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THE PRICE COMPANY ANNOUNCES FIRST QUARTER FISCAL 1992 RESULTS

 THE PRICE COMPANY ANNOUNCES FIRST QUARTER FISCAL 1992 RESULTS
 SAN DIEGO, Jan. 14 /PRNewswire/ -- The Price Company (NASDAQ: PCLB) announced today, results for the first quarter of fiscal 1992 ending Dec. 22, 1991.
 In the 16-week first quarter ended Dec. 22, 1991, the reported sales were $2.454 billion, compared with $2.162 billion last year, an increase of 13.5 percent.
 Net income was $50.3 million, compared with $47.0 million last year, an increase of 7.0 percent. Fully diluted earnings per share were $0.95 compared with $0.94 last year, an increase of 1.1 percent.
 The weighted average number of shares actually outstanding in the first quarter was 48,861,000 shares vs. 48,288,000 shares last year.
 Comparable warehouse sales for all Price Clubs which were operating during the same period last year increased 3.6 percent in the first quarter.
 The company currently operates 77 Price Clubs, including 12 in Canada.
 THE PRICE COMPANY
 Consolidated Income Statement
 First quarter fiscal 1992 and 1991
 (In thousands except per share data)
 (Unaudited)
 First quarter
 16 weeks
 Dec. 22, Dec. 23,
 1991 1990
 Operating revenues:
 Sales $2,453,665 $2,162,060
 Membership fees and other income 54,297 46,419
 Real estate operations, net 10,080 4,939
 Total operating revenues 2,518,042 2,213,418
 Operating costs and expenses:
 Cost of sales 2,238,106 1,976,629
 Selling, general and
 administrative 193,653 160,424
 Total operating expenses 2,431,759 2,137,053
 Operating income 86,283 76,365
 Non-operating items:
 Income from investments 6,822 5,326
 Interest expense (9,492) (3,833)
 Income before income taxes 83,613 77,858
 Income taxes (33,278) (30,831)
 Net income $50,335 $47,027
 Net income per share:
 Primary $.99 $.94
 Fully diluted $.95 $.94
 THE PRICE COMPANY
 Consolidated Balance Sheet
 (In thousands)
 (Unaudited)
 Dec. 22, Dec. 23,
 1991 1990
 Assets:
 Current assets
 Cash $39,370 $17,707
 Short-term investments 364,298 122,333
 Merchandise inventories 420,293 342,559
 Receivables, net 62,344 51,786
 Prepaid expenses and other
 current assets 26,594 12,542
 Total current assets 912,899 546,927
 Property, plant and equipment:
 Land 360,197 261,064
 Buildings and improvements 303,633 244,793
 Equipment and fixtures 154,741 114,832
 Construction in progress 24,656 23,529
 Total 843,227 644,218
 Less accumulated depreciation (119,955) (90,821)
 Total 723,272 553,397
 Other assets:
 Property held for development or
 lease to others, net 275,377 255,810
 Investment in and advances to
 joint ventures 49,533 22,995
 Goodwill, net 51,517 49,765
 Notes receivable 53,739 46,990
 Miscellaneous other assets 22,157 29,683
 Total 452,323 405,243
 Total assets $2,088,494 $1,505,567
 Liabilities and shareholders'
 equity:
 Current liabilities
 Accounts payable $553,008 $485,407
 Accrued expenses & sundry
 liabilities 167,033 132,221
 Income taxes payable 21,284 18,696
 Current portion notes payable 2,554 642
 Total current liabilities 743,879 636,966
 Long-term liabilities:
 5 1/2 percent convertible
 subordinated debentures 177,810 177,779
 6 3/4 percent convertible
 subordinated debentures 284,414 ---
 Notes payable 43,842 25,062
 Deferred taxes 10,912 8,212
 Other 8,736 3,110
 Total 525,714 214,163
 Shareholders' equity:
 Common stock 4,888 4,826
 Paid-in capital 128,129 101,243
 Retained earnings 684,351 546,975
 Foreign currency translation 1,533 1,394
 Total 818,901 654,438
 Total liabilities &
 shareholders' equity $2,088,494 $1,505,567
 NOTE: During the first quarter fiscal 1992 the LIFO reserve increased by $2,000,000 to a balance of $11,300,000. This compares to an increase of $2,400,000 in the first quarter of fiscal 1991 and an ending balance of $11,500,000.
 THE PRICE COMPANY
 QUESTIONS & ANSWERS
 1) What impact did the REIT transaction have on earnings?
 During December 1991, The Price REIT completed an initial public offering. As discussed in the prospectus, The Price Company sold certain property to The Price REIT in return for $70.85 million in cash. As a result of this transaction, the company recognized a pre-tax accounting gain of $4.4 million during the first quarter of fiscal 1992. This gain was net of a reserve for the future impact to the company of the preferred return to REIT shareholders.
 Pre-tax gains on sales of real estate were recognized during the first quarter of last year of $2.2 million.
 2) Did first quarter of last year include any non-operating gains?
 Yes. The company was required to record an unrealized loss on certain marketable equity securities held at the end of fiscal 1990. Due to a rise in the share prices of these securities, the company was required to recognize a reversal of the previous markdown during the first quarter of fiscal 1991. The pre-tax gain was $1.9 million and was included in investment income.
 3) What is the impact of the 6.75 percent debentures on first quarter E.P.S.?
 The 6.75 percent convertible debentures were issued in March 1991; therefore, earnings per share is not comparable to last year because they were not outstanding during the first quarter of last year. The dilutive impact of the issuance of these debentures is approximately $.04 per share on the first quarter of fiscal 1992 results.
 4) How is earnings per share calculated?
 Earnings per share is calculated as follows:
 Primary Fully Diluted
 Shares outstanding -- weighted
 average 48,861 48,861
 Impact of options/warrants 466 466
 5.5 percent converts shares 3,542 3,542
 6.75 percent converts shares 0 5,990
 Total shares used (000s) 52,869 58,859
 After-tax earnings $50,335 $50,335
 5.5 percent converts interest 1,822 1,822
 6.75 percent converts interest 0 3,595
 Earnings used ($000s) $52,157 $55,752
 Earnings per share $0.99 $0.95
 NOTE: Common stock shares outstanding at Dec. 22, 1991, were approximately 48,885,000.
 -0- 1/14/92
 /CONTACT: Daniel T. Carter, VP-Finance of The Price Company, 619-581-4889/
 (PCLB) CO: The Price Company ST: California IN: REA SU: ERN


EH-JL -- SD002 -- 9396 01/14/92 09:07 EST
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