Creative Computers reports record second quarter and first half results.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)--July 24, 1995--Creative Computers Inc. ("Creative") (Nasdaq:MALL) today announced record net income of $1.88 million for the quarter ended June June: see month. 30, 1995. "We are extremely satisfied with our second quarter results," said Frank Khulusi, chairman and chief executive officer. 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 June 30, 1995 reached $82.7 million, a 186% increase over net sales of $28.9 million for the comparable quarter in 1994. Mail order/catalog net sales reflected an even greater increase of $269% from $18.5 million in the second quarter last year to $68.2 million for the second quarter of 1995. Net income grew by $2.33 million, increasing from a net loss of ($453,000) for the quarter ended June 30, 1994, to $1.88 million for the quarter ended June 30, 1995. Net income of $0.20 per share for the second quarter of 1995, compared with a loss of ($0.07) per share in the second quarter of 1994, while shares outstanding increased from 6.98 million to 9.3 million as a result of Creative's initial public offering completed on April 3, 1995. "During the quarter we met our goals of improving our gross margin, increasing our corporate sales and software sales, and improving the leverage in our selling, general and administrative expenses," Khulusi said. "We are also pleased with the successful launch of 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. in May." For the first six months of 1995, net sales increased 235% from $51.0 million in the first six months of 1994, to $170.8 million. Net income was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.4 million, or $0.42 per share, compared with a net loss of approximately ($735,000) or ($0.11) per share during the same period in 1994. "Our outstanding sales for the first six months are the result of a well executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. catalog circulation plan," explained Khulusi. Approximately 12.9 million catalogs were mailed during the period ended June 30, 1995, including 3.75 million just prior to the end of the current quarter. The bulk of sales from the 3.75 million catalogs will be recorded in July July: see month. 1995. The company's gross margin percentage was 14.35%, compared with 14.0% in the first quarter of this year, and 14.1% for the comparable quarter in the prior year. Gross margin for the quarter improved due to increased buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. and growth in software sales. Khulusi continued, "We are satisfied with the results for the second quarter, and we look for increased sales from our PC Mall catalog, as we continue our focus 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. We are completing our sampling from several hundred lists to develop our circulation plan, and we intend to pull deeper from the lists with higher response rates with the release of our next PC Mall catalog which will include Windows95. Corporate sales continued growing, as we discussed last quarter, comprising approximately 17.5% of total net sales for June 1995. Creative Computers Inc. is a 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 for users of Apple Macintosh Apple Macintosh - Macintosh and DOS/Windows personal computers. The Company offers over 12,000 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 high level customer service and gain customer loyalty. Customers may call MacMall telemarketing representatives at 800/222-2808 and PC Mall representatives at 800/555-MALL. For more information on Creative Computers via facsimile at no cost, simply call 1-800-PRO-INFO and dial client code 066. -0-
CREATIVE COMPUTERS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except share data)
(Unaudited)
For the For the
three months ended six months ended
June 30, June 30,
1995 1994 1995 1994
Net sales $82,743 $28,933 $170,808 $51,018
Cost of goods sold 70,866 24,860 146,624 44,029
Gross profit 11,877 4,073 24,184 6,989
Selling, general
and administrative
expenses 9,077 4,651 18,687 7,900
Income (loss) from
operations before
interest and
income taxes 2,800 (578) 5,497 (911)
Interest income
(expense), net 205 (178) 79 (343)
Income (loss) before
income taxes 3,005 (756) 5,576 (1,254)
Provision (benefit)
for income taxes 1,128 (303) 2,163 (501)
Net income (loss) $1,877 $ (453) $ 3,413 $ (753)
Net income (loss)
per share $0.20 $(0.07) $0.42 $(0.11)
Weighted average
number of shares
outstanding 9,304 6,983 8,142 6,983
CREATIVE COMPUTERS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands except share data)
June 30, 1995 December 31, 1994
(unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 19,291 $ 3,348
Accounts receivable, net of allowance
for doubtful accounts of $791,000
and $523,000 9,205 5,727
Inventories 39,876 25,639
Prepaid expenses and other current
assets 3,681 1,236
Deferred income taxes 1,262 1,398
Total current assets 73,315 37,348
Property, plant and equipment, net 8,485 3,865
Related party note receivable 242 1,646
Other assets 257 83
-------- --------
$ 82,299 $ 42,942
Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 30,687 $ 29,446 Accrued expenses 7,792 2,457 Line of credit -- 3,279 Income taxes payable 379 1,094 Capital leases -- current portion 390 350 Notes payable -- current portion 29 397 Notes payable -- related parties -- 164 Total current liabilities 39,277 37,187 Capital leases 938 1,146 Notes payable 70 732 Deferred income taxes 37 37 Subordinated debt -- 2,950 Total liabilities 40,322 42,052
Stockholders' Equity:
Common stock, $.001 par value; Authorized
15,000,000 shares; 9,250,000 and
4,900,000 shares issued and outstanding 9 5
Preferred stock, $.001 par value;
Authorized 5,000,000; none issued and
outstanding 39,399 52
Additional paid in capital -- --
Retained earnings 2,569 833
Total stockholders' equity 41,977 890
-------- --------
$ 82,299 $ 42,942
CONTACT: Creative Computers Inc. Frank Khulusi or Grant Trexler, 310/787-4500 or Financial Relations Board Jody Martin, 310/442-0599 |
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