DART GROUP ANNOUNCES EARNINGS.NEW YORK--(BUSINESS WIRE)--December 15, 1994--Dart Group Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DARTA) announced that for the three months ended Oct. 31, 1994, it incurred a net loss of $68,597,000, equivalent to $36.91 per share, compared to a net loss of $687,000, or $.44 per share, in the corresponding period of 1993. The magnitude of the loss was principally attributable to reserves taken for future store closings and abandoned warehouse facilities, charges resulting from or accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. for 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. and the increase in the value of stock options of a subsidiary which the company has an obligation to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. . The major components of the loss (after taxes and minority interests) include: 1. A loss of $7,000,000 for anticipated store closings resulting from a review of the existing operations of Crown Books Crown Books was a bookseller based in Largo, Maryland. It was founded in the Washington, D.C. metro area by Robert Haft in 1977. History Overview Crown Books was founded in the Washington, D.C. ("Crown") undertaken at the direction of the Executive Committee (consisting of the company's four outside directors) and conducted in order to place Crown on an ongoing profitable basis; 2. A reserve of $22,600,000 for obligations pursuant to long-term leases of three warehouses owned by Haft family partnerships. These warehouses are mostly excess to the needs of the company and two of the three warehouses are not presently habitable habitable adj. referring to a residence that is safe and can be occupied in reasonable comfort. Although standards vary by region, the premises should be closed in against the weather, provide running water, access to decent toilets and bathing facilities, heating, . The Executive Committee has undertaken a comprehensive legal review of the leases since their inception; 3. A reserve of $21,800,000 against possible recovery by Robert Haft of a jury verdict against the company and Crown for breach of his employment contracts, with respect to which the company intends to file for a new trial (or to appeal) after judgment is entered; 4. A reserve of $7,000,000 against the possible purchase by the company of options held by the company's president and other members of the Haft family relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's ownership of Shoppers Food Warehouse ("Shoppers") resulting from the increase in value of Shoppers; the Executive Committee is conducting a legal review of the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or surrounding the grant of such options; and 5. A reserve in the amount of $8,600,000 for future legal fees. The Executive Committee was established in September 1994 to manage certain affairs of the company that relate to, or arise from, the current dispute between the company's chairman and president. In addition to managing the company's legal affairs, the Executive Committee is undertaking a review of the company's operations in order to maximize their profitability in the future. The net loss for the nine-month period ended Oct. 31, 1994 total $64,637,000, or $34.98 per share, compared to earnings of $545,000, or 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the three quarters of 1993. Revenues for the nine months and three months ended Oct. 31, 1994, totaled $769,747,000 and $169,650,000 respectively. Revenues for these periods were affected by the fact that the accounts of Shoppers are consolidated with Dart's through May 28, 1994, but not thereafter, as a result of a reduction of Dart's ownership to 50 percent. Dart's investment in Shoppers is reflected in the financial statements using the equity method of accounting for periods subsequent to May 28, 1994. Crown, Trak Auto and Total Beverage sales increased $57,293,000 or 13.3 percent and $12,465,000 or 8.3 percent for the nine months and three months ended Oct. 31, 1994. Dart dart see blow dart. dart gun see blow dart. owns approximately 51 percent of Crown, 65 percent of Trak Auto, 50 percent of Shoppers, and 100 percent of Dart Group Financial, Cabot-Morgan Real Estate Company and Total Beverage. Trak Auto operates 289 parts stores, including 102 Super Trak stores and seven Super Trak Warehouse stores in the Washington, D.C.; Richmond, Va.; Chicago; Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. metropolitan areas. Crown operates 233 book stores including 70 Super Crown Book stores in the Washington, D.C. area; California; Houston; Chicago and Seattle. Shoppers operates 33 stores in the Washington D.C. metropolitan area. Cabot-Morgan has interests in shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into in the Washington, D.C. metropolitan area. Dart Group Financial buys and holds marketable debt securities. Total Beverage operates three beverage super stores in the Washington, D.C. metropolitan area. -0-
DART GROUP CORPORATION
(in Thousands)
(except Earnings per share)
Three Months Nine Months
Ended Ended
Oct. 31, Oct. 31 Oct. 31, Oct. 31,
1994 1993 1994 1993
Revenue $169,650 $331,512 $769,747 $986,261
Income (loss) before
income taxes, equity
in affiliate and
minority interests $(94,466) $ 3,104 $(83,543) $ 14,657
Net income (loss) $(68,597) $ (687) $(64,637) $ 545
Earnings (loss) per share $ (36.91) $ (.44) $ (34.98) $ .06
Weighted average
shares outstanding 1,867 1,871 1,867 1,867
CONTACT: S.E. Rubenstein, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Stanley Rubenstein, 212/297-6108 |
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