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CompUSA INC. REPORTS FISCAL 1994 FIRST QUARTER FINANCIAL RESULTS

 DALLAS, Nov. 2 /PRNewswire/ -- CompUSA Inc. (NYSE: CPU), America's largest Computer Superstore retailer, today reported that for the fiscal 1994 first quarter ended Sept. 25, 1993, net sales increased 65.8 percent to $436.6 million from $263.4 million for the fiscal 1993 first quarter ended Sept. 26, 1992. The company reported a net loss for the quarter of $986,000 (5 cents per share), compared with net income of $1.27 million (8 cents per share) for the first quarter of fiscal 1993.
 "During the first quarter, we enjoyed strong sales growth, a gross margin that was up almost one percentage point from the year-ago level, and a rate of growth in general and administrative expenses that remained in line with sales growth," said Nathan Morton, chairman and chief executive officer. "However, store operating expenses were higher as a percentage of sales than a year ago. Almost half of our stores were less than a year old during the quarter, and these newer stores typically reflect higher operating expenses as a percentage of sales than do our more mature stores.
 "First quarter profitability was influenced by a tripling of pre-opening expenses from the year-ago level with our opening of nine new stores and one relocation of an existing store," said Morton. "Also, CompUSA's recent debt offering to fund store expansion resulted in additional interest expense that is not yet being offset by additional profits generated by the new stores.
 Our investment in store payroll during the quarter in anticipation of the opening of nine additional stores in the second quarter increased first quarter store operating expenses. We have reviewed our operating costs and have taken the appropriate measures to adjust them as we believe necessary going forward," said Morton.
 "Our decision to strengthen CompUSA's leadership position by opening at least 30 new Computer Superstores during fiscal 1994 is a very positive longer-term decision for both the company and its shareholders, even though this decision has affected our short-term profitability," Morton noted.
 CompUSA Inc. currently operates 59 high-volume Computer Superstores in 32 metropolitan areas throughout the U.S. Each Computer Superstore offers more than 5,000 computer products, including hardware, software, accessories and related products, at deep-discount prices to retail, business, governmental and institutional customers. The Computer Superstores also offer full-service technical departments and classroom training facilities.
 CompUSA INC.
 Consolidated Statements of Operations
 (in thousands, except per share data)
 (unaudited)
 13 wks. ended
 9/25/93 9/26/92
 Net sales $436,628 $263,391
 Cost of sales and
 occupancy costs 379,651 231,199
 Gross profit 56,977 32,192
 Store operating expenses 42,459 22,296
 Pre-opening expenses 2,681 898
 Gen. and admin. expenses 10,861 6,488
 Operating income 976 2,510
 Other expense (income):
 Interest expense 3,052 497
 Other income, net (536) (36)
 Total 2,516 461
 Income (loss) before income taxes (1,540) 2,049
 Income tax expense (benefit) (554) 779
 Net income (loss) $ (986) $ 1,270
 Income (loss) per common and
 common equivalent share $ (0.05) $ 0.08
 Wtd. avg. common and
 common equiv. shares 18,148 16,875
 -0- 11/2/93
 /CONTACT: Noelle Greene-Hunt, senior director, Investor Relations/Communications, CompUSA, 214-383-4404/
 (CPU)


CO: CompUSA Inc. ST: Texas IN: REA SU: ERN

BR -- AT015 -- 9881 11/02/93 18:39 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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