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CPI Corp. Announces 2009 Second-Quarter Results.

Article Excerpt
ST. LOUIS, Sept. 1 /PRNewswire-FirstCall/ --



-- Comparable same-store sales, excluding impacts of revenue deferral adjustments, foreign currency translation, loyalty program revenue deferral and store closures, decreased 8% versus the prior-year second quarter. -- Second-quarter PictureMe Portrait Studio brand comparable store sales, as adjusted, increased 7% year-over-year due, in large part, to the successful integration and digital conversion of the acquired studios -- Second-quarter Sears Portrait Studio brand comparable store sales, as adjusted, decreased 20% year-over-year -- Second-quarter Adjusted EBITDA increased to $4.5 million versus $2.9 million in the prior-year period. -- Second-quarter diluted EPS improved to a loss of ($0.49) compared with a loss of ($0.56) a year ago reflecting the impact of cost reductions and productivity improvements implemented throughout the organization. EPS in the quarter was significantly affected by special charges in connection with the recently completed proxy contest and litigation costs. -- Company entered into a new six-year license agreement with Sears Canada, effective August 19, 2009. Under the new agreement, the Company will convert all remaining Sears Canada film studios to an all-digital format.

CPI Corp. today reported results for the second quarter ended July 25, 2009.

"We continue to see positive results from our digital platform conversion, which we completed in the third quarter of last year. We have also successfully reduced our costs by over 11% since last year's second quarter reflecting anticipated benefits from our integration process as well as strong overall cost containment," said Renato Cataldo, president and chief executive officer. "Although difficult economic conditions continue to pressure results, we are pleased with our progress on several longer-term initiatives, and we continue to improve upon the Company's sales and performance management processes, including our customer acquisition and retention programs."

Net sales for the fiscal 2009 second quarter decreased $8.2 million, or 9%, to $81.4 million from the $89.6 million reported in the 2008 second quarter. Excluding impacts of net revenue recognition change of $3.0 million, foreign currency translation ($1.8 million), revenue deferral related to positive response to the Company's loyalty programs ($1.5 million), store closures ($1.7 million) and other net adjustments of $300,000, comparable same-store sales decreased $6.5 million or 8%.

Net sales from the Company's PictureMe Portrait Studio brand (PMPS), on a comparable same-store basis, excluding impacts of net revenue recognition change, foreign currency translation, loyalty program revenue deferral, store closures and other items, totaling ($2.3 million), increased 7% in the second quarter of 2009 to $42.6 million from $39.8 million reported in the second quarter of 2008. PMPS sales performance for the second quarter was the result...

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