Elder-Beerman Reports Third Quarter 2002 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)--Nov. 20, 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: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 68 percent improvement in operations on a per share basis over last year for the third quarter ended November November: see month. 2, 2002. Elder-Beerman reported a net loss of $2.1 million or $0.19 per share compared to a net loss of $6.8 million or $0.60 per share in the same period in 2001. Third quarter sales of $150.9 million decreased 1.7 percent compared to the same period last year. Comparable store sales decreased 2.2 percent compared to last year. Byron ("Bud") L. Bergren, Elder-Beerman's 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. , said, "We continue to improve operating performance despite a difficult sales environment. Our strategies in expense control and inventory management are paying off at the bottom line." Year to Date Results Elder-Beerman reported a loss of $7.3 million or $0.64 per share for the year to date through November 2, 2002, before the effects of the Company's adoption of the Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." This compares to a net loss of $10.6 million or $0.94 per share in the same period last year. As previously announced, the company recorded an after tax charge of $14.1 million which has been reflected in the first quarter results, related to the change in accounting principle for goodwill. Including this accounting change, the net loss for the year to date through November 2, 2002 was $21.4 million or $1.88 per share. Year to date sales of $425.6 million represented a 0.5 percent increase over last year. Comparable sales decreased 2.2 percent compared to the same period last year. Items Included in Third Quarter 2001 Earnings Third quarter 2001 results included charges totaling $7.2 million; a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $2.7 million related to the retirement of Elder-Beerman's former chairman and CEO and the search for a new chief executive officer and a $4.5 million write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying owed to the company by Shoebilee, Inc. Excluding these items, Elder-Beerman would have reported a net loss of $2.2 million or $0.19 per share for the third quarter 2001. Items Included in Year to Date 2001 and 2002 Earnings Year to date 2002 results before the cumulative effect of a change in accounting principle, included charges totaling $3.2 million; $1.0 million in pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges related to a store closing 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. , $1.2 million in pretax severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges related to implementation of expense initiatives and management changes, $1.0 million in pretax charges to write-down long-term assets Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. to their current fair value. Year to date 2002 also included miscellaneous 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. of $0.8 million from the sale of noncore assets and insurance proceeds. The 2001 results for the same period included charges totaling $7.2 million; a pre-tax charge of $2.7 million related to the retirement of Elder-Beerman's former chairman and CEO and the search for a new chief executive officer and a $4.5 million write-down of accounts receivable owed to the company by Shoebilee, Inc. Year to date 2001 results also included pretax income of $0.6 million related to an investment in a cooperative buying group. Excluding these items and before the cumulative effect of a change in accounting principle, Elder-Beerman would have incurred a loss of $5.8 million dollars or $0.51 per share for 2002 year to date compared to a net loss of $6.4 million or $0.56 per share in the same period last year. The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 66 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. A conference call to discuss 2002 third 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 December December: see month. 4, 2002. To be placed on the Elder-Beerman's e-mail notification list for press releases, SEC filings, and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. upcoming events, please go to www.elder-beerman.com, click on "Investor Relations," click on "e-mail Alerts," and fill out the requested information. Please note: This press release may contain 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. Factors that could materially affect performance include the following: increasing price and product competition; fluctuations in consumer demand and confidence, especially in light of current general economic conditions; the availability and mix of inventory; fluctuations in costs and expenses; consumer response to the Company's 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. strategies, advertising, marketing and promotional programs; the timing and effectiveness of new store openings, particularly its new 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 and paydown Paydown A payment made towards an outstanding loan balance. Notes: Every time you make a mortgage payment you are "paying down" your loan. See also: Loan, Mortgage, Principal paydown In a corporate or U.S. rates on consumer debts, including amounts owed to the Company; 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. National security threats could magnify mag·ni·fy v. To increase the apparent size of, especially with a lens. some of those factors. 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)
13-weeks ended 13-weeks ended
Nov. 2, Nov. 3,
2002 % Sales 2001 % Sales
----------------- ---------------
Revenues:
Net sales $150,892 100.0% $153,519 100.0%
Financing 6,682 4.4% 6,446 4.2%
Other 704 0.5% 684 0.4%
-------- ------ ------- -----
Total revenues 158,278 104.9% 160,649 104.6%
-------- ------ ------- -----
Costs and expenses:
Cost of merchandise sold,
occupancy, and buying
expenses 110,455 73.2% 110,108 71.7%
Selling, general,
administrative, and other
expenses 43,213 28.6% 52,891 34.5%
Depreciation and amortization 5,027 3.3% 4,911 3.2%
Interest expense 2,884 1.9% 3,386 2.2%
-------- ------ ------- -----
Total costs and expenses 161,579 107.1% 171,296 111.6%
-------- ------ ------- -----
Loss before income tax benefit (3,301) -2.2% (10,647) -6.9%
Income tax benefit (1,188) -0.8% (3,833) -2.5%
-------- ------ ------- -----
Net loss $ (2,113) -1.4% $ (6,814) -4.4%
======== ====== ======= =====
Net loss per common share -
basic and diluted $ (0.19) $ (0.60)
Weighted average number of
shares outstanding 11,380,281 11,320,893
THE ELDER-BEERMAN STORES CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
39-weeks ended 39-weeks ended
Nov. 2, Nov. 3,
2002 % Sales 2001 % Sales
----------------- ---------------
Revenues:
Net sales $425,636 100.0% $423,481 100.0%
Financing 20,469 4.8% 20,200 4.8%
Other 2,089 0.5% 2,067 0.5%
-------- ------ ------- -----
Total revenues 448,194 105.3% 445,748 105.3%
-------- ------ ------- -----
Costs and expenses:
Cost of merchandise sold,
occupancy, and buying expenses 311,538 73.2% 303,546 71.7%
Selling, general,
administrative, and other
expenses 124,617 29.3% 134,259 31.7%
Depreciation and amortization 15,004 3.5% 14,296 3.4%
Interest expense 8,492 2.0% 10,205 2.4%
-------- ------ ------- -----
Total costs and expenses 459,651 108.0% 462,306 109.2%
-------- ------ ------- -----
Loss before income tax benefit (11,457) -2.7% (16,558) -3.9%
Income tax benefit (4,124) -1.0% (5,961) -1.4%
-------- ------ ------- -----
Loss before cumulative effect of
a change in accounting principle (7,333) -1.7% (10,597) -2.5%
Cumulative effect of a change in
accounting principle (14,060) -3.3% - 0.0%
-------- ------ ------- -----
Net loss $(21,393) -5.0% $(10,597) -2.5%
======== ====== ======= =====
Net loss per common share
- basic and diluted
Loss before cumulative effect
of a change in accounting
principle $ (0.64) $ (0.94)
Cumulative effect of a change
in accounting principle (1.24) -
-------- -------
Net loss $ (1.88) $ (0.94)
Weighted average number of
shares outstanding 11,376,346 11,316,905
THE ELDER-BEERMAN STORES CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in thousands)
Nov. 2, Nov. 3, Feb. 2,
2002 2001 2002
--------- --------- ---------
ASSETS
Current assets:
Cash and equivalents $ 8,637 $ 10,394 $ 7,142
Customer accounts receivable (less
allowance for doubtful accounts:
November 2, 2002 - $2,171;
November 3, 2001 - 1,397;
February 2, 2002 - $2,985) 122,616 125,972 129,121
Merchandise inventories 194,123 216,010 151,761
Other current assets 19,666 21,119 21,435
-------- -------- --------
Total current assets 345,042 373,495 309,459
-------- -------- --------
Property, fixtures and equipment, less
accumulated depreciation
and amortization 93,162 94,887 98,078
Goodwill - 16,307 16,012
Other Assets 27,212 31,353 27,513
-------- -------- --------
Total assets $465,416 $516,042 $451,062
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
obligations $ 7,311 $ 4,171 $ 5,531
Accounts payable 68,500 74,970 39,108
Other accrued liabilities 20,737 19,194 26,819
-------- -------- --------
Total current liabilities 96,548 98,335 71,458
-------- -------- --------
Long-term obligations, less current
portion 159,072 195,775 148,489
Deferred items 13,631 14,928 13,905
Shareholders' equity:
Common stock, no par, 11,529,169
shares at November 2, 2002,
11,417,352 shares at
November 3, 2001, and 11,494,266
shares at February 2, 2002 issued
and outstanding 242,299 241,889 242,273
Unearned compensation - restricted
stock (209) (232) (302)
Deficit (41,263) (29,547) (19,870)
Other comprehensive loss (4,662) (5,106) (4,891)
-------- -------- --------
Total shareholders' equity 196,165 207,004 217,210
-------- -------- --------
Total liabilities and shareholders'
equity $465,416 $516,042 $451,062
======== ======== ========
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