Dairy Mart Reports Substantial Improvements in Fiscal 1999 Second Quarter and First Six Months; Comparable Corporate-Store Sales Increases Hit Record Levels.HUDSON Hudson, towns, United States Hudson. 1 Industrial town (1990 pop. 17,233), Middlesex co., E central Mass., on the Assabet River, in an apple-growing region; settled c.1699, inc. 1866. , Ohio--(BUSINESS WIRE)--Sept. 15, 1998--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) today announced financial results for its fiscal 1999 second quarter and first half, which ended August 1, 1998. In order to show the company's comparative financial performance more clearly, actual results for the current fiscal periods are compared with 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 results for the corresponding periods last 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 June June: see month. , 1997, as well as the historical operating results associated with the assets sold (see table attached). The company's current-year second-quarter revenues increased 4.4 percent to $126.1 million from $120.8 million last year. Substantial improvements in profitability yielded net income of $899,000, or $0.19 per share, for the second quarter of fiscal 1999, which was a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. from the pro forma net loss of $236,000, or $0.05 per share, a year ago. Earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (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 ) increased substantially to $6.7 million for the current quarter from pro forma $4.5 million in the prior-year second quarter. For the first six months of fiscal 1999, net income of $253,000, or $0.05 per share, was a turnaround from the pro forma net loss of $667,000, or $0.15 per share, a year ago. EBITDA was $11.0 million as compared to pro forma $8.7 million in the first six months of the prior year. "I am extremely pleased with the results we have achieved so far this year," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. B. Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. , Jr., Dairy Mart's Chairman, President, and Chief Executive Officer. "Comparable corporate-store sales are up 11.1% in the current second quarter and 9.7% on a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis. These increases combined with our new store openings are now allowing us to achieve total revenue growth on a quarter-to-quarter and year-to-year comparison basis. Our new store openings are also the primary reason that our average gasoline gallons sold are 10.3% above the trend we were experiencing in the first two quarters of last year. We continued to increase our same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. and product gross profits in a very competitive retailing environment as well as to significantly increase the amount of average gasoline gallons sold. "Our strategy of improving the overall quality of our asset base and increasing our revenue mix to include more gasoline sales is yielding results," Mr. Stein continued. "So far this fiscal year we have opened nine new stores, have ten more under construction, and are on plan to have opened a total of 25 new stores by the end of the year. These new stores, which sell gasoline as well as a broad variety of convenience items, are more profitable than our older stores and are expected to be the key to profitable growth over the long term. By the end of fiscal 2000, we expect to have opened approximately 65 new locations, which should produce in excess of $130 million in new total revenues with higher profit margins. We also remain on target to convert approximately sixty gasoline locations to the Chevron brand in Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. 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. ." Dairy Mart Convenience Stores, Inc., one of the nation's leading regional convenience store retailers, owns or operates approximately 600 retail stores in seven states. Through consulting and licensing agreements, the Company is also affiliated with over 200 stores in Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. and approximately 400 locations in Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. . The Company is headquartered in Ohio, where there are more than 400 Dairy Mart stores. Dairy Mart's web site address is www.dairymart.com. Statements contained in this release that are not historical facts 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. Forward-looking statements are generally identified by the words "anticipate," "believe," "expect," "intend," "should," "estimate," and similar expressions. Factors that could cause actual results to differ materially from those in the forward-looking statements include competition, general economic conditions, the availability of capital, the ability to obtain suitable locations for new stores, and the ability to attract and retain key personnel. (Table Follows) -0-
Dairy Mart Convenience Stores, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
FOR THE SECOND FISCAL FOR THE TWO FISCAL
QUARTER ENDED QUARTERS ENDED
____________________________ ___________________________
August 1, August 2, 1997 August 1, August 2, 1997
1998 __________________ 1998 __________________
As Pro As Pro
Reported Forma(a) Reported Forma(a)
________ ________ ________ ________ ________ ________
Revenues $126,129 $136,160 $120,829 $235,978 $276,097 $234,049
________ ________ ________ ________ ________ ________
Cost of
goods sold
and expenses:
Cost of
goods sold 90,315 99,684 88,012 169,033 202,100 170,660
Operating
and
admini-
strative
expenses 31,788 31,774 30,661 61,145 66,504 59,403
Interest
expense 2,594 2,692 2,577 5,332 5,459 5,178
________ ________ ________ ________ ________ ________
124,697 134,150 121,250 235,510 274,063 235,241
________ ________ ________ ________ ________ ________
Income before
income taxes 1,432 2,010 (421) 468 2,034 (1,192)
Provision
for income
taxes (533) (888) 185 (215) (895) 525
________ ________ ________ ________ ________ ________
Net income $ 899 $ 1,122 $ (236) $ 253 $ 1,139 $ (667)
______________________________________________________________________
Earnings
per share
- Basic $ 0.19 $ 0.24 $ (0.05) $ 0.05 $ 0.25 $ (0.15)
Earnings
per share
- Diluted $ 0.19 $ 0.23 $ (0.05) $ 0.05 $ 0.24 $ (0.15)
______________________________________________________________________
Earnings Before
Interest Expense,
Income Taxes,
Depreciation
and Amorti-
zation
(EBITDA)(b)$ 6,664 $ 7,559 $ 4,546 $ 11,045 $ 13,513 $ 8,693
______________________________________________________________________
(a) The Company sold 156 convenience store and gasoline locations
in the northeastern United States in June, 1997. The 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, operating expenses, 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) measurements such as net income (loss) or
cash flow from operations.
AMEX TRADING SYMBOLS
CLASS A COMMON STOCK - DMC.A
CLASS B COMMON STOCK - DMC.B
CONTACT: Dairy Mart Convenience Stores, Inc., Hudson Gregory G. Landry, 330/342-6729 |
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