Cost-U-Less Reports Increase in Profitability for First Quarter.Business Editors PRESTON Preston, city (1991 pop. 166,675) and district, Lancashire, N England, on the Ribble River. Preston has an active port and is a center of cotton and rayon manufacturing. , Wash.--(BUSINESS WIRE)--April 29, 2003 Cost-U-Less, Inc. (the "Company") (Nasdaq:CULS CULS Capital University Law School (Columbus, Ohio) ) today reported net income of $226,000, or $0.06 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 first quarter ended March 30, 2003, compared to net income of $72,000, or $0.02 per fully diluted share outstanding, for the corresponding quarter last year. 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. increased to $446,000 for the first quarter ended March 30, 2003, compared to $153,000 for the corresponding quarter 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 (stores open a full 13 months), rose 4.6% for Q1 2003 compared to the same quarter a year ago. Total sales for the quarter decreased 5.9% to $42.3 million compared to $45.0 million for the same period a year ago due primarily to the temporary closure of the Company's Dededo store in 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. . As previously reported by the Company, this store suffered substantial damage from Supertyphoon Pongsona that struck the island of Guam on December December: see month. 8, 2002. The Company is in the process of working with the landlord to rebuild the store and believes it will be ready to reopen re·o·pen tr. & intr.v. re·o·pened, re·o·pen·ing, re·o·pens 1. To open or be opened again: Officials reopened the airport after the snow was cleared. Schools reopen in September. in late 2003. "The momentum of the last quarter of 2002 continued into Q1 2003. Not only have we notched our fifth consecutive quarter of comparable sales increases but we have done so without giving up gross margin," said J. Jeffrey Meder the Company's President and Chief Executive Officer. "We have been able to carry the improvement in margin experienced in the second half of last year into the first quarter of 2003. Our first quarter bottom line, historically a weak quarter, was our best Q1 in three years." Gross margin rose 1.4 points to 17.4% of sales as compared to 16.0% for the same period a year ago due to improvements in 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. and store operations. As previously reported on April 10, 2003, the Company established a $6 million working capital line of credit with Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Business Credit, Inc., a subsidiary of Wells Fargo & Co. The term of the facility is for three years and replaced its line of credit facility with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. . Excluding its Dededo store in Guam, Cost-U-Less currently operates ten 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 (1), 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 Forward Looking Statements 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 first 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 instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor 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
March 30, March 31,
2003 2002
---- ----
Net sales $42,334 $44,998
Merchandise costs 34,966 37,799
--------- ---------
Gross profit 7,368 7,199
Operating expenses:
Store 5,297 5,488
General and administrative 1,597 1,548
Store openings 28 10
--------- ---------
Total operating expenses 6,922 7,046
--------- ---------
Operating income 446 153
Other income (expense):
Interest expense, net (93) (94)
Other 23 58
--------- ---------
Income before income taxes 376 117
Income tax provision 150 45
--------- ---------
Net income $226 $72
========= =========
Earnings per common share:
Basic $0.06 $0.02
========= =========
Diluted $0.06 $0.02
========= =========
Weighted average common shares
outstanding, basic 3,606,376 3,606,376
========= =========
Weighted average common shares
outstanding, diluted 3,613,792 3,608,512
========= =========
COST-U-LESS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
March 30, December 29,
2003 2002
---- ----
ASSETS
------
Current assets:
Cash and cash equivalents $2,020 $2,383
Insurance receivable 759 1,460
Accounts receivable, net 1,758 2,517
Inventories, net 19,764 18,626
Other current assets 1,398 911
-------- --------
Total current assets 25,699 25,897
Property and equipment, net 13,245 13,510
Deposits and other assets 745 783
-------- --------
Total assets $39,689 $40,190
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Line of credit $3,628 $2,367
Accounts payable 13,745 15,449
Accrued expenses and other liabilities 2,958 3,107
Current portion of long-term debt 267 267
-------- --------
Total current liabilities 20,598 21,190
Other long-term liabilities 580 594
Long-term debt, less current portion 2,744 2 ,811
-------- --------
Total liabilities 23,922 24,595
Shareholders' equity: 15,767 15,595
-------- --------
Total liabilities and shareholders'
equity $39,689 $40,190
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