Jennifer Convertibles, Inc. announced its unaudited financial results for the second fiscal quarter ended February 24, 2007.
For the second quarter, revenue from continuing operations increased by 1.6% to $33.4 million from the $32.9 million reported for the same period last year. For the six-month period, revenue from continuing operations decreased 3.6% to $66.2 million from the $68.7 reported in the same period last year.
For the second quarter, the Company generated net income of $1,258,000 or $0.16 and $0.14 per basic and diluted share, respectively, compared to a net income of $554,000 or $0.08 and $0.07 per basic and diluted share, respectively, for the same period last year. For the six-month period, the net income was $621,000 or $0.08 and $0.07 per basic and diluted share, respectively, compared to a net income of $1,401,000 or $0.19 and $0.18 per basic and diluted share, respectively, for the same period last year.
Operating margins from continuing operations increased during the current three-month period to 29.6% compared to 29.3% the same period last year. For the current six-month period operating margins from continuing operations decreased to 29.7% compared to 30.9% for the six-month period last year.
For the second quarter, selling, general, and administrative expenses from continuing operations decreased to 25.9% as a percentage of revenue from continuing operations compared to 27.0% for the same period last year. For the six-month period, selling, general and administrative expenses from continuing operations increased to 28.6% compared to 28.5% for the same period last year.
During the second quarter, Jennifer closed four stores in Illinois. The operating results of these closed stores were recorded in continuing operations based on managements' judgment that there will be significant continuing sales to customers of the closed stores from other stores in their respective areas. For the second quarter of fiscal 2006 loss from discontinued operation was $32,000.
During the quarter, the Company did not open any stores and closed four stores as described above.
Commenting on the results Harley J. Greenfield, Chief Executive Officer of Jennifer said, "I am very pleased to report that the strategies which we utilized in merchandising and advertising, and our adjustments to margins returned the Company to profitability during our second fiscal quarter. This was accomplished despite softness generally in the furniture industry, which continues to impact our operations. We expect profitability to continue."
Mr. Greenfield added, "We are extremely excited about the opening, at the end of May, of our first Ashley Furniture HomeStore. We believe that the Ashley stores added to our solid Jennifer base will propel the Company to a new level."
Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with 171 Jennifer Convertibles(R) stores and 16 Jennifer Leather stores. As of April 9, 2007, the Company owned 162 stores and licensed 25 stores. Of the 25 stores, 24 are owned and operated by a related private company and one is managed by the private company.
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