outlook
The company expects to increase earnings per share in 2010 by 30 percent to 50 percent to between $0.32 and $0.38 per share, as compared to adjusted earnings of $0.25 per share in 2009. This outlook reflects the improved cost structure of the business and a cautious outlook about economic trends for 2010. The company is pleased with early 2010 sales trends and expects to generate positive same-store growth throughout the year. The comparison of 2010 and 2009 sales levels will be impacted by store closures and retail partner terminations in 2009, which together generated approximately $35.0 million in sales in 2009.
The company ended 2009 with 403 stores and expects to end 2010 with between 380 and 390 stores after the consolidation of planned store openings and closings. The company expects that 2010 capital expenditures will be approximately $10.0 million.
Net sales for 2009 totaled $544.2 million, a decrease of 11 percent as compared to $608.5 million in 2008. The company reported a net profit of $35.6 million, or $0.77 per diluted share in 2009, compared to a net loss of $70.2 million, or $1.59 per diluted share in 2008.
Both 2008 and 2009 periods included valuation allowance adjustments for income taxes and asset impairment charges while 2009 also included costs associated with a terminated financing transaction. Adjusting for these items, net income would have been $0.25 per share in fiscal 2009 as compared to a net loss of $0.51 per share in the same period a year ago. A reconciliation is provided at the end of this news release.
Fiscal 2010 Outlook
The company expects to increase earnings per share in 2010 by 30 percent to 50 percent to between $0.32 and $0.38 per share, as compared to adjusted earnings of $0.25 per share in 2009. This outlook reflects the improved cost structure of the business and a cautious outlook about economic trends for 2010. The company is pleased with early 2010 sales trends and expects to generate positive same-store growth throughout the year. The comparison of 2010 and 2009 sales levels will be impacted by store closures and retail partner terminations in 2009, which together generated approximately $35.0 million in sales in 2009.
The company ended 2009 with 403 stores and expects to end 2010 with between 380 and 390 stores after the consolidation of planned store openings and closings. The company expects that 2010 capital expenditures will be approximately $10.0 million.
Select Comfort Corporation
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