EX-99.1 3 y95154aexv99w1.txt PRESS RELEASE Exhibit 99.1 Aeropostale Reports RECORD FOURTH Quarter AND FISCAL YEAR 2003 RESULTS ---Fourth Quarter Earnings Per Share Increase 54% to $0.71Versus $0.46 in Prior Year--- ---Announces Earnings Guidance for Fiscal 2004--- New York, New York, March 11, 2004 --- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of active and casual apparel for the teen market, today reported results for the fourth quarter and fiscal year ended January 31, 2004. In a separate release today, the company announced that its board of directors approved a three-for-two stock split to be effected in the form of a stock dividend to holders of record on April 12, 2004. The company also announced that its board of directors has authorized an increase of $35 million in its common stock repurchase program, which will bring the total stock repurchase program to $70 million. Net income for the fourth quarter reached a record level of $27.5 million or $0.71 per diluted share, ahead of the company's most recent guidance. This compares to $17.7 million or $0.46 per diluted share in the comparable quarter in the prior year. Net sales for the quarter increased 32.1% to a record level of $272.6 million versus $206.4 million in the comparable period last year. Fourth quarter comparable store sales increased 8.5%, compared to an increase of 0.3% in the year ago quarter. Julian R. Geiger, Chairman and Chief Executive Officer, said, "We are extremely pleased with the results of the fourth quarter, which were driven by a successful holiday sales period. Our merchandise assortment was trend right and focused, and our merchandising and promotional strategies were highly effective. Our strong performance during the holiday selling season underscores the strength of our brand and highlights the compelling nature of our concept." Net income for the 52 weeks ended January 31, 2004 was $54.3 million or $1.40 per diluted share, compared to net income of $31.3 million or $0.82 per diluted share in the prior year. Net income for the prior year excluding an equity based compensation charge was $34.0 million or $0.89 per diluted share (See Exhibit D). Net sales for the 52 weeks ended January 31, 2004 increased 33.4% to $734.9 million, compared to net sales of $550.9 million for the 52 weeks ended February 1, 2003. Comparable store sales increased 6.6% for the full year, compared to an increase of 6.6% in the prior year. The company today also announced its earnings guidance for fiscal 2004. The company believes it will achieve earnings per share of $0.09 for the first quarter. For the full year, the company believes it will open 95 new stores, achieve mid single digit comparable store sales and earnings per diluted share in the range of $1.72 to $1.73. Mr. Geiger continued, "Fiscal 2003 was an important year for our company strategically and financially. We reached record levels of sales and earnings, opened 95 stores, entered six new markets and solidified our position as a destination brand within the mall. We remain excited as we head into the new fiscal year and we believe that we are prepared to capitalize on the many opportunities that lie ahead." The Company will be holding a conference call today at 4:30 P.M. to review its fiscal 2003 results. The broadcast will be available through the 'Investor Relations' link at www.aeropostale.com and at www.companyboardroom.com. To listen to the broadcast, your computer must have Windows Media Player installed. If you do not have Windows Media Player, go to the latter site prior to the call, where you can download the software for free. About Aeropostale, Inc. Aeropostale, Inc. (www.aeropostale.com) is a mall-based specialty retailer of casual apparel and accessories that targets both young women and young men aged 11 to 20. The company provides customers with a selection of high-quality, active-oriented, fashion basic merchandise in a high-energy store environment. The company maintains complete control over the proprietary brand by designing and sourcing all of its own merchandise. Aeropostale products can be purchased only in its stores, which sell Aeropostale merchandise exclusively. The first Aeropostale store was opened in 1987. The company currently operates 462 stores in 41 states. Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements. These factors include the company's ability to implement its growth strategy successfully, changes in consumer fashion preferences, economic and other conditions in the markets in which we operate, competition, seasonality and the other risks discussed in the company's prospectus dated July 28, 2003 filed with the Securities and Exchange Commission, which discussions are incorporated in this release by reference. 2 EXHIBIT A AEROPOSTALE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) January 31, February 1, 2004 2003 ---- ---- ASSETS CURRENT ASSETS: Cash and cash equivalents .......................... $ 138,356 $ 87,475 Merchandise inventory .............................. 61,807 46,645 Other current assets ............................... 13,252 10,669 --------- --------- Total current assets ............................ 213,415 144,789 FIXTURES, EQUIPMENT AND IMPROVEMENTS-- Net 92,578 69,448 OTHER ASSETS ......................................... 1,055 8,795 --------- --------- TOTAL ASSETS ............................... $ 307,048 $ 223,032 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable ................................... $ 30,477 $ 17,954 Accrued expenses ................................... 40,196 40,044 --------- --------- Total current liabilities ....................... 70,673 57,998 OTHER LIABILITIES .................................. 50,682 37,075 COMMITMENT AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock-- par value, $0.01 per share; 200,000 authorized, 37,863 and 35,306 shares issued and ...... 379 353 outstanding Treasury stock - at cost (630 shares) .............. (17,695) -- Additional paid-in capital ......................... 63,478 41,657 Other comprehensive loss ........................... (672) -- Retained earnings .................................. 140,203 85,949 --------- --------- Total stockholders' equity ...................... 185,693 127,959 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...... $ 307,048 $ 223,032 ========= ========= 3 EXHIBIT B AEROPOSTALE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED FINANCIAL DATA (in thousands, except per share and store data)
13 weeks ended 13 weeks ended -------------- -------------- January 31, 2004 February 1, 2003 ---------------- ---------------- % of Sales % of Sales NET SALES ........................................... $ 272,642 100.0% $ 206,423 100.0% COST OF SALES including certain buying, occupancy and warehousing expenses ................................ 182,680 67.0 142,965 69.3 --------- --------- GROSS PROFIT ........................................ 89,962 33.0 63,458 30.7 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ........ 45,088 16.5 34,109 16.5 --------- --------- INCOME FROM OPERATIONS .............................. 44,874 16.5 29,349 14.2 INTEREST INCOME-- Net ............................... (261) (0.1) (113) (0.1) --------- --------- INCOME BEFORE INCOME TAXES .......................... 45,135 16.6 29,462 14.3 PROVISION FOR INCOME TAXES .......................... 17,613 6.5 11,787 5.7 --------- --------- NET INCOME .......................................... $ 27,522 10.1% $ 17,675 8.6% ========= ========= Basic net income per share ........................ $ 0.74 $ 0.50 ========= ========= Diluted net income per share ...................... $ 0.71 $ 0.46 ========= ========= Basic weighted average number of shares outstanding 37,399 35,222 Diluted weighted average number of shares outstanding 39,029 38,435 STORE DATA: Comparable store sales .............................. 8.5% 0.3% Stores open at end of period ........................ 459 367 Total gross square footage at end of period ......... 1,611,669 1,299,606
4 EXHIBIT C AEROPOSTALE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED FINANCIAL DATA (in thousands, except per share and store data)
52 weeks ended 52 weeks ended -------------- -------------- January 31, 2004 February 1, 2003 ---------------- ---------------- % of Sales % of Sales NET SALES ........................................... $ 734,868 100.0% $ 550,904 100.0% COST OF SALES including certain buying, occupancy and warehousing expenses ................................ 505,152 68.7 388,301 70.5 GROSS PROFIT ........................................ 229,716 31.3 162,603 29.5 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ........ 141,520 19.3 110,506 20.1 --------- --------- INCOME FROM OPERATIONS .............................. 88,196 12.0 52,097 9.5 INTEREST INCOME -- Net .............................. (760) (0.1) (56) -- --------- --------- INCOME BEFORE INCOME TAXES .......................... 88,956 12.1 52,153 9.5 PROVISION FOR INCOME TAXES .......................... 34,702 4.7 20,863 3.8 --------- --------- NET INCOME .......................................... $ 54,254 7.4% $ 31,290 5.7% ========= ========= Basic net income per share .......................... $ 1.49 $ 0.90 ========= ========= Diluted net income per share ........................ $ 1.40 $ 0.82 ========= ========= Basic weighted average number of shares outstanding 36,505 34,387 Diluted weighted average number of shares outstanding 38,858 37,854 STORE DATA: Comparable store sales .............................. 6.6% 6.6% Stores open at end of period ........................ 459 367 Total gross square footage at end of period ......... 1,611,669 1,299,606
5 EXHIBIT D: The following proforma condensed consolidated statements of income for the 52 weeks ended January 31, 2004 and February 1, 2003 excludes an equity based compensation charge for the respective periods, if applicable. PROFORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share date) 52 weeks ended January 31, February 1, 2004 2003 ------- -------- NET INCOME $54,254 $ 31,290 Equity based compensation -- 4,473 Income tax effect (a) -- (1,789) Cumulative accounting change -- -- ------- -------- PROFORMA NET INCOME $54,254 $ 33,974 ======= ======== PROFORMA DILUTED EARNINGS PER SHARE: $ 1.40 $ 0.89 ======= ======== (a) Assumes a tax rate of 40% 6