DUCKWALL-ALCO STORES, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 1995 RESULTS.ABILENE Abilene (ăb`ĭlēn). 1 City (1990 pop. 6,242), seat of Dickinson co., central Kans., on the Smoky Hill River; inc. 1869. It was (1867–71) a railhead for a large cattle-raising region extending SW into Texas. , Kan Kan, river, China: see Gan. .--(BUSINESS WIRE)--March 28, 1995--Duckwall-ALCO Stores, Inc. (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 :DUCK) today announced results for the fourth quarter and fiscal year ended January 29, 1995. Duckwall-ALCO completed an initial public offering in October of 1994. For the fourth quarter ended January 29, 1995, the Company reported sales of $73.5 million, a 6.8% increase over sales of $68.9 million in the fourth quarter of last year. Net earnings were $2.9 million, or $.74 per share pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma , as compared to net earnings of $2.1 million, or $.90 per share pro forma, in the prior year's fourth quarter. Weighted average number of common shares outstanding pro forma were 3.9 million shares as compared to 2.4 million shares due to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. public offering by the Company. For the year ended January 29, 1995, the Company reported sales of $242.1 million, a 7.2% increase over sales of $225.9 million in the prior fiscal year. Net earnings were $4.1 million, or $1.51 per share pro forma, as compared to net earnings of $2.3 million, or $.96 per share pro forma, in the prior year. Weighted average number of common shares outstanding pro forma were 2.7 million shares as compared to 2.4 million. 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 for the fourth quarter decreased $800,000, or 1.3%, to $62.4 million from $63.2 million in the fourth quarter of 1994. Same store sales for stores in markets where there are no competing discount stores were $30.1 million compared to $30.0 million, or .4% higher than the prior year. Same store sales for the year increased $2.2 million, or 1.1%, to $214.3 million from $212.1 million for the fiscal year. Same store sales for stores in markets where there are no competing discount stores were $105.0 million compared to $102.2 million, or 2.7% higher than the prior year. Glen L. Shank shank (shangk) 1. leg (1). 2. crus ( 2). shank n. The part of the human leg between the knee and ankle. , President and Chief Executive Officer, said, "Overall we are pleased with our results for the quarter and the year. While sales for the fourth quarter were affected by warmer weather, the Company was able to manage its inventory to minimize exposure to January clearance activities. The resulting markdown Markdown The difference between the highest current bid price among broker-dealers in the market and the lower price that a dealer charges a customer. Notes: The broker offers a lower price to try stimulate trading in hopes that they will make the money back on the extra savings along with lower cost of purchases provided a significantly higher margin rate and offset most of the effect of the lower sales." Shank continued, "We are particularly pleased with the results of the Company's development strategy of operating stores in smaller `non-competitive' markets. For the year, the Company opened 19 stores in these markets, while closing two larger stores in competitive markets. At year-end, the Company had 91, or 66% of its 138 stores, located in such markets." Bryan M. DeCordova, Chief Financial Officer, noted, "Earnings for the year exceeded the consensus estimates of the security analysts by approximately $400,000, or $.14 per share, due to a pre-tax reduction in the LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack reserve of $614,000. The reduction in the LIFO provision was due to overall deflation deflation: see inflation. deflation Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. in the Federal government's inflation indices and improvements in the initial markon on the Company's purchases. Such a reduction is not consistent with past earnings trends and should not be considered an indicator of the Company's future LIFO provisions." Duckwall-ALCO Stores Inc. is a leading regional retailer which operates 138 stores in the central United States The Central United States is sometimes conceived as between the Eastern United States and Western United States as part of a three-region model, roughly coincident with the Midwestern United States plus the western and central portions of the Southern United States; the term is . Under the names "ALCO" and "Duckwall," the Company's strategy is to target smaller markets not served by other regional or national retail discount chains and provide the most convenient access to retail shopping within each market. -0-
Duckwall-ALCO Stores, Inc.
Consolidated Statements of Operations
Three Months Ended Year Ended
Jan. 29, Jan. 30, Jan. 29, Jan. 30,
1995 1994 1995 1994
(in thousands, except per share amounts)
Net sales $73,545 $68,850 $242,144 $225,903 Cost of sales 48,986 47,542 163,180 154,217 Gross profit 24,559 21,308 78,964 71,686 Selling, general and administrative expenses 18,274 16,233 65,633 60,255 Depreciation and amortization 968 748 3,280 3,950 Total operating expenses 19,242 16,981 68,913 64,205
Income before interest and
income tax 5,317 4,327 10,051 7,481
Interest expense 678 926 3,390 4,091
Income tax 1,762 1,292 2,531 1,130
Net income $ 2,877 $ 2,109 $ 4,130 $ 2,260 Pro forma net income per share1 $ 0.74 $ 0.90 $ 1.51 $ 0.96 Pro forma weighted average number of common shares outstanding1 3,886 2,356 2,738 2,356 Stores open at period end 138 121 1 Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share data excludes the effect of accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of a warrant and includes the effect of the issuance of 350,000 shares of common stock pursuant to the exercise of the warrant. CONTACT: Bryan DeCordova Vice President Finance, Treasurer and Chief Financial Officer 913-263-3350, ext. 286 |
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