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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 18, 2006
0-15898
(Commission File Number)
______________________________
CASUAL MALE RETAIL GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 04-2623104
(State of Incorporation) (IRS Employer
Identification Number)
555 Turnpike Street, Canton, Massachusetts 02021
(Address of registrant's principal executive office)
(781) 828-9300
(Registrant's telephone number)
______________________________
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act(17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act(17 CFR 240.13e-4(c))
ITEM 2.02 Results of Operations and Financial Condition
On May 18, 2006, Casual Male Retail Group, Inc. (the "Company") issued a
press release announcing the Company's results of operations for the first
quarter of fiscal 2006. A copy of this press release is attached hereto as
Exhibit 99.1.
The press release contains certain non-GAAP measures which the Company believes
is important for investors to help gain a better understanding of the Company.
The release includes a reconciliation of such non-GAAP measures.
ITEM 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
----------- ------------
99.1 Press Release announcing results of operations for
the first quarter of fiscal 2006 for Casual Male Retail
Group, Inc.
SIGNATURES
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.
CASUAL MALE RETAIL GROUP, INC.
By: /s/ Dennis R. Hernreich
---------------------------
Name: Dennis R. Hernreich
Title: Executive Vice President
and Chief Financial Officer
Date: May 18, 2006
For Information Contact:
Company Contact:
Jeff Unger, Investor Relations
(561) 514-0115
Andrew Bard, Weber Shandwick
212-445-8368
Casual Male Retail Group, Inc. Reports Operating Results
For the First Quarter of Fiscal 2006
Operating Income of $.02 per share versus loss of $.03 last year
CANTON, MA, May 18, 2006 -- Casual Male Retail Group, Inc. (NASDAQ/NMS:
"CMRG"), retail brand operator of Casual Male XL, Casual Male Big &
Tall, and Rochester Big & Tall, today announced its operating results
for the first quarter of fiscal 2006.
For the first quarter of fiscal 2006, net income was $1.4 million, or
$0.04 per diluted share, compared to a net loss of $(1.9) million, or
$(0.05) per diluted share, for the first quarter of fiscal 2005.
Assuming a normalized tax rate of 39.5% similar to the first quarter of
fiscal 2006, the net loss for the first quarter of fiscal 2005 would
have been $(0.03) per diluted share. Results for the first quarter of
fiscal 2006, include a gain of $0.02 per diluted share from the sale of
the Company's loss prevention subsidiary, LP Innovations, Inc.
"This is the first time that Causal Male has earned a profit in the
first quarter since our acquisition in 2002. Our operating results were
$0.05 per diluted share better than a year ago," said David Levin,
President and Chief Executive Officer.
Dennis Hernreich, Executive Vice President, COO and CFO, said, "The
first quarter's profitability is a continuation of 2005 results;
improvement in gross margins together with solid sales gains. Gross
margins are anticipated to continue to improve by approximately100
basis points for the balance of the year."
Casual Male is pleased to announce that it has acquired Jared M., an
apparel company that specializes in selling custom clothing to
professional athletes, almost all of whom are big and tall. "By
utilizing our existing real estate, sourcing and marketing
capabilities, we see this niche business as a future growth vehicle for
our Rochester Big and Tall division. Jared M has the cache, quality and
fashion direction that will be a great fit with our existing luxury
Rochester brand. Jared Margolis, creator of Jared M., has joined the
Casual Male team as president of the Jared M. subsidiary," said David
Levin.
Casual Male will host a conference call with security analysts
beginning at 11:00 a.m. ET today, Thursday, May 18, 2006, to review the
operating results for the first quarter ended April 29, 2006. The call
is being webcast and can be accessed at www.casualmale.com/investor.
During the conference call the Company may discuss and answer questions
concerning business and financial developments and trends. The
Company's responses to questions, as well as other matters discussed
during the conference call, may contain or constitute information that
has not been disclosed previously.
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), our above discussion
refers to a normalized tax rate for the first quarter of fiscal 2005,
which is a non-GAAP measurement. Normalized tax basis reflects a 39.5%
effective tax rate on the pre-tax net loss making it comparable to the
net income for the first quarter of fiscal 2006 which includes a
normalized tax provision. The Company believes that the inclusion of
this non-GAAP measure helps investors to gain a better understanding of
the Company's performance, especially when comparing such results to
previous periods or forecasts. However, this non-GAAP financial measure
included in this press release is not meant to be considered superior
to or as a substitute for results of operations prepared in accordance
with GAAP. The following table shows the reconciliation of the net
loss of $0.05 per diluted share for the first quarter of fiscal 2005 on
a GAAP basis affected for the adjustment for normalized taxes:
For the 13 weeks ended: April 30, 2005
(dollars and shares in millions, -------------------------------------
except per share amounts) Net Loss
Per Share
Net loss, as reported $(1.9) $(0.05)
Income tax benefit, assuming normalized
tax rate of 39.5% 0.8 0.02
---------------------------------------
Adjusted net loss, after normalized
tax benefit $(1.1) $(0.03)
=======================================
Weighted average shares
outstanding - diluted 34.2
Casual Male Retail Group, Inc., the largest retailer of big and tall
men's apparel with retail operations throughout the United States,
Canada and London, England, operates 487 Casual Male Big & Tall stores,
the Casual Male e-commerce site, Casual Male catalog business, 13
Casual Male at Sears-Canada stores and 23 Rochester Big & Tall stores
and a direct to consumer business. The Company is headquartered in
Canton, Massachusetts and its common stock is listed on the Nasdaq
National Market under the symbol "CMRG."
The discussion of forward-looking information requires management of
the Company to make certain estimates and assumptions regarding the
Company's strategic direction and the effect of such plans on the
Company's financial results. The Company's actual results and the
implementation of its plans and operations may differ materially from
forward-looking statements made by the Company. The Company encourages
readers of forward-looking information concerning the Company to refer
to its prior filings with the Securities and Exchange Commission,
including without limitation, its Annual Report on Form 10-K filed on
March 31, 2006, that set forth certain risks and uncertainties that may
have an impact on future results and direction of the Company.
[tables to follow]
CASUAL MALE RETAIL GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
For the three months ended
April 29, 2006 April 30, 2005
-------------- --------------
Sales $ 102,864 $ 97,298
Cost of goods sold including
Occupancy 57,860 57,059
---------- ---------
Gross profit 45,004 40,239
Expenses:
Selling, general and administrative 39,359 37,162
Depreciation and amortization 3,250 2,978
---------- ---------
Total expenses 42,609 40,140
---------- ---------
Operating income 2,395 99
Other income (expense), net 1,112 -
Interest expense, net (1,219) (1,980)
---------- ----------
Income (loss) before income
taxes 2,288 (1,881)
Provision for income taxes 901 -
---------- ----------
Net income (loss) $ 1,387 $ (1,881)
========== ==========
Net income (loss) per share
- - basic and diluted $0.04 ($0.05)
Weighted-average number of common shares
outstanding: Basic 34,887 34,234
Diluted 37,118 34,234
CASUAL MALE RETAIL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
April 29, 2006 and January 28, 2006
(In thousands)
April 29, 2006 January 28, 2006
ASSETS -------------- ----------------
Cash and investments $ 8,769 $ 5,568
Assets held for sale (land and building) - 26,629
Inventories 103,301 91,546
Other current assets 8,192 8,216
Property and equipment, net 50,566 51,273
Goodwill and other intangibles 90,871 89,618
Other assets 10,963 10,981
------------- -----------
Total assets $ 272,662 $ 283,831
============= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, accrued expenses
and other liabilities $ 56,025 $ 61,850
Notes payable - 37,387
Long-term debt, net of current portion 94,750 95,437
Deferred gain 27,477 -
Stockholders' equity 94,410 89,157
----------- -----------
Total liabilities and
stockholders' equity $ 272,662 $ 283,831
=========== ===========
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