Elder-Beerman Reports Fourth Quarter and Fiscal 2001 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 21, 2002 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 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 :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 ) net income for the fourth quarter ended February February: see month. 2, 2002, was $9.7 million versus $8.5 million in the same period in 2000. Net income per 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 fourth quarter 2001 was $0.84, compared to $0.75 in the fourth quarter of 2000, an increase of 12 percent per share. Fourth quarter 2001 results included pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of $0.6 million related to the retirement of former 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. , 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, and the new CEO search, and an adjustment of $0.2 million to the third quarter charges related to Shoebilee, Inc. Fourth quarter 2000 results included pretax charges of $4.5 million for development and implementation of the company's strategic plan and income of $0.7 million related to a recovery of 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. Excluding these items and applying an income tax rate of 36 percent, Elder-Beerman would have reported net income of $10.2 million or $0.89 per diluted share for the fourth quarter 2001, versus $11.3 million or $1.00 per diluted share for the fourth quarter 2000, a decrease of 11 percent per share. Fourth Quarter Revenues Total revenues for the quarter fell 4.2 percent versus last year to $227.8 million. Total sales for the quarter decreased 3.9 percent and comparable sales for the quarter decreased 4.2 percent. Total sales comparisons were affected by the comparison of 13 weeks in 2001 to 14 weeks in 2000. Fiscal Year 2001 Earnings Elder-Beerman incurred a net loss of $0.9 million for the fiscal year 2001 ended February 2, 2002, versus a net loss of $6.7 million for fiscal 2000. The net loss per share for fiscal 2001 is $0.08 compared to a net loss per share of $0.50 for fiscal 2000. Per share comparisons between 2001 and 2000 are affected by the company's 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. of 23 percent of its outstanding shares, completed in October October: see month. 2000. Fiscal 2001 results included pretax charges of $3.3 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Mr. Mershad's retirement and the new CEO search, a pretax charge of $4.3 million related to Shoebilee, Inc., and $0.6 million in pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. related to a recovery of an investment in a cooperative buying group. Fiscal 2000 results included pretax 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, of $6.1 million; pretax charges of $15.9 million for development and implementation of the company's strategic plan, and pretax income of $0.7 million related to a recovery of an investment in a cooperative buying group. Excluding these items and applying an income tax rate of 36 percent, Elder-Beerman would have reported $3.8 million or $0.33 per diluted share for fiscal 2001 versus $7.2 million or $0.53 per diluted share for fiscal 2000. Per share comparisons between 2001 and 2000 are affected by the company's repurchase of 23 percent of its outstanding shares, completed in October 2000. Fiscal 2001 Revenues Total revenues for fiscal 2001 declined 2.1 percent versus last year to $673.5 million. Total sales for fiscal 2001 decreased 2.0 percent and comparable sales decreased 3.6 percent. Total sales comparisons were affected by the comparison of 52 weeks in 2001 to 53 weeks in 2000. Overview of 2001 Byron ("Bud") L. Bergren, president and chief executive officer stated, "In 2001 Elder-Beerman managed its business in an environment that included a recession, a national crisis and an unseasonably warm 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). season." In fiscal 2001, Elder-Beerman:
-- Achieved its expense reduction initiatives.
-- Brought long-term debt levels down by $17.1 million, or 10 percent, by
year-end.
-- Opened four more Concept Stores, bringing the total number of concept stores
by year-end to nine, not including the new store in Coldwater, Michigan, opened
last week.
-- Improved inventory management by bringing average comparable retail
inventory levels for the year down 8.6 percent from 2000 and ending the year
with comparable retail inventory levels down 16.2 percent.
-- Made progress in establishing a stronger value message in its merchandise
offering and implemented a "Smart Buy" key item strategy.
-- Successfully launched a new loyalty program to enhance the use of its
proprietary credit card.
-- Began the transition to new leadership. Byron ("Bud") L. Bergren was named
president and CEO. Fred Mershad, chairman, president and CEO announced his
retirement in August and retired at the end of December. Steve Mason, retired
chairman and CEO of Mead Corporation and a member of Elder-Beerman's board
since 1997, was named non-executive chairman of the board.
Fiscal 2002 Outlook "I believe Elder-Beerman's strategic plan, properly executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. , will drive sales growth and improve earnings," stated Bergren. "We will continue to improve our value image with our customer through the right 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 targeted marketing. Disciplined expense controls will continue to be part of our corporate culture. We opened one new store this month in Coldwater, Michigan Coldwater is a city in the U.S. state of Michigan. As of the 2000 census, the city population was 12,697. It is the county seat of Branch County6. The city is located at the center of Coldwater Township, though it is politically independent. , and are looking at sites for 2003. "We are very focused on improving the productivity of our inventory. We are lowering inventory levels and will be more receipt driven this year to improve 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 turn and flow. We plan to be aggressive and timely in marking down goods. This will put pressure on our margins compared to last year, especially in the first quarter. I have challenged management to introduce new expense initiatives for implementation primarily in the Fall season." A conference call to discuss fourth quarter and fiscal 2001 results will take place today at 10:00 a.m., Eastern Time. The call will be webcast live on the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Elder-Beerman's web site at www.elder-beerman.com. A replay will be available online from 1:00 p.m. today until midnight on March 29, 2002. 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 67 department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department 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 . Elder-Beerman also operates two furniture galleries. For more information about the company see Elder-Beerman's web site at www.elder-beerman.com. Please note: This press release may contain certain "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 Elder-Beerman's actual future operations and results. The national tragedy of September September: see month. 11, 2001 and subsequent national security threats and warnings could magnify mag·ni·fy v. To increase the apparent size of, especially with a lens. some of those factors. Factors that could materially affect performance include the following: increasing price and product competition; fluctuations in consumer demand and confidence, especially in light of the current general economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. ; the availability and mix of inventory; fluctuations in costs and expenses; consumer response to the company's merchandising strategies, advertising, marketing and promotional programs; the effectiveness of management; the timing and effectiveness of new store openings, particularly its new concept stores opened in Fall season of 2001 (DuBois People Dubois (also spelled DuBois or Du Bois) is the name of several people:
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(B)
13-weeks ended 14-weeks ended
Feb. 2, Feb. 3,
2002 % Sales 2001 % Sales
---------------- ----------------
Revenues:
Net sales $219,571 100.0% $228,577 100.0%
Financing 7,073 3.2% 7,927 3.5%
Other 1,124 0.5% 1,182 0.5%
-------- ----- -------- -----
Total revenues 227,768 103.7% 237,686 104.0%
-------- ----- -------- -----
Costs and expenses:
Cost of merchandise
sold, occupancy,
and buying expenses 156,340 71.2% 159,691 69.9%
Selling, general,
administrative, and
other expenses 46,844 21.3% 51,379 22.5%
Depreciation and
amortization 5,282 2.4% 4,794 2.1%
Interest expense 3,369 1.5% 4,135 1.8%
-------- ----- -------- -----
Total costs and
expenses 211,835 96.5% 219,999 96.2%
-------- ----- -------- -----
Income before income
tax expense 15,933 7.3% 17,687 7.7%
Income tax expense 5,736 2.6% 6,367 2.8%
-------- ----- -------- -----
Income from continuing
operations 10,197 4.6% 11,320 5.0%
Discontinued operations -- 0.0% -- 0.0%
-------- ----- -------- -----
Net income $ 10,197 4.6% $ 11,320 5.0%
======== ===== ======== =====
Basic net income per
common share
Continuing operations $ 0.90 $ 1.01
Discontinued operations -- --
----------- -----------
Net income $ 0.90 $ 1.01
Weighted average number
of shares outstanding 11,331,871 11,237,957
Diluted net income per
common share
Continuing operations $ 0.89 $ 1.00
Discontinued operations -- --
----------- -----------
Net income $ 0.89 $ 1.00
Diluted weighted average
number of shares
outstanding 11,459,440 11,333,957
13-weeks ended 14-weeks ended
Feb. 2, Feb. 3,
2002 % Sales 2001 % Sales
---------------- ----------------
Revenues:
Net sales $219,571 100.0% $228,577 100.0%
Financing 7,073 3.2% 7,927 3.5%
Other 1,124 0.5% 1,182 0.5%
-------- ----- -------- -----
Total revenues 227,768 103.7% 237,686 104.0%
-------- ----- -------- -----
Costs and expenses:
Cost of merchandise
sold, occupancy, and
buying expenses 156,340 71.2% 163,553 71.6%(D)
Selling, general,
administrative, and
other expenses 47,221 21.5%(C) 51,370 22.5%(E)
Depreciation and
amortization 5,282 2.4% 4,794 2.1%
Interest expense 3,369 1.5% 4,135 1.8%
-------- ----- -------- -----
Total costs and
expenses 212,212 96.6% 223,852 97.9%
-------- ----- -------- -----
Income before income tax
expense 15,556 7.1% 13,834 6.1%
Income tax expense 5,879 2.7% 5,420 2.4%
-------- ----- -------- -----
Income from continuing
operations 9,677 4.4% 8,414 3.7%
Discontinued operations -- 0.0% 89 0.0%
-------- ----- -------- -----
Net income $ 9,677 4.4% $ 8,503 3.7%
======== ===== ======== =====
Basic net income per
common share
Continuing operations $ 0.85 $ 0.75
Discontinued operations -- 0.01
----------- -----------
Net income $ 0.85 $ 0.76
Weighted average number
of shares outstanding 11,331,871 11,237,957
Diluted net income per
common share
Continuing operations $ 0.84 $ 0.74
Discontinued operations -- 0.01
----------- -----------
Net income $ 0.84 $ 0.75
Diluted weighted average
number of shares
outstanding 11,459,440 11,333,957
(A) Normalized information is shown for illustrative purposes and is
not in accordance with GAAP. Normalized fourth quarter of fiscal
2001 results exclude the impact of costs related to the retirement
of Frederick J. Mershad, chairman, president, and chief executive
officer, and the search for a new chief executive, and income from
a reserve to write down the accounts receivable from Shoebilee,
and includes normalized income tax expense at a rate of 36%.
(B) Normalized information is shown for illustrative purposes and is
not in accordance with GAAP. Normalized fourth quarter of fiscal
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 a recovery of an investment in a
cooperative buying group, the impact of discontinued operations,
and includes normalized income tax expense at a rate of 36%.
(C) Includes costs of $590 related to the retirement of the chairman,
president and chief executive office and the search for a new
chief executive, and an income adjustment of $213 to the third
quarter charges related to Shoebilee.
(D) 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.
(E) 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 a recovery of an investment in a
cooperative buying group.
THE ELDER-BEERMAN STORES CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Normalized(A) Normalized(B)
52-weeks ended 53-weeks ended
Feb. 2, Feb. 3,
2002 % Sales 2001 % Sales
---------------- ----------------
Revenues:
Net sales $643,052 100.0% $656,164 100.0%
Financing 27,273 4.2% 28,162 4.3%
Other 3,191 0.5% 3,304 0.5%
-------- ----- -------- -----
Total revenues 673,516 104.7% 687,630 104.8%
-------- ----- -------- -----
Costs and expenses:
Cost of merchandise
sold, occupancy, and
buying expenses 459,886 71.5% 461,406 70.3%
Selling, general,
administrative, and
other expenses 174,511 27.1% 185,718 28.3%
Depreciation and
amortization 19,578 3.0% 16,200 2.5%
Interest expense 13,574 2.1% 13,014 2.0%
-------- ----- -------- -----
Total costs and
expenses 667,549 103.8% 676,338 103.1%
-------- ----- -------- -----
Income (loss) before
income tax expense
(benefit) 5,967 0.9% 11,292 1.7%
Income tax expense
(benefit) 2,148 0.3% 4,065 0.6%
-------- ----- -------- -----
Income (loss) from
continuing operations 3,819 0.6% 7,227 1.1%
Discontinued operations -- 0.0% -- 0.0%
-------- ----- -------- -----
Net income (loss) $ 3,819 0.6% $ 7,227 1.1%
======== ===== ======== =====
Basic net income (loss)
per common share
Continuing operations $ 0.34 $ 0.53
Discontinued operations -- --
----------- -----------
Net income (loss) $ 0.34 $ 0.53
Weighted average number
of shares outstanding 11,320,646 13,598,485
Diluted net income
(loss) per common share
Continuing operations $ 0.33 $ 0.53
Discontinued operations -- --
----------- -----------
Net income (loss) $ 0.33 $ 0.53
Diluted weighted average
number of shares
outstanding 11,454,103 13,719,275
52-weeks ended 53-weeks ended
Feb. 2, Feb. 3,
2002 % Sales 2001 % Sales
---------------- ----------------
Revenues:
Net sales $643,052 100.0% $656,164 100.0%
Financing 27,273 4.2% 28,162 4.3%
Other 3,191 0.5% 3,304 0.5%
-------- ----- -------- -----
Total revenues 673,516 104.7% 687,630 104.8%
-------- ----- -------- -----
Costs and expenses:
Cost of merchandise
sold, occupancy, and
buying expenses 459,886 71.5% 476,313 72.6%(D)
Selling, general,
administrative, and
other expenses 181,480 28.2%(C) 192,078 29.3%(E)
Depreciation and
amortization 19,578 3.0% 16,200 2.5%
Interest expense 13,574 2.1% 13,014 2.0%
-------- ----- -------- -----
Total costs and
expenses 674,518 104.9% 697,605 106.3%
-------- ----- -------- -----
Income (loss) before
income tax expense
(benefit) (1,002) -0.2% (9,975) -1.5%
Income tax expense
(benefit) (82) 0.0% (3,151) -0.5%
-------- ----- -------- -----
Income (loss) from
continuing operations (920) -0.1% (6,824) -1.0%
Discontinued operations -- 0.0% 89 0.0%
-------- ----- -------- -----
Net income (loss) $ (920) -0.1% $ (6,735) -1.0%
======== ===== ======== =====
Basic net income (loss)
per common share
Continuing operations $ (0.08) $ (0.51)
Discontinued operations -- 0.01
----------- -----------
Net income (loss) $ (0.08) $ (0.50)
Weighted average number
of shares outstanding 11,320,646 13,598,485
Diluted net income
(loss) per common share
Continuing operations $ (0.08) $ (0.51)
Discontinued operations -- 0.01
----------- -----------
Net income (loss) $ (0.08) $ (0.50)
Diluted weighted average
number of shares
outstanding 11,320,646 13,598,485
(A) Normalized information is shown for illustrative purposes and is
not in accordance with GAAP. Normalized fiscal 2001 results
exclude the impact of costs related to the retirement of Frederick
J. Mershad, chairman, president, and chief executive officer, and
the search for a new chief executive, a charge to write down the
accounts receivable from Shoebilee, income related to an
investment in a cooperative buying group, and includes normalized
income tax expense at a rate of 36%.
(B) Normalized information is shown for illustrative purposes and is
not in accordance with GAAP. Normalized fiscal 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, the
impact of discontinued operations, and includes normalized income
tax expense at a rate of 36%.
(C) Includes costs of $3,259 related to the retirement of the
chairman, president and chief executive office and the search for
a new chief executive, a charge of $4,327 to write down the
accounts receivable from Shoebilee, and income of $617 related to
a recovery of an investment in a cooperative buying group.
(D) 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.
(E) 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 a recovery of an investment
in a cooperative buying group.
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