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WOODBURY, N.Y., Jan. 12 Jennifer Convertibles, Inc. (NYSE Amex: JEN) appear today its banking after-effects for the aboriginal budgetary division concluded November 28, 2009.

For the aboriginal quarter, acquirement from continuing operations decreased by 12.4% to $23.2 million from the $26.5 million appear for the aforementioned aeon endure year.

For the aboriginal quarter, the Company had a net accident of $6,870,000, or ($0.97) per basal and adulterated share, compared to net accident of $1,869,000, or ($0.26) per basal and adulterated allotment for the aforementioned aeon endure year. The net accident for the aeon includes a accouterment for accident on amounts due from the accompanying aggregation of $3,167,000 or ($0.45) per basal and adulterated share.

For the aboriginal quarter, operating margins from continuing operations decreased to 26.7% as a allotment of acquirement from continuing operations compared to 29.1% for the aforementioned aeon endure year.  

For the aboriginal quarter, selling, accepted and accurate costs from continuing operations added by 3.7% to $9,649,000 from $9,308,000 appear for the aforementioned aeon endure year.

During anniversary of the thirteen-week periods concluded November 28, 2009 and November 29, 2008, the Company bankrupt one abundance in Peoria, Arizona and one abundance in Lansing, Illinois, respectively.  The operating after-effects of the bankrupt abundance in Arizona were appear as discontinued operations. The operating after-effects of the bankrupt abundance in Illinois is recorded in continuing operations based on management’s acumen that there will be cogent continuing sales to barter of the bankrupt abundance in added food in the area. During the thirteen-week periods concluded November 28, 2009 and November 29, 2008, acquirement from the bankrupt food appear as discontinued operations amounted to $20,000 and $223,000, respectively.  Loss from operations of the bankrupt food amounted to $18,000 and $54,000 for the thirteen-week periods concluded November 28, 2009 and November 29, 2008, respectively.

Harley J. Greenfield Chief Executive Officer of Jennifer commenting on the after-effects of the division said, “Obviously we are not admiring with the write-offs of amounts due from the accompanying company, which impacted our after-effects for the fourth and aboriginal budgetary abode and will appulse our after-effects to a bottom admeasurement in our additional budgetary quarter. However, as I adumbrated afterward anniversary I accept this will aftereffect in a abundant befalling and be absolute in the abiding for Jennifer. The appulse of the acceding with the accompanying aggregation is as follows:

• As of January 1, 2010 the accompanying aggregation accomplished operations and we began operating their food for our benefit.
• We are in the action of evaluating the abeyant for anniversary of their 20 food and will activate negotiations with the landlords of those we ambition to keep.
• We accept affected all accurate functions aural our absolute operation.
• Maybe a lot of important, we will now be operating as one aggregation chargeless of any actualization of abeyant conflict.

We abide to be admiring with the advance of our Ashley Furniture HomeStores division. During the quarter, sales added by 31.5% to $3,815,000 from $2,901,000 in the aforementioned aeon endure year. Operating assets added by 51.4% to $168,000 from $111,000 endure year. Same food sales added by 19.7 % during the period. We opened two new food during the division and are aperture a new abundance in Brooklyn afore the end of January.”

Mr. Greenfield added, “I am actual absolute about the approaching of Jennifer based on the following:

• Our new acute amount commodity in the Jennifer analysis gives us a aggressive advantage in this abridgement and seems to be stabilizing sales.
• New food from the accompanying aggregation will add to revenue.
• Ashley Furniture HomeStores analysis is growing rapidly.”

Jennifer Convertibles is the buyer and licensor of the better accumulation of sofabed specialty retail food in the United States, with 145 Jennifer Convertibles® food and is the better specialty banker of covering appliance with 14 Jennifer Leather stores. Following the transaction with the accompanying company, as of January 12, 2010 the Company endemic 159 food and operated four accountant Ashley Furniture HomeStores.

Statements in this columnist absolution added than the statements of actual actuality are “forward-looking statements” aural the acceptation of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.   Such statements are accountable to assertive risks and uncertainties, including changes in retail demand, bell-ringer achievement and added accident factors articular from time to time in the Company’s filings with the Securities and Exchange Commission that could could cause absolute after-effects to alter materially from any advanced statements.  These advanced statements represent the Company’s acumen as of the date of the release.  The Company disclaims, however, any absorption or obligations to amend these advanced statements.

JENNIFER CONVERTIBLES, INC. & SUBSIDIARIES
SUMMARY CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
			11/28/09
			(UNAUDITED)		08/29/09
CASH AND CASH EQUIVALENTS			$         7,001		$           5,609
RESTRICTED CASH			99		99
ACCOUNTS RECEIVABLE			2,634		1,816
MERCHANDISE INVENTORIES, Net			8,232		9,076
DUE FROM RELATED COMPANY, Net of Allowance for Losses			563		3,147
PREPAID EXPENSES AND OTHER CURRENT ASSETS			1,098		1,214
			19,627		20,961
FIXTURES, EQUIPMENT & LEASEHOLD IMPROVEMENTS, Net			2,264		2,355
GOODWILL			483		483
OTHER ASSETS			568		670
			$         22,942		$         24,469
ACCOUNTS PAYABLE			$         16,942		$        14,317
CUSTOMER DEPOSITS			8,247		4,976
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES			5,437		6,001
DUE TO RELATED COMPANY			500		400
DEFERRED RENT AND ALLOWANCES – Current Portion			629		589
	TOTAL CURRENT LIABILITIES		31,755		26,283
DEFERRED RENT AND ALLOWANCES, Net of Current Portion			2,238		2,360
OBLIGATIONS UNDER CAPITAL LEASES, Net of Current Portion			84		96
TOTAL LIABILITIES			34,077		28,739
STOCKHOLDERS’ DEFICIENCY			(11,135)		(4,270)
			$         22,942		$         24,469

JENNIFER CONVERTIBLES, INC. & SUBSIDIARIES
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
			THIRTEEN WEEKS ENDED
			11/28/09			11/29/08
REVENUE:
	NET SALES		$        22,041			$           24,980
	REVENUE FROM SERVICE CONTRACTS		1,138			1,473
			23,179			26,453
COST OF SALES AND OTHER CHARGES			16,996			18,764
SELLING, GENERAL & ADMINISTRATIVE EXPENSES			9,649			9,308
PROVISION FOR LOSS ON AMOUNTS DUE FROM RELATED COMPANY			3,167			-
DEPRECIATION AND AMORTIZATION			222			244
			30,034			28,316
LOSS FROM OPERATIONS			(6,855)			(1,863)
INTEREST INCOME			9			54
INTEREST EXPENSE			(4)			(5)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			(6,850)			(1,814)
INCOME TAXES			2			1
LOSS FROM CONTINUING OPERATIONS			(6,852)			(1,815)
LOSS FROM DISCONTINUED OPERATIONS			(18)			(54)
NET LOSS			$          (6,870)			$          (1,869)
BASIC AND DILUTED LOSS PER COMMON SHARE:
LOSS FROM CONTINUING OPERATIONS			$          (0.97)			$          (0.26)
LOSS FROM DISCONTINUED OPERATIONS			-			-
NET LOSS			$          (0.97)			$          (0.26)
BASIC AND DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING			7,073,466			7,073,466

SOURCE Jennifer Convertibles, Inc.

Tags: AND, food, Jennifer, LOSS, operations

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