The Wet Seal Inc announced results for its fourth fiscal quarter and full fiscal year ended February 3, 2007, provided guidance for its fiscal 2007 first quarter and announced an additional share repurchase authorization.
Financial Results: The net loss for the fourth quarter was $5.7 million, or $0.07 per diluted share. Operating income for the quarter totaled $4.8 million. Included in the quarterly results are a non-cash interest charge of $11.0 million associated with the conversion of the Company's Convertible Notes, non-cash stock compensation charges of $3.6 million and a $0.4 million non-cash asset impairment charge.
Before the effect of these items, net income was $9.2 million, or $0.09 per diluted share, and operating income was $8.8 million, or 5.3% of net sales. These results compare favorably to the Company's most recent guidance indicating operating income before the effect of items ranging from $7.7 million to $8.7 million.
In the prior year fourth quarter, the Company reported a net loss of $2.9 million and operating income of $0.6 million. The net loss for the prior year fourth quarter includes a non-cash interest charge of $3.1 million associated with the conversion of Notes, a non-cash stock compensation charge of $7.0 million and a $0.6 million non-cash asset impairment charge. Before the effect of these items, net income was $7.8 million and operating income was $8.2 million, or 5.8% of net sales.
For the fiscal year, the Company reported a net loss attributable to common stockholders of $12.8 million, or $0.18 per diluted share, and operating income of $15.0 million.
marketing@alchempro.com
