Body Central Corp. (NASDAQ:BODY)

TMF1000 (99.78) Submitted: 6/25/2012 11:49:25 AM : Start Price: $8.42 BODY Score: +19.51

Caps was added at $8.42. I it is a no debt company with $44 million in cash. They are cash flow positive. They have produced cash flow in each of their quarters since I started taking notes. Sames store sales were amazing for their few years since going public, then same stores sales crashed and so did their stock price starting recently. I had to add this one to caps. It has the qualities I look for in a small retailer. No debt, small store base and earnings and cash flow were going up. Today they cash flow is going down, so an element of risk as been added. Earnings are still going up but they are expected to fall this year, so another element of risk is added.

But I think this small cap company is a very interesting idea. Two of my favorite Cap Fools added it to their CAPs, so I decided to add it to mine. I am also looking to add it to my portfolio. Since earnings are falling the risk is higher. But I am looking at the holidays and figuring this one is a good idea for a seasonal trade in my portfolio and a long-term hold too. The long-term part is the riskiest part, but I just feel the last few quarters weren't so bad time won't fix it.

They are quick to add new clothing lines on changing trends. This makes them nimble. Their clothes seem cheap compared to competitors yet they don't look cheap. I will continue to study them here on Caps. There is no Fool board for them, so Caps it where I will place new research.

The economy does seem to be struggling again. I think teen unemployment could be hurting this company who target teens and women in their mid twenties. Teen unemployment is three times that of the average unemployment rate. There is an element of risk, but I believe they will have a fine holiday report.

I would love to hear thoughts on this one.

August 11, 2011 2Q:2011 earnings’ highlights:
** Revenues were $74.67 million up 22.1% from $61.172 million
** TTM revenues were $272.678 million or $16.85 per share
** Earnings were $0.33 up from $0.19
** TTM earnings were $0.93
** Diluted share count 16.182 million
** Cash $29.299 million: debt 0
** Cash flow for six months was $9.713 million up from $6.791 million
** TTM cash flow was $15.53 million or $0.96
** Same store sales were up 14.7%: stores 221
** Trading range between August 11, 2011 and November 10, 2011 was $14.61 to $22.08: PE ratio range was 15.22 to 23: PS ratio range was .84 to 1.31: Cash flow yield range was 4.35% to 6.6%

November 10, 2011 3Q:2011 earnings’ highlights:
** Revenues were $67.11 million up from $56.943 million
** TTM revenues were $282.85 million or $17.50 per share
** Earnings were $0.18 up from $0.11
** TTM earnings were $1.00
** Diluted share count 16.166 million
** Cash flow for nine months was 11.251 million up from $5.329 million
** TTM cash flow was $18.53 million or $1.15 per share
** Cash $31.749 million: debt 0
** Store 226: same store sales up 8.2%
** Trading range between November 10, 2011 and March 8, 2012 was $18.83 to $29.49: PE ratio range was 18.83 to 29.49: PS ratio range was 1.25 to 1.69: Cash flow 4% to 6.1%

March 8, 2012 4Q:2011 earnings’ highlights:
** 4Q revenues were $80.736 million up 20.4% from $67.076 million
** Fiscal 2011 revenues were $296.5 million up 21.8% from $243.364 million
** TTM revenues were $296.5 million or $18.25
** 4Q earnings were $0.38 up from $0.18
** Fiscal 2011 earnings were $1.22 up from $0.73
** Diluted share count 16.243 million
** Cash 41.993 million: debt 0
** Cash flow for the year was $19.64 million up from $12.61 million
** TTM cash flow was $19.64 million or $1.21
** Stores 241: same store sales increased 6.8%
** Trading range between March 8, 2012 and May 3, 2012 was $25.37 to $30.93: PE ratio range was 20.8 to 25.35: PS ratio range was 1.39 to 1.7: Cash flow yield range was 3.9% to 4.8%
** Special note: The stock fell $1.95 to close at $26.75 a day after the report May 9, 2012

May 3, 2012 1Q:2012 earnings highlights:
** Revenues were $82.681 million up from $73.984 million
** TTM revenues were $305.2 million or $18.65 per share
** Earnings were $0.36 up from $0.34
** TTM earnings were $1.24
** Diluted share count 16.366 million
** Cash $44.479 million: debt 0
** Cash flow for the quarter was $1.86 million down from $6.99 million
** TTM cash flow was $14.51 million or $0.89 per share
** Stores 243: Same store sales decrease 1.4%
** Trading range between May 3, 2012 and the present June 24, 2012 was $8.08 to $17.48: PE ratio range was 6.52 to 14.10: PS ratio range was .43 to .94: Cash flow yield range was 5.1% to 11%
** Special Note: the stock crashed $14.04 to close at $14.88 a day after the report May 4, 2012
Event: June 18, 2012

For the second quarter of fiscal 2012, the Company expects net revenues in the range of $77 million to $79 million, comparable sales to decrease in a range of 7 to 9 percent and diluted earnings per share in the range of $0.19 to $0.21, based on diluted weighted-average shares outstanding of 16.4 million.

For the full fiscal year, the Company now expects net revenues in the range of $323 million to $328 million, comparable sales to decrease in a range of 4 to 6 percent and diluted earnings per share in the range of $1.07 to $1.11, based on diluted weighted-average shares outstanding of 16.4 million.