Jennifer Convertibles, Inc. (www.jenniferfurniture.com) announced its financial results for the second quarter ended February 26, 2011.
For the second quarter, revenue from continuing operations decreased by 14.8% to $16,746,000 from the $19,655,000 reported for the same period last year. For the six-month period, revenue from continuing operations decreased 6.0% to $35,266,000 from the $37,532,000 reported in the same period last year.
For the second quarter, the net income was $32,076,000 or $4.06 and $4.04 per basic and diluted share, respectively, compared to net loss of ($6,413,000) or ($0.91) per basic and diluted share, for the same period last year. For the six-month period, the net income was $28,716,000 or $3.63 and $3.62 per basic and diluted share, respectively, compared to net loss of ($13,283,000) or ($1.89) per basic and diluted share, for the same period last year.
For the second quarter, operating margins from continuing operations increased to 26.1% compared to 25.7% the same period last year. For the six-month period operating margins from continuing operations decreased to 25.4% compared to 26.8% for the same period last year.
For the second quarter, selling, general, and administrative expenses from continuing operations decreased to 37.2% as a percentage of revenue from continuing operations compared to 38.2% for the same period last year. For the six-month period, selling, general and administrative expenses from continuing operations decreased to 37.7% compared to 40.2% for the same period last year.
Reorganization items, net were $34,128,000 and $0 in the second quarter of fiscal 2011 and 2010, respectively. For the six-month period, reorganization items, net were $33,378,000 compared to $0 for the same period last year. Reorganization items consist of a gain on discharge of debt, legal and other professional fees for bankruptcy services and fair value adjustments.
Income (loss) from operations of discontinued operations was $0 and ($317,000) in the second quarter of fiscal 2011 and 2010, respectively. For the six-month periods for fiscal 2011 and 2010, income (loss) from discontinued operations amounted to $62,000 and ($1,284,000), respectively.
Rami Abada, President of Jennifer, commenting on the results of the second fiscal quarter said, "During the quarter we successfully emerged from Chapter 11 and we were successful in restructuring our leases and in closing and consolidating unprofitable stores."
Mr. Abada added, "On February 28, 2011 we entered into a multi-year agreement with GE Capital Sales Finance, which allows us to offer our customers the option of using a private label, Jennifer Convertible credit card in all our stores nationwide which should improve sales. Additionally, we have secured credit terms with many of our suppliers. We have new product lines in development and we believe we are now poised to be a stronger organization that will better satisfy our customers, suppliers and employees. We are very excited about the future."
Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with 64 Jennifer Convertibles® stores and is the largest specialty retailer of leather furniture with 8 Jennifer Leather stores. As of April 12, 2011, the Company owned 72 stores and operates six licensed Ashley Furniture HomeStores.