United Retail Group Announces Third Quarter Earnings.- Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Up 46% - ROCHELLE PARK, N.J. -- United Retail Group, Inc. (NASDAQ-GM: "URGI URGI United Retail Group Incorporated ") today announced earnings for the third quarter and nine months ended October 28, 2006. For the third quarter, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 6% to $104.2 million from $98.1 million in the comparable period last year. Comparable store sales increased 6% for the quarter. Comparable store sales data does not include online ("Shop @ Home") sales, which increased 41% for the fiscal quarter. Operating income for the third quarter increased 46% to $2.4 million from $1.6 million for the comparable period last year. Net income for the third quarter was $1.1 million, or $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus $1.9 million, or $0.14 per diluted share, in the third quarter of 2005. George R. Remeta, the Company's Vice Chairman and Chief Administrative Officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive , said: "Operating income for the quarter increased 46%. The 6% comparable store sales increase leveraged both buying and occupancy expenses and general, administrative and store operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Reduced insurance cost favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted SG&A by $0.8 million versus last year, primarily as a result of property insurance related gains. However, compensation expense and stock appreciation rights expense unfavorably impacted SG&A by $0.7 million versus last year, primarily as a result of the increase in the Company's stock price." Mr. Remeta added: "The tax line for the quarter includes certain items and adjustments needed to support the estimated 2006 year-end tax provision. As indicated on the attached consolidated statement of operations See Income statement. , the Company had a $0.2 million benefit from income taxes in the third quarter of 2005 instead of a more normal tax rate (see note 1 on the attachment) compared with a $1.5 million provision for income taxes in the third quarter this year. This shift in the tax line resulted in the decline in net income." Raphael Benaroya, the Company's Chairman, President and Chief Executive Officer, commented: "We are pleased with our continuing strong sales performance, having achieved a 6% comparable store sales increase for the quarter on top of the 8% increase in the third quarter of 2005, with a 5% comparable store sales increase for the first nine months of the year. This marked the ninth consecutive quarter of comparable store sales increases. Additionally, average transactions per store increased for the quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. periods. We believe our consistent comparable store sales growth and increased average transactions to be good indicators that our assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. strategy is being favorably received by the customers we target." Mr. Benaroya added: "At the end of the quarter, total merchandise inventories (including Shop @ Home inventory but excluding in-transit inventory) were approximately 9% higher than at the end of the third quarter last year, positioning the business for a good holiday sales season." For the first nine months of fiscal 2006, net sales increased 5% to $334.6 million from $319.3 million in the year-ago period. Comparable store sales increased 5% for the year-to-date. Comparable store sales data does not include Shop @ Home sales, which increased 52% for the fiscal year to date. Operating income for the year-to-date increased 64% to $11.7 million from $7.1 million for the comparable period last year. Net income for the nine month period increased to $8.0 million, or $0.56 per diluted share, from $6.9 million, or $0.53 per diluted share, for the same period last year. The Company invites investors to listen to a broadcast of the Company's conference call to discuss third quarter results, as well as ongoing corporate developments. The call will be broadcast live today at 1:00 p.m. (Eastern Time) and can be accessed by logging on to http://www.vcall.com. Raphael Benaroya, Chairman, President and Chief Executive Officer, and George R. Remeta, Vice Chairman and Chief Administrative Officer, will host the call. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible at http://www.vcall.com until December 1, 2006. Certain financial data disclosed for the first time during the broadcast will be posted on the "Press Releases" page of the financial information section of the Company's website, http://www.unitedretail.com. United Retail Group, Inc. is a specialty retailer of large-size women's fashion apparel, footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). and accessories featuring AVENUE[R] brand merchandise. The Company operates 491 AVENUE[R] stores with 2,162,000 square feet of selling space, as well as the AVENUE.COM[R] website at http://www.avenue.com. The above release contains certain brief forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning the Company's operations and performance. The Company cautions that any forward-looking statements are summary in nature, involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. The following additional factors, among others, could also affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this release or otherwise made by management: threats of terrorism; war risk; shifts in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. patterns and overall economic conditions; the impact of increased competition; variations in weather patterns; uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc execution of the Company's product repositioning strategy; store lease expirations; increases in interest rates; the ability to retain, hire and train key personnel; risks associated with the ability of the Company's manufacturers to deliver products in a timely manner; political instability and other risks associated with foreign sources of production; and increases in fuel costs and prevailing wage A prevailing wage is the median wage paid to workers in a specified locality. Scope Prevailing wage may include both wages and benefits. It incompasses the compensation for a worker given for performed labor. rates in the industry. Further, the financial data for the third quarter of fiscal 2006 contained in the above release should be viewed as preliminary until the Company files its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. with the Securities and Exchange Commission. The reports filed by the Company with the Commission contain additional information on these and other factors that could affect the Company's operations and performance. The Company does not intend to update the forward-looking statements contained in the above release, which should not be relied upon as current after today's date. [TABLE OMITTED] (1) Includes (decrease) to valuation allowances for the thirteen weeks ended October 29, 2005 of ($0.5 million), and for the thirty nine weeks ended October 29, 2005 of ($1.8 million), related to deferred tax assets, net operating loss carryforwards and other tax attributes. [TABLE OMITTED] [TABLE OMITTED] |
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