"Tuesday Morning has once again delivered favorable earnings results in spite of a difficult home furnishings environment," Kathleen Mason, President and Chief Executive Officer, told investors in a conference call from the company's Dallas headquarters yesterday. "Vital statistics for the company continue to remain strong. We believe the company is performing tremendously well in a challenging environment."
Mason said the company, which operates 673 stores in 43 states offering deeply discounted upscale home furnishings and gifts, also had increased earnings during the period with net income for the first quarter of 6.7 million, including a $2.4 million after-tax charge related to lease accounting adjustments. For the same quarter in 2004, the company reported $8.2 million in net income. Diluted first quarter earnings were 16 cents, including the lease adjustment charge compared to 20 cents in the prior year. Excluding the after tax lease adjustment, net income was $9.1 million, reflecting an 11 percent increase, while diluted share earnings were 22 cents, for a 10 percent increase over last year's figures.
The increased earnings were achieved by maintaining gross profits and managing operational costs and inventory, she said, adding that the results indicate the company's ability to meet expectations.
"We are intent in driving the business but this is not a climate to reach for growth but put capital or earnings at risk," Mason said. "We are opportunistic in all that we do and when the tailwinds return, we will be positioned to take advantage of them as we have in the past."
The news sent the company's stock up $1.59 cents to $27.52.
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