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BEST BUY REPORTS FOURTH QUARTER AND FISCAL 1992 EARNINGS

 BEST BUY REPORTS FOURTH QUARTER AND FISCAL 1992 EARNINGS
 MINNEAPOLIS, April 20 /PRNewswire/ -- Best Buy Co., Inc. (NYSE: BBY)


today reported financial results for its fourth quarter and fiscal 1992 year, which ended Feb. 29, 1992
 Richard M. Schulze, founder, chairman and CEO, stated, "Management is pleased to report improved financial results despite the sluggish economy of the past year." Earnings for fiscal 1992 increased 111 percent to $9,601,000, or $1.00 per share. This compares with earnings of $4,540,000, or 55 cents per share for fiscal 1991, before a cumulative effect adjustment relating to a change in accounting for service plans. Net earnings for the fourth quarter increased 41 percent to $5,108,000, or 44 cents per share, as compared with $3,612,000, or 44 cents per share, for the comparable quarter last year.
 Previously reported fiscal 1992 revenues increased 40 percent to $929.7 million, and for the fourth quarter increased 58 percent to 339.9 million. Comparable stores recorded a 14 percent increase in sales for fiscal 1992 and a 22 percent increase in the fourth quarter. Schulze noted, "We realized comparable store sales growth in all markets reflecting increased market share and continued expansion of two growth categories -- personal computers and entertainment software."
 Contributing to the improved results were 17 new stores opened in fiscal 1992 and a full year of operations for the eight stores opened the prior year. Earnings were adversely affected by the timing and cost of entry into the Colorado and Houston markets. Additionally, amortization of new store pre-opening expenses was $2.3 million for fiscal 1992 and $1.6 million in the fourth quarter, compared to $1.1 million and $600,000, respectively, for the same periods last year.
 The gross profit margin declined by 1.8 percent on expanded revenues for fiscal 1992 and 2.7 percent in the fourth quarter. These declines reflect increased competitive pressures beginning in November 1991 in several markets; an overall weak retail environment; a higher level of personal computers in the company's sales mix; and, reduced emphasis on sales of extended services contracts in the new stores opened.
 Selling, general and administrative expenses improved by 2.2 percent as a percentage of revenues for both reporting periods. This reduction reflects lower store operating costs, and greater utilization of administrative support staff and systems at the district and corporate levels.
 Earnings per share did not increase in the same proportion as dollar earnings due to a higher number of common shares outstanding. The company has a secondary stock offering of 2,700,000 shares in November 1991, and the company's outstanding stock option grants had a dilutive effect this year under the treasury stock method.
 The 2,700,000 share offering provided $88 million for the company's store expansion program. Best Buy has announced plans to open approximately 30 stores in its fiscal 1993 year with 15 to 18 of these stores scheduled to be opened in the Chicago area.
 Best Buy reports sales on a 5-4-4 week basis. Best Buy is the third largest publicly held consumer electronics and major appliance specialty retailer in the U.S. The company sells nationally recognized name brand consumer electronics, major appliances, personal computers and other home office products, entertainment software and photographic equipment at 73 stores in 10 states (Minnesota, Texas, Wisconsin, Missouri, Illinois, Colorado, Iowa, Kansas, Nebraska 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 SHEET
 (In thousands, except per share amounts)
 2/29/92 3/2/91
 Assets
 Current assets
 Cash and short-term investments $112,789 $27,063
 Receivables 15,981 8,716
 Merchandise inventories 135,838 95,684
 Other current assets 8,483 8,143
 Total current assets 273,091 139,606
 Property and equipment, net 58,250 39,572
 Other assets 5,877 6,350
 Total assets $337,218 $185,528
 Liabilities and shareholders' equity
 Current liabilities
 Accounts payable $72,844 $46,344
 Deferred service plan revenue,
 short-term 14,324 14,377
 Current portion of long-term debt 38,096 314
 Other current liabilities 21,010 13,948
 Total current liabilities 146,274 74,983
 Deferred service plan revenue,
 long-term 18,492 18,423
 Long-term debt 14,884 35,381
 Shareholders' equity 157,568 56,741
 Total liabilities and
 shareholders' equity $337,218 $185,528
 BEST BUY CO., INC.
 STATEMENTS OF OPERATIONS
 (In thousands, except per-share amounts)
 Three Months Ended 12 Months Ended
 2/29/92 3/2/91 2/29/92 3/2/91
 Revenues $339,929 $215,746 $929,692 $664,823
 Cost of goods sold 279,367 171,552 748,630 523,166
 Gross profit 60,562 44,194 181,062 141,657
 Gross profit percentage 17.8 20.5 19.5 21.3
 Selling, general and
 administrative expenses 51,736 37,635 162,286 130,681
 SG&A percentage 15.2 17.4 17.5 19.7
 Operating income 8,826 6,559 18,776 10,976
 Interest expense, net 658 678 3,415 3,586
 Earnings before income taxes
 and accounting change 8,168 5,881 15,361 7,390
 Income taxes 3,060 2,269 5,760 2,850
 Effective tax rate (pct) 37.5 38.6 37.5 38.6
 Earnings before accounting
 change 5,108 3,612 9,601 4,540
 Accounting change (a) --- --- --- (13,997)
 Net earnings (loss) $5,108 $3,612 $9,601 $(9,457)
 Per common share amounts:
 Earnings before
 accounting change $.44 $.44 $1.00 $.55
 Accounting change (a) --- --- --- (1.69)
 Net earnings (loss) $.44 $.44 $1.00 $(1.14)
 Primary weighted average
 common shares
 outstanding 11,613(b) 8,285 9,616(b) 8,284
 (a) Reflects cumulative effect to March 3, 1990, of a change in accounting for service plans.
 (b) Includes 438,000 and 486,000 shares respectively, for the effect of the company's outstanding stock grants.
 Common shares outstanding also include effect of 2,700,000 shares issued in November 1991.
 -0- 4/20/92
 /CONTACT: Richard M. Schulze, 612-896-2448; or Allen Lenzmeier, 612-896-2454, both of Best Buy/
 (BBY) CO: Best Buy Co., Inc. ST: Minnesota IN: REA SU: ERN


KH -- MN004 -- 9856 04/20/92 08:34 EDT
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Date:Apr 20, 1992
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