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BEST BUY CO. REPORTS RECORD FOURTH QUARTER AND FISCAL 1993 EARNINGS; PLANNED ENTRY INTO ATLANTA AND ADDITION OF DELL COMPUTERS

 MINNEAPOLIS, April 20 /PRNewswire/ -- Best Buy Co., Inc. (NYSE: BBY) today reported financial results for its fourth quarter and fiscal 1993 year, which ended Feb. 27, 1993.
 Richard M. Schulze, founder, chairman and CEO, stated, "Management is pleased to report record earnings for fiscal 1993 and is excited about its plans for the upcoming year." Fiscal 1993 earnings totaled $19,855,000, a 107 percent increase from fiscal 1992 earnings of $9,601,000. Earnings per share were $1.71 in fiscal 1993 compared to $1.00 per share in fiscal 1992. Earnings for the fourth quarter increased 111 percent to $10,776,000 or 92 cents per share, as compared with $5,108,000, or 44 cents per share, for the comparable quarter last year.
 Previously reported fiscal 1993 revenues increased 74 percent to $1.62 billion, and for the fourth quarter increased 81 percent to $613.6 million. Comparable stores realized a 19 percent increase in sales for fiscal 1993 and a 16 percent increase in the fourth quarter.
 The earnings improvement reflects the opening of 38 stores, including entry into the Chicago market with 14 stores, the comparable store sales growth that contributed to an increase in average revenues per store of $17.6 million, and a full year of operations for the 17 stores opened in fiscal 1992. In addition, a reduction in selling, general and administrative expenses as a percentage of revenues, due to economies of scale and efficiencies in store operations, offset a lower gross profit margin and the substantial costs associated with the opening of new stores.
 In line with the company's plan, gross profit margin declined 2.0 percent of revenues for fiscal 1993 and 1.1 percent for the fourth quarter, primarily because of a substantially reduced emphasis on the sale of higher margin extended service plans, the increased importance of personal computers in the company's sales mix, competitive pressure in selected markets and promotional activity associated with the new store openings.
 Best Buy's selling, general and administrative expense ratio improved by 2.2 percent to 15.3 percent for fiscal 1993, and improved 1.5 percent to 13.7 percent for the fourth quarter. These improvements more than offset the reduced gross profit margin and were achieved through increased revenues per store and greater utilization of the company's corporate and retail support services. New store pre-opening expenses totaled $6.2 million in fiscal 1993, compared to $2.3 million in fiscal 1992.
 Schulze noted that "the company intends to enter the Atlanta area with seven stores later this year." The company previously announced its fiscal 1994 plans to enter the Detroit area and add 10 more locations in Chicago. By the end of the fiscal year, the company anticipates operating approximately 150 stores.
 The company is also excited to announce the addition of Dell Computer to its growing list of name brand personal computer suppliers. Dell Computer products will be available in all Best Buy retail locations before the end of the first quarter. Best Buy has formed vendor relationships with Hewlett Packard, Compaq and Dell Computers during the past three months.
 The company also expects to complete today the sale/leaseback of 17 owned stores for approximately $44 million. The proceeds will be used to support the company's expansion plans for fiscal 1994.
 Best Buy is the nation's second largest publicly held consumer electronics and major appliance specialty retailer. The company, now in its 27th year, currently sells nationally recognized name brand consumer electronics, home office products, major appliances, entertainment software and photographic equipment at 114 stores in 14 states (Minnesota, Texas, Illinois, Wisconsin, Missouri, Indiana, Colorado, Iowa, Kansas, Nebraska, Oklahoma, Arkansas, New Mexico and South Dakota.) Best Buy's common stock is traded on the New York Stock Exchange, symbol BBY.
 BEST BUY CO., INC.
 Financial Results
 Condensed Balance Sheets
 2/27/93 2/29/92
 Assets
 Current assets
 Cash and short-term investments $7,138,000 $112,789,000
 Receivables 37,968,000 15,981,000
 Merchandise inventories 249,991,000 135,838,000
 Other current assets 9,829,000 8,483,000
 Total current assets 304,926,000 273,091,000
 Property and equipment, net 126,442,000 58,250,000
 Other assets 7,774,000 5,877,000
 Total assets 439,142,000 337,218,000
 Liabilities and Shareholders' Equity
 Current liabilities
 Note payable, bank $3,700,000 $ --
 Accounts payable 123,209,000 72,844,000
 Deferred service plan revenue,
 short-term 16,240,000 14,324,000
 Current portion of long-term debt 5,740,000 38,096,000
 Other current liabilities 37,116,000 21,010,000
 Total current liabilities 186,005,000 146,274,000
 Deferred service plan revenue,
 long-term 22,724,000 18,492,000
 Long-term debt 48,130,000 14,884,000
 Shareholders' equity 182,283,000 157,568,000
 Total liabilities and
 shareholders' equity $439,142,000 $337,218,000
 BEST BUY CO., INC.
 Statements of Operations
 Periods ended Three months Twelve months
 2/27/93 2/29/92 2/27/93 2/29/92
 Revenues $613,625,000 $339,929,000 $1,619,978,000 $929,692,000
 Cost of
 goods sold 510,866,000 279,367,000 1,335,944,000 748,630,000
 Gross profit 102,759,000 60,562,000 284,034,000 181,062,000
 Gross profit
 (as a percent) 16.7 17.8 17.5 19.5
 SG&A expenses 83,864,000 51,736,000 248,126,000 162,286,000
 SG&A (as
 a percent) 13.7 15.2 15.3 17.5
 Operating
 income 18,895,000 8,826,000 36,908,000 18,776,000
 Interest expense,
 net 1,511,000 658,000 3,883,000 3,415,000
 Earnings before
 income taxes 17,384,000 8,168,000 32,025,000 15,361,000
 Income taxes 6,608,000 3,060,000 12,170,000 5,760,000
 Effective tax
 rate (as a
 percent) 38.0 37.5 38.0 37.5
 Net earnings 10,776,000 5,108,000 19,855,000 9,601,000
 Primary
 earnings
 per share $.92 $.44 $1.71 $1.00
 Primary weighted
 average common
 shares
 outstanding 11,759,000 11,613,000 11,592,000 9,616,000
 -0- 4/20/93
 /CONTACT: Richard M. Schulze, chairman and CEO, 612-896-2448, or Allen Lenzmeier, executive vice president, CFO, 612-896-2454, both of Best Buy Co./
 (BBY)


CO: Best Buy Co. ST: Minnesota IN: REA SU: ERN

SM-TS -- NY029 -- 7915 04/20/93 10:18 EDT
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