Cost Plus, Inc. Reports Record Second Quarter Earnings.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)--Aug. 22, 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 the second quarter ended August 3, 2002. Net income for the second quarter of fiscal 2002 was $2.2 million, a 42.8% increase over last year's $1.5 million. Earnings per fully 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 were $0.10 for the quarter compared with analysts' consensus estimate for the quarter of $0.08 and the prior year's earnings of $0.07. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. financial results also set a record for the Company with net income of $3.8 million or $0.17 per fully diluted share compared with net income of $2.7 million or $0.13 per fully diluted share in the prior fiscal year. During the second quarter of fiscal 2002, 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 increased 23.4% to $138.3 million from $112.1 million last year. 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 for the quarter increased 6.1%, compared to a 0.5% decrease in the prior year. Year-to-date, net sales were $272.7 million, a 21.2% increase from $225.0 million for the same period last year, with same store sales growing 5.0% on top of a 2.0% prior year 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, 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. and President, said, "More than two-thirds of our same store sales increase came from additional customer traffic validating val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. the refinements to our marketing strategy and the value orientation Noun 1. value orientation - the principles of right and wrong that are accepted by an individual or a social group; "the Puritan ethic"; "a person with old-fashioned values" ethic, moral principle, value-system of our product offering. Our home furnishing categories continued their strong performance providing added margin and contributing to record net income. We have successfully transitioned our stores for the fall season and have continued to see increases in customer traffic and sales, thus far in the third quarter. In view of these results we are raising our earnings guidance for the full fiscal year from $1.13 per share to $1.18 per share." The Company's guidance for the third quarter and fiscal year is subject to the potential resolution of the pending wage-hour 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. . The Company is currently in settlement discussions which, if successfully concluded, may result in a material non-recurring charge to earnings in the period in which settlement occurs. A more complete description of this matter is contained in the Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. report filed with the Securities Exchange Commission on May 1, 2002. Guidance for the third quarter of fiscal 2002 is at a $0.02 loss 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 5.2% versus 0.3% last year. -- Net sales will grow to approximately $681 million, a 19.9% 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 $42.6 million versus $33.1 million in fiscal 2001. -- Effective tax rate at 38% versus 39% in the prior year. -- Net income is expected to rise to approximately $26.4 million, up 30.8% 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 $1.13 per fully diluted share to $1.18 per share, an increase of 27% 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 5.2% versus 0.3% last year. -- Net sales will grow to approximately $681 million, a 19.9% 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 $42.6 million versus $33.1 million in fiscal 2001. -- Effective tax rate at 38% versus 39% in the prior year. -- Net income is expected to rise to approximately $26.4 million, up 30.8% from fiscal 2001, with weighted average shares outstanding at approximately 22.4 million versus 21.8 million last year. During the quarter, the Company opened seven stores, one each in Woodbury Woodbury. 1 Residential city (1990 pop. 10,904), seat of Gloucester co., SW N.J., in the Philadelphia–Camden metropolitan area; settled 1683, inc. as a city 1871. It is a trade and service center, and petrochemical companies are nearby. , MN; Bloomington Bloomington. 1 City (1990 pop. 51,972), seat of McLean co., central Ill.; inc. 1839. The economy is based on farming; electrical equipment is also manufactured. , MN; Minnetonka Minnetonka (mĭnĭtŏng`kə), city (1990 pop. 48,370), Hennepin co., SE Minn., a residential suburb of Minneapolis, near Lake Minnetonka; inc. 1956. There is diversified manufacturing. , MN; Des Moines Des Moines, city, United States Des Moines (dĭ moin`), city (1990 pop. 193,187), state capital and seat of Polk co., S central Iowa, at the junction of the Des Moines and Raccoon rivers; inc. , IA; Appleton Appleton, city (1990 pop. 65,695), seat of Outagamie co., E Wis., on the Fox River near its exit from the northern end of Lake Winnebago, in a dairying and stockraising region; inc. 1857. , WI; Englewood, CO and Turtle Creek Turtle Creek may refer to: Streams
The Company's second quarter earnings conference call will be today, August 22, 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 numbers for the call are (415) 537-1906 or (212) 896-6099. 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: 20732405, from 10:00 a.m. to 10:00 p.m. PST, on Thursday, August 22, 2002. 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 60 minutes after the live call concludes. Cost Plus, Inc. is a leading specialty retailer of casual home living and entertaining products. As of August 22, 2002, the Company operated 165 stores in 22 states, compared to 139 stores in 19 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 third 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: a material unfavorable outcome with respect to litigation, claims and assessments against the Company including the litigation previously mentioned; 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. ; timely introduction and acceptance of the Company's merchandise offering; changes in the competitive environment; foreign and domestic 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; interruptions in the flow of merchandise including those associated with possible labor disruptions at U.S. West Coast ports of entry; increases in fuel and transportation costs; 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. ; 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; store construction delays 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)
Second Quarter Ended
August 3, 2002 August 4, 2001
Net sales $ 138,339 100.0% $ 112,101 100.0%
Cost of sales and
occupancy 91,244 66.0 74,759 66.7
Gross profit 47,095 34.0 37,342 33.3
Selling, general and
administrative
expenses 41,492 30.0 33,736 30.1
Store preopening
expenses 1,336 0.9 945 0.8
Income from operations 4,267 3.1 2,661 2.4
Net interest expense 837 0.6 188 0.2
Income before income
taxes 3,430 2.5 2,473 2.2
Income taxes 1,275 0.9 964 0.9
Net income $ 2,155 1.6% $ 1,509 1.3%
Net income per share
-- diluted $ 0.10 $ 0.07
Weighted average
shares outstanding
-- diluted 22,231 21,907
New stores opened 7 5
Six-Month Periods Ended
August 3, 2002 August 4, 2001
Net sales $ 272,688 100.0% $ 225,016 100.0%
Cost of sales and
occupancy 179,893 66.0 150,413 66.8
Gross profit 92,795 34.0 74,603 33.2
Selling, general and
administrative
expenses 82,226 30.1 67,910 30.2
Store preopening
expenses 2,869 1.1 2,011 0.9
Income from operations 7,700 2.8 4,682 2.1
Net interest expense 1,520 0.5 187 0.1
Income before income
taxes 6,180 2.3 4,495 2.0
Income taxes 2,348 0.9 1,753 0.8
Net income $ 3,832 1.4% $ 2,742 1.2%
Net income per share
-- diluted $ 0.17 $ 0.13
Weighted average
shares outstanding
-- diluted 22,142 21,751
New stores opened 14 10
COST PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
August 3, 2002 August 4, 2001
ASSETS
Current assets:
Cash and cash equivalents $ 8,010 $ 14,669
Merchandise inventories 157,209 120,383
Other current assets 16,563 12,997
Total current assets 181,782 148,049
Property and equipment, net 116,692 84,199
Goodwill 4,178 4,259
Other assets 8,996 10,018
Total assets $311,648 $246,525
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 35,112 $ 27,598
Accrued compensation 7,173 5,670
Other current liabilities 15,332 11,817
Total current liabilities 57,617 45,085
Capital lease obligations 37,163 13,263
Other long-term obligations 10,599 9,057
Shareholders' equity:
Common stock 217 214
Additional paid-in capital 135,456 129,602
Retained earnings 70,596 49,304
Total shareholders' equity 206,269 179,120
Total liabilities and
shareholders' equity $311,648 $246,525
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion