BBA - Sector: Services ---Industry: Retail (Specialty)

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Profile:  


Bombay Company Inc.
550 Bailey Avenue
Fort Worth, TX 76107
United States - Map
Phone: 817-347-8200
Fax: 817-332-7066
Web Site: http://www.bombaycompany.com

DETAILS  
Index Membership: N/A
Sector: Services
Industry: Home Furnishing Stores
Full Time Employees: 1,900


BUSINESS SUMMARY  
The Bombay Company, Inc. and its subsidiaries engage in designing, importing, and marketing proprietary home furnishings. It offers large furniture, occasional furniture, wall decor, and decorative accessories through a network of retail stores in the United States and Canada, as well as through its direct-to-customer operations primarily on the Internet and through international licensing arrangements. The company operates Bombay core stores that offer home furnishings for the bedroom, home office, dining room, and the living room; BombayKIDS stores, which feature children's furniture, and textiles and accessories for children?s bedrooms and bathrooms; and Bombay Outlet stores that provide home furnishings. As of February 3, 2007, it operated 441 retail stores. The company was founded in 1975 and is headquartered in Fort Worth, Texas.



Float (mil) 35.50 Shares Outstanding (mil) 36.44

[setravis]

We have Bull LiftOff.......   Not long here yet, but poised to enter.
Bombay Co. Q1 loss narrows,
Maybe they liked the report.......
Closed above the 13-day MA, just about took out the 50-day...


A retailer of furniture and home accessories, said it received non-binding offers to buy the company at premiums to the stock's Thursday's closing price.
The company also agreed for a new secured term loan facility of $10 million with a fund managed by GB Merchant Partners LLC., it said in a statement.
The new loan will enhance liquidity to fund working capital requirements and other corporate needs, it added.


Technicals
Percentage Gainer

Last Price Quote is:
44.61%above 13-day MA
RS Rating: 11 

Fundamentals
Reports Earnings

Key Data:
Market Cap (M): $23.68 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 08/08/2007
Last Analyst Rating: Buy
More...

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AP
Bombay Gets Nonbinding Buyout Offers
Friday May 25, 5:07 pm ET 
Bombay Co. Receives Nonbinding Buyout Offers, Agrees to $10 Million Loan Facility


FORT WORTH, Texas (AP) -- Home accessories and decor retailer Bombay Co. on Friday said it received multiple nonbinding offers to buy the company.
The nonbinding offers received by William Blair & Co. -- which Bombay hired to explore strategic alternatives including a possible sale -- are above Thursday's closing price of 62 cents per share, the company said.

The company did not specify the amount of offers it received or their exact values.

Bombay also said it agreed to enter into a $10 million secured term loan facility. Proceeds from the facility will be used to fund working capital requirements and other corporate needs.

Shares spiked 37 cents, or 60 percent, to finish at 99 cents Friday. The stock has ranged from 54 cents to $2.90 over the past year.

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Press Release Source: The Bombay Company, Inc.


Bombay Announces New $10 Million Term Loan
Friday May 25, 3:19 pm ET 
Updates Status Of Strategic Alternative


FORT WORTH, Texas, May 25 /PRNewswire-FirstCall/ -- The Bombay Company, Inc. (NYSE: BBA - News) announced that it has entered into an agreement for a new $10 million, secured term loan facility with a fund managed by GB Merchant Partners, LLC. The facility is coterminous with the Company's existing $125 million secured revolving credit facility with GE Commercial Finance, Corporate Lending and was arranged by GE Capital Markets, Inc. as Sole Lead Arranger. The new facility will provide incremental liquidity to fund working capital requirements and other corporate needs.


David B. Stewart, Chief Executive Officer, indicated, "We are very pleased to have the new term loan agreement with GB Merchant Partners LLC in place. We expect that the facility will provide greater liquidity as we continue to execute our transformation plan."

The Company also noted that William Blair & Company, engaged by the Board of Directors, to investigate strategic alternatives, has received non binding offers to purchase the Company at prices that are premiums to yesterday's closing price. It should be emphasized that these offers are non binding and that they are subject to material conditions including substantial due diligence. While the Board is encouraged by these offers, there is no assurance that these offers will ultimately lead to a transaction. The Board does not intend to report on the progress until the appropriate time in the future.

About Bombay

The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through over 400 retail outlets, specialty catalogs and the Internet in the U.S. and internationally.

Any statements in this press release that may be considered forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Those risks are described in the Company's public announcements, reports to stockholders and SEC filings, including but not limited to Reports on Forms 10-K, 8-K and 10-Q, copies of which are available from the SEC or may be obtained upon request from the Company. The Company undertakes no obligation to revise the forward- looking statements contained therein to reflect events or circumstances after the date hereof as a result of new information, future events or otherwise.

--------------------------------------------------------------------------------
Source: The Bombay Company, Inc.

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FORT WORTH, Texas, May 25, 2007 /PRNewswire-FirstCall via COMTEX/ -- The Bombay Company, Inc. (BBA, Trade) announced operating results for the thirteen week period ended May 5, 2007 compared to the thirteen week period ended April 29, 2006. Comparable store sales calculations are based upon the comparable thirteen week periods.

FIRST QUARTER RESULTS

Revenue for the thirteen weeks ended May 5, 2007 decreased 11.9% to $104.6 million compared to $118.7 million for the thirteen week period ended April 29, 2006. Same store sales for Bombay stores operating for more than one year decreased 10.2% for the quarter. Bombay's direct-to-customer business, which includes Internet and Mail Order, grew to $8.5 million for the period compared to $6.6 million last year, driven primarily by an increase in Internet sales. Revenue from retail stores declined to $95.6 million from $107.2 million due to the decrease in same store sales and a lower store count. Revenue from International licensees declined $0.8 million during the period.

Gross margin for the quarter, defined as revenue less cost of goods sold including buying and occupancy costs, decreased $6.7 million to $17.3 million or 16.5% of revenue compared to $24.0 million or 20.2% of revenue for the prior year's quarter. Product margins decreased 250 basis points due to increased levels of promotional activity in the increasing competitive operating environment. Buying and occupancy costs were $26.2 million or 25.0% of revenue compared to $28.2 million or 23.7% of revenue last year. Total dollars declined due to the reduction in store count and the lower cost per square foot as the number of off-mall stores increased; however, as a percentage of revenue, such costs increased 130 basis points due to the deleveraging of fixed costs against the declining sales base.

Selling, general and administrative costs declined $8.1 million compared to the first quarter of Fiscal 2006 due to lower advertising costs as the Company shifted its marketing focus to email marketing and reduced its reliance on other marketing vehicles, lower store four-wall operating costs due to the reduced number of stores and lower corporate administrative expenses due to cost reduction efforts put in place over the past year.

Interest expense, net of interest income, increased $0.9 million during the first quarter of Fiscal 2007 due primarily to higher level of borrowings under the Company's credit facility.

The loss before income taxes for the quarter ended May 5, 2007 was $15.5 million compared to a loss of $16.0 million for the quarter ended April 29, 2006.

The income tax benefit for the quarter was $0.1 million relating to the Company's Canadian operations and net of state tax liabilities compared to the prior year benefit of $0.4 million. No benefit has been recorded for U.S. federal income tax purposes.

The net loss for the quarter ended May 5, 2007 was $15.4 million, or $0.42 per share, compared to a net loss of $15.6 million, or $0.43 per share, for the first quarter of the prior year.

Inventory levels were $141.5 million as of the end of the quarter compared to $127.9 million as of the end of the first quarter of Fiscal 2006 because of an increased focus on being in stock on key SKUs and increasing levels to support higher unit sales for Fiscal 2007. During the next quarter, the Company plans to bring inventory levels down to more closely approximate prior year levels, which should improve overall liquidity. As a result of continuing losses and higher inventory levels, the Company ended the quarter with $78.6 million in borrowings outstanding under its credit facility compared to $19.1 million of borrowings as of April 29, 2006. As of the end of the quarter, the Company had approximately $28 million of availability under its existing credit facility.

During the first quarter, as part of the Company's previously announced stabilization plan, Bombay closed 24 stores and opened two stores, ending the quarter with 419 stores. First quarter closings include the closing of 11 BombayKIDS stores which were part of Bombay/BombayKIDS combination stores. As such, there was no reduction in overall retail square footage in connection with these closings. The Company plans to continue to rationalize its store base, migrating stores to off-mall locations upon their lease expiration where the existing mall leases cannot be renewed at economic rental rates, and closing unprofitable locations.

Further, the Company expects to announce later today that it has entered into a $10 million term loan facility to provide additional liquidity that is secured by various of the Company's assets.

"While we are disappointed with our first quarter results, which continue to be affected by softness in the retail home sector, we remain focused on our continued efforts to return Bombay to positive cash flow and long-term growth," said David B. Stewart, Bombay's Chief Executive Officer. "By focusing on cost reductions and enhancing company-wide efficiencies, we were able to achieve an improvement in operating results despite a $14 million decline in revenue. We believe that Bombay is positioned to strengthen its operations and improve performance."

The previously announced engagement of William Blair & Company by the Board of Directors to seek investment or other strategic alternatives is progressing.

BUSINESS INITIATIVES

During the past month, Bombay launched a new online option that enables free "in-store pick-up" for customers. This initiative is indicative of the Company's focus on improving its growing Internet business. "In the short time since it was launched, this offering is tracking well and has experienced significant growth," Mr. Stewart said. "We believe that our Internet strategy continues to present an excellent opportunity to leverage our expense base into meaningful profitable growth."

NYSE LISTING ISSUES

On May 18, 2007 and May 22, 2007, the Company received notices from NYSE Regulation Inc. ("NYSE Regulation") that the Company was not in compliance with New York Stock Exchange ("NYSE") continued listing requirements, due to the fact that the average closing share price of the Company's common stock over a consecutive 30-trading day period was less than $1.00, and because the Company's 30 day average market capitalization and stockholders' equity had both fallen below $75 million. The Company intends to notify NYSE Regulation within ten days that it intends to cure the deficiencies and intends to submit a business plan to demonstrate its ability to achieve compliance with the continued listing standards within the requisite timeframes. If NYSE Regulation does not accept the Company's plan materials, if the Company is unable to gain compliance with the continued standards within the timeframes allowed, or if the Company falls below the NYSE's minimum continued listing standard requiring average market capitalization over a 30-trading day period of at least $25 million, the Company would intend to seek arrangements for its common stock to be quoted on the OTC Bulletin Board or similar quotation system.

INVESTOR CONFERENCE CALL

In conjunction with this release, you are invited to listen to Bombay's conference call with management that will be conducted on Friday, May 25, 2007 at 1:00 p.m. Central Time. Please note that, due to its on-going review of strategic alternatives, there will be no question and answer session on the conference call. Interested parties should dial 212-676-4900 ten minutes prior to the start time. The reservation number is 21323977. The call will also be broadcast live over the Internet at http://www.bombaycompany.com. For those who are unable to listen to the live broadcast, a telephone replay will be available for 72 hours beginning at 3:00 p.m. Central Time at 800-633-8284. The call will also be available for replay for 45 days on the investor relations page of the Bombay website.

The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 419 retail outlets, specialty catalogs and the Internet in the U.S. and internationally.

Any statements in this press release that may be considered forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Those risks are described in the Company's public announcements, reports to stockholders and SEC filings, including but not limited to Reports on Forms 10-K, 8-K and 10-Q, copies of which are available from the SEC or may be obtained upon request from the Company. The Company undertakes no obligation to revise the forward-looking statements contained therein to reflect events or circumstances after the date hereof as a result of new information, future events or otherwise.


 
                  THE BOMBAY COMPANY, INC. AND SUBSIDIARIES 
                    Consolidated Statements of Operations 
               (Dollars in thousands, except per share amounts) 
                                 (Unaudited) 
                                                         Three Months Ended 
                                                        May 5,      April 29, 
                                                         2007         2006 
    Net revenue                                        $104,629     $118,664 
    Costs and expense: 
      Cost of sales, buying and occupancy costs          87,366       94,650 
      Selling, general and administrative                31,709       39,764 
    Operating loss                                      (14,446)     (15,750) 
      Interest income                                        18           37 
      Interest expense                                   (1,092)        (244) 
    Loss before income taxes                            (15,520)     (15,957) 
    Income tax benefit                                      (75)        (404) 
    Net loss                                           ($15,445)    ($15,553) 
    Net loss per basic and diluted share                 ($0.42)      ($0.43) 
    Average common shares outstanding                    36,353       35,930 
    Average common shares outstanding and dilutive 
     potential common shares                             36,353       35,930 
    OTHER SELECTED FINANCIAL DATA 
    Capital expenditures, net of sales proceeds          $1,388       $1,775 
    Depreciation and amortization expense                $4,243       $4,453 
    Stores opened                                             2            4 
    Stores closed                                            24           20 
    Store composition: 
      Core stores                                           349          375 
      BombayKIDS stores                                      25           62 
      Outlet stores                                          45           45 
         Total                                              419          482 
    Real estate type: 
      Mall                                                  186          221 
      Off-mall                                              188          216 
      Outlet stores                                          45           45 
         Total                                              419          482 
    Total retail square footage (in thousands)            1,920        1,998 
                  THE BOMBAY COMPANY, INC. AND SUBSIDIARIES 
                         Consolidated Balance Sheets 
                        (In thousands, except shares) 
                                 (Unaudited) 
                                               May 5,    February 3, April 29, 
                                                2007        2007       2006 
    ASSETS 
    Current assets: 
      Cash and cash equivalents                $3,816      $1,406     $3,303 
      Inventories                             141,467     138,148    127,862 
      Other current assets                     20,163      22,050     14,820 
        Total current assets                  165,446     161,604    145,985 
    Property and equipment, net                70,025      71,812     82,496 
    Goodwill, net                                  --          --        423 
    Other assets                                3,934       4,701      5,740 
        Total assets                         $239,405    $238,117   $234,644 
    LIABILITIES AND STOCKHOLDERS' EQUITY 
    Current liabilities: 
    Bank borrowings                           $78,559     $39,265    $19,137 
    Accounts payable and accrued expenses      20,825      38,546     21,931 
    Gift certificates redeemable                8,953       9,077      8,971 
    Accrued payroll and bonuses                 3,814       4,613      3,970 
    Accrued insurance                           5,019       5,058      5,252 
    Customer deposits                           3,700       5,529      6,366 
    Current portion of accrued rent             3,659       4,144      4,702 
    Other current liabilities                   4,030       7,677      4,714 
        Total current liabilities             128,559     113,909     75,043 
    Accrued rent and other long term 
     liabilities                               44,848      40,019     38,469 
    Stockholders' equity: 
      Preferred stock, $1 par value, 
       1,000,000 shares authorized                 --          --         -- 
      Common stock, $1 par value, 50,000,000 
       shares authorized, 38,149,646 shares 
       issued                                  38,150      38,150     38,150 
      Additional paid-in capital               80,540      80,391     79,473 
      Retained earnings                       (48,461)    (29,112)     8,117 
      Accumulated other comprehensive income    2,544       1,634      2,427 
      Common shares in treasury, at cost, 
       1,694,805; 1,713,151 and 1,716,569 
       shares, respectively                    (6,775)     (6,874)    (7,035) 
        Total stockholders' equity             65,998      84,189    121,132 
    Total liabilities and stockholders' 
     equity                                  $239,405    $238,117   $234,644 
                  THE BOMBAY COMPANY, INC. AND SUBSIDIARIES 
                    Consolidated Statements of Cash Flows 
                            (Dollars in thousands) 
                                 (Unaudited) 
                                                         Three Months Ended 
                                                         May 5,     April 29, 
                                                          2007         2006 
    Cash flows from operating activities: 
    Net loss                                           ($15,445)    ($15,553) 
    Adjustments to reconcile net loss to net cash 
     from operating activities: 
      Depreciation and amortization                      4,2432        4,453 
      Stock-based compensation expense                      200          617 
      Other                                              (1,195)        (805) 
    Change in assets and liabilities: 
      Decrease in other assets                            2,530           68 
      (Increase) decrease in inventories                 (2,016)       1,212 
      Decrease in current liabilities                   (16,071)      (8,925) 
      Increase (decrease) in noncurrent liabilities         251         (720) 
    Landlord construction allowances                        295        1,014 
    Net cash used in operating activities               (27,208)     (18,639) 
    Cash flows from investing activities: 
      Purchases of property and equipment                (1,388)      (1,775) 
      Proceeds from sales of property and equipment          13           -- 
    Net cash used in investing activities                (1,375)      (1,775) 
    Cash flows from financing activities: 
      Net bank borrowings                                39,294       19,137 
      Increase (decrease) in outstanding checks in 
       excess of cash balances                           (7,782)         635 
      Sale of stock to employee benefit plans                 4            4 
      Proceeds from the exercise of employee stock 
       options                                               --            3 
    Net cash provided by financing activities            31,516       19,779 
    Effect of exchange rate change on cash                 (523)         (77) 
    Net increase (decrease) in cash and cash 
     equivalents                                          2,410         (712) 
    Cash and cash equivalents at beginning of period      1,406        4,015 
    Cash and cash equivalents at end of period           $3,816       $3,303 
    Supplemental disclosure of cash flow information: 
      Interest paid                                      $1,055         $117 
      Income taxes paid                                     170           28 
      Non-cash investing and financing activities: 
        Distributions of restricted stock                   160           18 
        Distribution of director fees                        14           -- 
        Cancellation of restricted stock                      1           -- 

SOURCE The Bombay Company, Inc.


Elaine D. Crowley, Sr. Vice President, Chief Financial Officer of The Bombay Company, 
Inc., +1-817-347-8200 

http://www.bombaycompany.com 

Copyright (C) 2007 PR Newswire. All rights reserved ********************************************************************** As of Monday, 05-21-2007 23:59, the latest Comtex SmarTrend? Alert, an automated pattern recognition system, indicated a DOWNTREND on 05-18-2006 for BBA @ $2.68. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright ? 2004-2007 Comtex News Network, Inc. All rights reserved.

[setravis]

Check out the after hours !!! 

BOMBAY CO INC (NYSE:BBA)   

After Hours: $2.62  +$1.86 or (+244.74%) as of 4:17PM ET on 06/01/07


Closing data today
Prev Close: 0.80
Open: 0.62
Last Trade: 0.76