Barry's Jewelers reports fiscal 1997 first-quarter results.MONROVIA, Calif.--(BUSINESS WIRE)--Oct. 15, 1996--Barry's 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 NM:BARY) Tuesday reported results for its fiscal 1997 first quarter ended Aug. 31, 1996. For the quarter, 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 were $26.1 million, compared with $26.7 million in the first quarter of last year. Comparable stores sales were 5 percent less than the same quarter a year ago. The net loss for the quarter was $5.7 million, or $1.44 per share vs. $1 million, or 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , in the same period of fiscal 1996. Barry's results for the fiscal 1997 quarter reflect the following: Selling, general and administrative expenses increased $1.1 million over the comparable quarter of fiscal 1996 due primarily to higher expenditures for professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , advertising and new store start-up costs. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold and occupancy expenses increased by approximately $1 million, primarily due to Barry's shift to a value pricing For the strategic management concept, see . In public roads and transport, value pricing or road pricing is the practice of raising funds by charging users directly rather than via taxation. strategy instituted in fiscal 1996 to enhance its competitive position, as well as higher reserves recorded for inventory shrinkage. The company also incurred an extraordinary charge of $876,000 related to the termination of agreements under its previous securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. facility with Capital Markets Assurance Corp., which was replaced by a new $85 million revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. with First National Bank of Boston. Net interest expense decreased $46,000 in the three-month fiscal 1997 period vs. the comparable period of fiscal 1996 due to a decrease in the amortization of deferred financing fees associated with the securitization agreement, which was offset by interest on higher outstanding debt balances. The effect of these expenses on Barry's results for the quarter was exacerbated by the impact of the company's more restrictive credit policies, which tend to reduce sales in the short term but result in higher quality receivables. Additionally, finance and insurance revenues decreased by approximately $443,000, or 11 percent, over the comparable year-ago quarter due to a decrease in the average total outstanding accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . Commenting on the company's results, Robert W. Bridel, president and chief executive officer of Barry's Jewelers, said, ``Our results for this quarter reflect the series of difficulties we experienced during fiscal 1996, which was a year of great transition for Barry's. ``A significant portion of the expenses recorded for the quarter resulted from initiatives targeted at enhancing our competitive position, all of which we believe are critical to our future. ``These include a more aggressive advertising program, implementing our value-pricing strategy on a companywide basis, opening new stores, and significantly tightening our consumer credit standards Credit Standards The guidelines a company follows to determine whether a credit applicant is creditworthy. , the long-term benefits of which we feel will far outweigh the sales lost in the short term. ``We believe that these and related activities we are continuing to pursue internally will enhance store performance and improve the overall strength of our organization,'' Bridel added. ``We are confident that the positive outcome of those efforts will be reflected in our performance in the upcoming holiday sales season.'' Barry's Jewelers, one of the nation's largest independent retailers of fine jewelry, operates 171 retail jewelry stores in 17 states throughout the country, primarily in California, Texas, Arizona, North and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Utah, Montana, Colorado, Ohio and Indiana. -0-
Barry's Jewelers Inc.
Financial Highlights
(Unaudited, in 000s except share data)
Three Months Ended
Aug. 31,
1996 1995
Net sales $ 26,101 $ 26,740
Operating (loss) income (2,259) 982
Loss before taxes and extraordinary item (4,871) (1,676)
Income taxes -- (670)
Loss before extraordinary item $ (4,871) $ (1,006)
Extraordinary item 876 --
Net loss $ (5,747) $ (1,006)
Net loss per share $ (1.44) (25 cents)
Weighted average common shares outstanding 3,999,416 3,968,975
CONTACT: Barry's Jewelers Inc., Monrovia Robert W. Bridel/Thomas S. Liston, 818/303-4741 or Silverman Heller Associates, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Eugene G. Heller, 310/208-2550 |
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