The net loss included $15.0 million in non-cash stock compensation charges, a $29.1 million non-cash interest charge associated with conversions of Notes, a $3.7 million favorable sales adjustment related to modifications to a customer loyalty program, a $0.4 million non-cash asset impairment charge and a credit to reverse a prior accrual for store closure costs of $0.7 million.
Before the effect of these items, net income was $27.1 million and operating income was $26.0 million, or 4.6% of net sales.
In the prior year, the Company reported a net loss attributable to common stockholders of $52.7 million, or $1.19 per diluted share, and an operating loss of $16.2 million.
The net loss included $24.6 million in non-cash stock compensation charges, an $8.8 million non-cash interest charge associated with conversions of Notes, a store closure charge of $4.5 million, a $1.0 million non-cash asset impairment charge and $23.3 million for the accretion of non-cash dividends on preferred stock. Before the effect of these items, net income was $9.5 million and operating income was $13.9 million, or 2.8% of net sales.
Consistent with the National Retail Federation calendar, fiscal 2006 included an extra week in the fourth quarter. The extra week increased total reported net sales by $9.4 million.
marketing@alchempro.com
