Cache Inc. (CACH, Financial) filed Quarterly Report for the period ended 2010-07-03.
Cache Inc. has a market cap of $66.6 million; its shares were traded at around $5.215 with and P/S ratio of 0.3. CACH is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.
During the 13-week period ended July 3, 2010, net sales decreased slightly to $56.6 million from $56.9 million, a decrease of $291,000 or 0.5%, as compared to the same 13-week period last year. This reflects a decrease of $2.7 million from our non-comparable store sales, a decrease of $330,000 of net sales from our Mary L. division, which the Company discontinued during the first quarter of fiscal 2010, which was partially offset by $2.7 million or 5.1% increase in comparable store sales and a small increase in income recognized from our co-branded credit card. The decrease in net sales during the second quarter of fiscal 2010 was primarily due to the same reasons discussed above, however our comparable stores sales improved as a result of improved product offerings during the second quarter, which received a favorable response from our customers. The decrease in net sales in the second quarter at our stores reflected a 3.7% decrease in average dollars per transaction partially offset by a 9.1 % increase in sales transactions.
During the 13-week period ended July 3, 2010, store operating expenses decreased to $19.2 million from $19.7 million, a decrease of $515,000, or 2.6%, as compared to the same 13-week period last year. Store operating expenses decreased primarily due to a reduction in payroll and payroll related expenses of $261,000, as a result of a decrease in the total number of employees, as compared to the same 13-week period last year. A decrease in depreciation expense of $340,000, due to the same reasons described above, also attributed to the decrease in store operating expense. As a percentage of net sales, store operating expenses decreased to 33.8% from 34.6% for the fiscal 2010 13-week period, as compared to the prior year period due to lower store operating expenses.
During the 13-week period ended July 3, 2010, other income (expense) decreased to $9,000 from $13,000, a decrease of $4,000 or 30.8%, as compared to the same 13-week period last year. This decrease was due to a reduction in interest income of $19,000, partially offset by a reduction in interest expense of $15,000.
The Companys cash requirements are primarily for working capital, inventory for new stores, construction of new stores, remodeling of existing stores and to improve and enhance our information technology systems. We have historically satisfied our cash requirements principally through cash flow from operations. During the 26-week period ended July 3, 2010, we used $4.0 million of cash flow from operations, as compared to $7.0 million generated during the same period in fiscal 2009. We expect to continue to meet our operating cash requirements primarily through cash flows from operating activities, existing cash and equivalents, and short-term investments. At July 3, 2010, we had working capital of $40.1 million, cash and marketable securities of $30.9 million and $2.2 million in third party debt outstanding related to the purchase of Adrienne Victoria Designs, Inc. (AVD). The cash and marketable securities at July 3, 2010 included certificates of deposit of $2.5 million that have been placed by the Company as collateral against a one year credit facility.
During the 26-week period ended July 3, 2010, cash and equivalents decreased by $2.0 million, primarily as a result of the operating loss incurred during fiscal 2010. Decrease in accrued liabilities, accrued compensation and other liabilities ($2.4 million) is principally due to payment on the remaining $1.4 million owed to one of the Companys former executives, as part of an employee separation agreement entered into in fiscal 2009. Seasonal increase in inventories ($3.9 million) coupled with the purchase of equipment and leasehold improvements ($1.6 million), also contributed to the decrease in cash and equivalents. These decreases in cash were offset by net maturities of marketable securities ($5.3 million), combined with a decrease in receivables and income tax receivables ($4.2 million), primarily due to $3.3 million collected from income tax receivable recorded in fiscal 2009.
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Cache Inc. has a market cap of $66.6 million; its shares were traded at around $5.215 with and P/S ratio of 0.3. CACH is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
During the 26-week period ended July 3, 2010, net sales decreased to $105.1 million from $109.9 million, a decrease of $4.8 million, or 4.3%, as compared to the same 26-week period last year. This reflects a decrease of $3.3 million from our non-comparable store sales, a decrease of $852,000 of net sales from our Mary L. division, which the Company discontinued during the first quarter of fiscal 2010, as well as, $796,000 or 0.8% decrease in comparable store sales, which was offset by a small increase in income recognized from our co-branded credit card. The decrease in net sales during the 26-week period of fiscal 2010 was primarily due to macroeconomic events, which resulted in a reduction in mall traffic where our stores are located, coupled with a shift in consumer spending pattern that favored lower priced or discounted merchandise. The decrease in net sales at our stores for the 26-week period ended July 3, 2010, reflected a 9.9% decrease in average dollars per transaction partially offset by a 10.1% increase in sales transactions.During the 13-week period ended July 3, 2010, net sales decreased slightly to $56.6 million from $56.9 million, a decrease of $291,000 or 0.5%, as compared to the same 13-week period last year. This reflects a decrease of $2.7 million from our non-comparable store sales, a decrease of $330,000 of net sales from our Mary L. division, which the Company discontinued during the first quarter of fiscal 2010, which was partially offset by $2.7 million or 5.1% increase in comparable store sales and a small increase in income recognized from our co-branded credit card. The decrease in net sales during the second quarter of fiscal 2010 was primarily due to the same reasons discussed above, however our comparable stores sales improved as a result of improved product offerings during the second quarter, which received a favorable response from our customers. The decrease in net sales in the second quarter at our stores reflected a 3.7% decrease in average dollars per transaction partially offset by a 9.1 % increase in sales transactions.
During the 13-week period ended July 3, 2010, store operating expenses decreased to $19.2 million from $19.7 million, a decrease of $515,000, or 2.6%, as compared to the same 13-week period last year. Store operating expenses decreased primarily due to a reduction in payroll and payroll related expenses of $261,000, as a result of a decrease in the total number of employees, as compared to the same 13-week period last year. A decrease in depreciation expense of $340,000, due to the same reasons described above, also attributed to the decrease in store operating expense. As a percentage of net sales, store operating expenses decreased to 33.8% from 34.6% for the fiscal 2010 13-week period, as compared to the prior year period due to lower store operating expenses.
During the 13-week period ended July 3, 2010, other income (expense) decreased to $9,000 from $13,000, a decrease of $4,000 or 30.8%, as compared to the same 13-week period last year. This decrease was due to a reduction in interest income of $19,000, partially offset by a reduction in interest expense of $15,000.
The Companys cash requirements are primarily for working capital, inventory for new stores, construction of new stores, remodeling of existing stores and to improve and enhance our information technology systems. We have historically satisfied our cash requirements principally through cash flow from operations. During the 26-week period ended July 3, 2010, we used $4.0 million of cash flow from operations, as compared to $7.0 million generated during the same period in fiscal 2009. We expect to continue to meet our operating cash requirements primarily through cash flows from operating activities, existing cash and equivalents, and short-term investments. At July 3, 2010, we had working capital of $40.1 million, cash and marketable securities of $30.9 million and $2.2 million in third party debt outstanding related to the purchase of Adrienne Victoria Designs, Inc. (AVD). The cash and marketable securities at July 3, 2010 included certificates of deposit of $2.5 million that have been placed by the Company as collateral against a one year credit facility.
During the 26-week period ended July 3, 2010, cash and equivalents decreased by $2.0 million, primarily as a result of the operating loss incurred during fiscal 2010. Decrease in accrued liabilities, accrued compensation and other liabilities ($2.4 million) is principally due to payment on the remaining $1.4 million owed to one of the Companys former executives, as part of an employee separation agreement entered into in fiscal 2009. Seasonal increase in inventories ($3.9 million) coupled with the purchase of equipment and leasehold improvements ($1.6 million), also contributed to the decrease in cash and equivalents. These decreases in cash were offset by net maturities of marketable securities ($5.3 million), combined with a decrease in receivables and income tax receivables ($4.2 million), primarily due to $3.3 million collected from income tax receivable recorded in fiscal 2009.
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