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Blue Nile Reports 3Q 2009 Financial Results

Posted on: Mon, 09 Nov 2009 23:31:00 EST

Symbols: NILE

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Nov 10, 2009 (Close-Up Media via COMTEX) --
NILE | Quote | Chart | News | PowerRating -- Blue Nile, Inc., an online retailer of diamonds and fine jewelry, has reported financial results for its third quarter ended October 4.

In a release on November 5, the Company noted that net sales of $66.9 million increased 2.4 percent compared to the third quarter of 2008 on strength in bridal jewelry sales and growth in international markets. Operating income for the quarter grew 17.6 percent to $3.9 million compared to $3.3 million in the third quarter last year. Operating margin expanded 80 basis points to 5.8 percent of net sales compared to 5.0 percent of net sales in the third quarter of 2008. Net income improved 10.3 percent to $2.6 million, or $0.17 per diluted share compared to $2.3 million, or $0.15 per diluted share in the third quarter of 2008.

Non-GAAP adjusted EBITDA for the third quarter totaled $6.3 million, an increase of 17.4 percent over the same quarter in 2008 and a record level for any third quarter in the Company's history. As a percent of sales, non-GAAP adjusted EBITDA improved to 9.5 percent compared to 8.3 percent in the third quarter of 2008. Net cash provided by operating activities totaled $23.4 million for the trailing twelve month period ended October 4. Non-GAAP free cash flow for the trailing twelve month period ended October 4, increased to $20.9 million from $20.1 million a year ago.

"Our third quarter results were excellent and reflect continued positive momentum in the business. We returned to top line growth and delivered strong profitability," said Diane Irvine, Chief Executive Officer. "The Blue Nile brand is resonating with consumers in the current environment, and we are gaining market share. As we look toward the important holiday season, we are well positioned with a broad selection of diamond engagement rings and fine jewelry and a newly redesigned website to showcase these products."

Financial Guidance

"The trends in the business during the third quarter improved sequentially, and we project that trend to continue in the fourth quarter. Based on our third quarter results and our expectations for the fourth quarter, we are raising our guidance," said Marc Stolzman, Chief Financial Officer. "We are projecting fourth quarter net sales between $100 million and $109 million, and diluted earnings per share in the range of $0.35 to $0.39."

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