Printer Friendly

HECHINGER COMPANY REPORTS FIRST QUARTER RESULTS; ANNOUNCES $57.3 MILLION AFTER-TAX STRATEGIC RESERVE

 HECHINGER COMPANY REPORTS FIRST QUARTER RESULTS;
 ANNOUNCES $57.3 MILLION AFTER-TAX STRATEGIC RESERVE
 LANDOVER, Md., May 27 /PRNewswire/ -- Hechinger Company (NASDAQ-NMS: HECHA, HECHB) today announced that total sales for the first quarter of fiscal 1992 ended May 2, 1992, increased 12 percent to $439.9 million from $391.4 million last year. Comparable store sales were up 7 percent for the quarter.
 The company reported a net loss for the quarter of $51.0 million, $1.22 per share, compared to net earnings of $7.2 million, 20 cents per share, for the same period last year. Before the Strategic Reserve, described below, earnings would have been $6.2 million, 15 cents per share.
 The first quarter results reflect the board of directors decision today to establish a one-time, after-tax Strategic Reserve of $57.3 million, $1.37 per share. This unusual charge will cover the estimated costs associated with the conversion of the Hechinger division stores into new, remodeled and enlarged Home Project Centers (HPC).
 Hechinger Company introduced the Home Project Center concept as an experiment in one Baltimore store in March 1991. Subsequently, other Baltimore stores were converted to the new concept. To date, sales at converted stores have increased an average of nearly 40 percent. The company now operates 11 Home Project Centers, and is now ready to roll the concept out to other Hechinger stores.
 John W. Hechinger Jr., president and chief executive officer, said, "This charge will help us to clear the decks on the old Hechinger and make way for the new." Hechinger continued, "This non- cash reserve is a sound and conservative accounting practice, and reflects currently estimated expenses associated with the repositioning of the Hechinger division."
 Hechinger plans to open/convert eight stores to the HPC format in 1992, and plans to convert or open 10 to 12 stores per year over the next few years. By 1994, the company expects to operate 47 HPCs. At the same time, the company will be revising its pricing structure at its Hechinger stores, which share markets with Home Project Centers.
 The Strategic Reserve is comprised primarily of charges related to the costs of conversion of traditional Hechinger stores to HPCs and to the relocation of selected stores. Where real estate permits, additional space will be added to existing stores or stores will be relocated to larger sites.
 The company also announced plans to enter the greater Detroit area with four to six Home Quarters Warehouse stores to open in 1993. Ultimately the company intends to operate 10 stores in greater Detroit and approximately 10 additional stores in various markets in Michigan.
 During the quarter, the company opened new Hechinger Home Project Centers in Leesburg, Va., and Reading, Pa., and completed the conversion of its Annapolis, Md., unit to the HPC format. In addition, three Home Quarters Warehouse stores opened during the first quarter: Raleigh, N.C.; Memphis, Tenn.; and Manchester, N.H. Last week Home Quarters celebrated the grand opening of its second store in Memphis and its first store in Cincinnati.
 Hechinger Company is a leading specialty retailer, currently operating 119 do-it-yourself home centers. The company serves the growing home improvement industry through its three divisions: Hechinger, Home Quarters Warehouse and Triangle Building Centers.
 HECHINGER COMPANY
 Consolidated Statements of Earnings
 (in thousands except per share data)
 13 Weeks Ended
 May 2, 1992 May 4, 1991
 Revenues
 Net sales $439,876 $391,365
 Other (principally interest) 3,091 1,144
 Total Revenues 442,967 392,509
 Costs and Expenses
 Cost of sales 335,675 293,139
 Selling, general and
 administrative expenses 94,254 85,259
 Interest expense 4,010 3,630
 Unusual charges 83,000 --
 Total Costs and Expenses 516,939 382,028
 Earnings (Loss) Before Income Taxes (73,972) 10,481
 Income Taxes (Benefit) (22,931) 3,312
 Net Earnings (Loss) $(51,041) $ 7,169
 Primary and Fully Diluted Earnings
 (Loss) per Common Share $ (1.22) $ 0.20
 -0- 5/27/92
 /CONTACT: Lennie Zallar, vice president and treasurer, Hechinger, 301-925-3170/
 (HECH) CO: Hechinger Company ST: Maryland IN: REA SU: ERN


MH -- DC013 -- 4437 05/27/92 17:02 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 27, 1992
Words:687
Previous Article:CENTRAL FIDELITY BANKS, INC. PLANS PUBLIC STOCK OFFERING
Next Article:HALTING THE DECLINE OF LATIN AMERICA'S FORESTS; HONDURAN REFORESTATION PROGRAM DESCRIBED AS UNIQUE ECOLOGICAL-SOCIAL-ECONOMIC APPROACH
Topics:


Related Articles
HECHINGER COMPANY ANNOUNCES JULY SALES
HECHINGER COMPANY REPORTS SECOND QUARTER EARNINGS
HECHINGER COMPANY REPORTS MARCH SALES
HECHINGER COMPANY REPORTS JANUARY SALES
HECHINGER COMPANY REPORTS APRIL SALES
HECHINGER COMPANY ANNOUNCES SECOND QUARTER EARNINGS
HECHINGER COMPANY ANNOUNCES THIRD QUARTER RESULTS
HECHINGER COMPANY REPORTS RESULTS FOR YEAR AND FOURTH QUARTER
Hechinger Company Reports Fourth Quarter and Fiscal Year 1996 Operating Results
Kmart Indicates That Hechinger Bankruptcy Filing Expected to Have No Meaningful Effect on Strategy, Operations.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters