Monday, CPI Corp. (CPY), a portrait studio operator, reported a narrower loss for its second quarter 2008, primarily due to the absence of a purchase accounting adjustment recorded in the prior year period and lower depreciation and amortization and restructuring charges, as well as sales growth of 32%.
The St. Louis, Missouri-based company's second-quarter net loss was $3.6 million or $0.56 per share, compared to a loss of $4.6 million or $0.72 per share in the year-ago quarter.
Net loss from continuing operations narrowed to $3.6 million or $0.56 per share from $4.5 million or $0.70 per share in the year ago quarter.
Results for the quarter included depreciation and amortization charges of $5.6 million, down from $6.2 million in the prior-year quarter. Other charges and impairments were $0.3 million, down from $1.4 million a year ago.
Net sales for the second quarter increased 32% to $89.6 million from $68.1 million in the prior-year quarter. Sales improved primarily as a result of $27.0 million increase in net sales of PictureMe Portrait Studio brand.
Sears Portrait Studio net sales decreased 10%, to $47.8 million from the $53.2 million reported in year-ago quarter. Picture Me Portrait Studio net sales totaled $41.8 million, an estimated same-store sales decline of 5% from comparable last-year's period.
Net loss for the six-month period was $3.8 million or $0.60 per share, compared to a loss of $2.0 million or $0.32 per share reported in the year-ago period.
Net sales for the period were $193.1 million, up from $125.9 million in the prior-year period.
The company is currently in the final year of a 10-year contract with Sears that governs the operations of its U.S. Sears Portrait Studios, and are currently in discussions regarding a new, multi-year agreement.
CPI closed Monday's regular trade at $15.05, up $1.37 or 10.01%, on a volume of 124,137 shares on the NYSE. In after-hours, the stock lost $0.10 or 0.66%, trading at $14.95.
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