LONDON, UK / ACCESSWIRE / September 14, 2016 / Active Wall St. announces its post-earnings coverage on Mattress Firm Holding Corp. (NASDAQ: MFRM). The company released its second quarter 2016 results on September 09th, 2016. The largest mattress retailer in U.S reported that sales increased 48.2%; however sales results came in below market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on MFRM. Get our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=MFRM.

Earnings Reviewed

For the 13 weeks ended on August 2nd, 2016, Mattress Firm reported that net sales jumped 48.2% to $980.0 million as compared with the prior year period, reflecting incremental sales from acquired and new stores; yet falling short of analysts' forecast of $997.5 million. Net loss attributable to the company was $2.2 million, or $(0.06) per share. Excluding $21.2 million (net of income taxes, acquisition-related costs, fixed asset impairment costs, ERP system implementation training costs, loss on disposal of properties and severance charges) adjusted net income was $19.0 million, or $0.51 per share. Analysts were expecting adjusted earnings of $0.65 per share.

"We remain excited about the future opportunities for our business as we build a national chain in the U.S," commented Steve Stagner, executive chairman and chairman of Mattress Firm's board, "We are also moving towards the completion of our transaction with Steinhoff, and believe Steinhoff is the ideal long-term partner for our customers, employees, suppliers and other stakeholders."

Stores

For Q2 FY16, Mattress Firm reported a 1.1% decline in comparable-store sales on y-o-y basis. Comparable-store sales growth in the prior year period was 2.8%. During Q2 FY16, the company opened 59 new stores and closed 49 stores, bringing the total number of Company-operated stores to 3,482.

Financials

In Q2 FY16, Mattress Firm's gross margins narrowed from 38.95% to 36.24% compared to the same period last year. The company's adjusted operating income margin was 5.7% of net sales as compared to 7.4% in Q2 FY15.

Balance Sheet

As of August 2nd, 2016, Mattress Firm had cash and cash equivalents of $13.6 million. Net cash provided by operating activities was $81.1 million for the two fiscal quarters ended August 2, 2016. As of August 2, 2016, the company had $40.0 million in borrowings outstanding under the revolving portion of the Senior Credit Facility and approximately $12.3 million in outstanding letters of credit, with additional borrowing capacity of $114.4 million.

Update on Acquisition

On August 29th, 2016, Mattress Firm announced that the Company and Steinhoff International Holdings N.V. received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended with respect to the proposed acquisition of Mattress Firm by Steinhoff. The acquisition is expected to close by or around the end of the third calendar quarter, subject to satisfaction of a majority tender condition and other closing conditions.

Stock Performance

At the closing bell, on Tuesday, September 13, 2016, Mattress Firm Holding's stock was marginally up 0.05%, ending the trading session at $63.95. A total volume of 1.28 million shares were traded at the end of the day, which was higher than the 3-month average volume of 621.30 thousand shares. In the last three month, shares of the company have surged 106.22%. Moreover, the stock gained 43.29% since the start of the year and 44.85% in the last twelve months.

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SOURCE: Active Wall Street