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SAN FRANCISCO, May 01, 2008 (BUSINESS WIRE) -- Bare Escentuals, Inc. (Nasdaq: BARE) today announced financial results for the first fiscal quarter ended March 30, 2008.
Net sales for the first quarter of fiscal 2008 were $140.4 million, an increase of approximately 21% from $115.6 million recorded in the same period last year. Net income for the first quarter of fiscal 2008 was $25.8 million, or $0.28 per diluted share on approximately 93.3 million shares outstanding, compared to $20.4 million, or $0.22 per diluted share on approximately 92.6 million shares outstanding, in the first quarter of fiscal 2007.
"We are pleased with our strong start to 2008 which reflects a continuation of the positive brand momentum experienced in 2007," said Leslie Blodgett, Chief Executive Officer. "We are on track to significantly expand our points of presence domestically and internationally, including our recent launch at Selfridges in London, our first department store in the United Kingdom. At the same time, we're excited about our new business initiatives, including the growth of our mineral skincare line, RareMinerals."
Guidance
For fiscal 2008, the Company continues to expect sales to grow in the range of 20% to 25% compared to fiscal year 2007 and diluted earnings per share to be in the range of $1.13 to $1.18 on approximately 93.8 million shares outstanding.
Conference Call
Bare Escentuals, Inc. will host a conference call today, May 1, 2008 at 1:30 p.m. Pacific (4:30 p.m. Eastern). The call will be hosted by Leslie Blodgett, Chief Executive Officer; and Myles McCormick, Chief Operating Officer and Chief Financial Officer, and will be broadcast live over the Internet and will be accessible through the Investor Relations section of the Company's website at http://ir.bareescentuals.com. The webcast will also be archived online within one hour of the completion of the conference call and available at the Investor Relations section of the Company's website at http://ir.bareescentuals.com.
About Bare Escentuals, Inc.
Bare Escentuals, Inc. is one of the fastest growing prestige cosmetic companies in the United States and a leader in mineral-based cosmetics. The Company utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market and sell cosmetics, skin care, and body care products under its bareMinerals, RareMinerals and namesake Bare Escentuals brands, and professional skin care products under its md formulations brand through infomercials, home shopping television, specialty beauty retailers, department stores, company-owned boutiques, spas and salons, and online shopping.
(BARE-F)
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives and future operations and estimates of our financial results and capital expenditures for future periods. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. Factors that could affect future performance include, but are not limited to our dependence on sales of our mineral-based foundation; our dependence on significant customers with whom we do not have long-term purchase commitments; the highly competitive nature of the beauty industry, and the adverse consequences if we are unable to compete effectively; the possibility that we might not manage our growth effectively or sustain our growth or profitability; the possibility that we might not be able to retain key executives and other personnel and recruit additional executives and personnel; the possibility that we might not be able to open and operate new boutiques successfully; our dependence on our suppliers to produce and deliver our products in a timely and cost-effective manner; the possibility that our media spending might not result in increased net sales or generate the levels of product and brand name awareness we desire; the possibility that we may be unable to repay or refinance our indebtedness, which was $251.4 million as of March 30, 2008; changes in general economic or market conditions; and other risk factors detailed in our Annual Report on Form 10-K for the period ended December 30, 2007, which is available at the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
BARE ESCENTUALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except percentages and per share data)
(Unaudited)
Three months ended
---------------------------------
March 30, 2008 April 1, 2007
---------------- ----------------
Sales, net $140,358 100.0% $115,613 100.0%
Cost of goods sold 38,657 27.5 33,450 28.9
--------- ---------
Gross profit 101,701 72.5 82,163 71.1
Expenses:
Selling, general and administrative 50,464 35.9 39,185 33.9
Depreciation and amortization 2,621 1.9 940 0.8
Stock-based compensation 1,912 1.4 1,611 1.4
--------- ---------
Operating income 46,704 33.3 40,427 35.0
Interest expense (4,644) (3.3) (6,811) (5.9)
Other income, net 707 0.5 341 0.3
--------- ---------
Income before provision for income
taxes 42,767 30.5 33,957 29.4
Provision for income taxes 16,984 12.1 13,552 11.7
--------- ---------
Net income $25,783 18.4% $20,405 17.7%
========= =========
Net income per share:
Basic $0.28 $0.23
========= =========
Diluted $0.28 $0.22
========= =========
Weighted-average shares used in per
share calculations:
Basic 91,260 89,428
========= =========
Diluted 93,277 92,632
========= =========
BARE ESCENTUALS, INC.
NET SALES BY BUSINESS SEGMENT AND DISTRIBUTION CHANNEL
(in thousands, except percentages)
(Unaudited)
Three Months Ended
-------------------------------
March 30, 2008 April 1, 2007
--------------- ---------------
Retail
Infomercial $30,679 21.9% $34,274 29.7%
Boutiques 25,730 18.3 17,134 14.8
-------- --------
Total retail 56,409 40.2 51,408 44.5
Wholesale
Premium wholesale 44,974 32.0 35,580 30.8
Home shopping television 17,877 12.7 13,694 11.8
Spas and salons 16,647 11.9 9,959 8.6
International distributors 4,451 3.2 4,972 4.3
-------- --------
Total wholesale 83,949 59.8 64,205 55.5
-------- --------
Sales, net $140,358 100.0% $115,613 100.0%
======== ========
BARE ESCENTUALS, INC.
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
March 30, December 30, April 1,
2008 2007 2007
----------- ------------ -----------
(Unaudited) (Unaudited)
Cash and cash equivalents $37,662 $32,117 $39,153
Inventories 69,569 59,643 59,267
Accounts receivable, net of
allowances 37,846 43,369 37,721
Total current assets 161,656 151,932 149,365
Total assets 235,930 223,905 183,580
Accounts payable 25,406 22,041 21,178
Accrued liabilities 17,696 25,141 15,373
Total current liabilities 62,556 67,731 58,764
Current portion of long-term debt 17,216 17,901 17,624
Long-term debt 234,137 247,032 307,376
Total stockholders' equity
(deficit) $(76,383) $(104,487) $(188,803)
SOURCE: Bare Escentuals, Inc.
Investor Contact: ICR, Inc. Andrew Greenebaum / Christine Gleim, 310-954-1100 agreenebaum@icrinc.com cgleim@icrinc.com
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