Cost Plus, Inc. Announces Record First Quarter Earnings and Increases Its Guidance for Fiscal 2002.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 23, 2002 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 4, 2002. Net income for the first quarter of fiscal 2002 was $1.7 million, a 36% increase over last year's $1.2 million. Earnings per share were $0.08 for the quarter compared with the prior year's earnings of $0.06 and analysts' consensus estimates of $0.06. 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 2002 were $134.3 million, a 19.0% increase over fiscal 2001 net sales of $112.9 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 3.8% on top of last year's 4.4% increase. During the quarter, the Company opened seven stores, one more than originally scheduled, with one store each in: Arlington Arlington, county, United States Arlington, county (1990 pop. 170,936), N Va., across the Potomac River from Washington, D.C. Arlington is a residential and commercial suburb of Washington. , VA; Thornton Thornton, city (1990 pop. 55,031), Adams co., NE Colo., a residential and industrial suburb of Denver; inc. 1956. Industries include oil and gas development and the production of computer graphics systems, wood products, coffee and tea, building components, infant , CO; Greensboro Greensboro, city (1990 pop. 183,521), seat of Guilford co., N central N.C.; inc. 1829. The city is a financial, insurance, and distribution center for the region. , NC; 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. , CA; Birmingham Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , AL; Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , GA; and Novi, MI. As planned, the Company closed one store in Fresno, CA, its replacement having been opened in fiscal 2001. As previously announced, during the first quarter the Company successfully opened its new East Coast distribution center near Norfolk, VA, ahead of schedule. Shipments to Cost Plus World Market stores from the new 500,000 square foot facility commenced during the final week of April, two months ahead of schedule. 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 are pleased to have produced exceptional first quarter results while absorbing the cost of opening one more store than planned. Significant margin improvement was achieved as a result of strong sales performance in the higher margin home furnishing categories with a less promotional marketing plan. Our 'Outdoor Living' campaign, which began after the Easter holiday, has continued to produce solid sales results into the second quarter. In view of these results we are raising our earnings guidance for the full fiscal year to $1.13 per share from $1.07 per share." Revised earnings guidance for the second quarter of fiscal 2002 is at $0.06 per share and is predicated on the following major assumptions: -- Net new store openings will be 25 versus 23 last year. -- Same-store sales growth is expected to be approximately 3.9% versus 0.3% last year. -- Net sales will grow to approximately $667 million, a 17% increase compared to fiscal 2001. -- Gross profit rate is expected to be approximately 34.8% versus 34.4% last year. -- SG&A rate is expected to be approximately 27.2% versus 27.6% last year due to leverage resulting from higher same store sales as well as reductions in certain corporate overhead costs. -- Pre-tax income is expected to be approximately $41.7 million versus $33.1 million in fiscal 2001. -- Net income is expected to rise to approximately $25.4 million, up 26% from fiscal 2001, with weighted average shares outstanding at approximately 22.4 million versus 21.8 million last year. The Company is increasing its fiscal 2002 guidance for the full year from $1.07 per share to $1.13 per share, an increase of 22% from fiscal 2001. This estimate is predicated on the following major assumptions: -- Net new store openings will be 25 versus 23 last year. -- Same-store sales growth is expected to be approximately 3.9% versus 0.3% last year. -- Net sales will grow to approximately $667 million, a 17% increase compared to fiscal 2001. -- Gross profit rate is expected to be approximately 34.8% versus 34.4% last year. -- SG&A rate is expected to be approximately 27.2% versus 27.6% last year due to leverage resulting from higher same store sales as well as reductions in certain corporate overhead costs. -- Pre-tax income is expected to be approximately $41.7 million versus $33.1 million in fiscal 2001. -- Net income is expected to rise to approximately $25.4 million, up 26% from fiscal 2001, with weighted average shares outstanding at approximately 22.4 million versus 21.8 million last year. The Company also indicated that inventory levels would remain higher through the third quarter due to an increase in receipts in anticipation of the possible labor disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. at U.S. West Coast ports and an accelerated ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of the new East Coast distribution center. The Company's first quarter earnings conference call is today May 23, 2002 at 8:00 a.m. PST PST Paroxysmal supraventricular tachycardia, see there . 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 number for the call is (904) 779-4773. Callers are advised to dial in approximately 15 minutes prior to the scheduled start time. A telephonic replay will be available at (800) 252-6030, Access Code: 11771534, from 9:30 a.m. to 10:00 p.m. PST on Thursday, May 23. Investors may also access the live call or the replay over the internet at www.streetevents.com; www.companyboardroom.com and www.costplus.com. The replay will be available approximately 30 minutes after the live call concludes. Cost Plus, Inc. is a leading specialty retailer of casual 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 entertaining products. As of May 23, 2002, the Company operated 161 stores in 22 states compared to 135 stores in 19 states as of May 23, 2001. 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 2002 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: changes in economic conditions that effect 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. ; changes in the competitive environment; interruptions in the flow of merchandise; 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 against the Company; further terrorist attacks and the 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 4, 2002 May 5, 2001
Net sales $ 134,349 100.0% $ 112,915 100.0%
Cost of sales
and occupancy 88,649 66.0 75,654 67.0
Gross profit 45,700 34.0 37,261 33.0
Selling, general and
administrative expenses 40,734 30.3 34,174 30.3
Store preopening expenses 1,533 1.1 1,066 0.9
Income from operations 3,433 2.6 2,021 1.8
Net interest (income)
expense 683 0.6 (1) 0.0
Income before
income taxes 2,750 2.0 2,022 1.8
Income taxes 1,073 0.8 789 0.7
Net income $ 1,677 1.2% $ 1,233 1.1%
Net income per
share - diluted $ 0.08 $ 0.06
Weighted average
shares outstanding-
diluted 22,052 21,595
New stores opened 7 5
COST PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
May 4, 2002 May 5, 2001
ASSETS
Current assets:
Cash and cash equivalents $24,060 $26,688
Merchandise inventories 139,216 108,678
Other current assets 16,236 12,396
Total current assets 179,512 147,762
Property and equipment, net 118,285 82,372
Goodwill 4,178 4,300
Other assets 9,762 10,038
Total assets $311,737 $244,472
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $42,104 $31,204
Accrued compensation 5,579 5,539
Other current liabilities 14,850 12,470
Total current liabilities 62,533 49,213
Capital lease obligations 37,390 13,370
Other long-term obligations 10,053 8,378
Shareholders' equity:
Common stock 216 212
Additional paid-in capital 133,104 125,504
Retained earnings 68,441 47,795
Total shareholders' equity 201,761 173,511
Total liabilities and shareholders'
equity $311,737 $244,472
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion