Aid Auto Stores Announces Second Quarter Results.WESTBURY, N.Y.--(BUSINESS WIRE)--Aug. 21, 1998--Aid Auto Stores 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 :AIDA (language) AIDA - 1. A functional dialect of Dictionary APL by M. Gfeller. ["APL Arrays and Their Editor", M. Gfeller, SIGPLAN Notices 21(6):18-27 (June 1986) and SIGAPL Conf Proc]. 2. , AIDAW) today announced the financial results for the three and six month periods ended June 30, 1998. Revenues were $4,160,593 for the quarter ended June 30, 1998 as compared to $6,221,392 for the quarter ended June 30, 1997. Net loss for the quarter was $759,537 or $0.19 per share, compared to net income of $68,315 or $0.02 per share for the comparable year ago period. Revenues for the six months ended June 30, 1998 were $8,673,032 compared to $12,313,990 for the comparable period in 1997. Net loss for the period was $1,745,945 or $0.44 per share as compared to net income of $10,329 or $0.00 per share for the comparable period in 1997. The decline in revenues was attributed to several factors. These factors consisted of the lower than anticipated level of retail sales due to the reduction in advertising expenditures and inventory purchase levels due to working capital 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)]. . In addition, the recent industry-wide softness and the warmest winter weather since records have been kept, also contributed to the decline in retail revenues. Revenues were further impacted by the company's continued de-emphasis of its wholesale business. Through termination or non-renewal of franchise agreements, the number of franchised stores has decreased since the end of the second quarter of 1997 from 34 to 20. Wholesale sales declined $2.3 million from $3.7 million for the six month period ended June 30, 1997 to $1.4 million for the six month period ended June 30, 1998, which is consistent with the company's strategy to de-emphasize its wholesale business. Commenting on the results, Philip L. Stephen, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are extremely disappointed with our results for the first half of 1998 and are continuing to take steps to take action; to move in a matter. See also: Step to improve our performance, rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear our expenses and evaluate our strategic and financial options. We have also begun to aggressively pursue our goal to substantially increase our commercial business during the balance of 1998. We believe there is significant opportunity in this area. We are convinced that the initiatives taken will ultimately enhance the company's performance, its balance sheet and returns." Stephen further stated, "Despite the overall performance of the company, the 22 company-owned stores had earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. of approximately $416,000. These earnings at the store level would be significantly higher if not for the cash constraints which have put severe limits on our inventory mix and our ability to advertise. Since the inception of the Superstore su·per·store n. A very large retail store that stocks highly diversified merchandise, such as groceries, toys, and camera equipment, or a wide variety of mechandise in a specific product line, such as computers or sporting goods. growth program, the company-owned stores have had positive store level EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become margins. We believe that this clearly demonstrates our performance as a company in transition from a wholesaler to a retailer. As previously announced, the company has retained Josephthal & Co. Inc. to assist it in exploring strategic alternatives, which may include, among other things, a significant merger/acquisition of the company. We are currently involved in discussions with several interested parties with respect to a significant transaction." Aid Auto Stores is a major New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. retailer, wholesaler and franchisor of automotive parts and accessories, targeting both the do-it-yourself and commercial markets. Through its wholly-owned subsidiary, Ames Automotive Warehouse, the company supplies automotive aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. products for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. to major non-automotive chain stores. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements which are not historical facts contained in this press release are forward looking statements that involve risks and uncertainties, including, but not limited to, risks associated with the company's future growth and profitability, the ability of the company to successfully open new retail stores and integrate acquisitions, the ability of the company to sufficiently cut costs, and the effects of general economic conditions and other risks detailed in the company's Securities and Exchange Commission filings. -0-
AID AUTO STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues $4,160,593 $6,221,392 $8,673,032 $12,313,990
Cost of sales 2,330,777 3,311,616 4,811,110 6,854,435
Selling, general
and
administrative 2,248,081 2,566,496 4,911,348 4,911,337
Total costs and
expenses 4,578,858 5,878,112 9,722,458 11,765,772
(Loss) income
from operations (418,265) 343,280 (1,049,426) 548,218
(Loss) income before
income taxes (759,537) 68,315 (1,745,945) 10,329
Provision for income
taxes -- -- -- --
Net (loss) income $(759,537) $ 68,315 $(1,745,945) $ 10,329
(Loss) income per
common share
(Loss) income
before income
taxes $(.19) $ .02 $(.44) $ --
Net (loss) income
per common share $(.19) $ .02 $(.44) $ --
Weighted average
common shares
outstanding 3,957,596 3,957,596 3,957,596 3,957,596
CONTACT: Aid Auto Stores Inc., Westbury Frank Mangano, 516/338-7889 |
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