13.8% COMP SALES INCREASE DRIVES STRONG FIRST QUARTER EARNINGS FOR MARKS BROS. JEWELERS.CHICAGO--(BUSINESS WIRE)--June 4, 1996--Marks Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . Jewelers, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MBJI), a specialty retailer of fine jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. , today reported that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight grew by 24.9% to $29.6 million and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 88.3% to $1.6 million for the first fiscal quarter ended April 30, 1996. The 24.9% net sales increase to $29.6 million from $23.7 million was the result of a 13.8% comparable store sales increase in the first fiscal quarter of 1996 as compared to a 10.6% increase in the first fiscal quarter of 1995. Income from operations for the quarter increased 88.3% to $1.6 million from $0.9 million a year ago, as the gross margin improved to 39.3% from 37.5% in last year's first quarter. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the quarter improved to 5.4% of sales, up from 3.6% a year ago. First quarter interest expense remained approximately flat year-to-year at $3.0 million. However, as a result of the Company's initial public offering and debt recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. in May 1996, interest expense will be substantially lower in future quarters. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, net income for the first quarter of 1996 would have been $129,000, or $0.01 per share, versus a loss of $351,000, or $0.04 per share, a year ago. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. assume the 3.3 million share initial public offering and debt recapitalization had occurred at the beginning of each quarter and are based on 8,893,000 and 8,375,000 average shares outstanding for the first quarters ended April 30, 1996 and 1995, respectively. On a reported basis, the Company reported a first quarter 1996 loss of $0.9 million, or $0.17 per share, versus a loss of $2.2 million, or $0.49 per share, for the first quarter of 1995. Hugh Hugh (pronunced hyuu) is a male given name. It is Germanic and means "Bright in Mind and Spirit" or "Thoughtful". It is related to the name Hugin( one of Odin's ravens, who represented Thought.) The following medieval rulers were named Hugh. M. Patinkin Patinkin is a surname, and may refer to:
This page or section lists people with the surname Patinkin. , Chairman, President and Chief Executive Officer, said, "We are pleased with the successful completion of the Company's initial public offering and with the Company's first quarter results, which produced positive pro forma net income. Our strong performance is encouraging and in large part reflects the ongoing implementation of programs designed to increase sales and net income. The initial public offering together with the Company's new financing arrangements will assist us in continuing our planned new store expansion program. The Company has commitments for its planned 18 new stores during 1996, and in this regard, five new stores were opened during the first quarter." Marks Bros. Jewelers, Inc. is a leading national specialty retailer of fine jewelry, currently operating 153 stores in 24 states. The Company operates stores in regional and super-regional shopping malls under the names Whitehall Co. Jewellers, Lundstrom Jewelers, and Marks Bros. Jewelers. -0-
MARKS BROS. JEWELERS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended April 30,
1996 1995
Net sales $ 29,560 $ 23,676 Cost of sales 17,934 14,796 Gross profit 11,626 8,880 Selling, general and administrative expenses 10,018 8,026 Income from operations 1,608 854 Interest expense 3,014 2,939 ESOP expense -- 147 Income (loss) before income taxes (1,406) (2,232) Income tax provision (benefit) (548) -- Net (loss) $ (858) $ (2,232) Net (loss) per share (1) $ (0.17) $ (0.49) Weighted average number of common shares outstanding (1) 5,081 4,555 Pro forma net income (2) $ 129 $ (351) Pro forma income (loss) per share (2) $ 0.01 $ (0.04) Pro forma weighted average number of common shares outstanding (2) 8,893 8,375 (1) In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , common stock equivalents have not been included in the earnings per share calculation since net losses were reported for both quarters. (2) Pro forma calculations reflect the initial public offering and recapitalization as though it had occurred at the beginning of the first quarter of 1996 and 1995, including interest savings of $1,617 and $1,509, respectively. CONTACT: John R. Desjardins Executive Vice President, Finance and Administration 312-782-6800, ext. 151 |
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