Cost Plus, Inc. Reports Third Quarter Earnings and Provides Fourth Quarter Earnings Guidance.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. -- Cost Plus, Inc. (Nasdaq:CPWM CPWM Certified Public Works Manager (New Jersey state license) CPWM Controlled Pulsewidth Modulation ) announced today net income for the third quarter of fiscal 2004 of $0.4 million versus $0.9 million for the third quarter of fiscal 2003. 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 were $0.02 for the quarter compared to $0.04 last year. Earnings were in line with prior guidance issued on November November: see month. 4, 2004. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. financial results set a record with net income of $7.0 million or $0.31 per diluted share compared with net income of $6.3 million or $0.28 per diluted share last year. For the third quarter, 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 12.0% to $190.4 million from $170.0 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 increased 0.5% on top of a 1.2% increase last year. Year-to-date, net sales were $565.6 million, a 15.7% increase from $489.0 million for the same period last year, with same store sales growing 2.3% on top of a 2.5% prior year increase. Nine new stores were opened during the quarter, as planned. The Company also reported today that the eight new stores planned for the fourth quarter were opened by November 18, 2004, making a net total of 33 new stores opened in fiscal 2004. 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: "Although customer traffic was inconsistent during the third quarter, we saw a marked improvement in traffic trends in the last two weeks of October October: see month. . We are confident that our assortments are now ready for the Holiday rush, and if traffic now remains consistent, we are comfortable that we should achieve the current earnings consensus for the fourth fiscal quarter of $1.32 per fully diluted share." Under its common stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, in the third fiscal quarter the Company repurchased 150,000 shares of common stock for a total cost of $4.8 million, bringing the year-to-date purchases to 425,500 shares at a total cost of $14.9 million. On November 18, 2004 the Company's Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of an additional 1 million shares under the program leaving a total of 1,074,500 shares available for repurchase. The program does not require the Company to repurchase any shares and the program can be discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: at any time. Earnings guidance for the fourth quarter of fiscal 2004 is at $1.32 per diluted share and is predicated on the following major assumptions: --Opening of eight new stores versus ten in the fourth quarter last year. One new store opening in last year's fourth quarter was a replacement for a store that closed. --Same-store sales up approximately 2.5% on top of a 3.1% increase in the prior year. --Total sales up approximately 14% to $356 million. --Gross profit rate at approximately 36.3%, the same as in the prior year, primarily due to improved merchandise margins offset by higher fuel and occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal . --SG&A rate at approximately 22.3% versus 22.1% last year with the current year increase due almost entirely to professional fees associated with the documentation and testing of internal controls under Sarbanes-Oxley. --Pre-tax income at approximately $47 million versus $42 million in the fourth quarter of 2003. --An effective income tax rate of 38% in the current year vs. 36% in the prior year. --Net income of approximately $29 million versus $27 million last year. --Estimated earnings per diluted share of $1.32 versus $1.18 last year, with weighted average diluted shares outstanding of 22.4 million versus 22.6 million last year. Earnings guidance for the full fiscal year is at $1.63 per share with weighted average shares outstanding of 22.4 million. The Company's third quarter earnings conference call will be today, November 19, 2004, 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 415-357-1950 or 212-231-6029. 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: 21211573, from 10:00 a.m. PST Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant to 10:00 a.m. PST on Monday, November 22. Investors may also access the live call or the replay over the internet at www.streetevents.com, www.fulldisclosure.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 November 19, 2004, the Company operated 237 stores in 30 states, compared to 204 stores in 26 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 fourth quarter and full year 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. " that are based on current expectations and are subject to various risks and uncertainties, that could cause actual results to differ materially from those forecasted. Such risk factors include, but are not limited to: changes in economic conditions or international conflicts 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. ; the potential effect of adverse weather on Holiday shopping; 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)
Third Quarter
October 30, 2004 November 1, 2003
Net sales $190,416 100.0% $170,019 100.0%
Cost of sales and occupancy 128,309 67.4 113,061 66.5
Gross profit 62,107 32.6 56,958 33.5
Selling, general and
administrative expenses 59,292 31.1 53,067 31.2
Store preopening expenses 1,543 0.8 1,567 0.9
Income from operations 1,272 0.7 2,324 1.4
Net interest expense 677 0.4 962 0.6
Income before income taxes 595 0.3 1,362 0.8
Income taxes 226 0.1 504 0.3
Net income $ 369 0.2% $ 858 0.5%
Net income per share - diluted $ 0.02 $ 0.04
Weighted average shares
outstanding- diluted 22,276 22,537
New stores opened 9 8
For the Nine Months Ended
October 30, 2004 November 1, 2003
Net sales $565,619 100.0% $488,997 100.0%
Cost of sales and occupancy 377,168 66.7 322,678 66.0
Gross profit 188,451 33.3 166,319 34.0
Selling, general and
administrative expenses 170,035 30.1 150,148 30.7
Store preopening expenses 4,792 0.8 3,834 0.8
Income from operations 13,624 2.4 12,337 2.5
Net interest expense 2,258 0.4 2,346 0.5
Income before income taxes 11,366 2.0 9,991 2.0
Income taxes 4,319 0.8 3,697 0.7
Net income $ 7,047 1.2% $ 6,294 1.3%
Net income per share - diluted $ 0.31 $ 0.28
Weighted average shares
outstanding- diluted 22,380 22,228
New stores opened 26 21
COST PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
October 30, 2004 November 1, 2003
ASSETS
Current assets:
Cash and cash equivalents $ 4,549 $ 3,705
Merchandise inventories 282,994 250,244
Other current assets 23,758 22,914
Total current assets 311,301 276,863
Property and equipment, net 149,699 123,408
Goodwill 4,178 4,178
Other assets 6,477 8,901
Total assets $471,655 $413,350
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 69,163 $ 59,885
Income taxes payable -- 157
Accrued compensation 7,384 9,255
Line of Credit 32,500 35,900
Notes payable 1,601 --
Other current liabilities 20,919 18,347
Total current liabilities 131,567 123,544
Capital lease obligations 15,580 36,632
Notes payable 37,925 --
Other long-term obligations 18,470 14,127
Shareholders' equity:
Common stock 218 218
Additional paid-in capital 156,015 147,074
Retained earnings 113,245 91,755
Other comprehensive income (1,365) --
Total shareholders' equity 268,113 239,047
Total liabilities and
shareholders' equity $471,655 $413,350
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion