Hancock sees greatly improved numbers, but still posts losses
by MBJ Staff
Published: April 29,2013
BALDWYN — Hancock Fabrics Inc. is reporting improved financial results for its fourth quarter ended Jan. 26 and full fifty-two weeks of fiscal 2012.
For the quarter, net sales 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 percent on top of a 4.5 percent increase for the fourth quarter last year.
Operating income increased 171 percent to $2.8 million, compared to an operating loss of $4.0 million in the fourth quarter last year.
Quarterly, EBITDA increased $6.4 million, or 290 percent, to a positive $4.2 million this quarter from -$2.2 million for the fourth quarter of last year.
Th company saw a 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.
For the year, net sales increased to $278.0 million, compared to $272.0 million for last year. Comparable store sales for the year increased 2.9 percent, compared to a decrease of 0.8 percent for last year.
Gross profit was 40.3 percent, compared to 41.4 percent for last year, a deleverage of 110 basis points.
EBITDA increased $4.5 million to a positive $4.1 million from a negative $0.4 million for the prior year.
The 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.
Steve Morgan, Hancock’s president and CEO said, “We are pleased to report improved performance in the fourth quarter and the momentum that it brings us going into 2013. Operating income was up $6.8 million over last fourth quarter and although we had a net loss of $0.6 million for the fourth quarter, this included one time refinancing expenses of $1.5 million. We feel that the decision to refinance early even though it was not planned at the beginning of the year, despite the resulting negative impact to the fourth quarter results, had a positive impact as we expect it to provide us stability for the next four years.”
During 2012, the company opened one store, closed three stores and relocated eight units, ending the year with 261 stores.
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