A.C. Moore Reports Fourth Quarter and 2006 Results.* 14% Reduction in Inventory on a Per Store Basis * Cash Net of Debt Improved $15.7 Million Versus 2005 BERLIN, N.J. -- A.C. Moore Arts & Crafts, Inc. (Nasdaq:ACMR ACMR Air Combat Maneuvering Range ACMR Airspace Control Measure Request ACMR Annual Cost Monitoring Report ACMR Advanced Computer for Medical Research ACMR Aircraft Configuration Management Review (USAF) ACMR Asymmetrical Compact Microstrip Resonator ) today announced results for the fourth quarter and year ended December 31, 2006. Sales for the fourth quarter of 2006 grew to $197.8 million, an increase of 5.0% over sales of $188.0 million during the fourth quarter of 2005. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of decreased by 3.0% versus 2005. Net income was $6.6 million, or $0.33 per share, compared with net income of $10.7 million, or $0.53 per share, in the fourth quarter of 2005. Fourth quarter 2006 results include costs of $1.4 million, or $0.04 per share, related to the closure of one store location and a lease termination. Fourth quarter results also include $524,000, or $0.01 per share, in expense for stock-based compensation, and $461,000, $0.01 per share, in management change costs. Sales for the year ended December 31, 2006 were $589.5 million, an increase of 9.0% over sales of $539.4 million in the same period in 2005. Same store sales were flat for the twelve month period. The net income for the year ended December 31, 2006 was $2.4 million, or $0.12 per share, versus net income of $10.0 million, or $0.50 per share, for 2005. Results for the year ended December 31, 2006 include costs of $3.4 million related to management changes and $2.8 million for stock-based compensation expense, or $0.09 per share and $0.07 per share, respectively. Rick A. Lepley, Chief Executive Officer, stated, "During the last quarter we focused on reducing our out of line inventory condition and improving our year end cash position and we are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. with those results. In 2007, we are continuing to focus on expense control and working on improving our operational efficiencies to lay the ground work for improved profitability." The Company will host a conference call today, Thursday, February 22, 2007 at 5:00 p.m., Eastern Time, to discuss fourth quarter and 2006 results. To participate in the conference call, please call 973-935-8512 and provide the operator with passcode #8425775. If you are unable to access the live call, please dial 973-341-3080 and enter pin #8425775 to access the taped digital replay. The replay will be available at approximately 7:00 PM ET on February 22, 2007 and will remain available until March 1, 2007 at 11:59 p.m. A simultaneous webcast of the conference call may be accessed at www.acmoore.com. Go to "Investor Relations Investor relations The process by which the corporation communicates with its investors. " and click on "Corporate Profile." To listen to the live call via webcast, please go to the Company's website at least 15 minutes early to register, download and install any necessary audio software. An archive of the conference call will be available approximately two hours after the conference call ends on the Company's website. About A.C. Moore: A.C. Moore operates arts and crafts arts and crafts, term for that general field of applied design in which hand fabrication is dominant. The term was coined in England in the late 19th cent. as a label for the then-current movement directed toward the revivifying of the decorative arts. stores that offer a vast assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. of traditional and contemporary arts and crafts merchandise for a wide range of customers. The Company operates 122 stores in the Eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . For more information about the Company, visit our website at www.acmoore.com. This press release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based on A.C. Moore's current expectations and assumptions as of this date. The Company undertakes no obligation to update or revise any forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. whether the result of new developments or otherwise. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could cause actual results to differ from those anticipated include, but are not limited to, customer demand and trends in the arts and crafts industry, inventory risks, the effect of economic conditions and gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by prices, the impact of unfavorable weather conditions, the impact of competitors' locations or pricing, the availability of acceptable real estate locations for new stores, difficulties with respect to new system technologies, including the recent POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale conversion, difficulties in implementing measures to reduce costs and expenses and improve margins, supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties, the effectiveness of and changes to advertising strategies, the costs associated with a change in management, difficulties in determining the outcome and impact of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , the impact of the adoption of FAS 123R, the impact of the threat of terrorist attacks and war, the Company's ability to maintain an effective system of internal control over financial reporting and other risks detailed in the Company's Securities and Exchange Commission filings. [TABLE OMITTED] [TABLE OMITTED] |
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