This press release contains forward- looking statements which can be identified by their use of words like "plans," "expects," "believes," "will," "anticipates," "intends," "projects," "estimates," "could," "would," "may," "planned," "goal," and other words of similar meaning. All statements that address expectations, possibilities or projections about the future, including without limitation, statements about anticipated economic conditions, generation of shareholder value, and our strategies for growth, performance drivers, expansion plans, sources or adequacy of capital, expenditures and financial results are forward-looking statements.
Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward- looking statements and no assurance can be given that the Company will meet the results projected in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: (i) a decline in consumer spending or deterioration in consumer financial position; (ii) economic, political and market conditions, including the economies of Canada and the U.S. and the influence of inflation on consumer spending, which could adversely affect the Company's business, operating results or financial condition, including its revenue and profitability, through the impact of changes in the real estate markets, changes in the equity markets and decreases in consumer confidence and the related changes in consumer spending patterns, the impact on store traffic, tourism and sales; (iii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Company's costs and expenses; (iv) the Company's ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to source raw materials, to mitigate fluctuations in the availability and prices of the Company's merchandise, to compete with other jewelers, to succeed in its marketing initiatives (including with respect to Birks branded products), and to have a successful customer service program; (v) the Company's plan to evaluate the productivity of existing stores, close unproductive stores and open new stores in new prime retail locations, and invest in its website and e-commerce platform; (vi) the Company's ability to execute its strategic vision; and (vii) the Company's ability to invest in and finance capital expenditures.
Information concerning factors that could cause actual results to differ materially is set forth under the captions "Risk Factors" and "Operating and Financial Review and Prospects" and elsewhere in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 16, 2024 and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.
BIRKS GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
BIRKS GROUP INC. Consolidated
Statements of Operations
Fiscal Year Ended
------------------------------------
March 30, 2024 March 25, 2023
---------------- ------------------
Net sales $ 185,275 $ 162,950
Cost of sales 111,720 94,990
--- ---------- --- ----------
Gross profit 73,555 67,960
Selling, general and
administrative expenses 65,705 66,095
Depreciation and amortization 6,639 5,673
--- ---------- --- ----------
Total operating expenses 72,344 71,768
Operating income (loss) 1,211 (3,808)
Interest and other financial costs 8,007 5,581
--- ---------- --- ----------
Income (loss) before taxes and
equity in earnings of joint
venture (6,796) (9,389)
--- ---------- --- ----------
Income taxes (benefits) -- --
Equity in earnings of joint
venture, net of taxes of $0.8
million ($0.7 million in fiscal
2023) 2,165 1,957
--- ---------- --- ----------
Net (loss) income, net of tax $ (4,631) $ (7,432)
=== ========== === ==========
Weighted average common shares
outstanding:
Basic 19,058 18,692
Diluted 19,058 18,692
Net (loss) income per common
share:
Basic $ (0.24) $ (0.40)
Diluted (0.24) (0.40)
BIRKS GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
As of
------------------------------------
March 30, 2024 March 25, 2023
---------------- ------------------
Assets
Current Assets
Cash and cash equivalents $ 1,783 $ 1,262
Accounts receivable and other
receivables 8,455 11,377
Inventories 99,067 88,357
Prepaids and other current assets 2,913 2,694
----------- -----------
Total current assets 112,218 103,690
----------- -----------
Long-term receivables 1,571 2,000
Equity investment in joint venture 4,122 1,957
Property and equipment 25,717 26,837
Operating lease right-of-use asset 51,753 55,498
Intangible assets and other assets 7,887 6,999
----------- -----------
Total non-current assets 91,050 93,291
----------- -----------
Total assets $ 203,268 $ 196,981
=========== ===========
Liabilities and Stockholders' Equity
(Deficiency)
Current liabilities
Bank indebtedness $ 63,372 $ 57,890
Accounts payable 43,011 37,645
Accrued liabilities 6,112 7,631
Current portion of long-term debt 4,352 2,133
Current portion of operating
lease liabilities 6,430 6,758
----------- -----------
Total current liabilities 123,277 112,057
----------- -----------
Long-term debt 22,587 22,180
Long-term portion of operating lease
liabilities 59,881 62,989
Other long-term liabilities 2,672 358
----------- -----------
Total long-term liabilities 85,140 85,527
----------- -----------
Stockholders' equity
(deficiency): Class A common
stock -- no par value, unlimited
shares authorized, issued and
outstanding 11,447,999
(11,112,999 as of March 25,
2023) 40,725 39,019
Class B common stock -- no par
value, unlimited shares
authorized, issued and
outstanding 7,717,970 57,755 57,755
Preferred stock -- no par value,
unlimited shares authorized, none
issued -- --
Additional paid-in capital 21,825 23,504
Accumulated deficit (125,476) (120,845)
Accumulated other comprehensive
income (loss) 22 (36)
----------- -----------
Total stockholders' equity
(deficiency) (5,149) (603)
----------- -----------
Total liabilities and stockholders'
equity (deficiency) $ 203,268 $ 196,981
=========== ===========
View source version on businesswire.com: https://www.businesswire.com/news/home/20240716697836/en/
CONTACT: Company Contact:
Katia Fontana
Vice President and Chief Financial Officer
(514) 397-2592
For all press and media inquiries, please contact:
Press@birks.com
(END) Dow Jones Newswires
July 16, 2024 18:30 ET (22:30 GMT)
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