Printer Friendly

SUNBELT NURSERY REPORTS RESULTS FOR SECOND QUARTER 1992; ANNOUNCES RETAIL STORE AND WHOLESALE OPERATION ACQUISITION IN SOUTHERN CALIFORNIA

SUNBELT NURSERY REPORTS RESULTS FOR SECOND QUARTER 1992; ANNOUNCES RETAIL STORE AND WHOLESALE OPERATION ACQUISITION IN SOUTHERN CALIFORNIA
 FORT WORTH, Texas, Sept. 11 /PRNewswire/ -- Sunbelt Nursery Group, Inc. (AMEX: SBN), the leading specialty nursery retailer in six major metropolitan areas in Texas, Arizona and California, today announced results for the second quarter and first six months ended July 31, 1992.
 For the second quarter, the company earned a net income of $47,000, or $.01 per share, on sales of $34,544,000. For the six months ended July 31, 1992, sales were $83,855,000 and net income was $3,199,000, or $.38 per share.
 Prior year earnings are not comparable due to the acquisition of Sunbelt by Pier 1 Imports, Inc. in the fourth quarter of 1990. The company was a wholly owned subsidiary of Pier 1 Imports until the October 1991 IPO that converted Sunbelt into a publicly held corporation.
 "Excessive rain that plagued all of our major markets during the first quarter continued through May, June and early July. The net impact of the wet summer seen throughout much of the Southwest was a decline in comparable store sales of 9 percent for both the three- and six-month periods," said Donald W. Davis, president and chief executive officer.
 On the bright side, Davis said Sunbelt's renovation and expansion program is well under way with the recent acquisition of an existing retail store and wholesale nursery operation in Orange County, Calif. In addition, five new or relocated stores are scheduled to open in major Texas markets within the next 60 to 90 days.
 "Our acquisition in California, plus the new and relocated stores in Texas should have the effect of generating increased sales per unit and increased dollars per market area because of their larger size, better locations, weather proof shopping and plant care environments, and overall improved efficiency," Davis said. "The California store and nursery is an established business that, based on its history of performance, would boost our total annual sales 5 to 6 percent."
 Sunbelt Nursery Group, Inc. today also announced the acquisition of a retail store and wholesale nursery operation in Orange County, Calif.
 The purchase included Capistrano Gardens retail nursery store and Capistrano Wholesale Nursery. Both are located in San Juan Capistrano and were formerly operated by California Garden Centers, Inc. The purchase price was not disclosed.
 The acquisition is part of an ongoing program Sunbelt is pursuing to expand the company's market share through acquisition of new stores and redevelopment and relocation of existing stores.
 Donald W. Davis, president and chief executive officer, said the acquisition, based on historical performance, is expected to boost Sunbelt's annual sales 5 to 6 percent. "This is a substantial business," he said. "Capistrano Gardens' retail store contains 130,000 square feet and the wholesale growing operation is more than 60 acres. Both are in full production.
 "This store and wholesale operation nicely complement the 29 Nurseryland retail stores we already have in the area," he said. "Their addition to the existing group also will help us spread advertising and administrative costs across a larger base without incurring a significant increase in those expenses. The wholesale operation will continue to be a source of outside sales to the landscaping industry in Southern California. We'll also use it to grow and supply plants to all of our stores in this market and in Texas and Arizona. This vertical integration will provide a competitive advantage on selected green good items."
 Davis said that the store and wholesale operation will become part of the Nurseryland group of stores that Sunbelt operates in Southern California. He said that Sunbelt anticipates hiring "virtually all" of the 90 employees who were working for California Garden Centers at the time of the sale. Prior to the acquisition, the Nurseryland group comprised 29 stores in the Los Angeles and San Diego markets employing 450-500 people.
 Sunbelt Nursery Group, Inc., an American Stock Exchange company, is the leading specialty nursery retailer in six major metropolitan areas in Texas, Arizona and California with 101 stores that feature nursery stock and lawn and garden products.
 -0- 9/11/92
 /CONTACT: Robert L. Broadhead or Mark L. Jones of Sunbelt Nursery Group, Inc., 817/738-8111/
 (SBN) CO: Sunbelt Nursery Group, Inc. ST: Texas, California IN: REA SU: ERN TNM


TS -- NY014 -- 8371 09/11/92 10:01 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:Sep 11, 1992
Words:731
Previous Article:PARTICIPATION IN CALIFORNIA 'RIDESHARE' BOOSTED BY INCENTIVE POWER OF MERCHANDISE AWARDS
Next Article:INCSTAR RECEIVES FDA CLEARANCE TO MARKET NEW TEST FOR INFECTIOUS MONONUCLEOSIS
Topics:


Related Articles
SUNBELT NURSERY GROUP ANNOUNCES RESULTS
SUNBELT NURSERY GROUP REPORTS RESULTS FOR THIRD QUARTER ENDED OCT. 31, 1992
GENERAL HOST CORPORATION AGREES TO ACQUIRE 49.5 PERCENT OF SUNBELT NURSERY GROUP'S STOCK
GENERAL HOST CORPORATION COMPLETES ACQUISITION OF 49.5 PERCENT OF SUNBELT NURSERY GROUP'S STOCK
SUNBELT NURSERY GROUP REPORTS RESULTS FOR THE QUARTER AND NINE MONTHS ENDED OCT. 31, 1993
SUNBELT NURSERY GROUP OBTAINS EXTENSION OF DEBT MATURITY
SUNBELT NURSERY GROUP REPORTS 44 PERCENT GAIN IN EARNINGS PER SHARE FOR THE QUARTER ENDED APRIL 30, 1994
SUNBELT NURSERY GROUP ANNOUNCES PURCHASE OF 49.4 PERCENT OF COMMON STOCK
Sunbelt Nursery Group, Inc. Reports 43% Improvement in Results

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