UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 16, 2003
CACHE INC.
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(Exact name of registrant as specified in its charter)
Florida 0-10345 59-1588181
--------------- ------------------------ -----------------
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identificcation
Incorporation) Number)
1460 Broadway, New York, New York 10036
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(Address of principal executive offices)
Registrant's telephone number: (212) 575-3200
ITEM 5. OTHER EVENTS
See the attached press release, which is incorporated herein by reference,
regarding 2003 third quarter earnings, filed as Exhibit 99.1
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(1) Financial Statements of Businesses Acquired
None
(2) Pro Forma Financial Information
None
(3) Exhibits
99.1 Press release issued by Cache, Inc. on October 16, 2003
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: October 16, 2003 CACHE INC.
By: /s/ Brian Woolf
-------------------------------
Brian Woolf
On behalf of Cache, Inc. and in his capacity as
Chairman and Chief Executive Officer
(Principal Executive Officer)
By: /s/ Thomas E. Reinckens
-------------------------------
Thomas E. Reinckens
On behalf of Cache, Inc. and in his capacity as
President and Chief Operating Officer
(Principal Financial And Accounting Officer)
INDEX OF EXHIBITS
Exhibit Description Page
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99.1 Press Release issued by Cache Inc 5
on October 16, 2003
OCTOBER 16, 2003
FOR IMMEDIATE RELEASE
CACHE, INC.
NASDAQ COMMON STOCK SYMBOL CACH.
CACHE REPORTS THIRD QUARTER 2003 PROFIT IMPROVED OVER 2002 RESULTS
Net Sales Rise 12.3% to a Record $47.2 million
Diluted Earnings Per Share rises to $0.06, Exceeding First Call Consensus of
$0.03
New York, New York - October 16, 2003 - Cache Inc., (NASDAQ: CACH), a
specialty chain ofwomen's apparel stores with 244 stores open, reported
results for the thirteen and thirty-nine week periods ended September 27, 2003.
Net income for the 13 week period ended September 27, 2003 increased to
$614,000 or $0.06 per diluted share in Fiscal 2003, as compared to net income
of $103,000 or $0.01 per diluted share in Fiscal 2002. Net sales for the
thirteen week period increased $5.2 million or 12% and same store sales
increased 7% for the period.
Net income for the 39 week period increased to $5.8 million or $0.60 per
diluted share in Fiscal 2003 from $4.9 million or $0.51 per diluted share in
Fiscal 2002. Net sales increased $10.1 million or 7.2% and same store sales
increased 3% for the period. The improved results for the 39 week period were
primarily attributable to greater sales volume and gross margins.
Mr. Brian Woolf, Cache's Chairman commented, "We are pleased with the
improvement in our third quarter and year-to-date results. Our strong third
quarter results were driven by better-than-expected sales growth and a
significant improvement in our gross margin. In addition, both our year-to-date
operating income and net income have increased significantly over our prior
year results. This is a testament to the strength of our merchandising
strategies that we implemented in 2002 and throughout this year.."
A table summarizes financial results follows:
Thirty-Nine Weeks Ended Thirteen Weeks Ended
----------------------- ----------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2003 2002 2003 2002
---------- -------- --------- ---------
($ Thousands, except for per share data)
Sales $151,006 $140,926 $ 47,164 $ 41,989
Operating income $ 9,184 $ 7,552 $ 936 $ 94
Net income $ 5,796 $ 4,919 $ 614 $ 103
Basic earnings per share $ 0.62 $ 0.54 $ 0.06 $ 0.01
Diluted earnings per share $ 0.60 $ 0.51 $ 0.06 $ 0.01
Basic weighted average
shares outstanding 9,348,000 9,100,000 9,794,000 9,100,000
Diluted weighted average
shares outstanding 9,633,000 9,623,000 10,080,000 9,623,000
The Company estimates fourth quarter Fiscal 2003 net sales in the range of
$64 million to $66 million compared to $58.5 million in the fourth quarter of
Fiscal 2002. Fourth quarter diluted earnings per share is currently estimated
in the range of $0.46 to $0.48 compared to $0.42 in the fourth quarter of
Fiscal 2002. For Fiscal 2003, the Company estimates net sales in the range of
$215 million to $217 million and diluted earnings per share in the range of
$1.06 to $1.08. This compares favorably to Fiscal 2002 net sales of $199.4
million and diluted earnings per share of $0.93.
The Company also announced that it had opened 11 new Cache stores and 2
new Lillie Rubin stores in the first nine months of Fiscal 2003. The Company
expects to open 11 new Cache stores in the fourth quarter. This will increase
the Company's total store count to 255 stores.
A listing of the stores to be opened follows;
Cache stores:
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Gardens on El Paseo Palm Desert, CA
Mall St. Matthews Louisville, KY
Augusta Mall Augusta, GA
Los Cerritos Center Cerritos, CA
Destin Commons Destin, FL
La Encantada Tucson, AZ
Meridian Mall Okemos, MI
Parks at Arlington Arlington, TX
Holyoke Mall Holyoke, MA
Pacific View Ventura, CA
South Plains Mall Lubbock, TX
Interested stockholders and other persons are invited to listen to the
third quarter earnings conference call scheduled for today, Thursday, October
16, 2003 at 9:00 a.m. Eastern Time. To participate in Cache's conference call
dial 1-877-692-2592 approximately ten minutes prior to the 9:00am Eastern start
time. The call will also be broadcast live over the Internet at
www.viavid.com. A replay of the call will be available immediately
following the call and will be accessible until October 23, 2003. To listen to
the replay dial 1-877-519-4471 and enter access code 4233901.
Certain matters discussed within this press release may constitute
forward-looking statements within the meaning of the federal securities law.
Although Cache, Inc. believes the statements are based on reasonable
assumptions, there can be no assurance that these expectations will be
attained. Actual results and timing of certain events could differ materially
from those projected in or contemplated by the forward-looking statements due
to a number of factors, including, without limitation, industry trends,
merchandise trends, competition and the ability to obtain financing, as well as
other risks outlined from time to time in the filings of Cache, Inc., with the
Securities and Exchange Commission.
Financial Tables Follow:
For further information contact Thomas E. Reinckens, President, Chief
Operating Officer, Cache,Inc., 1460 Broadway, New York, New York 10036,
(212) 575-3246.
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 27, December 28, September 28,
A S S E T S 2003 2002 2002
------------- ------------- -------------
CURRENT ASSETS
Cash and equivalents $ 28,130,000 $ 10,287,000 $ 17,184,000
Marketable securities --- 14,392,000 ---
Receivables, net 3,716,000 2,677,000 2,857,000
Notes receivable from related parties --- 321,000 321,000
Inventories, net 27,250,000 22,065,000 24,653,000
Deferred income taxes and other tax assets 3,974,000 271,000 593,000
Prepaid expenses 182,000 1,020,000 510,000
------------ ------------ --------------
Total Current Assets 63,252,000 51,033,000 46,118,000
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET 23,099,000 18,553,000 18,630,000
OTHER ASSETS 872,000 817,000 819,000
DEFERRED INCOME TAXES, NET --- 349,000 525,000
------------- ------------ --------------
Total Assets $ 87,223,000 $ 70,752,000 $ 66,092,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 16,234,000 $ 11,988,000 $ 12,989,000
Accrued compensation 2,250,000 3,629,000 1,707,000
Accrued liabilities 7,908,000 8,762,000 9,050,000
------------- ------------- --------------
Total Current Liabilities 26,392,000 24,379,000 23,746,000
OTHER LIABILITIES 1,077,000 1,081,000 1,076,000
DEFERRED INCOME TAXES, NET 85,000 --- ---
STOCKHOLDERS' EQUITY
Common stock 99,000 91,000 91,000
Additional paid-in capital 28,182,000 19,609,000 19,609,000
Retained earnings 31,388,000 25,592,000 21,570,000
------------ ------------- --------------
Total Stockholders' Equity 59,669,000 45,292,000 41,270,000
------------ ------------- ---------------
Total Liabilities and Stockholders' Equity $ 87,223,000 $ 70,752,000 $ 66,092,000
============= ============= ===============
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
FOR THE THIRTY-NINE WEEKS ENDED
(UNAUDITED)
September 27, September 28,
2003 2002
------------- -------------
Net sales $ 151,006,000 $ 140,926,000
Cost of sales, including occupancy and buying costs 86,092,000 82,660,000
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Gross profit 64,914,000 58,266,000
Expenses
Store operating expenses 45,817,000 41,469,000
General and administrative expenses 9,913,000 9,245,000
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Total expenses 55,730,000 50,714,000
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Operating income 9,184,000 7,552,000
Other income :
Interest income (net) 192,000 195,000
Other income (net) 14,000 ---
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Income before income taxes 9,390,000 7,747,000
Income tax provision 3,594,000 2,828,000
------------- -------------
Net income $ 5,796,000 $ 4,919,000
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Basic earnings per share $0.62 $0.54
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Diluted earnings per share $0.60 $0.51
============ ==============
Basic weighted average shares outstanding 9,348,000 9,100,000
============ ==============
Diluted weighted average shares outstanding 9,633,000 9,623,000
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NUMBER OF STORES OPEN AT END OF PERIOD 244 227
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CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
FOR THE THIRTEEN WEEKS ENDED
(UNAUDITED)
September 27, September 28,
2003 2002
-------------- --------------
Net sales $ 47,164,000 $ 41,989,000
Cost of sales, including occupancy and buying costs 27,065,000 25,202,000
-------------- --------------
Gross profit 20,099,000 16,787,000
-------------- --------------
Expenses
Store operating expenses 15,452,000 14,043,000
General and administrative expenses 3,711,000 2,650,000
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Total expenses 19,163,000 16,693,000
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Operating income 936,000 94,000
Other income :
Interest income (net) 48,000 68,000
Miscellaneous income (net) 14,000 ---
-------------- -------------
Income before income taxes 998,000 162,000
Income tax provision 384,000 59,000
--------------- --------------
Net income $ 614,000 $ 103,000
=============== ==============
Basic earnings per share $0.06 $0.01
=============== ==============
Diluted earnings per share $0.06 $0.01
=============== ==============
Basic weighted average shares outstanding 9,794,000 9,100,000
=============== ==============
Diluted weighted average shares outstanding 10,080,000 9,623,000
=============== ==============
NUMBER OF STORES OPEN AT END OF PERIOD 244 227
=============== ==============