FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended September 26, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from............... to ...............
Commission File Number: 0-10345
CACHE, INC.
- -----------------------------------------------------------------
(Exact name of registrant as specified in its Charter)
Florida 59-1588181
- -------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1460 Broadway, New York, New York 10036
- -------------------------------------------------------------------
(Address of principal executive offices) (zip code)
212-575-3200
----------------------------------------------------
(Registrant's telephone number, including area code)
------
- -------------------------------------------------------------------
(Former name, address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
YES X NO
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each issuer's classes
of common stock, as of the latest practicable date.
Common Stock, $.01 9,091,338
- -------------------------- -------------------------------
Class of Stock Outstanding Outstanding at November 05, 1998
<PAGE>
CACHE, INC. AND SUBSIDIARIES
INDEX
PAGE
CONSOLIDATED FINANCIAL STATEMENTS
BALANCE SHEETS, SEPTEMBER 26, 1998
AND DECEMBER 27, 1997 3
STATEMENTS OF OPERATIONS
THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 1998
AND SEPTEMBER 27, 1997 4
THIRTEEN WEEKS ENDED SEPTEMBER 26, 1998
AND SEPTEMBER 27, 1997 5
STATEMENTS OF CASH FLOWS
THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 1998
AND SEPTEMBER 27, 1997 6
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7-9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 10-13
OTHER INFORMATION:
EXHIBIT INDEX AND REPORTS ON FORM 8-K 13
SIGNATURES 14
2
<PAGE>
<TABLE>
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
September 26, December 27,
<S> 1998 1997
ASSETS ------------------- -------------------
<C> <C>
Current assets:
Cash and equivalents $ 2,782,000 $ 5,892,000
Receivables 1,480,000 1,573,000
Notes receivable from related parties 297,000 250,000
Inventories 22,035,000 18,219,000
Prepaid income taxes and deferred tax assets 813,000 220,000
Prepaid expenses 179,000 528,000
------------------- -------------------
Total current assets 27,586,000 26,682,000
Property and equipment, net 15,751,000 15,869,000
Other assets 567,000 211,000
Deferred income taxes 747,000 746,000
------------------- -------------------
$ 44,651,000 $ 43,508,000
=================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,186,000 $ 10,737,000
Income taxes payable --- 359,000
Accrued compensation 1,328,000 742,000
Accrued liabilities 3,518,000 3,862,000
------------------- -------------------
Total current liabilities 16,032,000 15,700,000
Subordinated indebtedness to related party 2,000,000 2,000,000
Other liabilities 1,776,000 1,847,000
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, par value $.01; authorized, 20,000,000
shares; issued and outstanding 9,091,338 shares
at September 26, 1998 and December 27, 1997 91,000 91,000
Additional paid-in capital 19,564,000 19,564,000
Retained earnings 5,188,000 4,306,000
------------------- -------------------
Total stockholders' equity 24,843,000 23,961,000
------------------- -------------------
$ 44,651,000 $ 43,508,000
=================== ===================
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets.
</FN>
</TABLE>
3
<PAGE>
<TABLE>
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THIRTY-NINE WEEKS ENDED
(Unaudited)
<CAPTION>
September 26, September 27,
1998 1997
------------ ------------
<S> <C> <C>
Net sales $ 98,817,000 $ 94,654,000
------------ ------------
Costs and expenses
Cost of sales, including occupancy and buying costs 65,137,000 62,532,000
Selling, general and administrative expenses 32,212,000 31,540,000
------------ ------------
97,349,000 94,072,000
------------ ------------
Operating income 1,468,000 582,000
Interest expense
Related party (105,000) (105,000)
Other (14,000) (65,000)
------------ ------------
(119,000) (170,000)
------------ ------------
Interest and other income 145,000 22,000
------------ ------------
Income before income taxes 1,494,000 434,000
Income tax provision 612,000 178,000
------------ ------------
Net income $ 882,000 $ 256,000
============ ============
Basic and diluted earnings per share $ .10 $ .03
============ ============
Weighted average number of shares and
share equivalents outstanding 9,168,000 9,102,000
============ ============
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED
(Unaudited)
<CAPTION>
September 26, September 27,
1998 1997
------------ ------------
<S> <C> <C>
Net sales $ 30,963,000 $ 30,237,000
------------ ------------
Costs and expenses
Cost of sales, including occupancy and buying costs 20,816,000 20,590,000
Selling, general and administrative expenses 10,807,000 10,352,000
------------ ------------
31,623,000 30,942,000
------------ ------------
Operating loss (660,000) (705,000)
Interest expense
Related party (35,000) (35,000)
Other --- (13,000)
------------ ------------
(35,000) (48,000)
------------ ------------
Interest and other income 52,000 13,000
------------ ------------
Loss before income tax benefit (643,000) (740,000)
Income tax benefit (264,000) (303,000)
------------ ------------
Net loss $ (379,000) $ (437,000)
============ ============
Basic loss per share ($ .04) ($ .05)
============ ============
Weighted average number of shares and
share equivalents outstanding 9,091,000 9,091,000
============ ============
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
</FN>
</TABLE>
5
<PAGE>
<TABLE>
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEKS ENDED
(Unaudited)
<CAPTION>
September 26, September 27,
1998 1997
<S> ------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
------------------------------------- <C> <C>
Net income $ 882,000 $ 256,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,943,000 2,848,000
Reversal of future rent escalations (48,000) (54,000)
Change in assets and liabilities:
---------------------------------
Decrease (increase) in receivables 93,000 (213,000)
Increase in notes receivable from related parties (47,000) ---
Increase in inventories (3,816,000) (2,189,000)
Increase in prepaid income taxes and deferred tax assets (594,000) (347,000)
Decrease in prepaid expenses 349,000 254,000
Decrease in income taxes payable (359,000) ---
Increase in accounts payable 449,000 801,000
Increase (decrease) in accrued liabilities and accrued compensation (112,000) 434,000
------------- -------------
Total changes in assets and liabilities (4,037,000) (1,260,000)
------------- -------------
Net cash (used in) provided by operating activities (260,000) 1,790,000
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
-------------------------------------
Payments for property and equipment (1,765,000) (2,410,000)
Purchase of Lillie Rubin, net (1,104,000) ---
Proceeds from property and equipment disposals 23,000 41,000
------------- -------------
Net cash used in investing activities (2,846,000) (2,369,000)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
-------------------------------------
Long-term bank debt additional borrowings 1,050,000 23,700,000
Long-term bank debt principal repayments (1,050,000) (23,700,000)
Other, net (4,000) (74,000)
------------- -------------
Net cash used in financing activities (4,000) (74,000)
------------- -------------
Net decrease in cash and cash equivalents (3,110,000) (653,000)
Cash and cash equivalents, at beginning of period 5,892,000 2,160,000
------------- -------------
Cash and cash equivalents, at end of period $ 2,782,000 $ 1,507,000
------------- -------------
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
</FN>
</TABLE>
6
<PAGE>
CACHE, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
---------------------
In the opinion of the Company, the accompanying consolidated
financial statements include all adjustments necessary, which are
considered normal and recurring, to present fairly the financial
position of the Company at September 26, 1998 and December 27, 1997,
and the results of operations for the thirty-nine and thirteen week
periods ended September 26, 1998 and September 27, 1997 and
consolidated statements of cash flows for the thirty-nine weeks then
ended.
Certain financial information which is normally included in
financial statements prepared in accordance with generally accepted
accounting principles, but which is not required for interim reporting
purposes, has been condensed or omitted. The accompanying consolidated
financial statements should be read in conjunction with the Financial
Statements and notes thereto included in the Company's latest annual
report on Form 10-K for the fiscal year ended December 27, 1997.
Certain amounts reflected in Fiscal 1997 financial statements have been
reclassified to conform with the presentation of similar items in
Fiscal 1998.
Net income includes all sources of comprehensive income. There
were no adjustments for foreign currency translation, unrealized
gains(losses)on investments or deferred compensation expense incurred
in Fiscal 1998 or Fiscal 1997 results.
2. BASIC AND DILUTED EARNINGS
--------------------------
Basic and diluted earnings per share has been computed based on
the weighted average number of shares of common stock outstanding for
the thirty-nine and thirteen weeks ended September 26, 1998 and
September 27, 1997.
The approximate number of shares used in the computations of basic
and diluted earnings per share were 9,168,000 and 9,102,000, for the
thirty-nine week periods and 9,091,000 and 9,091,000 for the thirteen
week periods ended September 26, 1998 and September 27, 1997,
respectively.
7
<PAGE>
3. ACQUISITION OF LILLIE RUBIN
---------------------------
On August 10, 1998, the Company completed the acquisition of
certain assets of Lillie Rubin Fashions, Inc., a retailer of women's
apparel and accessories for approximately $1,431,000, including
expenses related to the acquisition. The purchase was financed by
internal cash flows. The acquisition of Lillie Rubin was accounted for
as a purchase as of August 10, 1998 and the results of operations of
Lillie Rubin have been included since that date. The Company allocated
approximately $1,075,000 to property and equipment, $150,000 to
trademarks and the remaining portion of the purchase price which
exceeded the fair value of net assets acquired by $206,000, was
recorded as goodwill and is being amortized over 10 years.
4. PROPERTY AND EQUIPMENT
----------------------
September 26, December 27,
1998 1997
------------- ------------
Leasehold improvements $17,330,000 $16,242,000
Furniture, fixtures and
equipment 20,014,000 18,335,000
------------- ------------
37,344,000 34,577,000
Less: accumulated depreciation
and amortization 21,593,000 18,708,000
------------- ------------
$15,751,000 $15,869,000
============= ============
5. ACCRUED LIABILITIES
-------------------
September 26, December 27,
1998 1997
------------- ------------
Operating expenses $ 1,131,000 $1,119,000
Taxes, other than income taxes 797,000 1,141,000
Leasehold additions 200,000 160,000
Other customer deposits 1,390,000 1,442,000
------------- ------------
$ 3,518,000 $3,862,000
============= ============
6. BANK DEBT
---------
During August 1996, the Company reached an agreement with its
bank to extend the maturity of the Amended Revolving Credit Facility
until January 31, 2000. Pursuant to the Amended Revolving Credit
Facility $12,000,000 is available until expiration at January 31,
2000. The amounts outstanding thereunder bear interest at a maximum
per annum rate up to .50% above the bank's prime rate. The agreement
contains selected financial and other covenants including covenants to
maintain a minimum current ratio, a maximum debt to equity and total
equity ratio, a maximum capital expenditure covenant, a minimum
earnings to bank interest coverage ratio and certain restrictions on
the repayment of principal amounts due to related parties. The
agreement prohibits the payment of any dividends on the Company's
8
<PAGE>
common stock. Effective upon the occurrence of an Event of Default under
the Revolving Credit Facility, the Company grants to the bank a security
interest in the Company's inventory and certain receivables.
There was no outstanding balance on the line of credit at September
26, 1998, and December 27, 1997. The related party debt is subordinated
to the bank debt and repayment is subject to terms of the Amended
Revolving Credit Facility. The Company is currently in compliance with
all covenant requirements.
7. INDEBTEDNESS TO/FROM RELATED PARTIES
------------------------------------
As of September 26, 1998 and December 27, 1997 the Company had
outstanding, (i) a $250,000 long-term loan from a major stockholder bearing
interest payable quarterly with principal due upon demand at any time after
January 31, 2000; and (ii) a $1,750,000 loan made by the same stockholder
bearing interest payable quarterly with principal due upon demand at any time
after January 31, 2000. Interest on both notes accrue at 7% per year through
January 31, 2000. The Company may make a loan repayment on December 31, 1998,
subject to the Tangible Net Worth covenant contained in the Amended Revolving
Credit Facility.
On April 27, 1998, the Company loaned $50,000 to an employee, and is to
be repaid in 60 monthly payments. The loan has a stated interest rate of
8.00%. All repayments are current as of September 26, 1998.
8. INCOME TAXES
------------
The effective tax rates for Fiscal 1998 and 1997 are 41.0%. At
September 26, 1998 and December 27, 1997, the Company's deferred tax assets
were $996,000 and $966,000, respectively, and there was no deferred tax
liability. The major components of the Company's net deferred taxes at
September 26, 1998 are as follows:
September 26, December 27,
1998 1997
------------- -------------
Net operating loss carryforwards ("NOL'S") and
alternative minimum
tax carryforwards.............................. $ 84,000 $ 92,000
Deferred rent................................... 833,000 853,000
Inventory cost capitalization................... 165,000 128,000
Other........................................... ( 86,000) ( 107,000)
------------- -------------
$ 996,000 $ 966,000
============= =============
9. CONTINGENCIES
-------------
The Company is exposed to a number of asserted and unasserted potential
claims. In the opinion of management, the resolution of these matters is not
presently expected to have a material adverse effect upon the Company's
financial position and results of operations.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------------------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
STATEMENT REGARDING FORWARD LOOKING STATEMENTS
- ----------------------------------------------
Except for the historical information and current statements contained
in this Form 10-Q, certain matters discussed herein, including, without
limitation, "Management's Discussion and Analysis of Financial Condition and
Results of Operations" are forward looking statements that involve risks and
uncertainties, including, without limitation, the effect of economic and
market conditions and competition, the ability to open new stores and expand
into new markets, and risks relating to foreign importing operations, which
would cause actual results to differ materially.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Company's primary need for capital is to finance new store
merchandise inventories, as well as the construction of new stores. During
the thirty-nine weeks ended September 26, 1998, the Company used cash
($3,110,000) and cash flow from non-cash depreciation expenses ($2,943,000)
as well as an increase in accounts payable ($449,000), to fund the Company's
store expansion and remodeling program ($2,844,000)as well as the related
increase in store inventories ($3,816,000). The Company has reduced bank
borrowings during Fiscal 1998, as a result of improved earnings.
On August 10, 1998, the Company purchased twelve Lillie Rubin stores, as
well as certain assets of Lillie Rubin Fashions, Inc. The purchase of these
stores resulted in an increase in property, equipment and inventory of
approximately $2,500,000. The stores were closed at the time of the purchase
and were re-opened on September 11, 1998.
The Company opened two new Cache stores in March 1998 and two new Cache
stores in September 1998. Excluding the Lillie Rubin stores, the Company has
spent approximately $1,750,000 (net of landlord construction allowances),
through September 26, 1998 and expects to spend an additional $500,000 for
capital expenditures during the fourth quarter of Fiscal 1998. The Company
closed one store on June 30, 1998, the store closure had no material impact
on earnings.
The Company has conducted a comprehensive review of its computer systems
to identify the systems that could be affected by the "Year 2000" issue and
has developed an implementation plan to resolve the issue. The Company
presently believes that, with modifications to existing software already
underway and converting to new software, where necessary, the Year 2000
problem will not pose significant operational problems for the Company's
computer systems as so modified and converted. The Company has initiated a
testing project to verify that all systems are Year 2000 compliant. This
testing is expected to be completed in early 1999. The Company does not
10
<PAGE>
believe the cost of this testing to be material. Despite all efforts, however,
there is no guarantee that these systems will be Year 2000 compliant under all
circumstances. The failure of one or more critical systems to be Year 2000
compliant could have a material adverse effect on the results of the Company's
operations.
Management believes that the Company's internally generated cash flows
will be sufficient to meet anticipated requirements for operations and planned
expansion during Fiscal 1998. The Company's current ratio at September 26,
1998 was 1.72 : 1.00; with cash on hand of $2.8 million as compared to cash on
hand of $1.5 million at September 27, 1997. The Company's cash flow from
operations is primarily driven by improved earnings and non-cash depreciation
charges of $2.9 million for the thirty-nine week period.
RESULTS OF OPERATIONS
- ---------------------
For the thirty-nine and thirteen weeks ended September 26, 1998, the 2%
increase and no increase, respectively, in comparative store sales, reductions
in several operating expense categories, and higher gross margins was partially
offset by slightly higher occupancy costs, resulting in an increase in net
income in Fiscal 1998 as compared to Fiscal 1997. The increase in selling,
general and administrative expenses was partially offset by reductions in
interest expense, and higher interest income.
Certain financial data concerning the Company's results of operations for
the thirty-nine and thirteen week periods ended September 26, 1998 and
September 27, 1997, expressed as a percentage of net sales, are as follows:
Thirty-nine Weeks Ended Thirteen Weeks Ended
----------------------- --------------------
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
1998 1997 1998 1997
--------- --------- --------- ---------
Sales 100.0% 100.0% 100.0% 100.0%
Cost of sales, including
occupancy and buying expenses 65.9% 66.1% 67.2% 68.1%
Selling, general and
administrative expenses 32.6% 33.3% 34.9% 34.2%
Income (loss) before taxes 1.5% 0.5% (2.1%) (2.4%)
Income tax provision (benefit) 0.6% 0.2% (0.9%) (1.0%)
Net income (loss) 0.9% 0.3% (1.2%) (1.4%)
Sales
- -----
Net sales increased $4,163,000 or 4.4% and $726,000 or 2.4%, respectively,
during the thirty-nine and thirteen week periods ended September 26, 1998,
versus the comparable periods in 1997. The increases were primarily due to the
comparable store sales increases during the 1998 periods. Comparable store
sales increased 2%, for the thirty-nine week period and were flat for the
thirteen week period in 1998, as compared to the comparable periods in 1997.
The number of stores open increased to 184 stores as of September 26, 1998, from
166 stores in operation as of September 27, 1997. Twelve of these stores are
the Lillie Rubin stores, acquired in August 1998.
11
<PAGE>
Costs and expenses
- ------------------
Cost of sales, including occupancy and buying costs, increased $2,605,000
or 4.2% for the thirty-nine weeks ended September 26, 1998, versus the similar
period in 1997. The increase was primarily due to the increase in sales and the
related cost of merchandise for those sales, as well as a $686,000 increase in
occupancy expenses, primarily due to the additional stores in operation during
the 1998 versus 1997. As a percentage of sales, cost of sales, including the
occupancy expenses, decreased 0.2%, (65.9% versus 66.1%) for the thirty-nine
week period ended September 26, 1998, versus the comparable period in 1997. The
decrease was primarily due to higher initial markups in 1998, as compared to
1997.
Cost of sales, including occupancy and buying costs, increased $226,000 or
1.1% for the thirteen weeks ended September 26, 1998, versus the similar 1997
period. The increase was primarily due to the increase in sales and the related
cost of the merchandise for those sales, and a $298,000 increase in occupancy,
due to the additional stores in operation during 1998 versus 1997. As a
percentage of sales, cost of sales, including occupancy and buying expenses,
decreased 0.9% (67.2% versus 68.1%) for the thirteen weeks ended September 26,
1998, versus the comparable period in 1997. The decrease was primarily due to
higher initial markups in 1998, as compared to 1997.
Selling, general and administrative expenses
- --------------------------------------------
Selling, general and administrative expenses ("S,G&A") increased $672,000
or 2.1% during the thirty-nine week period ended September 26, 1998 versus the
comparable period in 1997. The increase was primarily due to greater payroll
and payroll taxes ($704,000), credit card fees ($96,000), depreciation
($97,000), licenses and taxes ($94,000)and store promotional expenses ($70,000),
and was partially offset by a reduction in freight expense ($287,000), and store
petty cash ($87,000). As a percentage of sales, these expenses decreased 0.7%
(32.6% versus 33.3%) for the thirty-nine weeks ended September 26, 1998 versus
the similar 1997 period. The decrease was due primarily to the effect of higher
comparable store sales, experienced in the current thirty-nine week period, upon
S,G&A expenses, which are relatively fixed in nature, as well as management's
efforts to contain S,G&A expenses.
Selling, general and administrative expenses increased $455,000 or 4.4%
during the thirteen weeks ended September 26, 1998, versus the comparable period
in 1997. The increase was due to greater payroll and payroll taxes ($395,000),
credit card fees($49,000), insurance ($43,000), licenses and taxes ($35,000),
and travel ($35,000), and was partially offset by a reduction in freight expense
($75,000), and depreciation ($60,000). As a percentage of sales, these expenses
increased 0.7% (34.9% versus 34.2%) for the thirteen weeks ended September 26,
1998 versus the similar 1997 period. The increase was due primarily to the
effect of flat comparable store sales, experienced in the current thirteen week
period, upon S,G&A expenses, which are relatively fixed in nature.
12
<PAGE>
Interest expense
- ----------------
Interest expense decreased $51,000 (30.0%) and $13,000(27.1%),respectively,
for the thirty-nine and thirteen week periods ended September 26, 1998 versus
the comparable period in 1997, primarily due to reduced bank borrowing and
improved earnings in 1998.
Interest income
- ---------------
Interest income increased to $145,000 from $22,000 for the thirty-nine week
period, as well as increasing to $52,000 from $13,000 for the thirteen week
period. The increase is primarily due to the higher cash flow levels the
Company is currently generating.
Income taxes
- ------------
The Company's effective tax rate is approximately 41%, for Fiscal 1998 and
1997, respectively.
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The annual meeting of shareholders of the Company was held on
October 13, 1998.
(b) All members of the current Board of Directors were re-elected as
such for the next ensuing year. The names of each elected
Director are: Andrew M. Saul, Joseph E. Saul, Morton J.
Schrader, Mark E. Goldberg, Mae Soo Hoo, Thomas E. Reinckens and
Roy C. Smith.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
NONE
(b) Reports on Form 8-K
NONE
13
<PAGE>
Signature
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CACHE, INC.
(Registrant)
November 05, 1998 BY: /s/ Thomas E. Reinckens
----------------------------
Thomas E. Reinckens
On behalf of Cache, Inc.
and in his capacity as
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Principal Accounting Officer)
14
<PAGE>
<TABLE>
EXHIBIT 11.1
CALCULATION OF BASIC AND DILUTED EARNINGS PER COMMON SHARE
(In thousands except per share data)
<CAPTION>
THIRTY- NINE THIRTEEN
WEEKS ENDED WEEKS ENDED
--------------------------- ---------------------------
September 26, September 27, September 26, September 27,
1998 1997 1998 1997
<S> --------------------------- ---------------------------
EARNINGS
Net Income (Loss) Applicable <C> <C> <C> <C>
to Common Stockholders $ 882,000 $ 256,000 $ (379,000) $ (437,000)
============= ============ ============= ============
BASIC EARNINGS PER SHARE
------------------------
Weighted Average Number of
Common Shares Outstanding 9,091,000 9,091,000 9,091,000 9,091,000
Assuming Conversion of
Outstanding Stock Options
and Stock Warrants --- --- --- ---
Less Assumed Repurchase
of Common Stock Pursuant
to the Treasury Stock Method --- --- --- ---
------------- ------------ ------------- ------------
Weighted Average Number of
Common Shares Outstanding
As Adjusted 9,091,000 9,091,000 9,091,000 9,091,000
============= ============ ============= ============
Basic Earnings (Loss) Per Share $0.10 $0.03 ($0.04) ($0.05)
============= ============ ============= ============
DILUTED EARNINGS PER SHARE
Weighted Average Number of
Common Shares Outstanding 9,091,000 9,091,000 9,091,000 9,091,000
Assuming Conversion of
Outstanding Stock Options
and Stock Warrants 476,000 150,000 --- ---
Less Assumed Repurchase
of Common Stock Pursuant
to the Treasury Stock Method (399,000) (139,000) --- ---
------------- ------------ ------------- ------------
Weighted Average Number of
Common Shares Outstanding
As Adjusted 9,168,000 9,102,000 9,091,000 9,091,000
============= ============ ============= ============
Diluted Earnings (Loss) Per Share $0.10 $0.03 ($0.04) ($0.05)
============= ============ ============= ============
</TABLE>
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-02-1999
<PERIOD-END> SEP-26-1998
<CASH> 2,782,000
<SECURITIES> 0
<RECEIVABLES> 1,777,000
<ALLOWANCES> 0
<INVENTORY> 22,035,000
<CURRENT-ASSETS> 27,586,000
<PP&E> 37,344,000
<DEPRECIATION> 21,593,000
<TOTAL-ASSETS> 44,651,000
<CURRENT-LIABILITIES> 16,032,000
<BONDS> 0
<COMMON> 91,000
0
0
<OTHER-SE> 24,752,000
<TOTAL-LIABILITY-AND-EQUITY> 44,651,000
<SALES> 98,817,000
<TOTAL-REVENUES> 98,817,000
<CGS> 65,137,000
<TOTAL-COSTS> 65,137,000
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<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
