Elder-Beerman Reports Fourth Quarter and Fiscal 2000 Operating Results.Business Editors DAYTON Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , Ohio--(BUSINESS WIRE)--March 22, 2001 The Elder-Beerman Elder-Beerman is a U.S. chain of department stores founded in 1883 and owned by The Bon-Ton. The chain is based primarily in the United States' Midwest region. | History Beginnings Stores Corp. (Nasdaq:EBSC EBSC Elder-Beerman Stores Corp. EBSC East Bay Sanctuary Covenant (Berkeley, CA) EBSC Embedded Bitmap Scaling EBSC Elmbrook Swim Club (Brookfield, Wisconsin) EBSC English Bay Swim Club ) reported normalized net income of $11.3 million for the fourth quarter ended February February: see month. 3, 2001, up 5.1 percent from normalized net income of $10.8 million in 1999. Normalized net income per average diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the quarter was $1.00 compared to normalized net income per average diluted share of $0.73 in the fourth quarter of 1999. Normalized net income for the fourth quarter of 2000 excludes the impact of costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the implementation of the company's new strategic plan, store closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, , discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and includes a normalized tax rate of 36 percent. For 1999, normalized net income excludes a charge relating to an investment in a cooperative cooperative Organization owned by and operated for the benefit of those using its services. Cooperatives have been successful in such fields as the processing and marketing of farm products and the purchasing of other kinds of equipment and raw materials, and in the buying group, reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. items, discontinued operations and includes a normalized tax rate of 38 percent. Including the impact of charges relating to implementation of the company's strategic plan, store closing costs, and income taxes, Elder-Beerman's net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $8.4 million or $0.74 per average diluted share for the fourth quarter of 2000. The company noted that its earnings per share for the fourth quarter reflect 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 of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 28% as a result of the company's "Dutch Auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. " share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. completed in October October: see month. . Total revenues for the 14 week quarter rose 4.2 percent over last year to $237.5 million. Total sales for the quarter on a 13 week basis increased 1.7 percent and comparable sales for the quarter decreased 0.7 percent. 2000 Annual Results ------------------- For the 53 weeks ended February 3, 2001, Elder-Beerman reported normalized net income of $7.2 million, down 30 percent from normalized net income of $10.4 million for 1999. Normalized net income per average diluted share equaled $0.53 compared to normalized net income per average diluted share of $0.67 in 1999. The company noted that its earnings per share for the year reflect accretion of approximately 3% as a result of the company's "Dutch Auction" share repurchase completed in October. Including the impact of charges relating to implementation of the company's strategic plan, store closing costs, and an income tax benefit of $3.2 million, the company incurred a net loss from continuing operations of $6.8 million, or $0.51 per average diluted share for fiscal 2000. Total revenues for the 53 week year rose 3.0 percent over last year to $687.0 million. Total sales for the year on a 52 week basis increased 2.1 percent and comparable sales for the year decreased 0.8 percent. Frederick Frederick, city, United States Frederick, city (1990 pop. 40,148), seat of Frederick co., NW Md.; settled 1745, inc. 1817. The processing center of a fertile farm and dairying area, it makes beer, household items, optical and glass products, leather goods, J. Mershad, chairman and chief executive officer, stated, "In 2000, we developed and began implementing a new three-part strategic plan emphasizing value in our merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain offering, growth in the concept store format and a more efficient organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. . We have fully implemented the merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and cost savings elements Savings element Used in the context of life insurance, the cash value built up in a policy, which equals the amount of premium paid minus the cost of protection. This excess is invested by the insurance company, and the returns are tax-deferred inside the policy. of the plan for 2001. Because we acted quickly to put our plan in place, we believe we are well positioned even in a slower economy." "In 2001," Mershad continued, "our most important goals revolve around Verb 1. revolve around - center upon; "Her entire attention centered on her children"; "Our day revolved around our work" center, center on, concentrate on, focus on, revolve about the execution of our plan. We are focused on our value merchandise strategy, we have already announced three out of up to five new Concept Store openings and we are still on target to achieve our 2001 expense reductions." The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio Dayton is a city in southwestern Ohio, United States. It is the county seat and largest city of Montgomery County. As of the 2005 census estimate, the population of Dayton was 158,873. and operates 62 stores in Ohio, West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , 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. , Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , and has announced Spring and Fall 2001 openings of three new stores. Elder-Beerman also operates two furniture galleries. For more information about the company see Elder-Beerman's web site at www.elder-beerman.com. This press release contains "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. ," including predictions of future operating performance, events or developments such as our future sales, profits, expenses, income and earnings per share. In addition, words such as "expects," "anticipates," "intends," "plans," "believes," "hopes," and "estimates," and variations of such words and similar expressions, are intended to identify forward-looking statements. Because forward-looking statements are based on a number of beliefs, estimates and assumptions by management that could ultimately prove inaccurate, there is no assurance that forward-looking statements will prove to be accurate. Many factors could materially affect our actual future operations and results, including the following: the ability to open new stores on schedule, including our new stores announced for 2001 in Plover, Wisconsin Plover is a village in Portage County, Wisconsin, United States. The population was 10,520 at the 2000 census. Geography Plover is located at (44.466183, -89.543707)GR1. , Kohler, Wisconsin Kohler is a village in Sheboygan County, Wisconsin, along the Sheboygan River. The population was 1,926 at the 2000 census. It is included in the Sheboygan, Wisconsin Metropolitan Statistical Area. and DuBois, Pennsylvania DuBois (pronounced 'doo-BOYS' /'du.bɔɪz/, not 'doo-boa' /du'bwɑ/) is a city in Clearfield County, Pennsylvania, 91 miles (206 km) northeast of Pittsburgh. ; increasing price and product competition; fluctuations in consumer demand and confidence, especially during the Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). shopping season and in light of current general economic conditions, interest rates and the capital markets; the availability and mix of inventory; fluctuations in costs and expenses; consumer response to the company's new merchandising strategies, advertising, marketing and promotional programs; the ability of the company to achieve its expense cutting initiatives as it implements its strategic plan; the timing and effectiveness of new store openings, particularly its new concept stores opened in the Fall season of 2000 (Howell, Michigan Howell is a city in the U.S. state of Michigan. As of the 2000 census, the city had a total population of 9,232. It is the county seat of Livingston County6 and is located mostly within Howell Township, but is politically independent. ; West Bend, Wisconsin West Bend is a city in Washington County, Wisconsin, United States. Located in Southeastern Wisconsin, the population stood 28,152 at the 2000 census, although it is estimated to have reached 30,000. ; and Jasper, Indiana Jasper is a city in Dubois County, Indiana, United States. The population was 12,100 at the 2000 census. The city has been the county seat of Dubois CountyGR6, since 1830, succeeding Portersville. ) and the new concept stores to be opened in 2001; the growing impact of electronic commerce; weather conditions that affect consumer traffic in stores, especially during the Christmas season; the continued availability and terms of financing; the outcome of pending and future 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. ; consumer debt levels; the impact of any new consumer bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most laws; inflation and interest rates and the condition of the capital markets. Elder-Beerman undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
The Elder-Beerman Stores Corp. And Subsidiaries
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Normalized(A) Normalized(D)
14-weeks ended 13-weeks ended
Feb. 3, 2001 % Sales Jan. 29, 2000 % Sales
-------------------- ---------------------
Revenues:
Net sales $ 228,577 100.0% $ 219,775 100.0%
Financing 7,927 3.5% 7,025 3.2%
Leased Departments 1,018 0.4% 1,102 0.5%
--------- ---- --------- ----
Total revenues 237,522 103.9% 227,902 103.7%
Costs & expenses:
Cost of goods sold,
occupancy, and buying
expenses 159,692 69.9% 155,457 70.7%
Selling, general,
administrative, and
other expenses 51,213 22.4% 47,752 21.7%
Depreciation &
amortization 4,797 2.1% 4,263 1.9%
Interest expense 4,135 1.8% 3,055 1.4%
--------- ---------
Total costs & expenses 219,837 96.2% 210,527 95.8%
Income from continuing
operations before income
tax expense (benefit) 17,685 7.7% 17,375 7.9%
Income tax expense (benefit) 6,367 2.8% 6,603 3.0%
--------- ---- --------- ----
Income from continuing
operations 11,318 5.0% 10,772 4.9%
Discontinued operations - 0.0% - 0.0%
--------- ---- --------- ----
Net income $ 11,318 5.0% $ 10,772 4.9%
========= ==== ========= ====
Basic net income (loss)
per common share
Continuing operations $ 1.01 $ 0.74
Discontinued operations - -
--------- ---------
Net income $ 1.01 $ 0.74
Weighted average number
of shares outstanding 11,237,957 14,630,222
Diluted net income (loss)
per common share
Continuing operations $ 1.00 $ 0.73
Discontinued operations - -
--------- ---------
Net income $ 1.00 $ 0.73
Diluted weighted average
number of shares
outstanding 11,333,957 14,706,528
14-weeks ended 13-weeks ended
Feb. 3, 2001 % Sales Jan. 29, 2000 % Sales
-------------------- ---------------------
Revenues:
Net sales $ 228,577 100.0% $ 219,775 100.0%
Financing 7,927 3.5% 7,025 3.2%
Leased Departments 1,018 0.4% 1,102 0.5%
--------- ---- --------- ----
Total revenues 237,522 103.9% 227,902 103.7%
Costs & expenses:
Cost of goods sold,
occupancy, and buying
expenses 163,554(B) 71.6% 155,457 70.7%
Selling, general,
administrative, and
other expenses 51,204(C) 22.4% 51,890(E) 23.6%
Depreciation &
amortization 4,797 2.1% 4,263 1.9%
Interest expense 4,135 1.8% 3,055 1.4%
--------- ---- --------- ----
Total costs & expenses 223,690 97.9% 214,665 97.7%
Income from continuing
operations before income
tax expense (benefit) 13,832 6.1% 13,237 6.0%
Income tax expense (benefit) 5,421 2.4% (5,163) -2.3%
--------- ---- --------- -----
Income from continuing
operations 8,411 3.7% 18,400 8.4%
Discontinued operations 89 0.0% (980) -0.4%
--------- ---- --------- -----
Net income $ 8,500 3.7% $ 17,420 7.9%
========= ==== ========= ====
Basic net income (loss)
per common share
Continuing operations $ 0.75 $ 1.26
Discontinued operations 0.01 (0.07)
--------- ---------
Net income $ 0.76 $ 1.19
Weighted average number
of shares outstanding 11,237,957 14,630,222
Diluted net income (loss)
per common share
Continuing operations $ 0.74 $ 1.25
Discontinued operations 0.01 (0.07)
--------- ---------
Net income $ 0.75 $ 1.18
Diluted weighted average
number of shares
outstanding 11,333,957 14,706,528
(A) Normalized 2000 results exclude the impact of costs related to
implementation of the Company's new strategic plan, closing costs for
three stores, income related to an investment in a cooperative buying
group, and the impact of discontinued operations, and includes
normalized income tax expense at a rate of 36%.
(B) Includes inventory costs of $4,455 related to the implementation
of the Company's new strategic plan and a reduction of $593 of
previously accrued store closing costs to reflect actual results.
(C) Includes costs of $107 related to the implementation of the
Company's new strategic plan, and an increase of $579 of previously
accrued store closing costs to reflect actual results, and income of
$695 related to an investment in a cooperative buying group.
(D) Normalized 1999 results exclude the impact of a charge to reflect
a write down of amounts related to an investment made several years
ago in a cooperative buying group, reorganization items, and the
impact of discontinued operations, and includes normalized income tax
expense at a rate of 38%.
(E) Includes a charge of $4,639 related to a write down of amounts
related to an investment made several years ago in a cooperative
buying group and income of $501 related to reorganization items.
The Elder-Beerman Stores Corp. And Subsidiaries
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Normalized(A) Normalized(D)
53-weeks ended 52-weeks ended
Feb. 3, 2001 % Sales Jan. 29, 2000 % Sales
-------------------- ---------------------
Revenues:
Net sales $ 656,164 100.0% $ 637,797 100.0%
Financing 28,162 4.3% 26,124 4.1%
Leased Departments 2,658 0.4% 2,861 0.4%
--------- ---- --------- ----
Total revenues 686,984 104.7% 666,782 104.5%
Costs & expenses:
Cost of goods sold,
occupancy, and buying
expenses 461,406 70.3% 445,365 69.8%
Selling, general,
administrative, and
other expenses 185,071 28.2% 178,507 28.0%
Depreciation &
amortization 16,203 2.5% 15,229 2.4%
Interest expense 13,014 2.0% 10,927 1.7%
--------- ---- --------- ----
Total costs & expenses 675,694 103.0% 650,028 101.9%
Income (loss) from
continuing operations
before income tax
expense (benefit) 11,290 1.7% 16,754 2.6%
Income tax expense
(benefit) 4,064 0.6% 6,367 1.0%
--------- ---- --------- ----
Income (loss) from
continuing operations 7,226 1.1% 10,387 1.6%
Discontinued operations - 0.0% - 0.0%
--------- ---- --------- ----
Net income (loss) $ 7,226 1.1% $ 10,387 1.6%
========= ==== ========= ====
Basic net income (loss)
per common share
Continuing operations $ 0.53 $ 0.68
Discontinued operations - -
--------- ---------
Net income (loss) $ 0.53 $ 0.68
Weighted average number
of shares outstanding 13,598,485 15,371,183
Diluted net income (loss)
per common share
Continuing operations $ 0.53 $ 0.67
Discontinued operations - -
--------- ---------
Net income (loss) $ 0.53 $ 0.67
Diluted weighted average
number of shares
outstanding 13,719,275 15,442,658
53-weeks ended 52-weeks ended
Feb. 3, 2001 % Sales Jan. 29, 2000 % Sales
-------------------- ---------------------
Revenues:
Net sales $ 656,164 100.0% $ 637,797 100.0%
Financing 28,162 4.3% 26,124 4.1%
Leased Departments 2,658 0.4% 2,861 0.4%
--------- ---- --------- ----
Total revenues 686,984 104.7% 666,782 104.5%
Costs & expenses:
Cost of goods sold,
occupancy, and buying
expenses 476,313(B) 72.6% 445,365 69.8%
Selling, general,
administrative, and
other expenses 191,431(C) 29.2% 182,645(E) 28.6%
Depreciation &
amortization 16,203 2.5% 15,229 2.4%
Interest expense 13,014 2.0% 10,927 1.7%
--------- ---- --------- ----
Total costs & expenses 696,961 106.2% 654,166 102.6%
Income (loss) from continuing
operations before income
tax expense (benefit) (9,977) -1.5% 12,616 2.0%
Income tax
expense (benefit) (3,150) -0.5% (5,399) -0.8%
--------- ----- --------- -----
Income (loss) from
continuing operations (6,827) -1.0% 18,015 2.8%
Discontinued operations 89 0.0% (2,787) -0.4%
--------- ---- --------- -----
Net income (loss) $ (6,738) -1.0% $ 15,228 2.4%
========= ===== ========= ====
Basic net income (loss)
per common share
Continuing operations $ (0.51) $ 1.17
Discontinued operations 0.01 (0.18)
--------- ---------
Net income (loss) $ (0.50) $ 0.99
Weighted average number
of shares outstanding 13,598,485 15,371,183
Diluted net income (loss)
per common share
Continuing operations $ (0.51) $ 1.17
Discontinued operations 0.01 (0.18)
--------- ---------
Net income (loss) $ (0.50) $ 0.99
Diluted weighted average
number of shares
outstanding 13,598,485 15,442,658
(A) Normalized 2000 results exclude the impact of costs related to
implementation of the Company's new strategic plan, closing costs for
three stores, income related to an investment in a cooperative buying
group, and the impact of discontinued operations, and includes
normalized income tax expense at a rate of 36%.
(B) Includes inventory costs of $12,099 related to the implementation
of the Company's new strategic plan, and $2,808 related to closing
three stores.
(C) Includes costs of $3,804 related to the implementation of the
Company's new strategic plan, and $3,251 related to closing three
stores, and income of $695 related to an investment in a cooperative
buying group.
(D) Normalized 1999 results exclude the impact of a charge to reflect
a write down of amounts related to an investment made several years
ago in a cooperative buying group, reorganization items, and the
impact of discontinued operations, and includes normalized income tax
expense at a rate of 38%.
(E) Includes a charge of $4,639 related to a write down of amounts
related to an investment made several years ago in a cooperative
buying group and income of $501 related to reorganization items.
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