Dairy Mart Reports Profitable Fiscal 1999 Results as Key Initiatives are Catalyst for Turnaround; New Stores, Products, Services Drive Revenue and Profit Increases.HUDSON, Ohio--(BUSINESS WIRE)--April 26, 1999-- Dairy Mart Convenience Stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. , Inc. (AMEX AMEX See: American Stock Exchange :DMC DMC Devil May Cry (video game) DMC Detroit Medical Center DMC Darryl McDaniels (rapper) DMC Destination Management Company DMC Del Mar College (Corpus Christi, TX) .A)(AMEX:DMC.B) announced today a return to profitability and significant improvement in overall financial results for the 1999 fourth fiscal quarter and fiscal year, ended January 30, 1999. In order to show the Company's comparative financial performance more clearly, actual results for the current fiscal year are compared with pro-forma results for the prior fiscal year, which have been adjusted to exclude the gain realized from the sale of 156 convenience store and gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by locations in the prior fiscal year, as well as the historical operating results associated with the assets sold (see table attached). Results from several strategic initiatives produced sharply higher increases over the prior year in a number of key performance measurements. Fiscal 1999 revenues were $477.0 million as compared to $459.3 million in fiscal 1998, and revenues for the fourth fiscal quarter were $114.9 million as compared to $107.0 million in the fourth fiscal quarter of the prior year. Comparable corporate-store sales were up 8 percent for the seasonally slow fourth quarter, and 9.2 percent for the full year; comparable gasoline sales increased 3.0% and overall gross profit increased 9 percent in both the fourth quarter and entire fiscal year, respectively. As a result, the Company reported net income of $25,000, or $0.01 per share, for the full fiscal year, compared to a net loss of $4.3 million, or $0.93 per share, in the prior fiscal year. For the fourth fiscal quarter, the Company reported a net loss of $829,000, or $0.17 per share, compared to a net loss of $2.3 million, or $0.51 per share, in the fourth fiscal quarter of the prior year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"We are pleased that our strategies to produce value for shareholders are beginning to generate solid returns," said Robert B. Stein Jr., Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We have been aggressively improving the overall quality of our assets by shedding underperforming locations and adding new and more profitable stores and upgrading existing stores to our higher financial and operational standards. On a per store basis, fiscal 1999 results reflect a record performance for both sales and profitability." Dairy Mart opened 25 new stores last year, each producing revenue four to five times greater than the chain's older stores, and with higher profit margins. This year the Company expects to open up to 40 additional new stores, which should contribute an additional $100 to $120 million in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue. The Company is focusing on strategies to generate a greater percentage of revenue from food service and gasoline sales. In fiscal 1999, Dairy Mart converted 58 locations in Kentucky and southern Indiana Southern Indiana, in the United States, is notable because it is culturally distinct from the rest of the state. The area's geography has led to a blend of Northern and Southern culture that is not found in the rest of Indiana. to the Chevron brand of gasoline. Since the conversion, gasoline volume in these locations has increased 11 percent. This year, the Company expects to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the appropriate major-oil brand affiliation for most of its gasoline dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. stores in Ohio and Michigan. Branding Dairy Mart's gasoline assets has improved the overall quality of these assets and is considered important in attracting new customers who prefer to purchase major-oil branded gasoline. Stein emphasized that Dairy Mart also intends to strengthen its core merchandising product mix, while adding newer, higher-margin food service programs. "Historically, food service has only been 8 percent of our in-store business," Stein said. "We intend to double our revenues in this higher-margin and fast-growing segment of our business." Dairy Mart has recently announced that it plans to install Mr. Hero Express restaurants in up to 30 stores this year. These stores will offer customers the option of in-store, sit-down service, or drive-thru window service for quick pickup of breakfast, lunch or dinner items. Dairy Mart has secured the exclusive development rights to Mr. Hero restaurants throughout all of Kentucky and most of Ohio. Mr. Hero is well known in Northeast Ohio for offering a wide variety of food selections, including the classic Romanburger, hot and cold sandwiches and side dishes side dish n. A dish served as an accompaniment to the main course. Noun 1. side dish - a dish that is served with, but is subordinate to, a main course entremets, side order , as well as hot breakfast items. Dairy Mart also launched another new program last month when it announced that approximately 600 stores throughout the chain will offer No-Fee ATM (automatic teller machine See ATM. ) service. Dairy Mart is believed to be the only non-bank affiliated provider of No-Fee ATM service in its seven-state market. "The initial positive customer feedback convinces me that our No-Fee ATM service gives Dairy Mart a competitive advantage and should be a significant traffic builder," Stein said. Supporting the Company's core business, as well as its exciting new products and services, is the largest advertising and marketing program in the Company's history. Every territory in the chain will be blanketed with continuous newspaper and radio advertising, radio traffic reports, outdoor billboards and sports sponsorships such as the Cleveland Indians  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. and NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. .
"We have spent a number of years on achieving a turnaround, and now we have the momentum to produce significant growth going forward," said Stein. "I am confident that we are strongly positioned and the next 12 months could be outstanding in moving Dairy Mart to a new plateau." Dairy Mart Convenience Stores, Inc. is a major regional convenience retailer. The Company owns or operates approximately 620 retail stores in seven states. Through consulting and licensing agreements, the Company is also affiliated with more than 200 stores in Korea and approximately 400 locations in Malaysia. Dairy Mart is proudly celebrating its 60th anniversary this year. For more information, visit Dairy Mart's web site at www.dairymart.com. Statements contained in this release that are not historical facts, including those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future financial performance, construction plans, branding of gasoline locations and food service may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to Dairy Mart's future performance. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from those in the forward-looking statements, including competition, general economic conditions, the availability of capital, the ability to obtain suitable locations for new stores, construction delays, the ability to attract and retain key personnel, the ability to establish additional major-oil branding arrangements and other factors disclosed in Dairy Mart's periodic filings with the Securities and Exchange Commission. (Table Follows) -0-
Dairy Mart Convenience Stores, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
FOR THE FOURTH FISCAL FOR THE
QUARTER ENDED FISCAL YEAR ENDED
_______________________ ______________________________
Jan. 31, 1998
___________________
Jan. 30, Jan. 31, Jan. 30, As Pro Forma
1999 1998 1999 Reported (a)
_________ ________ ________ _________ ________
Revenues $114,886 $106,953 $477,047 $501,359 $459,348
________ ________ ________ ________ ________
Cost of goods sold
and expenses:
Cost of goods
sold 81,614 76,407 339,308 364,525 333,012
Operating and
administrative
expenses 31,955 31,554 126,758 128,221 121,957
Interest expense 2,779 2,546 10,806 10,612 10,330
________ ________ ________ ________ ________
116,348 110,507 476,872 503,358 465,299
________ ________ ________ ________ ________
Income (loss)
before
income taxes (1,462) (3,554) 175 (1,999) (5,951)
(Provision)
benefit for
income taxes 633 1,260 (150) 531 1,674
________ ________ ________ ________ ________
Net income (loss) $ (829) $(2,294) $ 25 $ (1,468) $ (4,277)
________ ________ ________ ________ ________
________ ________ ________ ________ ________
Earnings (loss)
per share - Basic $ (0.17) $ (0.51) $ 0.01 $ (0.32) $ (0.93)
Earnings (loss)
per share -
Diluted $ (0.17) $ (0.51) $ 0.01 $ (0.32) $ (0.93)
________ ________ ________ ________ ________
________ ________ ________ ________ ________
Earnings Before
Interest Expense,
Income Taxes,
Depreciation and
Amortization
(EBITDA) (b) $ 3,561 $ 1,483 $21,233 $ 19,455 $13,908
________ ________ ________ ________ ________
________ ________ ________ ________ ________
(a) The Company sold 156 convenience store and gasoline locations in the northeastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in June, 1997. The 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 information presented reflects the exclusion, for all fiscal periods shown, of the gain realized from the sale of these assets, as well as the historical revenues, cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold , operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , and direct and indirect administrative expenses associated with the assets sold. The pro forma information is not necessarily indicative of the results which would have been reported if the transaction had occurred at the beginning of the fiscal periods shown. (b) EBITDA is significant to the Company's calculations of its financial covenants and is defined as earnings before interest expense, income taxes and depreciation and amortization expenses. EBITDA should not be viewed as a substitute for Generally Accepted Accounting Principles (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) measurements such as net income (loss) or cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . AMEX TRADING SYMBOLS Trading symbol See: Ticker symbol CLASS A COMMON STOCK - DMC.A CLASS B COMMON STOCK - DMC.B |
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