Creative Computers, Inc. announces record results for the first quarter of 1995.TORRANCE Torrance, industrial and residential city (1990 pop. 133,107), Los Angeles co., SW Calif.; inc. 1921. It has large aircraft and electronics industries. Among its many manufactures are aircraft, electronics, communications equipment, aluminum products, steel, and , Calif.--(BUSINESS WIRE)--May 1, 1995--Creative Computers, Inc. (NASDAQ/NMS: MALL), today announced record results for the quarter ended March 31, 1995. "We are extremely pleased with our first quarter results which come on the heels of our successful initial public offering," said Frank Khulusi, chairman and chief executive officer. The public offering was completed on April 4, 1995 and resulted in gross proceeds of over $35 million from the sale of 2.25 million shares of the Company's stock. 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 quarter ended March 31, 1995 increased by $66.0 million, or 299%, to $88.1 million from $22.1 million for the comparable quarter in 1994. Mail order/catalog sales for the quarter increased by $60.2 million, or over 500%, to $71.4 million from $11.2 million in the first quarter of 1994. Net income increased to $1.5 million for the quarter ended March 31, 1995, as compared to a net loss of ($0.3) million for the quarter ended March 31, 1994. Earnings per share were $0.22 per share for the first quarter of 1995 as compared to a loss of ($0.04) per share for the same period in 1994. "Sales in the first quarter remained strong across all product categories and increased by over $20 million from our prior record quarter ended December December: see month. 31, 1994," Khulusi said. "These results were achieved while we faced supply shortages in certain CPU CPU in full central processing unit Principal component of a digital computer, composed of a control unit, an instruction-decoding unit, and an arithmetic-logic unit. SKUs and while the Company also added infrastructure for our PC Mall catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. . For the quarter we also achieved our goal of increasing software sales, which increased by 14.3%." The major factors in achieving Creative's outstanding sales growth were an increase in the number of catalogs distributed in the quarter, an increase in the number of pages in each catalog, and the development of distinctive "wraps" for the Company's different segments. The Company's gross margin was 14.0% as compared to 13.2% for the comparable quarter in the prior year and 14.4% in the fourth quarter of 1994. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. inventory turnover for the quarter improved to 13.2 times as compared 10.5 times for the year ended December 31, 1994, and 11.7 times for the quarter ended December 31, 1994. Khulusi continued, "While we are pleased with the results for the first quarter and the strength of our core Mac business, I am proud to announce that our PC Mall catalog, focused on the DOS/Windows (1) Refers to a PC computer environment that uses DOS or Windows in contrast with Mac or Unix. (2) Refers specifically to a DOS and Windows 3.1 environment, in contrast with Windows 95/98, etc. market, is arriving at potential customers' homes and businesses this week. This is another important achievement for Creative Computers and its employees. Creative has been able to secure catalog relationships for PC Mall from major hardware vendors such as IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. and Packard Bell See Packard Bell NEC. ." Creative Computers is a leading direct marketer of personal computer hardware, software and peripheral Any input, output or storage device connected externally or internally to the computer's CPU, such as a monitor, keyboard, printer, disk, tape, graphics tablet, scanner, joy stick, paddle or mouse. products to users of Apple Macintosh Apple Macintosh - Macintosh and DOS/Windows personal computers. The Company offers over 10,000 products to its customers through its distinctive, full-color MacMall and PC Mall catalogs, and other promotional materials. The Company's staff of over 200 knowledgeable telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , customer service, and technical support personnel work together to provide a high level of customer service and gain customer loyalty. Customers may call MacMall telemarketing representatives at 800/222-2808 and PC Mall representatives at 800/555-MALL. -0-
Creative Computers, Inc.
Consolidated Statements of Income
(in thousands except per share data)
(unaudited)
For the three months ended
March 31, 1995 March 31, 1994
Net sales $ 88,065 $ 22,085 Cost of goods sold 75,758 19,169 Gross margin 12,307 2,916 Selling, general and administrative 9,610 3,249 Income from operations before interest and income taxes 2,697 (333) Interest expense 126 165 Income (loss) before income taxes 2,571 (498) Provision (benefit) for income taxes 1,035 (198) Net income $ 1,536 $ (300) Net income per share $ 0.22 $ (0.04) Weighted average number of shares outstanding 6,983 6,983
Creative Computers, Inc.
Consolidated Balance Sheets
(in thousands)
March 31, 1995 December 31, 1994
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 2,051 $ 3,348
Accounts receivable, net 8,199 5,727
Inventories 28,603 25,639
Prepaid expenses and other
current assets 2,550 1,236
Deferred income taxes 1,400 1,398
Total current assets 37,658 37,348
Property, plant and equipment, net 4,862 3,865
Related party note receivable 1,771 1,646
Other assets 120 83
-------- --------
$ 49,556 $ 42,942
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 32,226 $ 29,446
Accrued expenses 6,360 2,457
Line of credit 99 3,279
Income taxes payable 1,037 1,094
Capital leases -- current portion 417 350
Notes payable -- current portion 26 397
Notes payable -- related parties 0 164
Total current liabilities 40,013 37,187
Capital leases 1,151 1,146
Notes payable 978 732
Deferred income taxes 37 37
Subordinated debt 4,950 2,950
Total liabilities 47,129 42,052
Stockholders' equity:
Common stock 5 5
Additional paid in capital 52 52
Retained earnings 2,370 833
Total stockholders' equity 2,427 890
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$ 49,556 $ 42,942
CONTACT: Creative Computers, Inc. Grant Trexler, 310/787-4500 |
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