Cost Plus, Inc. Reports Third Quarter Results; Operating Income Before Pre-opening Up 34%.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)--Nov. 14, 2000 Cost Plus, Inc. (Nasdaq:CPWM CPWM Certified Public Works Manager (New Jersey state license) CPWM Controlled Pulsewidth Modulation ) announced today its profits for the third fiscal quarter ended October October: see month. 28, 2000. For the quarter, the Company's operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before pre-opening expense was up 34.3% to $2.7 million on a sales increase of 23.0% over 1999. Net income in the third quarter was $283,000 compared to net income of $478,000 in the third quarter of last year. The lower amount was due entirely to the absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. of an additional $1.0 million in pre-opening expense associated with opening 9 new stores in the quarter vs. 5 last year and 8 planned. Earnings per share were $0.01 for the third quarter compared to $0.02 in the prior year, and were consistent with consensus estimates. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , the Company produced net income of $2.9 million, an increase of 24.9% compared to $2.3 million for the first three quarters of fiscal 1999. Earnings per share on a year-to-date basis were $0.13 in fiscal 2000 compared to $0.11 last year. 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 third quarter increased 23.0% to $101.9 million from $82.8 million in the third quarter of fiscal 1999. 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 5.6% on top of an 8.2% increase last year. Year-to-date, net sales were $286.9 million, a 22.2% increase from $234.8 million for the same period last year, with same store sales increasing 6.4% on top of a 9.0% increase in fiscal 1999. Year-to-date through the third quarter, the Company had opened a total of 19 new stores compared to 14 in the prior fiscal year. In early November November: see month. , the remaining five stores of fiscal 2000 were opened ahead of schedule, bringing total new stores this fiscal year to 24, compared to 18 new stores opened in fiscal 1999. As of the date of this release, the Company had 127 stores in operation compared to 103 stores at the same time last year. 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, "Operating income growth in the third quarter was strong. We were able to offset additional pressures on gross profit from 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 with continued prudent leverage of our 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. . Additionally, inventory levels came in right on plan for the quarter and are in excellent shape going into our important holiday season. Finally, the earlier openings of all of our fourth quarter stores now allow us to concentrate our efforts on driving sales during Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). ." Consistent with the new requirements of Regulation FD regarding future earnings estimates, the Company is now providing such guidance in conjunction with its quarterly earnings press releases. Current guidance for the fourth quarter of fiscal 2000 remains at $1.01 per share. This estimate is predicated on the following major assumptions:
-- Same-store sales up approximately 5% over last year.
-- Total sales up approximately 28%, of which approximately 5% is due
to the inclusion of a 53rd week in this fiscal year.
-- Five new stores opened vs. four last year.
-- Gross profit rate slightly lower than last year due to the
increases in fuel and freight costs the Company is currently
experiencing.
-- SG&A rate slightly higher than last year due to the inclusion of
expenses related to the 53rd week, which is a low sales volume
week with higher operating expense rates.
-- Net earnings anticipated to grow approximately 27% vs. last year,
with an approximate 3% increase in outstanding shares, yielding an
approximate growth in EPS of 24%.
-- These estimates for the fourth quarter will put the Company's
fiscal year 2000 EPS at $1.15 vs. $0.93 in fiscal 1999, for an
approximate growth rate of 24%.
-- Total sales growth rate for fiscal year 2000 at 25% vs. last year,
with a same-store sales increase above 5%, marking the tenth
consecutive year the Company will have produced same-store sales
results in excess of 5%.
Regarding earnings estimates for fiscal 2001, the Company's
current guidance is $1.38 per share, an increase of 20% from fiscal
2000. This estimate is predicated on the following major assumptions:
-- Same-store sales up approximately 5% versus the prior year (fiscal
2000).
-- Total sales up approximately 22% vs. the prior year, which
included a 53rd week.
-- Thirty new stores to open vs. 24 in the prior year.
-- Gross profit rate slightly lower than prior year due to increased
occupancy costs from higher new store opening rates in 2000 and
2001, some expected continued increases in fuel costs, and to the
absorption of initial costs related to the Company's new Virginia
distribution center scheduled to open in mid 2002.
-- SG&A rate slightly improved due to continued leverage of store
payroll, advertising and corporate overhead expenses.
-- Net earnings for fiscal 2001 anticipated to grow approximately 22%
vs. the prior year, with a 2% growth in outstanding shares,
yielding an approximate growth in EPS of 20%.
The Company's third quarter earnings conference call is today, November 14, 2000 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15 minutes prior to the scheduled start time. A telephonic replay will be available at 800/633-8284, Access Code: 14169836, from 11:00 a.m. to 5:00 p.m. PST on Tuesday Tuesday: see week. , November 14. 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 the third quarter ended October 28, 2000, the Company operated 122 stores in 19 states compared to 99 stores in 16 states as of October 30, 1999. This press release contains 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. regarding Cost Plus' earnings performance for the fourth quarter of fiscal 2000 and fiscal year 2001. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in these statements. Examples of such risk factors include, but are not limited to, the following: increases in transportation and fuel costs; changes in economic and competitive conditions; merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain and real estate site availability; 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; changes in regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environments; changes in the number and timing of store openings; 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). ; and potential adjustments in connection with the Company's fiscal 2000 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. audit. A more complete listing of risk factors is included in Company documents on file with the Securities and Exchange Commission.
COST PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts, unaudited)
Third Quarter Ended
October 28, 2000 October 30, 1999
Net sales $101,913 100.0% $82,834 100.0%
Cost of sales and occupancy 66,580 65.3 53,826 65.0
Gross profit 35,333 34.7 29,008 35.0
Selling, general and
administrative expenses 32,630 32.0 26,995 32.6
Store preopening expenses 1,896 1.9 906 1.1
Income from operations 807 0.8 1,107 1.3
Net interest expense 344 0.3 323 0.4
Income before income taxes 463 0.5 784 0.9
Income taxes 180 0.2 306 0.3
Net income $283 0.3 $478 0.6
Net income per share-diluted $0.01 $0.02
Weighted average shares
outstanding-diluted 21,711 21,314
New stores opened 9 5
Nine Periods Ended
October 28, 2000 October 30, 1999
Net sales $286,916 100.0% $234,779 100.0%
Cost of sales and occupancy 188,159 65.6 153,367 65.3
Gross profit 98,757 34.4 81,412 34.7
Selling, general and
administrative expenses 89,660 31.2 74,267 31.7
Store preopening expenses 3,930 1.4 2,686 1.1
Income from operations 5,167 1.8 4,459 1.9
Net interest expense 471 0.2 699 0.3
Income before income taxes 4,696 1.6 3,760 1.6
Income taxes 1,831 0.6 1,467 0.6
Net income $2,865 1.0 $2,293 1.0
Net income per share-diluted $0.13 $0.11
Weighted average shares
outstanding-diluted 21,551 21,130
New stores opened 19 14
COST PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
October 28, October 30,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $1,210 $7,507
Merchandise inventories 137,493 111,369
Other current assets 11,927 7,916
Total current assets 150,630 126,792
Property and equipment, net 74,400 63,364
Other assets 12,026 9,810
Total assets $237,056 $199,966
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $35,606 $34,288
Accrued compensation 8,680 8,304
Revolving line of credit 8,400 5,300
Other current liabilities 12,710 11,497
Total current liabilities 65,396 59,389
Capital lease obligations 13,566 14,597
Other long-term obligations 8,249 6,954
Shareholders' equity:
Common stock 210 205
Additional paid-in capital 121,880 111,323
Retained earnings 27,755 7,498
Total shareholders' equity 149,845 119,026
Total liabilities and shareholders' equity $237,056 $199,966
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion