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Email response from Graham
From: Bederra Corp <info@bederra.com>
To:kevmere@juno.com
Cc:
Bcc:
Sent: Fri, Oct 15, 2010 10:00 AM
Yes. We will offer an update soon.
We are working with the DTC to resolve this issue.
Thanks
Graham Williams
On Oct 15, 2010, at 9:52 AM, kevmere@juno.com wrote:
Hi Graham,
I am the moderator for the Bederra message board on Ihub.
The following has been found and is a major topic on the boards at this point.
Will Bederra Corp be offering an update to its shareholders on the specifics of this and
any other info regarding the DTCC trade halt?
http://www.dtcc.com/downloads/legal/imp_notices/2010/dtc/ope/7309-10.pdf
Your prompt attention to this would be greatly appreciated.
Thanks Graham
Kevin
Nice day today. Thinking we will 40 in the not so distant future.
IFSL for me this week
HFBG for me please
HFBG for me this week
Not sure if anyone has seen these or not.
Pictures of Grand Ma Ma at 7-11 stores
http://www.halloffamebeverages.com/community
ENTI's turn for me this week.
Ulta Announces First Quarter 2010 Results
First Quarter Comparable Store Sales Increase 10.8%
First Quarter Diluted EPS of $0.23, a 187% Increase
Expects 2Q Comparable Store Sales Increase of 7% to 9%
BOLINGBROOK, Ill., Jun 03, 2010 (BUSINESS WIRE) --Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), today announced financial results for the thirteen week period ("First Quarter") ended May 1, 2010, which compares to the same period ended May 2, 2009.
For the First Quarter:
Net sales increased 19.1% to $320.2 million from $268.8 million in the first quarter of fiscal 2009;
Comparable store sales (sales for stores open at least 14 months) increased 10.8% compared to a decrease of 2.3% in the first quarter of fiscal 2009;
Pre-opening expenses decreased $0.7 million to $0.5 million in the first quarter fiscal 2010 due to the planned decrease in the Company's first quarter new store openings;
Operating income increased 160.6% to $23.3 million compared to $9.0 million in the first quarter of fiscal 2009;
Net income increased 177.7% to $13.7 million compared to $4.9 million in the first quarter of fiscal 2009;
Income per diluted share increased to $0.23, compared to $0.08 in the first quarter of fiscal 2009.
Lyn Kirby, CEO of Ulta stated: "We are very pleased to report an excellent start to fiscal 2010. Our first quarter performance, which included a 10.8% comparable store sales increase and a 19.1% total sales increase, accelerated from our strong fourth quarter growth and exceeded our expectations. We attribute our ongoing strength to the success of our strategies including increasing profitable market share by capitalizing on the advantages of our business model with dynamic marketing, compelling brands and providing our customers with the preferred beauty shopping experience. Our sales growth was balanced across all major categories and our comparable store sales included increases in both customer counts and average ticket. We also accomplished this with a 70 basis point increase in merchandise margin and 40 basis points of leverage in marketing. These operating improvements, along with our continued discipline in managing our cost structure, led to a more than doubling in our operating earnings and a nearly three-fold increase in earnings per share for the quarter."
"In the second quarter, as outlined in our guidance, we expect to continue to see strong customer response to our topline strategies and expect to continue to deliver strong earnings growth," Ms Kirby continued. "During the second quarter, we will introduce the Philosophy skincare line, as we continue to expand our prestige offerings. Our new store expansion and remodel program for 2010 remains on track. Further, our expense and balance sheet management initiatives position us to continue to generate free cash flow while investing in support of our long term growth. Following quarter end, Chuck Rubin joined Ulta as President and COO. We are delighted to have Chuck on board and are progressing toward his transition to CEO over the next few months. We continue to believe we have developed a solid foundation to achieve sustained long term growth and believe fiscal 2010 will represent another strong year for Ulta, delivering increased value for our shareholders."
Balance Sheet and Cash Flow
Merchandise inventories at the end of the first quarter totaled $228.1 million, compared to $230.3 million at the end of first quarter fiscal 2009, representing a decrease of $2.2 million. The decrease is due to an 8.7% decrease in average inventory per store driven by management initiatives offset by the addition of 27 net new stores opened since May 2, 2009.
The Company did not utilize its credit facility during the quarter and ended the quarter with no borrowings outstanding.
Store Expansion
During the first quarter, the Company opened 2 stores located in Port Orange, FL and Yorkville, IL and relocated 1 store in South Aurora, CO. In addition, the Company closed 1 store. The Company ended the first quarter with 347 stores and square footage of 3,632,021, which represents a 9% increase compared to the first quarter of fiscal 2009.
Outlook
For the second quarter of fiscal 2010, the Company currently expects net sales in the range of $311 million to $317 million, compared to actual net sales of $273.5 million in the second quarter of fiscal 2009. This assumes comparable stores sales increase 7% to 9%, compared to a decrease of 1.7% in the second quarter last year.
Income per diluted share for the second quarter of fiscal 2010 is estimated to be in the range of $0.16 to $0.18, which includes $0.03 per share of incremental compensation expense related to the recently announced addition of the Company's President and COO. Adjusted income per diluted share, which excludes the incremental compensation expense, is estimated in the range of $0.19 to $0.21. This compares to income per diluted share for second quarter fiscal 2009 of $0.10.
For fiscal 2010, the Company continues to plan to:
open approximately 46 new stores, remodel 13 stores and relocate 6 stores;
incur capital expenditures of approximately $100 million, compared to $68.1 million in fiscal 2009;
reduce inventory by approximately 5% on an average per store basis by year end 2010
permanently reduce expenses by $5 million; and
generate free cash flow.
Conference Call Information
A conference call to discuss third quarter results is scheduled for today, June 3, 2010, at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 407-0784 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at http://ir.ulta.com and remain available for 90 days. A replay of this call will be available until 11:59 p.m. (ET) on June 10, 2010 and can be accessed by dialing (877) 660-6853 and entering account number 3055 and conference ID number 350912.
About Ulta
Ulta is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States. Ulta provides affordable indulgence to its customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. Ulta offers a unique combination of over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools, as well as salon haircare products. Ulta also offers a full-service salon in all of its stores. The Company currently operates 350 retail stores across 38 states and also distributes its products through the Company's website: www.ulta.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "plans," "estimates," or other comparable words. Any forward-looking statements contained in this press release are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation: the impact of weakness in the economy; changes in the overall level of consumer spending; changes in the wholesale cost of our products; the possibility that we may be unable to compete effectively in our highly competitive markets; the possibility that our continued opening of new stores could strain our resources and have a material adverse effect on our business and financial performance; the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues; the possibility that the capacity of our distribution and order fulfillment infrastructure may not be adequate to support our recent growth and expected future growth plans; the possibility of material disruptions to our information systems; weather conditions that could negatively impact sales and other risk factors detailed in our public filings with the Securities and Exchange Commission (the "SEC"), including risk factors contained in our Annual Report on Form 10-K for the year ended January 30, 2010 and our Quarterly Report on Form 10-Q for the quarterly period ended May 1, 2010.Our filings with the SEC are available at www.sec.gov. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Exhibit 1
Ulta Salon, Cosmetics & Fragrance, Inc.
Statements of Income
(In thousands, except per share amounts)
13 Weeks Ended 13 Weeks Ended
May 1, May 2,
2010 2009
(Unaudited) (Unaudited)
Net sales $ 320,196 100.0% $ 268,825 100.0%
Cost of sales 215,661 67.4% 189,283 70.4%
Gross profit 104,535 32.6% 79,542 29.6%
Selling, general and administrative expense 80,729 25.2% 69,393 25.8%
Pre-opening expenses 474 0.1% 1,195 0.4%
Operating income 23,332 7.3% 8,954 3.3%
Interest expense 118 0.0% 671 0.2%
Income before income taxes 23,214 7.2% 8,283 3.1%
Income tax expense 9,553 3.0% 3,363 1.3%
Net income $ 13,661 4.3% $ 4,920 1.8%
Net income per common share:
Basic $ 0.23 $ 0.09
Diluted $ 0.23 $ 0.08
Weighted average common shares outstanding:
Basic 58,306 57,743
Diluted 60,276 58,750
Exhibit 2
Ulta Salon, Cosmetics & Fragrance, Inc.
Condensed Balance Sheets
(In thousands)
May 1,
January 30,
May 2,
2010
2010
2009
(Unaudited)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8,670 $ 4,017 $ 3,840
Receivables, net 8,051 13,477 12,392
Merchandise inventories, net 228,082 206,948 230,286
Prepaid expenses and other current assets 29,134 30,272 24,200
Prepaid income taxes - - 5,890
Deferred income taxes 8,060 8,060 8,195
Total current assets 281,997 262,774 284,803
Property and equipment, net 285,766 290,861 286,140
Total assets $ 567,763 $ 553,635 $ 570,943
Liabilities and stockholders' equity
Current liabilities:
Current portion - notes payable $ - $ - $ 12,534
Accounts payable 60,693 56,387 53,500
Accrued liabilities 54,789 59,189 43,757
Accrued income taxes 6,740 10,781 -
Total current liabilities 122,222 126,357 109,791
Notes payable - less current portion - - 88,047
Deferred rent 114,051 113,718 104,168
Deferred income taxes 20,952 20,952 17,616
Total liabilities 257,225 261,027 319,622
Commitments and contingencies
Total stockholders' equity 310,538 292,608 251,321
Total liabilities and stockholders' equity $ 567,763 $ 553,635 $ 570,943
Exhibit 3
Ulta Salon, Cosmetics & Fragrance, Inc.
Statements of Cash Flows
(In thousands)
13 Weeks Ended
May 1,
May 2,
2010
2009
(Unaudited)
Operating activities
Net income $ 13,661 $ 4,920
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 15,918 15,365
Non-cash stock compensation charges 1,735 1,295
Excess tax benefits from stock-based compensation (724) -
Loss on disposal of property and equipment 197 39
Change in operating assets and liabilities:
Receivables 5,426 5,876
Merchandise inventories (21,134) (16,684)
Prepaid expenses and other assets 1,138 94
Income taxes (3,317) 2,738
Accounts payable 4,306 5,689
Accrued liabilities (7,722) (4,255)
Deferred rent 333 2,880
Net cash provided by operating activities 9,817 17,957
Investing activities
Purchases of property and equipment (7,698) (12,320)
Net cash used in investing activities (7,698) (12,320)
Financing activities
Proceeds on long-term borrowings - 284,284
Payments on long-term borrowings - (289,750)
Proceeds from issuance of common stock under stock plans 1,810 31
Excess tax benefits from stock-based compensation 724 -
Net cash provided by (used in) financing activities 2,534 (5,435)
Net increase in cash and cash equivalents 4,653 202
Cash and cash equivalents at beginning of period 4,017 3,638
Cash and cash equivalents at end of period $ 8,670 $ 3,840
Exhibit 4
2010 Store Expansion
Fiscal 2010 Total stores open
at beginning of the
quarter
Number of stores
opened during the
quarter
Number of stores
closed during the
quarter
Total stores open
at end of the quarter
1st Quarter 346 2 1 347
Fiscal 2010 Total gross square
feet at beginning of
the quarter
Gross square feet for
stores opened or
expanded during the
quarter
Gross square feet for
stores closed
during the quarter
Total gross square
feet at end of the
quarter
1st Quarter 3,613,840 28,977 10,796 3,632,021
SOURCE: Ulta Salon, Cosmetics & Fragrance, Inc.
Company:Ulta Salon, Cosmetics & Fragrance, Inc.Gregg Bodnar, 630-410-4633Chief Financial OfficerorInvestors/Media:ICR, Inc.Allison Malkin/Alecia Pulman203-682-8225/203-682-8224
Ulta Announces Second Quarter 2010 Results
Second Quarter Comparable Store Sales Increase 10.8%
Second Quarter Diluted EPS of $0.22, Including $0.03 Non-Recurring Compensation Charge
Expects 3Q Comparable Store Sales Increase of 7% to 9%
CEO Transition Successfully Completed at the End of the Quarter
BOLINGBROOK, Ill., Sep 02, 2010 (BUSINESS WIRE) -- Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), today announced financial results for the thirteen week period ("Second Quarter") and twenty-six week period ("First Six Months") ended July 31, 2010, which compare to the same periods ended August 1, 2009.
For the Second Quarter:
Net sales increased 17.6% to $321.8 million from $273.5 million in the second quarter of fiscal 2009;
Comparable store sales (sales for stores open at least 14 months) increased 10.8% compared to a decrease of 1.7% in the second quarter of fiscal 2009;
Gross profit increased 350 basis points to 32.3% from 28.8% in the second quarter fiscal 2009;
Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 40 basis points, excluding the impact of the non-recurring compensation charge, compared to the second quarter in fiscal 2009; including the impact of the non-recurring compensation charge, SG&A as a percentage of net sales increased 50 basis points;
Operating income increased 117.4% to $22.3 million, or 6.9% of net sales, compared to $10.2 million, or 3.7% of net sales, in the second quarter of fiscal 2009;
Net income increased 127.2% to $13.1 million compared to $5.8 million in the second quarter of fiscal 2009;
Income per diluted share more than doubled to $0.22, including $0.03 per diluted share related to the non-recurring compensation charge. Income per diluted share was $0.25, excluding the non-recurring compensation charge. This compares to $0.10 in the second quarter of fiscal 2009.
Lyn Kirby, CEO of Ulta stated: "We are very pleased to report an excellent second quarter 2010 performance. Results include 10.8% comparable store sales increase for the quarter generated from both an 8.0% increase in customer count and a 2.8% increase in average ticket. Accordingly, on a two-year basis our comparable store sales are up 9.1%, which is an acceleration of the 2-year comp trend from first quarter. Despite a slow economic recovery, the momentum on our business is very strong, as we reap the benefits of our market share strategies implemented in 2009 and continue to execute against these strategies in 2010. Growth was balanced across all major product categories. Our performance reflects the continued strength of our business model with dynamic marketing, compelling merchandising, new brand introductions and the continued leverage of our powerful loyalty program. Our comparable store sales growth was accomplished with a 120 basis point increase in merchandise margin and 40 basis points leverage in marketing. These operating improvements along with our continued discipline in managing our cost structure led to a more than doubling in our earnings and a 120% increase in earnings per share for the quarter including the compensation charge, and a 150% increase in earnings per share excluding the compensation charge."
"We begin the third quarter with very strong momentum fueled by the continuation of our marketing, merchandising and stores expansion strategies," stated Chuck Rubin, President and Chief Operating Officer. "During the third quarter we expect to continue to drive traffic and average ticket growth, as we leverage our loyalty program, offer compelling value and introduce new brands. The third quarter will include the continued brand introduction of Philosophy skincare and the launch of Tarte in prestige cosmetics. Our store expansion plans remain on track to deliver 28 new stores in the third quarter and a 13% increase in square footage growth for the year. We will also maintain our judicious control of expenses and inventory. As our guidance suggests, we expect to deliver continued strong results in the third quarter."
For the First Six Months:
Net sales increased 18.4% to $642.0 million from $542.4 million in the first six months of fiscal 2009;
Comparable store sales (sales for stores open at least 14 months) increased 10.8% compared to a decrease of 2.0% in the first six months of fiscal 2009;
Gross profit increased 330 basis points to 32.5% from 29.2% in the first six months of fiscal 2009;
SG&A expense as a percentage of net sales decreased 40 basis points, excluding the non-recurring compensation charge, compared to the first six months of fiscal 2009; including the non-recurring compensation charge, SG&A as a percentage of net sales was flat to the first six month period in fiscal 2009;
Operating income increased to $45.6 million, or 7.1% of net sales, compared to $19.2 million, or 3.5% of net sales, in the first six months of fiscal 2009;
Net income increased to $26.7 million compared to $10.7 million in the first six months of fiscal 2009;
Income per diluted share increased to $0.44, which includes $0.03 per share of non-recurring compensation charge. This compares to $0.18 in the first six months of fiscal 2009.
Balance Sheet and Cash Flow
Merchandise inventories at the end of the second quarter totaled $224.3 million, compared to $209.2 million at the end of second quarter fiscal 2009, representing an increase of $15.1 million. The increase is primarily due to the addition of 23 net new stores opened since August 1, 2009. Inventory per store was flat compared to the prior year reflecting the combined effects of inventory reductions due to management initiatives coupled with inventory increases to support the 10.8% increase in comparable store sales.
The Company did not utilize its credit facility during the six month period ended July 31, 2010.
Store Expansion
During the second quarter, the Company opened 10 stores located in Modesto, CA; Stockton, CA; Avon, CT; Hammond, LA; St. Cloud, MN; Cincinnati, OH; Horsham, PA; Quakertown, PA; Chattanooga, TN; Union Gap, WA, relocated 1 store in Folsom, CA and remodeled 3 stores. In addition, the Company closed 1 store. The Company ended the second quarter with 356 stores and square footage of 3,721,681, which represents a 7% increase compared to the second quarter of fiscal 2009.
Outlook
For the third quarter of fiscal 2010, the Company currently expects net sales in the range of $324 million to $330 million, compared to actual net sales of $284.0 million in the third quarter of fiscal 2009. This assumes comparable stores sales increase 7% to 9%, compared to an increase of 1.5% in the third quarter last year.
Income per diluted share for the third quarter of fiscal 2010 is estimated to be in the range of $0.18 to $0.20, which includes $0.02 per share of non-recurring compensation expense related to the addition of the Company's President and COO. The Company's third quarter guidance reflects the incremental cost related to its planned expanded new store program which includes approximately 28 stores for the third quarter fiscal 2010 compared to 12 for the same period in fiscal 2009. Adjusted income per diluted share, excluding the non-recurring compensation expense, is estimated in the range of $0.20 to $0.22. This compares to income per diluted share for third quarter fiscal 2009 of $0.14.
For fiscal 2010, the Company plans to:
open approximately 46 new stores, remodel 13 stores and relocate 6 stores;
incur capital expenditures of approximately $105 million, compared to $68.1 million in fiscal 2009;
reduce inventory by approximately 5% on an average per store basis by year end 2010;
deliver permanent operating expense efficiencies of $7 million; and
generate free cash flow.
Chuck Rubin Appointed CEO
"At the end of the second quarter we completed the CEO transition with Chuck now having responsibility for all areas of the business," Ms. Kirby stated. "As a result, effective at the end of business today, Chuck will be the Chief Executive Officer. I look forward to assisting Ulta, as a member of the Board through March of next year. I have been honored to lead Ulta over the past ten years and want to thank our employees, our vendor partners and the Ulta Board of Directors for the support provided to me and the trust you placed in my leadership. Together we have revolutionized beauty retailing, as we repositioned a beauty discounter into a specialty retailer, as we grew sales from $200 million to over $1.2 billion, and as we transformed a small regional chain into a national presence. I leave with tremendous pride in the company and look forward to watching Ulta grow and take its place in the future as one of this nation's great retailers."
Commenting on the transition, Dennis Eck, Ulta's Non-Executive Chairman, stated "We are very pleased with Chuck's transition into his new role at Ulta. We believe that under his leadership Ulta will continue to execute its strategy and continue its successful track record of growth. We would like to thank Lyn Kirby for her leadership in helping to build the platform for Ulta's future success and growth and thank the Ulta employees for their support during this important changeover."
Conference Call Information
A conference call to discuss second quarter results is scheduled for today, September 2, 2010, at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 407-0784 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at http://ir.ulta.com and remain available for 90 days. A replay of this call will be available until 11:59 p.m. (ET) on September 9, 2010 and can be accessed by dialing (877) 660-6853 and entering account number 3055 and conference ID number 355010.
About Ulta
Ulta is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States. Ulta provides affordable indulgence to its customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. Ulta offers a unique combination of over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools, as well as salon haircare products. Ulta also offers a full-service salon in all of its stores. The Company currently operates 356 retail stores across 38 states and also distributes its products through the Company's website: http://www.ulta.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "plans," "estimates," or other comparable words. Any forward-looking statements contained in this press release are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation: the impact of weakness in the economy; changes in the overall level of consumer spending; changes in the wholesale cost of our products; the possibility that we may be unable to compete effectively in our highly competitive markets; the possibility that our continued opening of new stores could strain our resources and have a material adverse effect on our business and financial performance; the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues; the possibility that the capacity of our distribution and order fulfillment infrastructure may not be adequate to support our recent growth and expected future growth plans; the possibility of material disruptions to our information systems; weather conditions that could negatively impact sales and other risk factors detailed in our public filings with the Securities and Exchange Commission (the "SEC"), including risk factors contained in our Annual Report on Form 10-K for the year ended January 30, 2010 and our Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2010.Our filings with the SEC are available at www.sec.gov. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Exhibit 1
Ulta Salon, Cosmetics & Fragrance, Inc.
Statements of Income
(In thousands, except per share amounts)
13 Weeks Ended 13 Weeks Ended
July 31, August 1,
2010 2009
(Unaudited) (Unaudited)
Net sales $ 321,804 100.0 % $ 273,539 100.0 %
Cost of sales 217,846 67.7 % 194,825 71.2 %
Gross profit 103,958 32.3 % 78,714 28.8 %
Selling, general and administrative expense 79,909 24.8 % 66,468 24.3 %
Pre-opening expenses 1,793 0.6 % 2,010 0.7 %
Operating income 22,256 6.9 % 10,236 3.7 %
Interest expense 214 0.1 % 645 0.2 %
Income before income taxes 22,042 6.8 % 9,591 3.5 %
Income tax expense 8,980 2.8 % 3,841 1.4 %
Net income $ 13,062 4.1 % $ 5,750 2.1 %
Net income per common share:
Basic $ 0.22 $ 0.10
Diluted $ 0.22 $ 0.10
Weighted average common shares outstanding:
Basic 58,727 57,819
Diluted 60,672 59,045
Exhibit 2
Ulta Salon, Cosmetics & Fragrance, Inc.
Statements of Income
(In thousands, except per share amounts)
26 Weeks Ended 26 Weeks Ended
July 31, August 1,
2010 2009
(Unaudited) (Unaudited)
Net sales $ 642,000 100.0% $ 542,364 100.0%
Cost of sales 433,507 67.5% 384,108 70.8%
Gross profit 208,493 32.5% 158,256 29.2%
Selling, general and administrative expense 160,638 25.0% 135,861 25.0%
Pre-opening expenses 2,267 0.4% 3,205 0.6%
Operating income 45,588 7.1% 19,190 3.5%
Interest expense 332 0.1% 1,316 0.2%
Income before income taxes 45,256 7.0% 17,874 3.3%
Income tax expense 18,533 2.9% 7,204 1.3%
Net income $ 26,723 4.2% $ 10,670 2.0%
Net income per common share:
Basic $ 0.46 $ 0.18
Diluted $ 0.44 $ 0.18
Weighted average common shares outstanding:
Basic 58,517 57,781
Diluted 60,505 58,914
Exhibit 3
Ulta Salon, Cosmetics & Fragrance, Inc.
Condensed Balance Sheets
(In thousands)
July 31, January 30, August 1,
2010 2010 2009
(Unaudited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 15,916 $ 4,017 $ 3,663
Receivables, net 11,418 13,477 13,135
Merchandise inventories, net 224,329 206,948 209,152
Prepaid expenses and other current assets 30,989 30,272 25,373
Prepaid income taxes 7,280 - -
Deferred income taxes 8,060 8,060 8,097
Total current assets 297,992 262,774 259,420
Property and equipment, net 301,333 290,861 288,537
Total assets $ 599,325 $ 553,635 $ 547,957
Liabilities and stockholders' equity
Current liabilities:
Current portion - notes payable $ - $ - $ 23,086
Accounts payable 61,316 56,387 40,393
Accrued liabilities 68,833 59,189 53,350
Accrued income taxes - 10,781 3,846
Total current liabilities 130,149 126,357 120,675
Notes payable - less current portion - - 42,365
Deferred rent 120,313 113,718 108,245
Deferred income taxes 20,952 20,952 17,616
Total liabilities 271,414 261,027 288,901
Commitments and contingencies
Total stockholders' equity 327,911 292,608 259,056
Total liabilities and stockholders' equity $ 599,325 $ 553,635 $ 547,957
Exhibit 4
Ulta Salon, Cosmetics & Fragrance, Inc.
Statements of Cash Flows
(In thousands)
26 Weeks Ended
July 31, August 1,
2010 2009
(Unaudited)
Operating activities
Net income $ 26,723 $ 10,670
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 31,593 31,360
Non-cash stock compensation charges 4,222 2,648
Excess tax benefits from stock-based compensation (924) (283)
Loss on disposal of property and equipment 157 184
Change in operating assets and liabilities:
Receivables 2,059 5,133
Merchandise inventories (17,381) 4,450
Prepaid expenses and other assets (717) (1,079)
Income taxes (17,137) 12,474
Accounts payable 4,929 (7,418)
Accrued liabilities 6 4,775
Deferred rent 6,595 6,957
Net cash provided by operating activities 40,125 69,871
Investing activities
Purchases of property and equipment (32,584) (29,756)
Net cash used in investing activities (32,584) (29,756)
Financing activities
Proceeds on long-term borrowings - 561,662
Payments on long-term borrowings - (602,258)
Proceeds from issuance of common stock under stock plans 3,434 223
Excess tax benefits from stock-based compensation 924 283
Net cash provided by (used in) financing activities 4,358 (40,090)
Net increase in cash and cash equivalents 11,899 25
Cash and cash equivalents at beginning of period 4,017 3,638
Cash and cash equivalents at end of period $ 15,916 $ 3,663
Exhibit 5
2010 Store Expansion
Fiscal 2010 Total stores open
at beginning of the
quarter
Number of stores
opened during the
quarter
Number of stores
closed during the
quarter
Total stores open
at end of the quarter
1st Quarter 346 2 1 347
2nd Quarter 347 10 1 356
Fiscal 2010 Total gross square
feet at beginning of
the quarter
Gross square feet for
stores opened or
expanded during the
quarter
Gross square feet for
stores closed
during the quarter
Total gross square
feet at end of the
quarter
1st Quarter 3,613,840 28,977 10,796 3,632,021
2nd Quarter 3,632,021 105,596 15,936 3,721,681
SOURCE: Ulta Salon, Cosmetics & Fragrance, Inc.
Ulta Salon, Cosmetics & Fragrance, Inc.Gregg Bodnar, 630-410-4633Chief Financial OfficerorInvestors/Media:ICR, Inc.Allison Malkin/Alecia Pulman203-682-8225/203-682-8224
Welcome to the Ulta Cosmetics & Fragrance board.
This board will be used only for discussions about Ulta stock and Ulta's retail business.
Before posting please refer to the TOU listed on this site.
Let's have a great discussion.
New filngs 9/17/2010
Heres the Attorney letter and initial disclosure
http://www.otcmarkets.com/stock/ENTI/financials
Looks like they came through
It's HFBG's turn this week for me.
Look at the last page of the friends list. There are a bunch of users named "filefile***"
IFSL for me this week
http://slappystudios.com/
Nice site and portfolio
The company also announces that it has paid Slappy Studios to put together an animated television commercial campaign featuring Grand Ma Ma. Slappy Studios worked on the Transformer films, and will be animating Grand Ma Ma in a 30-second television commercial that will air on ESPN, MTV, and BET, among other major networks. The studio has developed the animated commercial and is currently working to finish the project. Larry Johnson will be in Los Angeles, California, later this week to do the voice work for his Grand Ma Ma character. Johnson has done work with Coca-Cola, McDonald's, And1, Converse and many other brands and helped to generate hundreds of millions of dollars in sales revenue.
http://slappystudios.com/
Nice site and portfolio
Allwaysright will be assisting as mod. Thanks for the help.
HFBG once again for me this week.
1. B. $0,0050+
2. D. Place billboards on strategically chosen places!
E. Bus/taxi/metro wraps in big cities!
(purchase & startegically place internet banners and ads)
3. C. Set up a bi-weekly written/audio newsletter and store it on a fixed place on the companies' website! (Pod cast format)
4. C. Substantial reduction of O/S & A/S!
D. NO R/S please because that will kill the PPS!
5. E. Nothing, (ass.) moderators are doing just fine!
Lets keep the discussion rolling. The next two weeks maybe what we all have been waiting for.
Uplist, PRs to update new plans and strategy's, SS address.
Good luck to all
I am not excited. I am encouraged that whats been mentioned in e-mails is now being mentioned in pod-casts.
The Tuesday pod-cast with CEO is what everyone is waiting for. Looking forward to it.
Podcast
www.encountertech.com/
Agreed. Sounded encouraging.
HFBG for me this week.
Interesting. They show a profit right? I think the Buyback program may have officially ended in April according to original buyback PR, and it was a small percentage based on profits.
I will look for clarification.
Paul has confirmed that the float is a billion shares Aug 2010. That is alot better than expected.
Pinksheets has this listed:
Float (shares)
2,957,000,000 as of Dec 31, 2009
This will move when word gets out. As far as I am concerned no worries of dilution, company will show they have bought shares in 2nd qtr fins.
Just confirmed. Switching servers. All is well with e-mail.
Thats the one I tried. Seems to have worked. Hope all is well.
Follow-up:
Just tryed to reply to Gerrard, e-mail rejected.
IR@GerrardHollister.com
and ENTI@GerrardHollister.com both came back.
I tried one last one for him, see if it gets through.
I am with you on the nonsense stance. If it looks, smells and feels like ..., it must be ...eom.
Updated Share and info corroborating e-mail from Gerrard.
Gerrard replied to an e-mail I sent verifying the meeting next week with NE-YO's rep group. The deal should be finalized then. An agreement has been made, just now waiting on final contract signing.
Answer about dilution "major deals that the company is working on require large amounts of capital, which the company feels is necessary to obtain assets to grow the business model to its fullest potential".
He would not comment on CE removal as of right now.
Transfer agent e-mail on OS update
Good Morning,
The total outstanding for Encounter Tech as of 8/20/2010 is 3,661,813,999.
You will need to contact the company for any additional information.
Have a great day!
Respectfully,
Leslie Eldridge
Transfer Agent
Pacific Stock Transfer Company
4045 S Spencer St Ste 403
Las Vegas, NV 89119
leslie@pacificstocktransfer.com
Telephone: 702-361-3033
Fax: 702-433-1979
Web: www.pacificstocktransfer.com
My Opinion: hold through next week. See if they deliver NE-YO. The dilution rate is raising major concerns. Plan on the entire AS (5 billion) being released within a few weeks at this rate.
Just hope they get it together by then.
Float (shares)
829,412,394 as of Jun 30, 2010
Has anyone been able to determine the float from the new fins posted today? I think I have it but want to see what anyone else came up with.
Treasury Stock
In April 2010, the Company initiated a stock buy-back program (the Buy-Back Program).
During the quarter ended June 30, 2010, the Company acquired 8,000,000 shares under the Buy-
Back Program at a cost of $10,170. The shares acquired under the Buy-Back Program are
accounted for using the cost method.
Item II Shares outstanding.
1,745,412,394
Item 7 Other information.
On August 11, 2010, the United States Securities and Exchange Commission (the “SEC”)
notified the Company that it is conducting an investigation into the trading of the Company’s
common stock. In conjunction with the investigation, the SEC issued a subpoena to the
Company. The Company is cooperating fully with the SEC’s investigation.
This is definitely one to hold for the long haul. I think we have quite a few longs here.
I know some have been with IFSL several years.
Great place to be.
The promises of a year ago coming to fruition very soon. Rare on Pinks.
Agreed Ashaman.
The time is drawing near.
Boardmarks are rising. Friday we were at 167, as of this post we are at 173.
We are in the Buzz cloud. Interest is returning for sure.
I have been with IFSL since June 09', I am definitely invested.
This is the time for accumulation. Someone got a jump start Friday and will probably continue their fill tomorrow, the teens may in fact be gone, we will see. One thing is for sure time is running out before we see some big PPS increase as we start trading OTCBB. Whole new set of investors. Very excited for the what this fall will bring to IFSL.
Great job for those who have held and accumulated.
IFSL could be ready for a nice run this week.
Put on watch
Watch for news by end of month