Cost-U-Less Profitability Continues in Third Quarter.Business Editors PRESTON, Wash.--(BUSINESS WIRE)--Oct.30, 2001 Cost-U-Less, Inc. (the "Company") (Nasdaq:CULS CULS Capital University Law School (Columbus, Ohio) ) today reported a net income of $136,000, or $0.04 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 outstanding, for the quarter ended September 30, 2001, compared to net income of $396,000 or $0.11 per fully diluted share outstanding, for the corresponding quarter last year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
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 declined 5.7% for the third quarter of fiscal 2001 compared to the same quarter a year ago. However, gross margin on sales rose to 16.7% for fiscal Q3 2001 from 16.3% in fiscal Q3 2000, and from 15.8% from the prior quarter, Q2 2001. "In light of the weak economic climates in the markets in which we do business, weaker than even our domestic economy is today, we are pleased with our level of sales and profits. We believe this compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the retail trend of those markets," said J. Jeffrey Meder, the Company's 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. . "Moreover, we are very encouraged by the improvement in our gross margins, both over Q3 of 2000 and the prior quarter, Q2 of 2001. We believe we are beginning to realize the benefits of improvements in operations and merchandising merchandising 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. in each of our stores." The Company also announced that subsequent to quarter end it has entered into a settlement agreement with its remaining New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. landlord. The settlement was for amounts consistent with those reserved for by the Company in June 2000 when it closed its two stores in the New Zealand market. Cost-U-Less currently operates eleven stores in the Caribbean and Pacific region: U.S. Virgin Islands (2), Netherlands Antilles Netherlands Antilles, island group, an autonomous part of the Netherlands (2005 est. pop. 220,000), 371 sq mi (961 sq km), West Indies. Formerly known as the Dutch West Indies and Netherlands West Indies, they are divided into two groups. (2), Hawaiian Islands (2), California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). (1), Guam (2), American Samoa American Samoa, officially Territory of American Samoa, unincorporated territory of the United States (2000 pop. 57,291), comprising the eastern half of the Samoa island chain in the South Pacific. (1), and Republic of Fiji (1). The Company builds its business through delivering high-quality U.S. and local goods, progressive merchandising practices, sophisticated distribution capabilities, and superior customer service, primarily to island markets. Additional information about Cost-U-Less is available at www.costuless.com This press release contains statements that are forward-looking. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. These factors include, without limitation; future market opportunities for existing and planned products and services; our small store base; the mix of geographic and product revenues; relationships with third parties; 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. ; our ability to maintain existing credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and obtain additional credit; business and economic conditions and growth in various geographic regions; pricing pressures; political and regulatory instability in various geographic regions; and other risks and uncertainties detailed in the Company's filings with the SEC.
COST-U-LESS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
13 Weeks Ended 39 Weeks Ended
-------------- --------------
Sept. 30, Sept. 24, Sept. 30, Sept. 24,
2001 2000 2001 2000
---- ---- ---- ----
Net sales $ 42,828 $ 45,238 $ 131,189 $ 133,913
Merchandise costs 35,659 37,876 109,934 113,619
---------- ---------- ---------- ----------
Gross profit 7,169 7,362 21,255 20,294
Operating expenses:
Store 5,321 5,420 15,777 16,005
General and
administrative 1,382 1,182 4,254 5,043
Store openings 10 27 44 597
Store closings 0 0 (3) 3,372
---------- ---------- ---------- ----------
Total operating expenses 6,713 6,629 20,072 25,017
---------- ---------- ---------- ----------
Operating income (loss) 456 733 1,183 (4,723)
Other income (expense):
Interest expense, net (134) (210) (474) (499)
Other (11) (22) (32) (82)
---------- ---------- ---------- ----------
Income (loss) before
income taxes 311 501 677 (5,304)
Income tax provision 175 105 360 105
---------- ---------- ---------- ----------
Net income (loss) $ 136 $ 396 $ 317 $ (5,409)
========== ========== ========== ==========
Earnings (loss) per
common share:
Basic $ 0.04 $ 0.11 $ 0.09 $ (1.50)
========== ========== ========== ==========
Diluted $ 0.04 $ 0.11 $ 0.09 $ (1.50)
========== ========== ========== ==========
Weighted average
common shares
outstanding, basic 3,606,376 3,606,376 3,606,376 3,597,555
========== ========== ========== ==========
Weighted average
common shares
outstanding, diluted 3,614,986 3,609,102 3,612,839 3,597,555
========== ========== ========== ==========
Note: For the 39 weeks ended September 24, 2000, common stock
equivalents have been excluded from the calculation, as their impact
would be anti-dilutive.
Balance Sheet Information: (in thousands)
September 30, 2001 December 31, 2000
Merchandise Inventory $19,966 $18,001
Bank Line of Credit 3,500 2,700
Long-term Debt 3,410 3,611
Equity 15,199 14,888
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion