Best Products reports second quarter results.RICHMOND, Va.--(BUSINESS WIRE)--Sept. 8, 1995--Best Products Co., 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 : BEST) today reported its 1995 second 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 and operating results. Second quarter net sales for the 13 weeks ended July 29, 1995 decreased 0.1% to $311.8 million compared to $312.2 million for the same period in the prior year. Comparable store net sales decreased 4.7% during the same period. Earnings (loss) before interest, income taxes, depreciation and amortization ("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 ") was a loss of $4.2 million for the second quarter of 1995 compared to earnings of $4.2 million for the second quarter of 1994. The company reported a net loss of 23 cents a share for the second quarter of 1995 compared to 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 net loss of 5 cents a share for the same period in 1994. The company historically reports losses during the second quarter of the year. Gross margin during the second quarter of 1995 was $74.5 million compared to $76.8 million for the same period in the prior year. Second quarter selling, general and administrative ("SG&A") expenses were $78.7 million this year compared to $72.6 million in 1994 due primarily to higher payroll and promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade . Chief Executive Officer Stewart M. Kasen said, "The second quarter was characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by continuing consumer caution, with sales of consumer electronics and lawn and patio furniture pa´ti`o fur´ni`ture 1. Furniture such as chairs, tables, settees or loungers, suited for use on a patio , i.e. such that will not be damaged by exposure to rain, sun or other outdoor elements. impacted adversely throughout the period. Results were affected by several factors, including higher SG&A levels in anticipation of increased sales." Best Products completed its Chapter 11 proceedings Chapter 11 Proceedings Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation. and substantially consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. its plan of reorganization in June 1994. The financial results for the 13 and 26 weeks ended July 30, 1994 have been presented on a pro forma basis to reflect adoption of fresh start reporting as of the beginning of those periods. Management believes this pro forma information provides an appropriate and meaningful basis of comparison to the 13 and 26 weeks ended July 29, 1995. Best Products, a specialty retailer offering category-dominant assortments of 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. and home products, operates 164 Best stores in 22 states. The company also operates 12 Best Jewelry stores and a nationwide mail-order service. -0-
BEST PRODUCTS CO. INC.
Historical and Pro Forma Results of Operations
(Unaudited)
13 weeks ended 26 weeks ended
July 29, July 30, July 29, July 30,
1995 1994 1995 1994
Historical Pro- Historial Pro-
Forma(a) Forma(a)
(Dollar amounts in thousands, except per share amounts
Net sales $311,841 $312,233 $584,600 $586,004 Cost of goods sold 237,378 235,481 443,545 442,395 Gross margin 74,463 76,752 141,055 143,609 Selling, general and administrative expenses 78,648 72,604 150,860 140,751 Depreciation and amortization 3,634 2,457 7,252 4,914 Interest expense, net 4,101 4,384 8,295 8,704 Loss before income tax benefit (11,920) (2,693) (25,352) (10,760) Income tax benefit 4,769 1,077 10,142 4,304 Net loss(b) $ (7,151) $ (1,616) $(15,210) $ (6,456) Net loss per common share $ (0.23) $ (0.05) $ (0.48) $ (0.20) Weighted average common shares outstanding 31,630,029 31,660,711 31,645,369 31,660,711 EBITDA(c) $ (4,185) $ 4,148 $ (9,805) $ 2,858 (a): The pro forma results of operations for the thirteen and twenty-six weeks ended July 30, 1994 give effect to the transactions occurring in conjunction with the company's emergence from Chapter 11 as if the emergence had occurred on January 29, 1994 instead of June 14, 1994, the actual date. The results of operations have been adjusted to reflect: the reduction in depreciation and amortization expense due to the lower assigned values of property and equipment and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ; the elimination of historical interest expense and recording of interest expense on the debt structure as provided for by the company's reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. ; the elimination of the effects of historical reorganization items, fresh start revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. and gain on debt discharge; and the recording of appropriate income tax benefit. (b): Operating results are subject to significant seasonal fluctuations. Net earnings (loss) of any quarter are seasonally disproportionate dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por to sales since many operating expenses Operating expensesThe amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are relatively constant throughout a year. As a consequence, interim results should not be relied upon as necessarily indicative of results for any entire year. (c): EBITDA consists of earnings (loss) before interest, income taxes, depreciation and amortization. EBITDA is not intended to present net earnings (loss), cash flows or any other measures of performance 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 , but is included because management believes it to be a useful tool for measuring performance.
BEST PRODUCTS CO., INC.
BALANCE SHEETS
(Unaudited)
July 29, July 30,
1995 1994
(Dollar amounts in thousands)
Assets
Current assets:
Cash and cash equivalents $ 78,935 $ 118,595
Merchandise inventories 513,988 498,537
Other 34,890 18,991
Total current assets 627,813 636,123
Property and equipment, net 168,540 146,176
Deferred income taxes, net and other 22,263 24,750
Total Assets $ 818,616 $ 807,049
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt
and capital lease obligations $ 13,197 $ 13,396
Accounts payable 163,612 133,973
Accrued expenses and other 66,694 82,092
Total current liabilities 243,503 229,461
Long-term debt 138,294 140,685
Capital lease obligations 89,016 97,544
Other 12,952 13,400
Total Liabilities 483,765 481,090
Stockholders' Equity
Common stock 31,581 31,661
Additional paid-in capital 298,385 298,305
Retained earnings (deficit) 9,885 (4,007)
339,851 325,959
Loans under Stock Purchase Loan Plan (5,000) --
Total Stockholders' Equity 334,851 325,959
Total Liabilities and Stockholders' Equity $ 818,616 $ 807,049 CONTACT: Best Products Inc., Richmond Investor Relations Investor relations The process by which the corporation communicates with its investors. : J. Stuart Newton, 804/261-2150 or Betsy Brod, 212/850-5600; Media Contacts: Ross Richardson, 804/261-2157 or Stacy Berns, 212/850-5600 |
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