BODY CENTRAL CORP

CIK:0001379246|SEC Filings

Earnings Per Share

9 Months Ended

Sep. 27, 2014

Net loss per common share-basic is calculated by dividing the net loss available to common stockholders by the weighted-average number of common shares outstanding for the period. Net loss per common share-dilutive includes the determinants of basic loss per common share plus the additional dilution for all potentially dilutive stock options and restricted stock utilizing the treasury stock method and if-converted method, respectively.

The following table shows the amounts used in computing loss per share and the effect on net loss and the weighted-average number of shares potentially dilutive to common stock:



	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	September 27, 2014			September 28, 2013			September 27, 2014			September 28, 2013
	(in thousands, except share and per share data)
Net loss as reported	$	(16,713	)	$	(8,981	)	$	(46,983	)	$	(19,053	)
Net loss attributable to common shareholders	$	(16,713	)	$	(8,981	)	$	(46,983	)	$	(19,053	)

Weighted-average basic common shares	1,643,422			1,636,363			1,636,774			1,631,805
Weighted-average dilutive common shares	1,643,422			1,636,363			1,636,774			1,631,805

Per common share:
Net loss per common share - basic	$	(10.17	)	$	(5.49	)	$	(28.70	)	$	(11.68	)
Net (loss) income per common share - dilutive	$	(10.17	)	$	(5.49	)	$	(28.70	)	$	(11.68	)

For the thirteen and thirty-nine weeks ended September 27, 2014, diluted loss per common share is the same as basic loss per common share as all common share equivalents are excluded from the calculation as their effect is antidilutive. Common share equivalents of 351 and 24,592 shares were excluded from the computation of weighted-average diluted common share amounts for the thirteen and thirty-nine weeks ended September 27, 2014, respectively, that could potentially dilute basic earnings per share in the future. Common share equivalents of 48 and 67 shares were excluded from the computation of weighted-average diluted common share amounts for the thirteen and thirty-nine weeks ended September 28, 2013, respectively, that could potentially dilute basic earnings per share in the future.

On September 4, 2014, the Company implemented pursuant to stockholder authorization a 1-for-10 reverse stock split of the Company’s common stock, which became effective for trading purposes on September 9, 2014. All share and per share amounts of common stock and options in the accompanying financial statements have been restated for all periods to give retroactive effect to the reverse stock split. The shares of common stock retained a par value of $0.001 per share. Accordingly, the stockholders’ equity reflects the reverse stock split by reclassifying from “common stock” to “additional paid-in capital” an amount equal to the par value of the decreased shares resulting from the reverse stock split.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 27, 2014	Sep. 28, 2013
Cash flows from operating activities
Net loss	$ (46,983,000)	$ (19,053,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,704,000	6,438,000
Deferred income taxes	(3,806,000)	(2,236,000)
Excess tax benefits from stock-based compensation	0	(39,000)
Stock-based compensation	621,000	2,061,000
Amortization of premiums and discounts on investments, net	0	147,000
Amortization of deferred financing costs	(351,000)	0
Change in fair value of derivatives	(6,253,000)	0
Derivative interest expense	767,000	0
(Gain) Loss on disposal of property and equipment	(3,000)	422,000
Impairment of long-lived assets	19,981,000	10,358,000
Changes in assets and liabilities:
Accounts receivable	2,082,000	3,231,000
Inventories	6,730,000	(1,493,000)
Prepaid expenses and other assets	(4,896,000)	(5,342,000)
Merchandise accounts payable	(6,992,000)	(3,130,000)
Accrued expenses and other current liabilities	(4,492,000)	362,000
Income taxes	13,976,000	0
Other liabilities	(2,320,000)	(380,000)
Net cash used in operating activities	(25,235,000)	(8,654,000)
Cash flows from investing activities
Payments for purchases of property and equipment	(4,682,000)	(12,709,000)
Purchases of short-term investments	0	(12,786,000)
Proceeds from sales of short-term investments	0	2,310,000
Proceeds from maturities of short-term investments	0	5,973,000
Change in restricted cash	(3,153,000)	0
Net cash used in investing activities	(7,835,000)	(17,212,000)
Cash flows from financing activities
Payments on sale-leaseback transaction	(548,000)	0
Payments on line of credit	(5,000,000)	0
Proceeds from long-term debt	30,000,000	0
Proceeds from exercise of stock options	0	327,000
Deferred financing fees	(3,045,000)	0
Net cash provided by financing activities	21,407,000	327,000
Net decrease in cash and cash equivalents	(11,663,000)	(25,539,000)
Cash and cash equivalents
Beginning of year	16,513,000	41,136,000
End of period	4,850,000	15,597,000
Non-cash investing and financing activities:
Property and equipment acquired	$ 0	$ 1,114,000

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 27, 2014	Dec. 28, 2013	Sep. 28, 2013
Current assets
Cash and cash equivalents	$ 4,850	$ 16,513	$ 15,597
Short-term investments	0	0	4,356
Restricted cash	3,153	0	0
Accounts receivable	721	2,803	1,479
Income tax receivable	826	14,802	9,373
Insurance recoverable	3,425	0	0
Inventories	12,077	18,807	24,464
Prepaid expenses and other current assets	10,370	2,055	2,848
Deferred tax asset	3,301	3,323	3,289
Total current assets	38,723	58,303	61,406
Property and equipment, net of accumulated depreciation of $36,093, $32,463, and $30,358	29,345	45,732	40,479
Goodwill	0	0	11,150
Intangible assets	7,790	16,574	16,574
Other assets	291	353	333
Total assets	76,149	120,962	129,942
Current liabilities
Merchandise accounts payable	1,980	8,972	10,585
Accrued expenses and other current liabilities	16,922	24,623	21,155
Legal settlement payable	3,425	0	0
Fair value of call option derivative embedded in convertible notes payable	6,925	0	0
Financing obligation, sale-leaseback, current portion	767	737	0
Total current liabilities	30,019	34,332	31,740
Other liabilities	9,039	11,358	10,167
Financing obligation, sale-leaseback, net of current portion	1,790	2,369	0
Notes payable	12,000	5,000	0
Convertible notes payable	5,589	0	0
Deferred tax liability	3,085	6,913	4,392
Total liabilities	61,522	59,972	46,299
Stockholders’ equity
Preferred stock
Common stock, $0.001 par value, 45,000,000 shares authorized, 1,921,145 shares issued and outstanding as of September 27, 2014, 1,663,112 shares issued and outstanding as of December 28, 2013, and 1,664,904 shares issued and outstanding as of September 28, 2013.	2	2	2
Additional paid-in capital	99,620	99,000	98,396
Accumulated deficit	(84,995)	(38,012)	(14,755)
Accumulated other comprehensive income, net of tax	0	0	0
Total stockholders’ equity	14,627	60,990	83,643
Total liabilities and stockholders’ equity	76,149	120,962	129,942
Series A
Stockholders’ equity
Preferred stock	0	0	0
Series B
Stockholders’ equity
Preferred stock	$ 0	$ 0	$ 0