United Retail Group Announces Third Quarter Results.Business Editors ROCHELLE Ro`chelle´ n. 1. A seaport town in France. Rochelle powders Same as Seidlitz powders. Rochelle salt (Chem.) the double tartrate of sodium and potassium, a white crystalline substance. PARK, N.J.--(BUSINESS WIRE)--Nov. 18, 2003 United Retail Group, Inc. (NASDAQ-NMS: "URGI URGI United Retail Group Incorporated ") today announced operating results for the third quarter and the nine months ended November November: see month. 1, 2003. For the third quarter, total sales were $88.5 million compared with $97.0 million in the same quarter in the previous year. Comparable store sales decreased 7%. The Company incurred a net loss of $6.2 million, or $0.48 per share, for the quarter compared with a net loss of $5.2 million, or $0.40 per share, in the same period of the previous year. Excluding an after tax valuation allowance of $2.7 million for the net deferred tax assets and net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. , net loss for the third quarter was $3.5 million, or $0.27 per share, compared with $5.2 million, or $0.40 per share, last year. There was no valuation allowance in fiscal 2002. Commenting on the Company's third quarter results, Raphael Raphael (răf`ēəl, rā`–), archangel. He is prominent in the book of Tobit, as the companion of Tobias, as the healer of Tobit, and as the rescuer of Sara from Asmodeus. Milton made him a featured character of Paradise Lost. Benaroya, Chairman and Chief Executive Officer, stated, "As planned, we conserved con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: cash, controlled costs and tightened store inventories. We remain focused on 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. the business and implementing the proactive initiatives we have outlined over the last several months. Our restructured merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain 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. has begun to arrive in the stores and will build over the next several months. Our new assortments are better positioned for the upcoming holidays." For the first nine months of fiscal 2003, total sales were $294.9 million compared with $326.3 million in the comparable period in the previous year. Comparable store sales decreased 9%. The Company incurred a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net loss of $15.0 million, or $1.16 per share, compared with a net loss of $7.0 million, or $0.53 per share, for the first nine months of the previous fiscal year. Excluding an after tax valuation allowance of $6.7 million, net loss for the first nine months of fiscal 2003 was $8.3 million, or $0.64 per share. 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 11:30 a.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 George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). R. Remeta Remeta can refer to:
tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). 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 A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. 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 545 AVENUE(R) stores with 2,365,000 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in any such forward-looking statements. The following factors, among others, in some cases have affected 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: war risk; changes in weather; 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, consumer preferences and overall economic conditions; the impact of competition and pricing; risks associated with the seasonality of the retail industry; risks related to consumer acceptance of the Company's products and the ability to develop new merchandise; 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; risks associated with foreign sources of production; and risks associated with the financial performance of the private label credit card program that is co-branded with the AVENUE(R) trade name and the name of the issuer of the cards, World Financial Network National Bank. The reports filed by the Company with the Securities and Exchange 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.
UNITED RETAIL GROUP, INC.
-------------------------
3RD QTR 2003
(000'S) 13 weeks ended 39 weeks ended
---------------------------- ---------------------------
(Unaudited)(Unaudited) (Unaudited)(Unaudited)
November November November November
1, 2, Percent 1, 2, Percent
2003 2002 + or - 2003 2002 + or -
---------------------------- ---------------------------
Net sales $88,535 $97,019 -8.7% $294,855 $326,267 -9.6%
Cost of goods
sold,
including
buying and
occupancy
costs 70,732 79,693 -11.2% 233,212 257,091 -9.3%
---------------------------- ---------------------------
Gross profit 17,803 17,326 2.8% 61,643 69,176 -10.9%
General,
administrative
and store
operating
expenses 23,642 25,013 -5.5% 75,638 79,168 -4.5%
---------------------------- ---------------------------
Operating loss (5,839) (7,687) - (13,995) (9,992) -
Interest
expense, net 250 211 - 714 599 -
---------------------------- ---------------------------
Loss before
income taxes (6,089) (7,898) - (14,709) (10,591) -
Provision for
(benefit from)
income taxes
(1) 158 (2,666) - 329 (3,596) -
---------------------------- ---------------------------
Net loss ($6,247) ($5,232) - ($15,038) ($6,995) -
============================ ===========================
Weighted
average shares
outstanding:
Basic 12,937 12,937 12,937 13,083
Diluted 12,937 12,937 12,937 13,083
Net loss per
common share:
Basic ($0.48) ($0.40) ($1.16) ($0.53)
Diluted ($0.48) ($0.40) ($1.16) ($0.53)
Net loss
excluding
valuation
allowance:
Net loss (3,519) (5,232) (8,331) (6,995)
Net loss per
diluted
common
share ($0.27) ($0.40) ($0.64) ($0.53)
(1) Includes a valuation allowance for the thirteen and thirty-nine
weeks ended November 1, 2003 of $2.7 million and $6.7 million,
respectively, related to deferred tax assets and net operating
loss carryforwards.
======================================================================
Consolidated Condensed
---------------------- (Unaudited) (Unaudited)
Balance Sheets November 1, November 2,
-------------- 2003 2002
-------------------------
Assets
------
Cash and cash equivalents $16,557 $17,584
Inventory 61,847 70,080
Other 10,419 11,906
-------------------------
Total current assets $88,823 $99,570
Property and equipment, net 79,682 89,270
Other assets 1,878 10,098
-------------------------
Total assets $170,383 $198,938
=========================
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities $70,865 $66,900
Long-term distribution center
financing 3,490 4,112
Long-term capital leases 4,172 6,123
Other non-current liabilities 7,804 6,803
Stockholders' equity 84,052 115,000
-------------------------
Total liabilities and
stockholders' equity $170,383 $198,938
=========================
At November 1, 2003, the borrowing capacity of the Company under the
Financing Agreement with The CIT Group/Business Credit, Inc. ("CIT")
was $11.7 million, trade letters of credit for the account of the
Company were outstanding in the amount of $22.8 million, standby
letters of credit were outstanding in the amount of $5.5 million and
no loan from CIT was outstanding. The Company's cash on hand was
unrestricted.
======================================================================
Statistics 13 weeks ended 39 weeks ended
---------- ------------------------- -------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Store Count November 1, November 2, November 1, November 2,
----------- 2003 2002 2003 2002
------------------------- -------------------------
Beginning of
period 544 551 553 555
New 2 12 4 18
Closed (1) (6) (12) (16)
End of period 545 557 545 557
Selling Square
Footage (000's)
----------------
Beginning of
period 2,360 2,361 2,394 2,367
New / Expansion 8 63 17 96
Closed (3) (22) (46) (61)
End of period 2,365 2,402 2,365 2,402
Average 2,365 2,386 2,371 2,375
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