Cost Plus, Inc. Reports Fourth Quarter and Fiscal 2000 Results.Business Editors/Retail Writers 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)--March 15, 2001 Cost Plus, Inc. (Nasdaq:CPWM CPWM Certified Public Works Manager (New Jersey state license) CPWM Controlled Pulsewidth Modulation ) today reported financial results for its fourth quarter and fiscal year 2000 ended February February: see month. 3, 2001. For the fourth quarter, net income increased to $18.8 million from $17.4 million in the prior year. Earnings per share were $0.87 in the fourth quarter compared with $0.82 in fiscal 1999's fourth quarter. Net income for fiscal 2000 was $21.7 million compared with net income of $19.7 million in the prior fiscal year. Earnings per share for fiscal 2000 were $1.00 vs. $0.93 in fiscal 1999. 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 fifty-three week year of fiscal 2000 were $493.7 million, a 22.7% increase over the fifty-two Adj. 1. fifty-two - being two more than fifty 52, lii cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" week prior fiscal year's net sales of $402.3 million, with 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 increasing 4.6% on top of 8.6% in fiscal 1999. During the fourteen-week fourth quarter of fiscal 2000, net sales increased 23.4% to $206.7 million from $167.5 million in the thirteen-week fourth quarter of fiscal 1999. Same store sales for the fourth quarter increased 2.1% on top of 8.1% last year. Consistent with the National Retail Federation reporting calendar, fiscal 2000 was a fifty-three week year for the Company. On a fifty-two week annual and a thirteen-week quarterly basis, the Company's net sales increased 20.8% and 18.9%, respectively. The Company ended fiscal 2000 with 127 stores in operation compared with 103 stores at the end of fiscal 1999, and announced that it has opened three stores thus far in the first quarter of fiscal 2001, one each in Escondido Escondido (ĕskəndē`dō), city (1990 pop. 108,635), San Diego co., S Calif.; inc. 1888. Located in a grain-, citrus-fruit-, and grape-growing valley, Escondido produces cereal products and has fruit-packing houses and one of the , CA; Evanston Evanston, residential city (1990 pop. 73,233), Cook co., NE Ill., on Lake Michigan; settled 1826, inc. 1892. A largely residential suburb north of Chicago, Evanston has businesses and manufactures goods such as books and published documents, paper, paint, chemicals, , IL and Avon Avon, former county, England Avon, former county, SW England, bordering the Severn estuary and the Bristol Channel. Created in 1974 from S Gloucestershire, Bristol, and N Somerset. , OH. 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, "While the fourth quarter was challenging for retailing in general, we were pleased with the rapid and effective response of our staff in producing earnings in line with revised expectations, and at record levels for both the quarter and year. These results represent growth in earnings per share over the past two years of 54%." Earnings guidance for the first quarter of fiscal 2001 continues to reflect the Company's belief that the overall rate of economic growth will remain soft. Earnings per share are estimated at $0.05, the same as in the first quarter of fiscal 2000. This estimate is predicated on the following major assumptions: -- Four new stores will open vs. six last year. -- Same-store sales up approximately 2.5% over last year. -- Total sales up approximately 18% to approximately $109 million. -- Gross profit rate at 33.7% compared to 34.5% last year, primarily due to the following: reduced leverage on occupancy costs from more moderate same-store sales estimates; a greater percentage of immature stores in our total base related to higher growth rates last year; the absorption of Easter clearance markdowns in the first quarter vs. the second quarter last year; and to a more competitive promotional climate anticipated in the first half of fiscal 2001. -- SG&A rate at approximately 31.1%, flat with last year, primarily reflecting continued investments in systems and distribution infrastructure to support expansion, as well as more moderate estimates on same-store sales growth. -- Pre-tax income at $1.9 million vs. $1.9 million in 2000, with estimated income tax rate of 39.0% in both years. -- Net income at approximately $1.2 million vs. $1.1 million last year, with an approximate 2% increase in weighted average shares outstanding, which yields earnings per share of $0.05. Regarding earnings estimates for fiscal year 2001, the Company's guidance remains consistent at $1.22 per share, an increase of 22% from fiscal 2000. This estimate is predicated on the following major assumptions: -- New store openings will be 23 vs. 24 last year. -- 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. growth is expected to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4.5% vs. 4.6% last year. -- Net sales will grow to approximately $584 million, a 19.7% increase on a 52-week basis compared to fiscal 2000. -- Gross profit rate is expected to remain flat at approximately 35.9%, as slight improvements in merchandise margin will be offset by higher occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy , fuel and transportation costs. -- SG&A rate is expected to be approximately 27.4% vs. 27.5% last year. -- Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income is expected to be approximately $44.0 million at a rate of 7.5% vs. $35.5 million at 7.2% in fiscal 2000. -- Net income is expected to rise to approximately $26.8 million, up 24% from fiscal 2000, with weighted average shares outstanding at approximately 22.0 million vs. 21.6 million last year. Cost Plus also announced today a realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of executive responsibilities, positioning the Company for the next phase of its growth. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and Higgins Higgins may refer to: People with the surname Higgins:
Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. since 1999, and Patricia Juckett, Vice President of Marketing since 1997, are now reporting to CEO Murray Dashe. Additionally, Gail Fuller, a nine year Cost Plus veteran, has returned to the Company as Vice President of Merchandising to guide the Company's efforts in trend merchandising. Gail, who reports to Mr. Higgins, played a key role in the development of the Company's current successful merchandising format and has enjoyed a retail career covering 26 years. Kathi The word Kathi
tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. Executive Vice President of Business Development, continuing to report to Mr. Dashe. She will devote her efforts to accelerating the development of new merchandise categories and businesses. The Company's fourth quarter earnings conference call is today, March 15, 2001 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 Company's current sell-side and buy-side investment professionals. Phone numbers for the call are (415) 537-1919 or (212) 346-7474. Callers are advised to dial in approximately 15 minutes prior to the scheduled start time. A telephonic replay will be available at (800) 633-8284, Access Code: 14169836, from 10:00 a.m. to 5:00 p.m. PST on Thursday Thursday: see week. , March 15. Investors may also access the live call or the replay over the internet at www.streetevents.com; www.aol.com America Online's Internet domain address. When sending e-mail to an AOL subscriber via the Internet, the aol.com is the last part of the address; for example: jjones@aol.com. ; www.fool.com; and www.wallstreetcity.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 living and entertaining products. As of March 15, 2001, the Company operated 130 stores in 19 states compared with 106 stores in 16 states at this time last year. The above statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated first quarter and fiscal 2001 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 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. ; changes in the competitive environment; interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in the flow of merchandise; increases in fuel and transportation costs; adjustments from the Company's fiscal year audit; store construction delays; changes in the anticipated opening of the Company's new distribution center in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). ; labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience fluctuations; unseasonable un·sea·son·a·ble adj. 1. Not suitable to or appropriate for the season. 2. Not characteristic of the time of year: unseasonable weather. 3. Poorly timed; inopportune. weather conditions and changes in accounting rules and other 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 data)
Fourth Quarter Ended
February 3, 2001
(Fourteen-week)
(Unaudited)
Net sales $206,745 100.0 %
Cost of sales and occupancy 128,341 62.1
Gross profit 78,404 37.9
Selling, general and
administrative expenses 46,263 22.4
Store preopening expenses 1,114 0.5
Income from operations 31,027 15.0
Net interest expense 195 0.1
Income before income taxes 30,832 14.9
Income taxes 12,025 5.8
Net income $ 18,807 9.1 %
Net income per share -- diluted $0.87
Weighted average shares outstanding
-- diluted 21,615
New stores opened 5
Fourth Quarter Ended
January 29, 2000
(Thirteen-week)
(Unaudited)
Net sales $167,513 100.0 %
Cost of sales and occupancy 102,016 60.9
Gross profit 65,497 39.1
Selling, general and
administrative expenses 35,841 21.4
Store preopening expenses 985 0.6
Income from operations 28,671 17.1
Net interest expense 160 0.1
Income before income taxes 28,511 17.0
Income taxes 11,119 6.6
Net income $ 17,392 10.4 %
Net income per share -- diluted $0.82
Weighted average shares outstanding
-- diluted 21,339
New stores opened 4
Fiscal Year Ended
February 3, 2001
(Fifty-three week)
Net sales $493,661 100.0 %
Cost of sales and occupancy 316,500 64.1
Gross profit 177,161 35.9
Selling, general and
administrative expenses 135,923 27.5
Store preopening expenses 5,044 1.0
Income from operations 36,194 7.3
Net interest expense 666 0.1
Income before income taxes 35,528 7.2
Income taxes 13,856 2.8
Net income $ 21,672 4.4 %
Net income per share -- diluted $1.00
Weighted average shares outstanding
-- diluted 21,568
New stores opened 24
Fiscal Year Ended
January 29, 2000
(Fifty-two week)
Net sales $402,292 100.0 %
Cost of sales and occupancy 255,383 63.5
Gross profit 146,909 36.5
Selling, general and
administrative expenses 110,108 27.4
Store preopening expenses 3,671 0.9
Income from operations 33,130 8.2
Net interest expense 859 0.2
Income before income taxes 32,271 8.0
Income taxes 12,586 3.1
Net income $ 19,685 4.9 %
Net income per share -- diluted $0.93
Weighted average shares outstanding
-- diluted 21,189
New stores opened 18
COST PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
February 3, January 29,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 38,815 $ 38,411
Merchandise inventories 109,829 91,402
Other current assets 11,107 5,654
Total current assets 159,751 135,467
Property and equipment, net 78,694 67,520
Other assets, net 14,420 11,712
Total assets $252,865 $214,699
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,592 $ 26,061
Income taxes payable 9,933 9,237
Accrued compensation 8,506 8,909
Other current liabilities 11,719 10,597
Total current liabilities 61,750 54,804
Capital lease obligations 13,474 14,416
Other long-term obligations 8,520 7,144
Shareholders' equity:
Common stock 210 205
Additional paid-in capital 122,349 113,240
Retained earnings 46,562 24,890
Total shareholders' equity 169,121 138,335
Total liabilities and shareholders'
equity $252,865 $214,699
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion