| BRIEFLY | |
| Mattress Firm full-year snapshot | |
| Net income | $44.3 million |
| Net sales | $1.8 billion |
| Earnings per share | $1.27 |
| Mattress Firm fourth-quarter snapshot | |
| Net income | $6.6 million |
| Net sales | $598.3 million |
| Earnings per share | $0.19 |
Houston-based sleep-shop chain Mattress Firm reported full-year net income of $44.3 million, a 16% decrease compared with full-year 2014, and full-year earnings per share (using generally accepted accounting principles) of $1.27. Full-year net sales increased 48.4% to $1.8 billion, as a result of incremental sales from new and acquired stores and comparable-store sales growth of 6.1%, the company said.
In 2014, the retailer added 869 stores—668 through acquisitions—ending the year with a store count of 2,094. Mattress Firm completed two acquisitions during its fiscal fourth quarter—Sleep America LLC for $12.4 million and Mattress World Inc. for $2.2 million.
At the close of fiscal 2014, the company reported cash and cash equivalents of $13.5 million. Net cash from operating activities was $104.7 million. Mattress Firm had $50 million of borrowings outstanding under the revolving portion of the 2014 senior credit facility and about $4.6 million in outstanding letters of credit, with additional borrowing capacity of $41.1 million.
During the fourth quarter of fiscal 2014, Mattress Firm net income was $6.6 million, a 24% decline as compared with net income in the prior-year quarter, and earnings per share (using generally accepted accounting principles) were $0.19. Net sales increased 91.7% to $598.3 million in the quarter, reflecting comparable-store sales growth of 1.9% and incremental sales from new and acquired stores.
“The momentum we’ve generated this year highlights the effectiveness of our growth plan and reaffirms our relative market-share strategy,” said Steve Stagner, Mattress Firm chief executive officer. “We are very pleased to report our sixth consecutive quarter of positive comparable-store sales growth, achieved through deliberate operational initiatives we implemented at the beginning of the year that delivered, as expected, a balanced positive result in units, up 2.8%, and average unit price, up 3.3%, while we simultaneously commenced the integration of multiple acquisitions. We are enthusiastic about the overall impact these acquisitions have had collectively on our business to date, particularly the positive sales results and energy contributed by the legacy Sleep Train business in these early months.
“We are focused on consolidating our operations in 2015 around our three primary brick and mortar brands, Mattress Firm, Sleep Train and Mattress Pro, allowing us to concentrate on enhancing profitability across the enterprise consistent with our proven relative market share model,” Stagner added. “We look forward to enhancing our position in 2015 as the nation’s largest mattress specialty retailer.”
