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BRADLEES, INC. REPORTS FIRST QUARTER RESULTS

 BRAINTREE, Mass., June 22 /PRNewswire/ -- Bradlees, Inc. (NYSE: BLE) today reported results for the first quarter of fiscal 1993.
 Sales for the 16 weeks ended May 22, 1993 were $459.4 million compared with $458.9 million for the first quarter last year. Sales in comparable stores were flat.
 The operating loss for the first quarter was $7.2 million compared with a loss of $1.8 million on a pro forma basis for the first quarter of 1992. As a result of the company's July 1992 acquisition of the Bradlees Business, no LIFO charge is anticipated for fiscal 1993. However, 1992 first quarter pro forma results include a pre-tax LIFO charge of $1.3 million or 7 cents per share (net of taxes).
 The loss before an extraordinary item was $9.5 million or 84 cents per share this year vs. a pro forma loss of $6.5 million or 58 cents per share last year.
 The first quarter includes an extraordinary loss, net of income tax benefit, of $5.2 million or 46 cents per share which represents the write-off of unamortized deferred financing costs due to the company's refinancing of its bank credit agreement in March 1993.
 During the first quarter, Bradlees entered the Metropolitan New York market with the opening of a three-level, 207,000 sq. ft. store in Yonkers. Also, Bradlees opened a new store in Middletown, Conn., replacing two smaller stores that were closed.
 Commenting on the first quarter, Barry A. Berman, chairman and chief executive officer, said, "Our first quarter results were negatively impacted by the adverse weather conditions in our markets in February and March. Although sales improved somewhat in April and May, consumer demand continues to be soft. The first quarter represents a small portion of our annual business, and, we remain, however, cautiously optimistic about the remainder of the year."
 Bradlees, Inc. operates 126 discount department stores in Maine, New Hampshire, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania and Virginia. Bradlees' common stock is listed and traded on the New York Stock Exchange under the symbol "BLE."
 BRADLEES, INC. AND SUBSIDIARIES
 Condensed Consolidated Historical Statements of Operations (a)
 (In thousands except per share amounts)
 Predecessor
 Company Corporation
 16 Weeks Ended 16 Weeks Ended
 May 22, 1993 May 23, 1992
 Retail Sales $459,440 $458,858
 Cost of goods sold, buying
 and warehousing 318,295 315,201
 Selling, store operating and
 administrative 134,299 129,926
 Depreciation and amortization 14,048 14,961
 Operating loss (7,202) (1,230)
 Interest expense, net 9,378 19,259
 Loss before income
 tax benefit and
 extraordinary loss (16,580) (20,489)
 Income tax benefit (7,130) ---
 Loss before extraordinary loss (9,450) (20,489)
 Extraordinary loss, net (5,200) (1,122)
 Net loss $(14,650) $(21,611)
 Net loss per share:
 Loss before
 extraordinary loss (84 cents) ---
 Extraordinary loss, net (46 cents) ---
 Net loss $(1.30) ---
 (a) PRO FORMA STATEMENTS OF OPERATIONS 16 Weeks Ended
 May 22, 1993 May 23, 1992
 Actual Pro Forma
 Retail sales $459,440 $458,858
 Cost of goods sold, buying and
 warehousing (b) 318,295 315,201
 Selling, store operating & administrative 134,299 132,269
 Depreciation & amortization 14,048 13,214
 Operating loss (7,202) (1,826)
 Interest expense, net 9,378 9,630
 Loss before income tax benefit and
 extraordinary loss (16,580) (11,456)
 Income tax benefit (7,130) (4,926)
 Loss before extraordinary loss $(9,450) $(6,530)
 Loss before extraordinary loss
 per share (c) (84 cents) (58 cents)
 (b) Due to the Acquisition, cost of goods sold, buying and warehousing costs for 1993 does not include a provision for the last-in, first-out method of valuing inventory (LIFO). The LIFO charge for the corresponding 16 week period in 1992, on a pro forma basis, was $1.3 million or 7 cents per share (net of taxes).
 (c) Loss before extraordinary loss per share would have been 85 cents and 61 cents for the 16 weeks ended May 22, 1993 and May 23, 1992, respectively, had the 9.25 percent Senior Subordinated Notes due 2003 issued by the company in March 1993 been outstanding as of Feb. 2, 1992.
 BRADLEES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands)
 Predecessor
 Company Corporation
 May 22, 1993 May 23, 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $3,700 $2,410
 Inventories 338,814 314,352
 Other current assets 36,195 24,175
 Total current assets 378,709 340,937
 Property, plant and equipment, net 185,329 225,161
 Notes receivable --- 283,891
 Goodwill, net --- 120,674
 Lease interests and acquisition
 costs 259,665 182,315
 Other 7,834 16,362
 Total assets $831,537 $1,169,340
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $213,476 $209,489
 Accrued expenses 67,429 67,213
 Short-term and current portion
 of debt 6,015 9,657
 Total current liabilities 286,920 286,359
 Long-term debt 269,079 821,969
 Deferred income taxes 97,503 ---
 Other long-term liabilities 31,194 11,671
 Redeemable preferred stock --- 5,000
 Stockholders' equity 146,841 44,341
 Total liabilities and stockholders'
 equity $831,537 $1,169,340
 BRADLEES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
 Company Predecessor Corporation
 16 Weeks Ended 16 Weeks Ended
 5/22/93 5/23/92
 Cash flows from operating
 activities:
 Net loss $(14,650) $(21,611)
 Adjustments:
 Extraordinary loss on debt
 retirement 5,200 1,122
 Depreciation and
 amortization 14,048 14,961
 Other noncash items 764 1,116
 Changes in working capital (4,419) 18,968
 Net cash provided by
 operating activities 943 14,556
 Cash flows from investing
 activities:
 Capital expenditures, net
 of disposals (17,342) (14,495)
 Lease acquisition costs (345) ---
 Net cash used in investing
 activities (17,687) (14,495)
 Cash flows from financing
 activities:
 Proceeds from subordinated
 debt 100,000 ---
 Repayment of Term Loan (86,300) ---
 Principal payments on
 long-term debt (14) (5,033)
 Net borrowings under inter-
 company debt --- 12,063
 Extraordinary items for debt
 retirement 3,925 (546)
 Deferred financing costs (4,450) (3,604)
 Principal payments under
 capital lease obligations (2,487) (2,390)
 Dividends paid (1,690) ---
 Net cash provided by financing
 activities 8,984 490
 Net increase in cash and cash
 equivalents (7,760) 551
 Cash and cash equivalents:
 Beginning of period 11,460 1,859
 End of period $3,700 $2,410
 -0- 6/22/93
 /CONTACT: Aileen Gorman, vice president of Bradlees, 617-380-8370/
 (BLE)


CO: Bradlees, Inc. ST: Massachusetts IN: REA SU: ERN

DJ -- NE003 -- 4411 06/22/93 09:06 EDT
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Date:Jun 22, 1993
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