Cost-U-Less Reports Earnings of 11 Cents Per Share for Second Quarter.BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash. -- Cost-U-Less, Inc. (the "Company") (Nasdaq:CULS CULS Capital University Law School (Columbus, Ohio) ) today announced results for the second fiscal quarter ended July July: see month. 2, 2006 (Q2 2006). Highlights for Q2 2006 were as follows: --EPS of $0.11 on net income of $475,000 vs. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.12 on net income of $512,000 for the corresponding period a year ago (Q2 2005). --Operating Income of $915,000, equal to that of Q2 2005. --Sales of $53.6M vs. $52.3M for Q2 2005, a 2.4% increase. --Comparable store sales (stores open a full 13 months) increase of 2.8% over Q2 2005. An improvement in gross margin partially offset an increase in store operating and G&A expenses. Store expenses increased 4.9% for Q2 2006 over Q2 2005 due to several factors, over half of which related to higher utility costs. The increase in general and administrative expenses was largely due to an increase in health benefit costs. "We are pleased to maintain our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and profitability levels given the surge in energy costs over the last year," 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. . "This hits us on two fronts. The cost of running our business continues to escalate es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. , but our customers are facing the same increases, so their disposable income disposable income Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also is on the decline." 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 Hawaiian, member of the Polynesian group of the Austronesian family of languages. Of the fewer than 10,000 people who speak Hawaiian, only a few hundred are native speakers, but the language is taught in some Hawaiian schools and remains important as a symbol of 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 Guam (gwäm), Chamorro Guåhan, the largest, most populous, and southernmost of the Mariana Islands (see also Northern Mariana Islands, an unincorporated territory of the United States (2005 est. pop. (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 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. practices, sophisticated distribution capabilities, and superior customer service, primarily to island markets. Additional information about Cost-U-Less is available at www.costuless.com. Forward Looking Statements This press release contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . 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. Such statements, including comparable store sales expectations, trends in or expectations regarding the Company's revenue growth, and the Company's growth plans are all based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including that the Company may encounter substantial delays, increased expenses or loss of potential store sites due to the complexities, cultural differences, and local political issues associated with the regulatory and permitting processes in the island markets in which the Company may locate its stores. Prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. adverse occurrences affecting tourism or air travel, particularly to non-U.S. destinations, including political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability , armed hostilities, terrorism, natural disasters or other activity that involves or affects air travel or the tourism industry generally, could cause actual results to differ materially from historical results or those anticipated. Other risks and uncertainties include the Company's 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. ; the Company's 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
13 Weeks Ended 26 Weeks Ended
----------------------- -----------------------
July 2, June 26, July 2, June 26,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net sales $ 53,568 $ 52,295 $ 108,260 $ 105,534
Merchandise costs 43,515 42,597 88,008 86,262
---------- ---------- ---------- ----------
Gross profit 10,053 9,698 20,252 19,272
Operating expenses:
Store 7,319 6,978 14,535 13,705
General and
administrative 1,680 1,513 3,343 3,210
Store openings 139 233 153 264
Store closings 0 59 0 59
---------- ---------- ---------- ----------
Total operating expenses 9,138 8,783 18,031 17,238
---------- ---------- ---------- ----------
Operating income 915 915 2,221 2,034
Other income (expense):
Interest expense, net (107) (59) (213) (110)
Other (3) (34) (15) 82
---------- ---------- ---------- ----------
Income before income
taxes 805 822 1,993 2,006
Income tax provision 330 310 760 760
---------- ---------- ---------- ----------
Net income $ 475 $ 512 $ 1,233 $ 1,246
========== ========== ========== ==========
Earnings per common
share:
Basic $ 0.12 $ 0.13 $ 0.31 $ 0.32
========== ========== ========== ==========
Diluted $ 0.11 $ 0.12 $ 0.29 $ 0.30
========== ========== ========== ==========
Weighted average common
shares outstanding,
basic 4,021,173 3,981,856 4,009,506 3,886,453
========== ========== ========== ==========
Weighted average common
shares outstanding,
diluted 4,244,038 4,228,017 4,232,807 4,134,133
========== ========== ========== ==========
COST-U-LESS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
July 2, January 1,
2006 2006
-------- ----------
ASSETS
------
Current assets:
Cash and cash equivalents $ 4,031 $ 5,304
Accounts receivable, net 842 843
Inventories, net 24,565 23,027
Other current assets 1,615 1,136
-------- --------
Total current assets 31,053 30,310
Property and equipment, net 19,858 18,550
Deposits and other assets 713 772
-------- --------
Total assets $ 51,624 $ 49,632
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 15,164 $ 15,062
Accrued expenses and other liabilities 5,680 5,422
Line of credit 389 80
Current portion of long-term debt 267 267
Current portion of capital lease obligations 234 226
-------- --------
Total current liabilities 21,734 21,057
Other long-term liabilities 1,341 1,192
Long-term debt, less current portion 1,877 2,011
Capital lease obligations, less current portion 1,210 1,329
-------- --------
Total liabilities 26,162 25,589
Commitments and contingencies -- --
Shareholders' equity 25,462 24,043
-------- --------
Total liabilities and shareholders' equity $ 51,624 $ 49,632
======== ========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion