Hart Stores reports fourth quarter and year end results for fiscal year ended January 29, 2012
- Fourth quarter net earnings before restructuring improves by $1.1 million
SYMBOL: HIS (TSXV)
LAVAL, QC, Dec. 13, 2012 /CNW Telbec/ - Hart Stores Inc. (TSXV: HIS) announces its audited financial results today for the fourth quarter and fiscal year ended January 29, 2012.
For the year ended January 29, 2012, sales reached $145.0 million, compared to previous year's sales of $174.7 million. The net loss for the year was $9.4 million or $0.69 per share compared to a net loss of $1.7 million or $0.13 per share for the same period in the previous year. However, after recording $26.3 million for restructuring costs and impairment loss, the net loss was $35.7 million or $2.61 per share compared to a net loss of $1.7 million or $0.13 per share for the same period in the previous year.
For the fourth quarter, sales reached $45.4 million compared to sales of $52.2 million for the same period in the previous year. The net income for the quarter was $1.6 million or $0.12 per share in comparison to a net income of $0.5 million or $0.04 per share for the same period in the previous year for an increase of $1.1 million or $0.08 per share. However after recording $20.8 million for restructuring costs and impairment loss, the quarterly net loss was $19.2 million or $1.40 per share in comparison to a net income of $0.5 million or $0.04 per share for the same period in the previous year.
Sales and earnings were impacted by the Company's filing under the Companies' Creditors Arrangement Act (Canada) ("CCAA") on August 30, 2011. Since filing under the CCAA, several restructuring measures were initiated that will contribute positively to repositioning the Company for the future. While such measures were taken with a view of returning to profitability, they have also severely impacted the Company's recent financial performance by incurring non-recurring expenses as disclosed in the consolidated financial statements for the year ended January 29, 2012. The Company incurred costs such as asset impairment, liquidation of inventory, restructuring costs and provisions related to the closure of 32 stores that ceased operations at varying dates until February 28, 2012. The Company currently operates a network of 60 stores.
"As the restructuring measures are now mostly behind us, all our energies and attention are currently being devoted to successfully realigning our business", stated Mr. Robert Farah, the Company's President and COO.
In addition, Hart Stores announces that the Board of Directors have appointed Ernst & Young LLP as the Company's auditors following the resignation of Deloitte & Touche LLP.
|Summary of quarter and full year periods||For the 13 weeks ended:||Fiscal year ended:|
(In thousands of dollars, except per share
|January 29, 2012||January 29, 2011||January 29, 2012||January 29, 2011|
|Net earnings (loss) before undernoted||1,600||523||(9,433)||(1,712)|
|Net earnings (loss)||(19,235)||523||(35,691)||(1,712)|
|Net earnings (loss) per share:|
About Hart Stores Inc.:
Hart Stores Inc. operates a network of 60 mid-sized department stores located in secondary and tertiary market in Eastern Canada, where the Company has established a dominant position in many of the communities that it serves. The stores offer an extensive and differentiated selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, electronics, appliances, giftware, toys and seasonal goods.
SOURCE: HART STORES INC.For further information:
Mr. Pat Filippelli
VP Finance and CFO