QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

12 Months Ended

Dec. 31, 2011

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

NOTE 17. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
52 weeks ended December 31, 2011
Net sales	$	52,099		$	60,266		$	48,659		$	62,856
Gross profit		21,921			27,514			19,760			27,224
Income (loss) before income tax provision (benefit)		(1,257	)		4,169			(3,025	)		2,378	(1)
Income tax provision (benefit)		(485	)		1,370	(2)		(1,203	)		502	(2)
Net income (loss)	$	(772	)	$	2,799		$	(1,822	)	$	1,876
Basic and diluted earnings (loss) per share:
Basic earnings (loss) per share:	$	(0.06	)	$	0.22		$	(0.14	)	$	0.15
Diluted earnings (loss) per share:	$	(0.06	)	$	0.22		$	(0.14	)	$	0.15
52 weeks ended January 1, 2011
Net sales	$	48,550		$	56,575		$	45,524		$	55,870
Gross profit		16,715			24,933			15,902			21,307
Income (loss) before income tax provision (benefit)		(6,609	)		1,453			(8,085	)		(13,830)	(1)
Income tax provision (benefit)		(2,528	)		556			(3,058	)		391	(2)
Net income (loss)	$	(4,081	)	$	897		$	(5,027	)	$	(14,221	)
Basic and diluted earnings (loss) per share:
Basic earnings (loss) per share:	$	(0.32	)	$	0.07		$	(0.39	)	$	(1.11	)
Diluted earnings (loss) per share:	$	(0.32	)	$	0.07		$	(0.39	)	$	(1.11	)

(1)

Includes impairment charges of approximately $719,000 for 14 underperforming stores for fiscal 2011 and 974,000 for 15 underperforming stores for fiscal 2010, respectively. Also, includes impairment charges of approximately $9.1 million against the carrying value of the Company's goodwill, for its AVD reporting unit for fiscal 2010. Included in fiscal 2011 general and administrative expenses is a reduction in legal fees of $345,000, related to the settlement of the note payable to the principals of AVD.

(2)

During the fourth quarter of fiscal 2010, we recorded a $5.7 million non-cash tax charge related to a valuation allowance against net deferred tax assets. During the fourth quarter of fiscal 2011, we reversed $562,000 of the remaining valuation allowance against net deferred tax assets, due to the improvement in operating results. During the second quarter of fiscal 2011, we reversed a state income tax reserve of $271,000, net of federal benefit, as a result of the completion of a state income tax audit in fiscal 2011.

• Per share amounts are calculated independently for each quarter. The sum of the quarters may not equal the full year per share amounts.