Elder-Beerman Reports Third Quarter 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. 16, 2000 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 ) incurred a net loss of $1.4 million for the 13 weeks ended October October: see month. 28, 2000, excluding $10.7 million in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's new strategic plan announced on August 11, 2000 and the closing of one store. Normalized basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of equaled a loss of $0.10, compared to 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 of $0.05 in the third quarter of 1999. Including the charges relating to the strategic plan and store closing, Elder-Beerman incurred a net loss of $8.2 million or $.58 per basic and 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 third quarter. Total revenues for the quarter rose 3.9 percent over last year to $161.9 million. Total sales for the quarter increased 3.7 percent over last year to $154.6 million, and comparable sales for the quarter increased 0.7 percent. Third quarter comparable sales reflect sales for stores open more than 13 months. Elder-Beerman incurred a net loss of $4.1 million for the 39 weeks ended October 28, 2000, excluding $17.4 million in pre-tax charges for development and implementation of the company's new strategic plan and the closing of three stores. Normalized basic and diluted earnings per share equaled a loss of $0.28 compared to a loss from continuing operations of $0.02 for the same period of 1999. Including the charges related to the strategic plan and store closings, Elder-Beerman incurred a net loss of $15.2 million or $1.05 per basic and diluted share. Total revenues year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. rose 2.4 percent over last year to $449.5 million. Total sales year-to-date increased 2.3 percent over last year to $427.6 million, and comparable sales year-to-date decreased 0.9 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, "The retail landscape is changing and Elder-Beerman is evolving through its three-part strategic plan to meet our customers' needs. Since the announcement of the plan in August, we have been working hard on its implementation. We believe that our strategic plan provides the best opportunity to compete for customers' business and grow in today's retail environment." The company's new strategic plan calls for: -- A shift in the company's merchandising strategy to provide a better value proposition to customers. The company will intensely focus on five businesses -- ladies' and men's moderate sportswear, denim, textiles and shoes -- and plans to emphasize its strong cosmetics business as a differentiator from discounters and other moderate department stores. The company's goal is to offer customers a competitive combination of price and selection of merchandise in these categories. The customers will see the full effect of this strategy beginning in Spring 2001. -- Growth of new concept stores. The company had two successful new concept store openings in October 2000 in Howell, Michigan and West Bend, Wisconsin, and will grand open its third new concept store this year on November 17 in Jasper, Indiana. This gives the company five new concept stores, with plans to accelerate new concept store growth in 2001. The company has already announced one new store for Spring 2001 in Stevens Point, Wisconsin. The company believes that these new stores, with their smaller (55,000 square feet) footprint, more convenient layout and other features, represent the future for new store growth at Elder-Beerman. Located in smaller, underserved markets, the concept stores emphasize convenience and service, with unique features such as centralized customer service centers that are always staffed, self select formats in cosmetics and shoes, and The Zone, a combined juniors and young men's shop that creates an exciting specialty store within a store. The company is also incorporating some of the most successful operational elements of the concept stores into existing company stores over the next year. About one-half of the stores have now been modified, with the balance to be converted following the Christmas 2000 shopping season. -- A more efficient organization. The company expects to achieve expense reductions of $10 to $12 million pretax in fiscal 2001 and an additional $5-$7 million pretax in fiscal 2002. These savings will be achieved by tailoring the Elder-Beerman organization to provide only those functions essential to support the strategic plan, and by reengineering many functions in the company to make them more efficient. In commenting on the strategic plan, Mershad noted, "Our ultimate goal is to bring value to our shareholders. We feel that the best way to achieve that goal is by offering a better value proposition to our customer -- a competitive combination of price and selection 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 and convenience and service in our stores. Our strategic plan is focused on achieving these goals." Regarding the third quarter, Mershad added, "Due to slower sales than planned in the third quarter, we increased our markdown Markdown The difference between the highest current bid price among broker-dealers in the market and the lower price that a dealer charges a customer. Notes: The broker offers a lower price to try stimulate trading in hopes that they will make the money back on the extra rate to clear slow moving merchandise. Because of this disciplined approach, our inventory levels are on plan as we approach 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 in the fourth quarter." The conference call to discuss the third quarter results will be publicly available over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at the company's website, www.elder-beerman.com, and at www.streetevents.com at 11:00 a.m. today. A taped replay of the conference call will be available on demand at both websites through November November: see month. 21, 2000. 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 . Elder-Beerman also operates two furniture superstores This is a list of superstores by country. Multi-national
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: increasing price and product competition; fluctuations in consumer demand and confidence, especially during the Christmas shopping season; the availability and mix of inventory; fluctuations in costs and expenses; consumer response to the company's new 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 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. ); 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; 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 (A)
(Dollars in thousands, except per share amounts)
(Unaudited)
Normalized (B)
13-weeks ended 13-weeks ended 13-weeks ended
Oct. 28, % Oct. 28, % Oct. 30, %
2000 Sales 2000 Sales 1999(C) Sales
----------------- ----------------- -----------------
Revenues:
Net sales $ 154,647 100.0% $ 154,647 100.0% $ 149,162 100.0%
Financing 6,769 4.4% 6,769 4.4% 6,178 4.1%
Leased
departments 513 0.3% 513 0.3% 575 0.4%
--------- ------ --------- ------ --------- ------
Total revenues 161,929 104.7% 161,929 104.7% 155,915 104.5%
Costs & expenses:
Cost of merchandise
sold, occupancy
and buying
expenses 113,379 73.3% 122,357 79.1% 105,951 71.0%
Selling,
general and
administrative
expenses 45,817 29.6% 45,817 29.6% 44,935 30.1%
Provision for
doubtful
accounts 1,078 0.7% 1,078 0.7% 828 0.6%
Interest expense 3,591 2.3% 3,591 2.3% 3,127 2.1%
Other expense
(income) 187 0.1% 1,889 1.2% (62) 0.0%
--------- ------ --------- ------ --------- ------
Total costs
& expenses 164,052 106.1% 174,732 113.0% 154,779 103.8%
Income (loss)
from continuing
operations before
income tax expense
(benefit) (2,123) -1.4% (12,803) -8.3% 1,136 0.8%
Income tax expense
(benefit) (764) -0.5% (4,609) -3.0% 432 0.3%
--------- ------ --------- ------ --------- ------
Income (loss)
from continuing
operations (1,359) -0.9% (8,194) -5.3% 704 0.5%
Discontinued
operations -- -- (1,442) -1.0%
--------- ------ --------- ------ --------- ------
Net loss $ (1,359) -0.9% $ (8,194) -5.3% $ (738) -0.5%
--------- ------ --------- ------ --------- ------
--------- ------ --------- ------ --------- ------
Basic net income
(loss) per
common share
Continuing
operations $ (0.10) $ (0.58) $ 0.05
Discontinued
operations -- -- (0.10)
--------- --------- ---------
Net loss $ (0.10) $ (0.58) $ (0.05)
Weighted average
number of shares
outstanding 14,026,403 14,026,403 15,345,183
Diluted net income
(loss) per
common share
Continuing
operations $ (0.10) $ (0.58) $ 0.05
Discontinued
operations -- -- (0.10)
--------- --------- ---------
Net loss $ (0.10) $ (0.58) $ (0.05)
Diluted weighted
average number
of shares
outstanding 14,026,403 14,026,403 15,415,147
(A) Results of operations for the 13 weeks ended October 28, 2000 are
not necessarily indicative of results for the full fiscal year due
to the cyclical nature of the business and the importance of the
Christmas selling season.
(B) Normalized results exclude (i) $9.3 million in charges incurred in
connection with the development and implementation of the
company's new strategic plan and (ii) $1.4 million in charges to
close one store.
(C) Historical results have been restated to reflect The Bee-Gee Shoe
Corp. as a discontinued operation.
The Elder-Beerman Stores Corp. And Subsidiaries
Condensed Consolidated Statements of Operations (A)
(Dollars in thousands, except per share amounts)
(Unaudited)
Normalized (B)
39-weeks ended 39-weeks ended 39-weeks ended
Oct. 28, % Oct. 28, % Oct. 30, %
2000 Sales 2000 Sales 1999(C) Sales
----------------- ----------------- -----------------
Revenues:
Net sales $ 427,587 100.0% $ 427,587 100.0% $ 418,022 100.0%
Financing 20,235 4.7% 20,235 4.7% 19,099 4.6%
Leased
departments 1,640 0.4% 1,640 0.4% 1,759 0.4%
--------- ------ --------- ------ --------- ------
Total revenues 449,462 105.1% 449,462 105.1% 438,880 105.0%
Costs & expenses:
Cost of merchandise
sold, occupancy
and buying
expenses 312,372 73.1% 323,417 75.6% 300,290 71.8%
Selling,
general and
administrative
expenses 130,357 30.5% 130,357 30.5% 128,368 30.7%
Provision for
doubtful
accounts 3,807 0.9% 3,807 0.9% 2,687 0.6%
Interest expense 9,611 2.2% 9,611 2.2% 8,440 2.0%
Other expense
(income) (290) -0.1% 6,079 1.4% (284) -0.1%
--------- ------ --------- ------ --------- ------
Total costs
& expenses 455,857 106.6% 473,271 110.7% 439,501 105.1%
Loss from continuing
operations before
income tax
benefit (6,395) -1.5% (23,809) -5.6% (621) -0.1%
Income tax benefit (2,302) -0.5% (8,571) -2.0% (236) -0.1%
--------- ------ --------- ------ --------- ------
Loss from continuing
operations (4,093) -1.0% (15,238) -3.6% (385) -0.1%
Discontinued
operations -- -- (1,807) -0.4%
--------- --------- --------- ------
Net loss $ (4,093) -1.0% $ (15,238) -3.6% $ (2,192) -0.5%
--------- ------ --------- ------ --------- ------
--------- ------ --------- ------ --------- ------
Basic and diluted
net loss per
common share
Continuing
operations $ (0.28) $ (1.05) $ (0.02)
Discontinued
operation -- -- (0.12)
--------- --------- ---------
Net loss $ (0.28) $ (1.05) $ (0.14)
Weighted average
number of shares
outstanding 14,445,854 14,445,854 15,618,170
(A) Results of operations for the 39 weeks ended October 28, 2000 are
not necessarily indicative of results for the full fiscal year due
to the cyclical nature of the business and the importance of the
Christmas selling season.
(B) Normalized results exclude (i) $11.3 million in charges incurred
in connection with the development and implementation of the
company's new strategic plan and (ii) $6.1 million charges to
close three stores.
(C) Historical results have been restated to reflect The Bee-Gee Shoe
Corp. as a discontinued operation.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion