FACTORY STORES OF AMERICA REPORTS FIRST QUARTER RESULTS; Final Closing on Private Placement and Increased Credit Facility.SMITHFIELD Smithfield, district, London, England Smithfield, district of the City of London, England. Beginning in the 12th cent., it was used for fairs, markets, jousts, and executions. During the reign of Queen Mary I (1553–58), Protestants were executed there. , N.C.--(BUSINESS WIRE)--May 7, 1996--Factory Stores of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , Inc. (NYSE NYSE See: New York Stock Exchange :FAC FAC - Functional Array Calculator. An APL-like language, but purely functional and lazy. It allows infinite arrays. ["FAC: A Functional APL Language", H.-C. Tu and A.J. Perlis, IEEE Trans Soft Eng 3(1):36-45 (Jan 1986)]. ) today reported results for the first quarter ended March 31, 1996. Funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ) for the quarter were $3.5 million, or $0.30 per share, compared with $5.0 million, or $0.42 per share, for the first quarter of 1995. FFO for the first quarter reflects higher interest cost of $0.9 million, or $0.08 per share, plus increased general and administrative expenses primarily due to lower capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of leasing and related costs. FFO has been calculated under the new definition as prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by NAREIT NAREIT National Association of Real Estate Investment Trusts , and is defined as net income excluding gains or losses from debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: and sales of property plus depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and adjustments for unusual items. Under the previous definition, FFO for the three months ended March 31, 1996 and 1995, would have been $3.9 million, or $0.33 per share, and $5.5 million, or $0.46 per share, respectively. Net income for the period was $0.4 million compared with $2.7 million for the same period last year. The net income results reflect higher depreciation in addition to the higher expenses referenced in the FFO discussion. Total revenues for the quarter were $12.9 million compared with $12.8 million for the year-earlier period. Base and percentage rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time (prior to accounting treatment for straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. rent and reserve for doubtful accounts) increased 5% to $9.8 million for the quarter from $9.3 million for the same period in 1995 reflecting the growth in the Company~s GLA in operation which increased to 4.6 million square feet in 1996 from 4.2 million square feet in 1995. "Our first quarter results are slightly above our expectations," said J. Dixon Dixon, city (1990 pop. 15,144), seat of Lee co., N Ill., on the Rock River; founded 1830, inc. 1857. Corn and soybeans are grown, cattle are raised, and there is light manufacturing. Fleming Flem·ing , Sir Alexander 1881-1955. British bacteriologist who discovered penicillin in 1928. He shared a 1945 Nobel Prize for this achievement. , Jr., chairman and chief executive officer. "During the quarter, we issued $20 million of the $25 million available in unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. Exchangeable Notes and $5 million in unsecured Senior Notes. We also closed on a new $75 million credit facility which represents a $5 million increase to our previous facility. These additional funds will be utilized throughout the year to complete our current expansion plans, repay debt, and as additional working capital to assist in our pursuit of new growth opportunities." C. Cammack Morton Morton, village (1990 pop. 13,799), Tazewell co., central Ill., in a grain-farming and livestock area; inc. 1877. Food is canned, and tractor parts, washing machines, and pottery are manufactured. , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , stated, "In the first quarter we have made significant progress in the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the organization, adding experienced senior management and more clearly defining our strategic direction and mission. With these structural and management changes as well as financing issues complete, we are now focusing on improving the performance of our centers and expanding our portfolio consistent with our strategic goals." On April 19, the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend of $0.25 (twenty-five cents) per share for the period January January: see month. 1, 1996, to March 31, 1996, on its common stock outstanding. The dividend will be payable on May 7, 1996, to stockholders of record on April 25, 1996. Headquartered in Smithfield, North Carolina Smithfield is a town in Johnston County, North Carolina, United States. The population was 11,510 at the 2000 census. It is the county seat of Johnston CountyGR6. Smithfield is located in North Carolina's Inner Banks region. , Factory Stores of America, Inc. is a self-administered real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) engaged in the management, development and acquisition of outlet outlet /out·let/ (-let) a means or route of exit or egress. pelvic outlet the inferior opening of the pelvis. shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into . The Company currently owns and operates 36 outlet shopping centers in 21 states, with a total of 4.6 million square feet, making it one of the largest outlet REITs in terms of numbers of centers and square footage. -0-
Factory Stores of America, Inc.
Consolidated Balance Sheets
(In thousands except per share data)
March 31, December 31,
1996 1995
--------------------------
(Unaudited) (Audited)
ASSETS
OUTLET CENTER PROPERTIES, AT COST
LAND $ 71,211 $ 70,356
BUILDING AND IMPROVEMENTS 215,283 211,524
EQUIPMENT 3,994 3,826
------- -------
290,488 285,706
LESS ACCUMULATED DEPRECIATION (22,499) (20,332)
------- -------
267,989 265,374
PROPERTIES UNDER DEVELOPMENT 30,755 32,837
------- -------
298,744 298,211
PROPERTIES HELD FOR SALE, NET
OF RESERVE OF $8,500 24,294 24,509
-------- --------
OUTLET CENTER PROPERTIES, NET 323,038 322,720
CASH AND CASH EQUIVALENTS 2,963 1,655
RESTRICTED CASH 4,402 4,806
RENTS FROM TENANTS AND OTHER
RECEIVABLES 4,719 5,245
PREPAID EXPENSES 603 607
DEFERRED COST 16,023 16,208
OTHER ASSETS AND DEPOSITS 3,704 3,854
-------- --------
TOTAL ASSETS $355,452 $355,095
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
NOTES PAYABLE $106,553 $100,972
NOTES PAYABLE TO BANK UNDER LINE
OF CREDIT 69,939 69,939
CAPITAL LEASE OBLIGATIONS 844 797
ACCOUNTS PAYABLE AND ACCRUED
EXPENSES 15,921 16,022
DIVIDEND PAYABLES 0 6,025
DEFERRED REVENUE AND TENANT
SECURITY DEPOSITS 1,291 854
-------- --------
TOTAL LIABILITIES 194,548 194,609
SHAREHOLDERS' EQUITY:
COMMON STOCK, $0.01 PAR VALUE,
50,000,000 SHARES AUTHORIZED,
11,814,975 AND 11,814,523 SHARES
ISSUED AND OUTSTANDING,
RESPECTIVELY 118 118
ADDITIONAL PAID IN CAPITAL 160,374 160,368
RETAINED EARNINGS 412 0
-------- --------
TOTAL SHAREHOLDERS' EQUITY 160,904 160,486
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $355,452 $355,095
======== ========
Factory Stores of America, Inc.
Consolidated Statements of Income - Unaudited
(in thousands except for per share data)
Three Months
Ended March 31,
------------------
1996 1995
REVENUE:
BASE RENT $ 8,799 $ 8,944
PERCENTAGE RENT 779 563
RECOVERIES FROM TENANTS 3,117 2,984
OTHER INCOME 184 274
-------- --------
TOTAL REVENUE 12,879 12,765
EXPENSES:
OPERATING 4,593 4,110
GENERAL & ADMINISTRATIVE 1,421 1,168
DEPRECIATION AND AMORTIZATION 3,220 2,518
INTEREST 3,233 2,304
-------- --------
TOTAL EXPENSES 12,467 10,100
-------- --------
NET INCOME $ 412 $ 2,665
======== ========
EARNINGS PER COMMON SHARE
NET INCOME $ 0.03 $ 0.23
======== ========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 11,815 11,813
======== ========
Factory Stores of America, Inc.
Funds From Operations - Unaudited
(in thousands except for per share data)
Quarter Ended
March 31,
----------------
1996 1995
------ ------
Weighted Average Shares Outstanding 11,815 11,813
====== ======
Old Definition
Net Income $412 $2,665
Add: Depreciation and Amortization of assets
related to real estate 3,146 2,478
Other depreciation and amortization 74 40
Amortization of deferred finance cost 287 269
------ ------
Funds From Operations $3,919 $5,452
====== ======
Funds From Operations Per Share $0.33 $0.46
====== ======
Dividend $0.25 $0.51
====== ======
Payout Ratio 75.4% 110.5%
====== ======
New Definition
Net Income $412 $2,665
Add: Depreciation and Amortization of assets
related to real estate 3,146 2,478
Other depreciation and amortization -0- -0-
Amortization of deferred finance cost -0- -0-
Less: Straight line rents (63) (169)
------ ------
Funds From Operations $3,495 $4,974
====== ======
Funds From Operations Per Share $0.30 $0.42
====== ======
Dividend $0.25 $0.51
====== ======
Payout Ratio 84.5% 121.1%
====== ======
The Company cautions that the calculation of Funds from Operations
("FFO") may vary from entity to entity and as such the presentation
of FFO by the Company may not be comparable to other similarly
titled measures of other reporting companies. FFO does not
represent cash generated from operating activities in accordance
with generally accepted principles; is not necessarily indicative of
cash available to fund cash needs; and should not be considered as
an alternative to cash flow as a measure of liquidity.
CONTACT: Factory Stores of America, Inc., Smithfield John N. Nelli or Linda A set of parallel processing functions added to languages, such as C and C++, that allows data to be created and transferred between processes. It was developed by Yale professor David Gelernter, when he was a 23-year old graduate student. M. Swearingen
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