DALLAS, Aug. 25, 2009 (GLOBE NEWSWIRE) -- Tuesday Morning Corporation (Nasdaq:TUES) today reported that, as previously announced, net sales for the fourth quarter of fiscal 2009 were $188.7 million compared to $196.5 million for the quarter ended June 30, 2008, a decrease of 4.0%. Comparable store sales decreased 6.6% for the quarter. The decrease in comparable store sales was comprised of a 0.1% increase in traffic offset by a 6.7% decrease in average ticket. Net loss for the fourth quarter ended June 30, 2009 was $1.6 million or $0.04 loss per diluted share, compared to a net loss of $2.5 million or $0.06 loss per diluted share for the same period last year.
For the fiscal year ended June 30, 2009, net sales were $801.7 million compared to $885.3 million for the same year ended June 30, 2008, a decrease of 9.4%. Comparable store sales decreased by 12.5% for the fiscal year. The decrease in comparable store sales was comprised of a 6.4% decrease in traffic and a 6.1% decrease in average ticket. For the fiscal year ended June 30, 2009, the Company had earnings per diluted share of $0.00 versus $0.35 for fiscal 2008.
Kathleen Mason, President and Chief Executive Officer, stated, "The current economic recession, a record number of bankruptcy liquidations and the continued deterioration in the housing market resulted in a steep decline in customer spending in fiscal 2009. Particularly affected were those retailers primarily in the home furnishings business. While we are cautious in our future outlook of this environment, we are encouraged by the positive trend in our customer traffic. We have effectively managed cash and inventories. For the fourth quarter, cash flow from operations was $29.4 million compared to $23.0 million in the same period last year. Inventory at the end of fiscal 2009 was down 7.2% from last fiscal year end. Additionally, we had no outstanding borrowings at the end of fiscal 2009."
"We will continue to focus on maintaining a strong balance sheet, keeping operating expenses and inventories in line with sales, and sustaining our more than adequate borrowing capacity."
Financial Results for the Fourth Quarter Ended June 30, 2009
Gross Profit -- Gross profit increased $2.0 million, or 3.0%, to $70.1 million for the fourth quarter ended June 30, 2009 as compared to the same quarter last year of $68.1 million. As a percentage of net sales, gross profit increased to 37.2% for the quarter compared to 34.7% for the same period in fiscal 2008. This increase in gross profit dollars and percentage was primarily due to decreases in markdowns resulting from tighter inventory control as well as decreases in freight and shrink.
Selling, General and Administrative Expenses ("SG&A") -- SG&A for the quarter was $72.1 million, or 38.2% of net sales, versus $73.3 million, or 37.3% of net sales, in the same period last year. On a per store basis, SG&A was lower this quarter by 4.2% versus last year.
Interest Expense -- Net interest expense for the quarter ended June 30, 2009 increased to $615,000 versus $94,000 for the same period last year due to higher amortization of financing fees related to the new credit facility.
Financial Results for the Fiscal Year Ended June 30, 2009
Gross Profit -- Gross profit decreased $26.6 million, or 8.2%, to $296.1 million for fiscal 2009 compared to the same period last year of $322.7 million, primarily a result of lower sales volume. As a percentage of net sales, gross profit increased to 36.9% for fiscal 2009 compared to 36.5% in fiscal 2008. This increase of 0.4% in gross profit percentage was primarily due to decreases in markdowns resulting from tighter inventory control as well as decreases in freight and shrink.
Selling, General and Administrative Expenses -- SG&A for fiscal 2009 was $293.7 million, or 36.6% of net sales, versus $297.9 million, or 33.6% of net sales, for fiscal 2008. On a per store basis, SG&A was lower in fiscal 2009 by 4.9% compared to the same period last year.
Interest Expense -- Net interest expense for fiscal 2009 was $2.5 million versus $2.7 million for fiscal 2008, primarily due to a decrease in net borrowings, offset by an increase in amortization of financing fees related to the new credit facility.
Balance Sheet
Inventory decreased from $241.0 million at June 30, 2008 to $223.6 million at June 30, 2009, a decrease of 7.2%. On a per store basis, inventory was 8.8% lower at the end of fiscal 2009 versus fiscal 2008. Net property and equipment was $72.4 million at the end of fiscal 2009, a reduction of $5.0 million compared to the end of fiscal 2008. This decrease resulted from capital expenditures being less than depreciation.
Accounts payable was lower at June 30, 2009 by $16.8 million, or 26.3%, versus the same period last year primarily due to lower inventory levels. At June 30, 2009, we had no amounts outstanding under our revolving credit facility versus $8.5 million last year. Outstanding letters of credit, primarily for insurance programs, were $12.4 million at the end of fiscal 2009 compared to $9.9 million last year. At June 30, 2009, we had availability of $97.8 million and we were in compliance with the terms of our credit facility.
Store Activity
We operated 857 stores in 45 states as of June 30, 2009. During the fourth quarter of fiscal year 2009, we opened eight stores, closed one store, relocated seven stores and did not expand any stores. During fiscal year 2009, we opened 35 stores, closed 20 stores, relocated 34 stores and expanded four stores. The states with the largest sales declines continued to be the areas most affected by the deterioration of the housing market such as Florida, California, Nevada and Arizona.
Fiscal Year 2010 Guidance
We anticipate the retail environment to continue to be economically difficult and uncertain.
