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Hancock Fabrics in fiscal year 2011 widened its losses to $11.3 million, the company reported today.

The company’s fiscal year ended Jan. 28. In the previous fiscal year, the fabric and craft retailer posted a $10.5 million loss.

Sales also slipped in the most recent fiscal year to $272 million, compared to  $275.5 million in fiscal 2010.

The bright spot in Hancock’s filing was its fourth-quarter sales, which grew 4.5 percent to $81.4 million compared to the prior-year quarter.

The company also narrowed its quarterly loss to $5.2 million, compared to a net loss of $9.8 million in the fourth quarter of fiscal 2010.

Read more in Saturday's paper.

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Press release from Baldwyn-based Hancock Fabrics:

Hancock Fabrics Announces Fiscal 2011 Financial Results

BALDWYN, Miss., Apr 20, 2012 (BUSINESS WIRE) --Hancock Fabrics, Inc. (OTC symbol: HKFI) today announced financial results for its fourth quarter ended January 28, 2012 and full fifty-two weeks of fiscal 2011.

Financial results for the fourth quarter include:

• Net sales for the quarter increased 4.5% on a comparable basis to $81.4 million compared to $78.5 million for fourth quarter of last year. The previous year increase was 0.7 %.
• Operating loss for the quarter improved to $4.0 million compared to an $8.4 million loss in the fourth quarter last year.
• Net loss was $5.2 million, or $0.26 per basic share, in the fourth quarter of fiscal 2011 compared to a net loss of $9.8 million, or $0.49 per basic share in the fourth quarter of fiscal 2010.
• Adjusted EBITDA, excluding one-time charges incurred in the fourth quarter totaling $4.0 million, totaled $1.8 million, compared to $2.7 million for the fourth quarter of fiscal 2010.
• At quarter end, the Company had outstanding borrowings under its revolving line of credit of $31.3 million and outstanding letters of credit of $5.5 million. Additional amounts available to borrow under its revolving line of credit at the end of the quarter were $31.5 million. The balance of the Company's subordinated debt was $21.6 million at quarter end, and the unamortized warrant discount on this debt was $3.5 million. 

Fiscal 2011 financial results include:

• Net sales for fiscal year 2011 were $272.0 million compared to $275.5 million in fiscal 2010, and comparable store sales declined 0.8%, compared to a 0.1% decrease for the previous year.
• Operating loss for 2011 was $6.5 million compared to $4.9 million in the previous year.
• Net loss was $11.3 million, or $0.57 per basic share, for fiscal 2011, compared to a net loss of $10.5 million, or $0.53 per basic share for fiscal 2010.
• Adjusted EBITDA, excluding one-time charges totaling $4.0 million, totaled $3.6 million for fiscal 2011, compared to $11.1 million for fiscal 2010.

Steve Morgan, President and Chief Executive Officer commented, "As we predicted in our 3rd quarter press release, we have overcome our inherited inventory challenges of missed merchandise buys in the latter half of 2010 intended for 2011 sales. We were able to deliver the best 4th quarter comparable sales Hancock has seen since 2002, and experienced the best overall comparable sales quarter achieved in 4 years. I am also happy to report net comps have continued to be positive through the spring."

Morgan continued, "Our senior management team is now complete with the hiring of our new SVP of store operations in January, and VP of marketing in April. These additions complete the revamping of all areas of our business and we now have the talent and experience throughout our organization to be successful in 2012 and into the future. In addition to other initiatives undertaken in preparation for this year, we have recently cut an additional $4.2 million of expense annually in order to improve profitability as we move forward. We continue to feel good about this team and the momentum we are taking through the 1st quarter."

Store Openings, Closings and Remodels

During 2011, the Company opened one store, closed 3 stores and relocated 5 units, ending the year with 263 stores.

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Read the full press release here.