ARBOR DRUGS, INC. REPORTS RECORD FIRST-QUARTER RESULTS;
NET INCOME UP 24.3 PERCENT ON SALES INCREASE OF 16.2 PERCENT
TROY, Mich., Nov. 21 /PRNewswire/ -- Arbor Drugs, Inc. (NASDAQ: ARBR), which currently operates 121 drugstores in Michigan, today announced a 24.3-percent increase in net income and a 16.2-percent increase in sales for its first quarter ended Oct. 31, 1991.
Eugene Applebaum, chairman, president and chief executive officer, attributed the record first-quarter performance to strong sales, close attention to controlling expenses and successful new-store expansion.
Arbor's fiscal 1992 first-quarter net income was $3,309,000, or $.21 per share, up from $2,663,000, or $.19 per share, in fiscal 1991.
Net sales were $107,884,000 this quarter vs. $92,878,000 for the quarter ended Oct. 31, 1990. Comparable store sales increased by 8.0 percent for the three-month period.
The board of directors of the Troy-based retailer today also declared a regular quarterly cash dividend of $.035 per share, payable Jan. 2, 1992, to holders of record as of Dec. 19, 1991.
Commenting on the results, Applebaum said, "We are very pleased with our outstanding first quarter, particularly in view of the overall sluggish economy. Our excellent sales reflect strong increases by comparable stores (stores in operation for at least 12 months) as well as a good performance by our new stores. Importantly, Arbor's profits continue to attain record levels, despite the higher expense ratio associated with our aggressive store-opening program.
"Our expansion plans for fiscal 1992 are on schedule. The initial performance of the nine new drugstores that we have opened since the fiscal year began on Aug. 1, 1991, has exceeded our expectations. We remain confident that Arbor will continue to increase its market share in our primary trading area of southeastern Michigan, the nation's fourth-largest drugstore market."
Applebaum continued, "We are pleased to report that Arbor recently completed a multimillion-dollar point-of-sale project, linking all stores with the corporate office and distribution center. By incorporating a computerized scanning system chainwide, we believe that Arbor is now the first drugstore chain in the Midwest to offer this advanced technology at each of its stores. This new system enhances our ability to provide the prompt service and everyday convenience our customers have come to expect."
Arbor Drugs, the nation's 21st-largest drugstore chain, completed the first quarter with 116 stores and has opened five new stores thus far in the second quarter of fiscal 1992. Plans for the remainder of the current fiscal year include adding 11 new stores.
ARBOR DRUGS, INC.
(Dollars and number of shares in 000s)
Three Months Ended Oct. 31
1991 1990 Pct. Change
Net sales $107,884 $92,878 +16.2
Cost of sales 78,294 67,132 +16.6
Selling, general & admin. expense 24,351 21,193 +14.9
Income from operations 5,239 4,553 +15.1
Income before income tax 4,931 4,074 +21.0
Income tax provision 1,622 1,411 +15.0
Net income 3,309 2,663 +24.3
Earnings per common share $.21 $.19 +10.5
Weighted average no. of
common shares 16,084 14,310 +12.4
No. of stores (at end of period) 116 102 +13.7
/CONTACT: Gilbert C. Gerhard of Arbor Drugs, Inc., 313-643-9420/
(ARBR) CO: Arbor Drugs, Inc. ST: Michigan IN: REA SU: ERN ML -- DE004 -- 5724 11/21/91 08:59 EST