Cost-U-Less Reports Earnings of 12 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 June June: see month. 26, 2005. Highlights for the second fiscal quarter ended June 26, 2005, were as follows: --EPS of $0.12, compared to 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 $0.16 for Q2 2004. --Sales of $52.3M, a 2.9% increase over Q2 2004. --Comparable store sales (stores open a full 13 months), an increase of 4.9% over Q2 2004. For the second fiscal quarter of 2005 the Company reported net income of $512,000, or $0.12 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, compared to net income of $637,000, or $0.16 per fully diluted share outstanding, for the corresponding period last year. The decrease in net income resulted primarily from the opening and closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, associated with the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the Company's store in St. Croix Croix (French for "Cross") is the name or part of the name of several communes in France:
"In the long term, we believe the relocation of our St. Croix store to be very beneficial for us," 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. . "The new store has experienced a very promising start in its first two months of business, attracting many new customers from the east end of the island." As previously reported, the Company relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. its St. Croix store from the west end of the island to a location close to the main trade area in the center of the island. The size of the new store is 38,000 square feet, a 45% increase in square footage over the previous store. The new store opened for business on May 26, 2005. Also as previously reported, total sales for the fiscal quarter ended June 26, 2005, increased 2.9%, to $52.3 million, compared to $50.8 million for the same period a year ago. For the second fiscal quarter 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 rose 4.9%, compared to 15.3% for the corresponding period a year ago. Meder added, "We believe that this quarter's comparable sales on top of the prior-year quarterly comparable sales demonstrate continued support of our model in the markets we serve. We are challenged by the increasing cost of energy, which impacts shipping and store utility expenses, while we continue to be diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d in our competitive pricing." Store expenses increased 8.9% for the second fiscal quarter of 2005 over the same period a year ago due to several factors, most notably higher utility expenses as a result of higher energy prices, and higher payroll expenses which remained constant as a percentage of store sales. On July 8, 2005, the Company announced that it was granted approval from the Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. Trade and Business Licensing Board to operate a retail and wholesale business through a controlled subsidiary organized in the Cayman Islands. This is the first in a series of steps that must be taken before a store operating under the Cost-U-Less name could be opened in the Cayman Islands. 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 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 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. 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. 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
-------------- --------------
June 26, June 27, June 26, June 27,
2005 2004 2005 2004
---- ---- ---- ----
Net sales $ 52,295 $ 50,813 $ 105,534 $ 100,891
Merchandise costs 42,597 41,460 86,262 82,472
---------- ---------- ---------- ----------
Gross profit 9,698 9,353 19,272 18,419
Operating expenses:
Store 6,978 6,405 13,705 12,700
General and
administrative 1,513 1,721 3,210 3,466
Store openings 233 39 264 79
Store closings 59 -- 59 --
---------- ---------- ---------- ----------
Total operating expenses 8,783 8,165 17,238 16,245
---------- ---------- ---------- ----------
Operating income 915 1,188 2,034 2,174
Other income (expense):
Interest expense, net (59) (98) (110) (224)
Other (34) (28) 82 (1)
---------- ---------- ---------- ----------
Income before income taxes 822 1,062 2,006 1,949
Income tax provision 310 425 760 775
---------- ---------- ---------- ----------
Net income $ 512 $ 637 $ 1,246 $ 1,174
========== ========== ========== ==========
Earnings per common share:
Basic $ 0.13 $ 0.17 $ 0.32 $ 0.32
========== ========== ========== ==========
Diluted $ 0.12 $ 0.16 $ 0.30 $ 0.30
========== ========== ========== ==========
Weighted average common
shares outstanding, basic 3,981,856 3,737,737 3,886,453 3,719,730
========== ========== ========== ==========
Weighted average common
shares outstanding,
diluted 4,228,017 3,984,114 4,134,133 3,893,366
========== ========== ========== ==========
COST-U-LESS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 26, December 26,
2005 2004
---- ----
ASSETS
------
Current assets:
Cash and cash equivalents $ 4,144 $ 6,081
Accounts receivable, net 1,665 805
Inventories, net 23,745 23,140
Other current assets 1,515 1,053
-------- --------
Total current assets 31,069 31,079
Buildings and equipment, net 18,163 14,345
Deposits and other assets 772 778
-------- --------
Total assets $50,004 $46,202
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $15,578 $16,132
Accrued expenses and other liabilities 4,717 5,964
Line of Credit 2,873 --
Current portion of long-term debt 267 267
Current portion of capital lease 163 102
-------- --------
Total current liabilities 23,598 22,465
Other long-term liabilities 994 920
Long-term debt, less current portion 2,144 2,277
Capital lease, less current portion 996 607
-------- --------
Total liabilities 27,732 26,269
Commitments and contingencies -- --
Shareholders' equity 22,272 19,933
-------- --------
Total liabilities and shareholders'
equity $50,004 $46,202
======== ========
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