Cost Plus, Inc. Announces 29% Increase in First Quarter Net Income to $0.15 Per Diluted Share.Business Editors OAKLAND Oakland, city (1990 pop. 372,242), seat of Alameda co., W Calif., on the eastern side of San Francisco Bay; inc. 1852. Together with San Francisco and San Jose, the city comprises the fourth largest metropolitan area in the United States. , Calif.--(BUSINESS WIRE)--May 20, 2004 Cost Plus, Inc. (Nasdaq:CPWM CPWM Certified Public Works Manager (New Jersey state license) CPWM Controlled Pulsewidth Modulation ) announced today record financial results for its fiscal first quarter ended May 1, 2004. Earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the first quarter of fiscal 2004 were $0.15 compared to $0.12 for the first quarter of the prior year. Net income of $3.3 million for this year's first quarter represents a 29% increase over last year's net income of $2.6 million. 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 for the first quarter of 2004 were $185.7 million, a 16.6% increase over fiscal 2003 net sales of $159.2 million. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of increased 3.4% on top of last year's 3.0% increase. Murray Murray, river, Australia Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. Dashe, Chairman, President 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 achieved sales increases in both the home furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. and consumables products portions of the business. With tight control over operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. we were in a position during the quarter to elect to take additional markdowns in order to assure clean inventories in our stores as we move into the summer selling season and maintain the sales momentum of certain high growth categories. Business thus far in the second quarter is consistent with our guidance for an increase in comparable store sales of between 3.0% and 4.0%." During the quarter, the Company opened eight stores as planned and two more than in the prior year first quarter. Earnings guidance for the second quarter of fiscal 2004 is estimated to be in the range of $0.14 to $0.15 per diluted share and is predicated on the following major assumptions: -- Nine new stores opened vs. seven stores opened in the second quarter last year. One of the new stores is a replacement for an existing store that will close. -- Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. up between 3.0% and 4.0% on top of a 3.4% increase in the prior year. -- Total sales up between $188 million and $190 million vs. $159.8 million in the prior year. -- Gross profit rate between 34.0% and 34.1% vs. 34.4% in the prior year. -- SG&A rate between 29.9% and 30.2% vs. 30.3% in the prior year. -- Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income between $4.9 million and $5.4 million vs. $4.6 million in the prior year. -- An effective income tax rate of 38% in the current year vs. 37% in the prior year. -- Net income between $3.0 million and $3.4 million versus $2.9 million in the prior year. -- Weighted average shares outstanding estimated at 22.5 million for the quarter vs. 22.3 million last year. The Company confirmed its earnings per share guidance for fiscal 2004 at $1.78 per diluted share based upon a comparable store sales increase of approximately 4.0%. The Company's first quarter earnings conference call will be today at 8:00 a.m. P.D.T. It will be held in a "listen-only" mode for all participants other than the sell-side and buy-side investment professionals who regularly follow the Company. Phone numbers for the call are (415) 247-8503 or (212) 676-5241. Callers are advised to dial in approximately 15 minutes prior to the scheduled start time. A telephonic replay will be available at (402) 977-9140, Access Code: 21193963, from 10:00 a.m. P.D.T. Thursday Thursday: see week. to 10:00 a.m. P.D.T. on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , May 21. Investors may also access the live call or the replay over the internet at www.streetevents.com; www.fulldisclosure.com and www.worldmarket.com. The replay will be available approximately one hour after the live call concludes. Cost Plus, Inc. is a leading specialty retailer of casual home furnishings and entertaining products. As of May 20, 2004, the Company operated 218 stores in 26 states compared to 184 stores in 23 states at the same time last year. The above statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated second quarter and fiscal 2004 financial results are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " which are based on current expectations and are subject to various risks and uncertainties, which could cause actual results to differ materially from those forecasted. Such risk factors include, but are not limited to: continued benefits from infrastructure improvements; changes in economic conditions that affect consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. ; international conflicts; changes in the competitive environment; interruptions in the flow of merchandise; changes in the cost of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. purchased including fuel, transportation and insurance; a material unfavorable outcome with respect to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , claims and assessments; further terrorist attacks and our nation's response thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. and changes in accounting rules and regulations. Please refer to documents on file with the Securities and Exchange Commission for a more detailed discussion of the Company's risk factors. The Company does not undertake any obligation to update its forward-looking statements.
COST PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts, unaudited)
First Quarter Ended
May 1, 2004 May 3, 2003
----------- -----------
Net sales $185,703 100.0 % $159,218 100.0 %
Cost of sales and occupancy 123,216 66.4 104,792 65.8
Gross profit 62,487 33.6 54,426 34.2
Selling, general and
administrative expenses 54,863 29.5 48,610 30.5
Store preopening expenses 1,485 0.8 1,064 0.7
Income from operations 6,139 3.3 4,752 3.0
Net interest expense 822 0.4 684 0.4
Income before income taxes 5,317 2.9 4,068 2.6
Income taxes 2,020 1.1 1,505 1.0
Net income $ 3,297 1.8 % $ 2,563 1.6 %
Net income per share - diluted $ 0.15 $ 0.12
Weighted average shares
outstanding - diluted 22,556 21,731
New stores opened 8 6
COST PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
May 1, 2004 May 3, 2003
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 14,668 $ 23,877
Short-term investments 1,004 --
Merchandise inventories 220,210 177,153
Other current assets 17,768 17,489
Total current assets 253,650 218,519
Property and equipment, net 122,671 119,399
Goodwill 4,178 4,178
Other assets 6,783 8,419
Total assets $387,282 $350,515
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 36,945 $ 51,355
Income taxes payable 236 1,381
Accrued compensation 7,717 7,843
Other current liabilities 19,124 15,995
Total current liabilities 64,022 76,574
Capital lease obligations 35,695 37,533
Other long-term obligations 16,010 12,067
Shareholders' equity:
Common stock 219 214
Additional paid-in capital 156,066 136,103
Retained earnings 115,270 88,024
Total shareholders' equity 271,555 224,341
Total liabilities and shareholders' equity $387,282 $350,515
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