QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

12 Months Ended

Dec. 29, 2012

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

NOTE 14. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
52 weeks ended December 29, 2012
Net sales	$	55,995		$	61,633		$	45,789		$	60,793
Gross profit		22,197			26,383			14,661			20,670
Income (loss) before income tax provision (benefit)		(2,005	)		1,701			(8,089	)		(4,970)	(1)
Income tax provision (benefit)		(797	)		670			(1,713)	(2)		555	(2)
Net income (loss)	$	(1,208	)	$	1,031		$	(6,376	)	$	(5,525	)
Basic and diluted earnings (loss) per share:
Basic earnings (loss) per share:	$	(0.09	)	$	0.08		$	(0.48	)	$	(0.41	)
Diluted earnings (loss) per share:	$	(0.09	)	$	0.08		$	(0.48	)	$	(0.41	)
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	)	$	0.21		$	(0.14	)	$	0.14
Diluted earnings (loss) per share:	$	(0.06	)	$	0.21		$	(0.14	)	$	0.14

(1)

Includes impairment charges of approximately $1.1 million for 26 underperforming stores for fiscal 2012 and $719,000 for 14 underperforming stores for fiscal 2011, respectively. 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 third and fourth quarters of fiscal 2012, we recorded a $1.3 million and $2.5 million, respectively, of non-cash tax charges 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.

The table above reflects the issuance of all restricted stock awards as if issued on the original grant date as discussed in Note 13. Per share amounts are calculated independently for each quarter. The sum of the quarters may not equal the full year per share amounts.