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THE PRICE COMPANY ANNOUNCES FIRST QUARTER RESULTS FISCAL 1993

 SAN DIEGO, Jan. 14 /PRNewswire/ The Price Company (NASDAQ: PCLB) announced today, Jan. 14, results for the first quarter of fiscal 1993 ended Dec. 20, 1992.
 In the 16-week first quarter ended Dec. 20, 1992, the reported sales were $2.590 billion, compared with $2.454 billion last year, an increase of 5.5 percent. Income before interest and taxes was $82.4 million, compared with $86.3 million last year, a decrease of 4.5 percent. Net income was $46.6 million, compared with $50.3 million last year, a decrease of 7.4 percent. Fully diluted earnings per share were $.93, compared with $.95 last year, a decrease of 2.1 percent.
 Comparable warehouse sales for all Price Clubs which were operating during the same period last year decreased 5.6 percent in the first quarter.
 Robert Price, chairman and chief executive officer, had the following comments: "The decline in comparable warehouse sales is attributable to three major factors. First, this year's first quarter ended Dec. 20, two days earlier than the first quarter of last year. (Sales from these two days will be included in our second quarter results.) Second, a decline in the value of the Canadian dollar (80 cents to the U.S. dollar vs. 88 cents a year ago) resulted in lower reported sales this quarter. Finally, 11 of the 15 new Price Clubs we opened this quarter were located in existing Price Club markets. The short-run cost of this effort is seen in the decline of comparable sales as new warehouses take sales from older locations. In the long term we anticipate these Price Clubs should enhance the overall strength of our company.
 "Despite the decrease in comparable Price Club sales, we feel encouraged by first quarter sales and profit results. Our 15 new locations in the aggregate are doing well. Initial sales volumes have met our expectations and are significantly higher, on average, than our openings in the past two fiscal years. Sales for the two weeks before Christmas were quite good. It is still unclear whether this stronger sales trend will continue in to the new year, but consumer confidence seems to be on the upswing. Sales in the first Mexico City Price Club continue to be strong. A second Price Club will be opening in Mexico City in May 1993, and a third in Guadalajara during the Summer of 1993."
 The company currently operates 94 Price Clubs in the United States and Canada (17 in Canada). In addition, the company, in a joint venture with Controladora Comercial Mexicana, S.A. de C.V., operates one Price Club in Mexico City.
 THE PRICE COMPANY
 Consolidated Income Statement
 First Quarter Fiscal 1993 and 1992
 (Unaudited)
 (000's except per share data)
 First Quarter
 (16 Weeks)
 Dec. 20, Dec. 22,
 1992 1991
 Operating revenues:
 Sales $2,589,663 $2,453,665
 Membership fees and other income 62,900 54,297
 Real estate operations, net 9,557 10,080
 Total operating revenues 2,662,120 2,518,042
 Operating costs and expenses:
 Cost of sales 2,355,929 2,238,106
 Selling, general and
 administrative 223,752 193,653
 Total operating expenses 2,579,681 2,431,759
 Operating income 82,439 86,283
 Non-operating items:
 Income from investments 3,138 6,822
 Interest expense (7,928) (9,492)
 Income before income taxes 77,649 83,613
 Income taxes (31,060) (33,278)
 Net income $46,589 $50,335
 Net income per share:
 Primary $.97 $.99
 Fully diluted $.93 $.95
 Number of shares used in calculation:
 Primary 49,784 52,869
 Fully diluted 55,799 58,859
 THE PRICE COMPANY
 Consolidated Balance Sheet
 First Quarter Fiscal 1993 and 1992
 (Unaudited)
 (000's)
 Dec. 20, Dec. 22,
 1992 1991
 Assets
 Current Assets
 Cash $3,468 $39,370
 Short-term investments 136,529 364,298
 Merchandise inventories 478,876 420,293
 Receivables, net 69,507 62,344
 Prepaid expenses and other current assets 7,590 15,991
 Deferred taxes 12,074 10,603
 Total current assets 708,044 912,899
 Property, plant and equipment
 Land 492,515 360,197
 Buildings and improvements 400,802 303,633
 Equipment and fixtures 215,287 154,741
 Construction in progress 18,807 24,656
 Total 1,127,411 843,227
 Less accumulated depreciation (155,005) (119,955)
 Total 972,406 723,272
 Other assets
 Property held for development or
 lease to others, net 308,570 275,377
 Investment in and advances to
 joint ventures 46,731 47,777
 Investment in foreign subsidiaries 12,039 1,756
 Goodwill, net 46,471 51,517
 Notes receivable 49,053 53,739
 Miscellaneous other assets 14,154 22,157
 Total 477,018 452,323
 Total assets $2,157,468 $2,088,494
 Liabilities and shareholders' equity
 Current liabilities
 Accounts payable $577,509 $553,008
 Payroll and related accruals 80,853 63,696
 Accrued sales and other taxes 59,428 42,301
 Income taxes payable 18,305 21,284
 Other current liabilities 43,795 63,590
 Total current liabilities 779,890 743,879
 Long-term liabilities
 Long-term debt 511,830 506,066
 Deferred taxes 17,929 10,912
 Other 6,429 8,736
 Total 536,188 525,714
 Shareholders' equity
 Common stock 4,620 4,888
 Paid-in capital 36,622 128,129
 Retained earnings 809,717 684,351
 Foreign currency translation (9,569) 1,533
 Total 841,390 818,901
 Total liabilities and
 shareholders' equity $2,157,468 $2,088,494
 Note: During the first quarter of fiscal 1993 the LIFO reserve was increased by $1,200,000 to a balance of $10,800,000. This compares to an increase of $2,000,000 in the first quarter of fiscal 1992 to an ending balance of $11,300,000.
 THE PRICE COMPANY
 Questions & Answers
 (1) What Impact Did the Real Estate Sale Have on Earnings?
 During December 1992, The Price REIT acquired the former Price Club property in Santa Ana, Calif., for $14.4 million which generated a $6.7 million pre-tax gain (EPS impact of approximately 7 cents per share). The property is currently leased to Home Depot.
 One should remember that pre-tax gains on sales of real estate were recognized during the first quarter of last year of $4.4 million (EPS impact of approximately 4 cents per share).
 (2) How Did the Canadian Exchange Rate Impact Sales Comparisons?
 The weighted average exchange rate for translating Canadian dollars was 79.8 U.S. cents for each Canadian dollar during the first quarter of fiscal 1993, as compared to 88.0 U.S. cents during the same period last year. The impact of this devaluation is shown below ($000's):
 First Quarter Sales Percent
 Fiscal '93 Fiscal '92 Change
 Canadian Operations:
 As Reported in U.S. Dollars 445,477 432,050 3.11 pct.
 Canadian Dollars 558,297 491,168 13.67 pct.
 Obviously, this devaluation had a corresponding impact on the comparable sales results. Had the exchange rate for the first quarter been equal to the prior year's rate, the consolidated comparable sales results would have been 1.7 percent higher than actually reported.
 (3) What Was the Impact of Openings on Sales in Existing Price
 Clubs?
 Eleven of the 15 locations which were opened during the first quarter were in markets where Price Clubs already exist. New locations naturally tend to draw some sales from the older locations, and the increased number of openings had a significant impact during the first quarter. Had the comparable sales calculation excluded the 15 existing Price Clubs which have been directly affected by the new warehouses, consolidated comparable sales results would have been 3.9 percent higher than actually reported.
 (4) Which Price Clubs Were Opened During the First Quarter?
 West Coast Locations: Canadian Locations:
 Moreno Valley, CA (9/26/92) Montreal, QU (9/30/92)
 Carlsbad, CA (10/2/92) Ste.-Foy, QU (10/21/92)
 Rancho Cucamonga, CA (10/10/92) Trois Rivieres, QU (11/4/92)
 Carmel Mtn. Ranch, CA (10/23/92) Halifax, NS (11/18/92)
 Fairfield, CA (10/31/92) Ancaster, OT (12/10/92)
 Houston, TX (11/7/92)
 Irvine, CA (11/14/92)
 East Coast Locations:
 Westbury, NY (10/24/92)
 Newington, VA (11/7/92)
 Brick Township, NJ (11/21/92)
 (5) How Were Earnings Per Share Calculated?
 Earnings per share were calculated as follows (000's):
 First Quarter
 Fully
 Primary Diluted
 Shares outstanding (wtd. avg.) 46,197 46,197
 Impact of options/warrants 45 70
 Add'l shares (5.5 pct. converts) 3,542 3,542
 Add'l shares (6.75 pct. converts) -n/a- 5,990
 Total shares used 49,784 55,799
 After-tax earnings $46,589 $46,589
 Interest, net (5.5 pct. converts) 1,819 1,819
 Interest, net (6.75 pct. converts) -n/a- 3,582
 Adjusted income $48,408 $51,990
 Earnings per share $0.97 $0.93
 The number of common stock shares outstanding at Dec. 20, 1992, was approximately 46,203,000.
 -0- 1/14/93
 /CONTACT: Daniel T. Carter, VP-Finance of The Price Company, 619-581-4889/
 (PCLB)


CO: The Price Company ST: California IN: REA SU: ERN

JB-LS -- SD001 -- 4713 01/14/93 08:47 EST
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