West Marine, Inc. reported net revenues for the 13 weeks ended Oct. 1 were $180.3 million, compared to net revenues of $172.5 million for the 13 weeks ended Oct. 2, 2010. Revenues in the Stores segment were $163.8 million, up $6.4 million, or 4.1%, compared to the same period last year. Comparable store sales grew 3.9% versus the same period a year ago.



The primary driver of growth was increased sales to Port Supply (wholesale) customers through store locations as part of ongoing efforts to better serve this group and to leverage store facilities.

 

Revenues from stores opened in 2010 and the first nine months of 2011 contributed $8.5 million to Stores segment sales. The impact of stores closed during these same periods effectively reduced revenues by $7.0 million. The majority of the closures were a result of  on-going real estate optimization strategy to evolve into having fewer, larger stores.

 

Port Supply segment revenues, representing sales through  distribution centers, for the third quarter of 2011 were $7.0 million, an increase of $300,000, or 4.8%, compared to the same period last year. Continued execution of real estate optimization, including adding hubs in store locations that target and cater to Port Supply customers, continues to shift revenue from the Port Supply segment to the Stores segment.


Net revenues in the Direct Sales segment for third quarter of 2011 were $9.4 million, an increase of $1.0 million, or 11.8%, compared to the same period last year. The primary driver for the increase was higher average order value for purchases through the company’s website.

 

Gross profit for the third quarter was $54.7 million, an increase of $5.1 million compared to 2010. As a percentage of net revenues, gross profit increased by 160 basis points to 30.3%, compared to gross profit of 28.7% last year.

 

The increase in gross profit as a percentage of revenues resulted from a 0.5% improvement in shrink results and leveraging relatively-fixed occupancy expense by 0.5% on the higher sales, a 0.4% improvement resulting from lower unit buying and distribution costs, and a 0.2% increase in raw product margin due to less promotional and clearance activity.


Selling, general & administrative (SG&A) expense for the quarter was $41.8 million, which was flat compared to last year. As a percentage of revenues, SG&A decreased by 1.1% to 23.1%, on higher sales. Lower accrued bonus expense as compared to last year was mostly offset by higher expense related to information technology infrastructure.
Pre-tax income for the 13 weeks ended October 1, 2011 was $12.7 million, a $5.0 million, or 65.9%, increase from pre-tax income of $7.6 million last year. Net income was $0.48 per share, a 50.0% increase compared to $0.32 per share last year.


Fiscal 2011 earnings guidance
Third quarter results were consistent with WMAR’s expectations and the company affirmed its previously-issued full year 2011 pre-tax income guidance at a range of approximately $18.5 million to $20.0 million. Comparable store sales for full-year 2011 are anticipated to increase from 1.5% to 2.5%, with total revenues expected to be in a range of approximately $640 million to $645 million. The company  reiterated previously-issued 2011 capital spending expectations of approximately $20 million, principally driven by investment in real estate optimization strategy.

 






















































































































































































































































































West Marine, Inc.
Condensed Consolidated Statements of Income
(Unaudited and in thousands, except per share data)
13 Weeks Ended
October 1, 2011 October 2, 2010
Net revenues $ 180,269 100.0 % $ 172,544 100.0 %
Cost of goods sold 125,578 69.7 % 122,970 71.3 %
Gross profit 54,691 30.3 % 49,574 28.7 %
Selling, general and administrative expense 41,789 23.1 % 41,817 24.2 %
Store closures and other restructuring recoveries (10 ) 0.0 % (30 ) 0.0 %
Impairment of long lived assets 22 0.0 % 0.0 %
Income from operations 12,890 7.2 % 7,787 4.5 %
Interest expense 226 0.2 % 153 0.1 %
Income before income taxes 12,664 7.0 % 7,634 4.4 %
Provision for income taxes 1,448 0.8 % 208 0.1 %
Net income $ 11,216 6.2 % $ 7,426 4.3 %
Net income per common and common
equivalent share:
Basic $ 0.49 $ 0.33
Diluted $ 0.48 $ 0.32






















































































































































































































































































West Marine, Inc.
Condensed Consolidated Statements of Income
(Unaudited and in thousands, except per share data)
13 Weeks Ended
October 1, 2011 October 2, 2010
Net revenues $ 180,269 100.0 % $ 172,544 100.0 %
Cost of goods sold 125,578 69.7 % 122,970 71.3 %
Gross profit 54,691 30.3 % 49,574 28.7 %
Selling, general and administrative expense 41,789 23.1 % 41,817 24.2 %
Store closures and other restructuring recoveries (10 ) 0.0 % (30 ) 0.0 %
Impairment of long lived assets 22 0.0 % 0.0 %
Income from operations 12,890 7.2 % 7,787 4.5 %
Interest expense 226 0.2 % 153 0.1 %
Income before income taxes 12,664 7.0 % 7,634 4.4 %
Provision for income taxes 1,448 0.8 % 208 0.1 %
Net income $ 11,216 6.2 % $ 7,426 4.3 %
Net income per common and common
equivalent share:
Basic $ 0.49 $ 0.33
Diluted $ 0.48 $ 0.32

































West Marine, Inc.


Condensed Consolidated Statements of Income


(Unaudited and in thousands, except per share data)


13 Weeks Ended


October 1, 2011


October 2, 2010


Net revenues


$


180,269

About The Author

Archives

Categories

Pin It on Pinterest