bebe stores inc. (BEBE, Financial) filed Quarterly Report for the period ended 2009-04-04.
Bebe Stores designs develops and produces a distinctive line of contemporary women's apparel and accessories. They market their products under the bebe bebe moda and bbsp brand names through their retail stores located in Canada and the United Kingdom. Their broad product offering includes suits tops pants skirts dresses logo and other activewear outerwear and handbags and other accessories. Bebe Stores design and develop most of the merchandise in-house. bebe stores inc. has a market cap of $816.7 million; its shares were traded at around $9.23 with a P/E ratio of 27.1 and P/S ratio of 1.2. The dividend yield of bebe stores inc. stocks is 2.2%. bebe stores inc. had an annual average earning growth of 5.1% over the past 10 years.
Our working capital requirements vary widely throughout the year and generally peak during the first and second fiscal quarters. At April 4, 2009, we had approximately $316.0 million of cash and equivalents and long term investments on hand of which approximately $193.0 million, net of impairment charges of $27.9 million, were invested in auction rate securities (ARS). We do not anticipate the lack of liquidity in the ARS to impact our ability to fund our operations in the foreseeable future and believe we have sufficient cash and equivalents to fund ongoing operations. In addition, we have a revolving line of credit, under which we may borrow or issue letters of credit up to a combined total of $25 million. As of April 4, 2009, there were no cash borrowings outstanding under the line of credit, and letters of credit outstanding totaled $2.9 million. As of April 4, 2009, we were not in compliance with one covenant of this agreement requiring net quarterly income. We obtained a waiver with respect to this matter and do not anticipate to breach this covenant in future quarters.
Net cash provided by operating activities for the nine months ended April 4, 2009 was $27.7 million versus $64.7 million for the nine months ended April 5, 2008. Cash provided by operating activities for the period was primarily generated by net income of $13 million adjusted for stock compensation of $4.3 million, depreciation of $19.7 million, deferred rent of $0.8 million, impairment of trading securities of $0.6 million and net loss on disposal of property of $3.9 million related to impairment charges and fixed asset write-offs, store closures and store remodels, as well as changes in working capital. The changes in working capital were primarily due to a decrease in inventory of $5.1 million, offset by an increase in prepaid expenses and other assets of $14.8 million and a decrease in accrued liabilities of $3.6 million.
Net cash used by investing activities for the nine months ended April 4, 2009 was $1.0 million versus net cash provided by investing activities of $28.5 million for the nine months ended April 5, 2008. Cash used by investing activities for the period was primarily due to capital expenditures of $23.7 million related to the opening of new stores, investments in information systems and technology and office equipment, partially offset by proceeds on our sales of ARS of $22.7 million. We opened 12 new stores in the nine months ended April 4, 2009 and expect to open a total of approximately 14 stores during fiscal 2009. We estimate that total capital expenditures will be below $30 million in fiscal 2009.
Net cash used by financing activities was $25.9 million for the nine months ended April 4, 2009 versus $78.0 million for the nine months ended April 5, 2008. Cash used by financing activities for the period was primarily due to payments of quarterly dividends for the fourth quarter of fiscal 2008 and the first two quarters of fiscal 2009 totaling $13.1 million and stock repurchases of $13.3 million. The Company declared a quarterly dividend at the end of the quarter totaling $4.3 million which was accrued at the end of the current quarter and paid in the following quarter.
We hold a variety of interest bearing ARS consisting of federally insured student loan backed securities and insured municipal authority bonds. As of April 4, 2009, our ARS portfolio totaled approximately $193 million, $70 million (net of an impairment charge of $12.9 million) classified as trading securities and $123 million (net of temporary impairment charge of $15 million) classified as available for sale securities. Our ARS portfolio includes approximately 98% federally insured student loan backed securities and 2% municipal authority bonds. Our ARS portfolio consists of approximately 51% AAA rated investments, 15%
Read the The complete ReportBEBE is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
Bebe Stores designs develops and produces a distinctive line of contemporary women's apparel and accessories. They market their products under the bebe bebe moda and bbsp brand names through their retail stores located in Canada and the United Kingdom. Their broad product offering includes suits tops pants skirts dresses logo and other activewear outerwear and handbags and other accessories. Bebe Stores design and develop most of the merchandise in-house. bebe stores inc. has a market cap of $816.7 million; its shares were traded at around $9.23 with a P/E ratio of 27.1 and P/S ratio of 1.2. The dividend yield of bebe stores inc. stocks is 2.2%. bebe stores inc. had an annual average earning growth of 5.1% over the past 10 years.
Highlight of Business Operations:
For the nine months ended April 4, 2009, selling, general and administrative expenses decreased to $177.4 million from $177.9 for the comparable period of the prior year, a decrease of $0.5 million, or 0.3%. As a percentage of net sales, selling, general and administrative expenses increased to 37.6% from 34.5% in the comparable period of the prior year. The decrease in selling, general and administrative expenses was primarily due to lower total compensation expense offset by an increase in depreciation expense and approximately $3.9 million in impairment charges and fixed asset write-offs related to underperforming stores and store closures.Our working capital requirements vary widely throughout the year and generally peak during the first and second fiscal quarters. At April 4, 2009, we had approximately $316.0 million of cash and equivalents and long term investments on hand of which approximately $193.0 million, net of impairment charges of $27.9 million, were invested in auction rate securities (ARS). We do not anticipate the lack of liquidity in the ARS to impact our ability to fund our operations in the foreseeable future and believe we have sufficient cash and equivalents to fund ongoing operations. In addition, we have a revolving line of credit, under which we may borrow or issue letters of credit up to a combined total of $25 million. As of April 4, 2009, there were no cash borrowings outstanding under the line of credit, and letters of credit outstanding totaled $2.9 million. As of April 4, 2009, we were not in compliance with one covenant of this agreement requiring net quarterly income. We obtained a waiver with respect to this matter and do not anticipate to breach this covenant in future quarters.
Net cash provided by operating activities for the nine months ended April 4, 2009 was $27.7 million versus $64.7 million for the nine months ended April 5, 2008. Cash provided by operating activities for the period was primarily generated by net income of $13 million adjusted for stock compensation of $4.3 million, depreciation of $19.7 million, deferred rent of $0.8 million, impairment of trading securities of $0.6 million and net loss on disposal of property of $3.9 million related to impairment charges and fixed asset write-offs, store closures and store remodels, as well as changes in working capital. The changes in working capital were primarily due to a decrease in inventory of $5.1 million, offset by an increase in prepaid expenses and other assets of $14.8 million and a decrease in accrued liabilities of $3.6 million.
Net cash used by investing activities for the nine months ended April 4, 2009 was $1.0 million versus net cash provided by investing activities of $28.5 million for the nine months ended April 5, 2008. Cash used by investing activities for the period was primarily due to capital expenditures of $23.7 million related to the opening of new stores, investments in information systems and technology and office equipment, partially offset by proceeds on our sales of ARS of $22.7 million. We opened 12 new stores in the nine months ended April 4, 2009 and expect to open a total of approximately 14 stores during fiscal 2009. We estimate that total capital expenditures will be below $30 million in fiscal 2009.
Net cash used by financing activities was $25.9 million for the nine months ended April 4, 2009 versus $78.0 million for the nine months ended April 5, 2008. Cash used by financing activities for the period was primarily due to payments of quarterly dividends for the fourth quarter of fiscal 2008 and the first two quarters of fiscal 2009 totaling $13.1 million and stock repurchases of $13.3 million. The Company declared a quarterly dividend at the end of the quarter totaling $4.3 million which was accrued at the end of the current quarter and paid in the following quarter.
We hold a variety of interest bearing ARS consisting of federally insured student loan backed securities and insured municipal authority bonds. As of April 4, 2009, our ARS portfolio totaled approximately $193 million, $70 million (net of an impairment charge of $12.9 million) classified as trading securities and $123 million (net of temporary impairment charge of $15 million) classified as available for sale securities. Our ARS portfolio includes approximately 98% federally insured student loan backed securities and 2% municipal authority bonds. Our ARS portfolio consists of approximately 51% AAA rated investments, 15%
Read the The complete ReportBEBE is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
