Elder-Beerman Reports Second Quarter 2001 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)--Aug. 23, 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 a net loss of $3.6 million for the second quarter ended August 4, 2001, versus a $4.0 million net loss in the same period in 2000. The net loss per share for second quarter 2001 was $0.32, compared to a net loss per share of $0.27 in the second quarter of 2000. Second quarter 2001 results included $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 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. Second quarter 2000 net loss included a charge of $2.0 million for development and implementation of the company's strategic plan. Excluding these items, Elder-Beerman would have reported a loss of $4.0 million or $0.35 per share for the second quarter 2001, versus a loss of $2.7 million or $0.18 per share for the second quarter 2000. Per share comparisons between this year 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. Total revenues for the quarter fell 0.7 percent versus last year to $137.8 million. As previously reported, total sales for the quarter decreased 0.7 percent and comparable sales for the quarter decreased 2.3 percent. Elder-Beerman also reported a net loss of $3.8 million for the 26 weeks ended August 4, 2001, versus a net loss of $7.0 million for the same period in 2000. The net loss per share year to date 2001 was $0.33 compared to a net loss per share of $0.48 for the same period in 2000. Year to date 2001 results included $0.6 million in income related to an investment in a cooperative buying group. Year to date 2000 net loss included 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 $4.7 and a charge of $2.0 million for development and implementation of the company's strategic plan. Excluding these items, Elder-Beerman would have reported a loss of $4.2 million or $0.37 per share for the 26 weeks in 2001 versus a loss of $2.7 million or $0.19 per share for the 26 weeks in 2000. Per share comparisons between this year and 2000 are affected by the company's repurchase of 23 percent of its outstanding shares, completed in October 2000. Total revenues year to date fell 1.0 percent versus last year to $285.1 million. As previously reported, total sales year to date decreased 1.1 percent and comparable sales year to date decreased 2.6 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, Elder-Beerman's chairman, president and chief executive officer, stated, "Sales remained difficult through the second quarter due to the soft economy. We continue to pursue execution of our strategic plan. Two years of extensive customer research tell us that Elder-Beerman is moving in the right direction by focusing on 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 and Concept Store growth. Our strategic plan focus on operating our business with reduced inventory levels and strict expense controls helped to partially offset the reduction in sales and gross margin during the quarter." A conference call to discuss 2001 second quarter results will take place today at 11:00 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 and on www.streetevents.com. A replay will be available online at those sites until midnight on August 31, 2001. 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 63 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 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. 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 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 Kohler Kohler, village (1990 pop. 1,817), Sheboygan co., E Wis., on the Sheboygan River; inc. 1912. The Kohler plumbing-fixtures plant there, which still produces its famous stainless-steel products, has been the scene of some of the longest and most bitter labor disputes , WI, Alliance, OH and DuBois People Dubois (also spelled DuBois or Du Bois) is the name of several people:
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. 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 and Spring season of 2001 (Howell How´ell n. 1. The upper stage of a porcelian furnace. , MI; West Bend West Bend, industrial city (1990 pop. 23,916), seat of Washington co., E Wis., on the Milwaukee River; inc. 1885, consolidated with Barton in 1961. Tools and dies, plastics, machines, dairy items, and leather products are made there. A two-year branch of the Univ. , WI; Jasper, IN and Plover plover (plŭv`ər), common name for some members of the large family Charadriidae, shore birds, small to medium in size, found in ice-free lands all over the world. , WI) and the new concept stores to be opened in the Fall season of 2001; the 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)
13-weeks ended 13-weeks ended
Aug. 4, 2001 % Sales July 29, 2000 % Sales
--------------------- ---------------------
Revenues:
Net sales $ 130,468 100.0% $ 131,358 100.0%
Financing 6,605 5.1% 6,696 5.1%
Other 679 0.5% 676 0.5%
------------ ------ ------------ ------
Total revenues 137,752 105.6% 138,730 105.6%
------------ ------ ------------ ------
Costs and expenses:
Cost of merchandise
sold, occupancy,
and buying expenses 94,333 72.3% 92,468 70.4%
Selling, general,
administrative, and
other expenses 40,825 31.3% 45,935 35.0%
Depreciation and
amortization 4,692 3.6% 3,675 2.8%
Interest expense 3,482 2.7% 2,859 2.2%
------------ ------ ------------ ------
Total costs and
expenses 143,332 109.9% 144,937 110.3%
------------ ------ ------------ ------
Loss before income
tax benefit (5,580) -4.3% (6,207) -4.7%
Income tax benefit (2,009) -1.5% (2,234) -1.7%
------------ ------ ------------ ------
Net loss $ (3,571) -2.7% $ (3,973) -3.0%
============ ====== ============ ======
Loss per common share
- basic and diluted $ (0.32) $ (0.27)
Weighted average
number of shares
outstanding 11,314,970 14,657,223
Normalized (A) Normalized (B)
13-weeks ended 13-weeks ended
Aug. 4, 2001 % Sales July 29, 2000 % Sales
--------------------- ---------------------
Revenues:
Net sales $ 130,468 100.0% $ 131,358 100.0%
Financing 6,605 5.1% 6,696 5.1%
Other 679 0.5% 676 0.5%
------------ ------ ------------ ------
Total revenues 137,752 105.6% 138,730 105.6%
------------ ------ ------------ ------
Costs and expenses:
Cost of merchandise
sold, occupancy,
and buying expenses 94,333 72.3% 92,468 70.4%
Selling, general,
administrative, and
other expenses 41,442 31.8% 43,921 33.4%
Depreciation and
amortization 4,692 3.6% 3,675 2.8%
Interest expense 3,482 2.7% 2,859 2.2%
------------ ------ ------------ ------
Total costs and
expenses 143,949 110.3% 142,923 108.8%
------------ ------ ------------ ------
Loss before income
tax benefit (6,197) -4.7% (4,193) -3.2%
Income tax benefit (2,231) -1.7% (1,509) -1.1%
------------ ------ ------------ ------
Net loss $ (3,966) -3.0% $ (2,684) -2.0%
============ ====== ============ ======
Loss per common share
- basic and diluted $ (0.35) $ (0.18)
Weighted average
number of shares
outstanding 11,314,970 14,657,223
A) Normalized August 4, 2001 results exclude $0.6 million in income
related to a investment in a cooperative buying group.
B) Normalized July 29, 2000 results exclude the impact of costs
incurred due to the development and implementation of the Company's
strategic plan totalling $2.0 million.
THE ELDER-BEERMAN STORES CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
26-weeks ended 26-weeks ended
Aug. 4, 2001 % Sales July 29, 2000 % Sales
--------------------- ---------------------
Revenues:
Net sales $ 269,962 100.0% $ 272,940 100.0%
Financing 13,754 5.1% 13,466 4.9%
Other 1,383 0.5% 1,429 0.5%
------------ ------ ------------ -----
Total revenues 285,099 105.6% 287,835 105.5%
------------ ------ ------------ ------
Costs and expenses:
Cost of merchandise
sold, occupancy,
and buying expenses 193,438 71.7% 193,926 71.1%
Selling, general,
administrative,
and other expenses 81,368 30.1% 92,017 33.7%
Depreciation and
amortization 9,385 3.5% 7,380 2.7%
Interest expense 6,819 2.5% 5,518 2.0%
------------ ------ ------------ ------
Total costs and
expenses 291,010 107.8% 298,841 109.5%
------------ ------ ------------ ------
Loss before income
tax benefit (5,911) -2.2% (11,006) -4.0%
Income tax benefit (2,128) -0.8% (3,962) -1.5%
------------ ------ ------------ ------
Net loss $ (3,783) -1.4% $ (7,044) -2.6%
============ ====== ============ ======
Loss per common share
- basic and diluted $ (0.33) $ (0.48)
Weighted average
number of shares
outstanding 11,314,911 14,655,579
Normalized (A) Normalized (B)
26-weeks ended 26-weeks ended
Aug. 4, 2001 % Sales July 29, 2000 % Sales
--------------------- ---------------------
Revenues:
Net sales $ 269,962 100.0% $ 272,940 100.0%
Financing 13,754 5.1% 13,466 4.9%
Other 1,383 0.5% 1,429 0.5%
------------ ------ ------------ ------
Total revenues 285,099 105.6% 287,835 105.5%
------------ ------ ------------ ------
Costs and expenses:
Cost of merchandise
sold, occupancy,
and buying expenses 193,438 71.7% 192,126 70.4%
Selling, general,
administrative,
and other expenses 81,985 30.4% 87,083 31.9%
Depreciation and
amortization 9,385 3.5% 7,380 2.7%
Interest expense 6,819 2.5% 5,518 2.0%
------------ ------ ------------ ------
Total costs and
expenses 291,627 108.0% 292,107 107.0%
------------ ------ ------------ ------
Loss before income
tax benefit (6,528) -2.4% (4,272) -1.6%
Income tax benefit (2,350) -0.9% (1,538) -0.6%
------------ ------ ------------ ------
Net loss $ (4,178) -1.5% $ (2,734) -1.0%
============ ====== ============ ======
Loss per common share
- basic and diluted $ (0.37) $ (0.19)
Weighted average
number of shares
outstanding 11,314,911 14,655,579
A) Normalized August 4, 2001 results exclude $0.6 million in income
related to a investment in a cooperative buying group.
B) Normalized July 29, 2000 results exclude the impact of charges to
reflect the write-down of amounts and incurred expenses related to
the closing of two stores totalling $4.7 million, and costs
incurred due to the development and implementation of the Company's
strategic plan totalling $2.0 million.
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