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These excerpts taken from the BGFV 10-K filed Mar 10, 2008. Fiscal
2006 Compared to Fiscal 2005
Net Sales. Net sales increased by
$62.8 million, or 7.7%, to $876.8 million for fiscal
2006 from $814.0 million for fiscal 2005. The growth in net
sales was primarily attributable to an increase of
$31.9 million in same store sales and an increase of
$32.3 million in new store sales, net of sales for closed
stores, which reflected the opening of 35 new stores, net of
relocations, since January 2, 2005. Net sales for the
fourth quarter of fiscal 2005 included $1.2 million related
to our initial recognition of gift card breakage (gift cards
sold and store merchandise credits issued where the likelihood
of redemption by the customer is remote). Gift card breakage for
fiscal 2006 totaled $0.4 million, of which
$0.1 million was recorded in the fourth quarter. Same store
sales increased 4.0% for fiscal 2006 compared with fiscal 2005.
Store count at the end of fiscal 2006 was 343 versus 324 at the
end of fiscal 2005 as we opened 19 new stores in fiscal 2006.
Gross Profit. Gross profit increased by
$21.4 million, or 7.6%, to $301.2 million, or 34.4% of
net sales, in fiscal 2006 from $279.8 million, or 34.4% of
net sales, in fiscal 2005. The increase in gross profit was
primarily attributable to the following:
Selling and Administrative Expense. Selling
and administrative expense increased by $12.8 million, or
5.6%, to $242.8 million, or 27.7% of net sales, in fiscal
2006 from $230.0 million, or 28.3% of net sales, in fiscal
2005. The increase in selling and administrative costs was
primarily attributable to the following:
Table of Contents
merchandise delivery efficiencies provided by our new
distribution center and higher sales for fiscal 2006, allowed
leveraging of this expense.
Other Income. In fiscal 2005, we recorded
proceeds from the settlement of a claim related to the required
relocation of one of our stores, which was located on land
acquired by a city redevelopment agency through eminent domain
proceedings. Settlement proceeds totaled $1.8 million, of
which $1.4 million was recorded as other income and
$0.4 million was recorded in selling and administrative
expense primarily as a reduction in legal fees incurred in
connection with this eminent domain proceeding.
Interest Expense. Interest expense increased
by $1.7 million, or 28.7%, to $7.5 million in fiscal
2006 from $5.8 million in fiscal 2005. The increase in
interest expense primarily reflects the impact of higher
short-term interest rates partially offset by lower average debt
levels.
Fiscal 2006 Compared to Fiscal 2005 Net Sales. Net sales increased by $62.8 million, or 7.7%, to $876.8 million for fiscal 2006 from $814.0 million for fiscal 2005. The growth in net sales was primarily attributable to an increase of $31.9 million in same store sales and an increase of $32.3 million in new store sales, net of sales for closed stores, which reflected the opening of 35 new stores, net of relocations, since January 2, 2005. Net sales for the fourth quarter of fiscal 2005 included $1.2 million related to our initial recognition of gift card breakage (gift cards sold and store merchandise credits issued where the likelihood of redemption by the customer is remote). Gift card breakage for fiscal 2006 totaled $0.4 million, of which $0.1 million was recorded in the fourth quarter. Same store sales increased 4.0% for fiscal 2006 compared with fiscal 2005. Store count at the end of fiscal 2006 was 343 versus 324 at the end of fiscal 2005 as we opened 19 new stores in fiscal 2006. Gross Profit. Gross profit increased by $21.4 million, or 7.6%, to $301.2 million, or 34.4% of net sales, in fiscal 2006 from $279.8 million, or 34.4% of net sales, in fiscal 2005. The increase in gross profit was primarily attributable to the following:
Selling and Administrative Expense. Selling and administrative expense increased by $12.8 million, or 5.6%, to $242.8 million, or 27.7% of net sales, in fiscal 2006 from $230.0 million, or 28.3% of net sales, in fiscal 2005. The increase in selling and administrative costs was primarily attributable to the following:
Table of Contentsmerchandise delivery efficiencies provided by our new distribution center and higher sales for fiscal 2006, allowed leveraging of this expense.
Other Income. In fiscal 2005, we recorded proceeds from the settlement of a claim related to the required relocation of one of our stores, which was located on land acquired by a city redevelopment agency through eminent domain proceedings. Settlement proceeds totaled $1.8 million, of which $1.4 million was recorded as other income and $0.4 million was recorded in selling and administrative expense primarily as a reduction in legal fees incurred in connection with this eminent domain proceeding. Interest Expense. Interest expense increased by $1.7 million, or 28.7%, to $7.5 million in fiscal 2006 from $5.8 million in fiscal 2005. The increase in interest expense primarily reflects the impact of higher short-term interest rates partially offset by lower average debt levels. | EXCERPTS ON THIS PAGE:
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