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BRADLEES ANNOUNCES THIRD QUARTER RESULTS

 BRAINTREE, Mass., Dec. 7 /PRNewswire/ -- Bradlees, Inc. (NYSE: BLE) today announced that sales for the 12 weeks ended Nov. 6, 1993 were $431.8 million compared with $418.6 million for the third quarter last year. Comparable store sales were up 1 percent. Operating profit for the third quarter this year was $8.3 million versus $9.8 million in 1992. Earnings per share were $0.03 this year versus $0.13 last year.
 Sales for the 40 weeks ended November 6, 1993 were $1.28 billion compared with $1.24 billion last year. Comparable store sales were up 1 percent. Year-to-date operating profit was $3.0 million in 1993 compared with $14.4 million on a pro forma basis last year. The loss per share for the 40 weeks was $1.25 before an extraordinary item compared with a loss of $0.49 on a pro forma basis last year.
 The company does not anticipate a LIFO charge for fiscal 1993 as a result of its acquisition of the Bradlees Business in July, 1992. A $2.2 million LIFO charge incurred prior to the acquisition is included in the pro forma results for the 40 weeks ended Nov. 7, 1992.
 Bradlees completed its 1993 remodeling/new store program. The company celebrated the grand reopenings of eight major remodels in late October and opened a new store in Totowa, N.J. on November 7th, replacing an older, smaller Bradlees. During the year the company completed 12 major remodels and retrofitted 14 stores with Bradlees' latest softlines presentation. Bradlees opened three new stores, two of which were replacements for the four smaller stores that were closed during the year.
 Commenting on the third quarter results, Barry A. Berman, chairman and chief executive officer, said, "Consumer demand continues to be sluggish. Sales were below expectation during August. Consumers are still feeling the impact of the recession and consequently, spending very conservatively. Since Labor Day, customers have responded more enthusiastically to our promotional efforts, however this has resulted in lower margins. We are seeking to offset this margin pressure by improved store level productivity. Our expenses are below last year's third quarter level as a percentage of sales despite increased advertising expenditures. As we enter this important season, we believe we are well positioned to take advantage of holiday spending."
 Bradlees, Inc. operates 126 discount department stores in Maine, New Hampshire, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania and Virginia. Bradlees' common stock is listed and traded on the New York Stock Exchange under the symbol "BLE."
 BRADLEES, INC. AND SUBSIDIARIES
 Condensed Consolidated Historical Statements of Operations
 (In thousands except per share amounts)
 Company
 12 Weeks Ended
 Nov. 6, 1993 Nov. 7, 1992
 Retail sales $431,807 $418,641
 Cost of goods sold, buying and
 warehousing costs 306,280 291,643
 Selling, store oper. and
 administrative expenses 106,248 106,266
 Depreciation and amortization 10,978 10,970
 Operating profit 8,301 9,762
 Interest expense, net 7,657 7,280
 Earnings (loss) before income
 taxes and extraordinary loss 644 2,482
 Income taxes (benefit) 294 1,067
 Earnings (loss) before
 extraordinary loss 350 1,415
 Extraordinary loss, net --- ---
 Net earnings (loss) $350 $1,415
 Net earnings (loss) per share:
 Earnings (loss) before
 extraordinary loss $0.03 $0.13
 Extraordinary loss, net --- ---
 Net earnings (loss) $0.03 $0.13
 Predecessor
 Company Corporation
 40 Weeks Ended Period from Period from
 Nov. 6, 1993 July 10 to Feb. 2 to
 Nov. 7, 1992 July 9, 1992
 Retail sales $1,283,341 $572,754 $671,844
 Cost of goods sold,
 buying and
 warehousing costs 901,789 399,230 465,733
 Selling, store oper. and
 administrative expenses 342,519 144,995 184,665
 Depreciation and amort. 36,038 15,671 21,417
 Operating profit 2,995 12,858 29
 Interest expense, net 24,322 10,390 27,165
 Earnings (loss) before inc.
 taxes and extraord. loss (21,327) 2,468 (27,136)
 Income taxes (benefit) (7,277) 1,061 ---
 Earnings (loss) before
 extraordinary loss (14,050) 1,407 (27,136)
 Extraordinary loss, net (5,200) --- (1,122)
 Net earnings (loss) $(19,250) $1,407 $(28,258)
 Net earnings (loss)
 per share:
 Earnings (loss) before
 extraordinary loss $(1.25) $0.13 ---
 Extraordinary loss, net (0.46) --- ---
 Net earnings (loss) $(1.71) $0.13 ---
 -- Footnotes (a) and (b), which provide pro forma data and explanations, are presented on the following page.
 BRADLEES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED PRO FORMA STATEMENTS OF OPERATIONS (a)
 (In thousands except per share amounts)
 12 Weeks Ended 40 Weeks Ended
 11/6/93 11/7/92 11/6/93 11/7/92
 Actual Actual Actual Pro Forma
 Retail sales $431,807 $418,641 $1,283,341 $1,244,598
 Cost of goods sold,
 buying and
 warehousing costs 306,280 291,643 901,789 863,050
 Selling, store oper.
 and admin. expenses 106,248 106,266 342,519 332,771
 Deprec. and amort. 10,978 10,970 36,038 34,357
 Operating profit 8,301 9,762 2,995 14,420
 Interest expense, net 7,657 7,280 24,322 24,068
 Earnings (loss)
 before inc. taxes
 and extraord. loss 644 2,482 (21,327) (9,648)
 Income taxes (benefit) 294 1,067 (7,277) (4,149)
 Earnings (loss) before
 extraord. loss $350 $1,415 $(14,050) $(5,499)
 Earnings (loss) before
 extraord. loss per
 share (b) $0.03 $0.13 $(1.25) $(0.49)
 (b) 1993 results are not directly comparable to those in 1992 because of the following:
 -- The 1993 cost of goods sold, buying and warehousing costs does not include a charge for the last-in, first-out method of valuing inventory ("LIFO"). The 1992 LIFO charge was $2.2 million or $0.11 per share (net of taxes) for the 40 weeks ended Nov. 7, 1992.
 -- In 1993, the company issued 2003 Notes, which would have increased interest expense (net of taxes) by $0.02 and $0.06 per share in the 40 weeks ended Nov. 6, 1993 and Nov. 7, 1992, respectively, had the 2003 Notes been outstanding in 1992.
 -- The higher tax rate legislated by the Omnibus Budget Reconciliation Act of 1993 reduced the income tax benefit by $2.1 million or $0.19 per share for the 40 weeks ended Nov. 6, 1993, for a one-time charge related to prior years' deferred income taxes.
 BRADLEES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
 Predecessor
 Company Corporation
 40 Weeks Ended Period from Period from
 Nov. 6, 1993 July 10 to Feb. 2 to
 Nov. 7, 1992 July 9, 1992
 Cash flows from oper.
 activities:
 Net earnings (loss) $(19,250) $1,407 $(28,258)
 Adjustments:
 Extraord. loss on debt
 retirement 5,200 --- 1,122
 Deprec. and amort. 36,038 15,671 21,417
 Other noncash items 1,587 961 1,605
 Change in working
 capital, net (38,689) (12,669) (5,395)
 Net cash provided (used)
 by oper. activities (15,114) 5,370 (9,509)
 Cash flows from investing
 activities:
 Acquisition, net of cash
 required --- (335,288) ---
 Capital expenditures, net
 of disposals (51,206) (20,150) (23,343)
 Lease acquisition costs (345) --- ---
 Net cash used in investing
 activities (51,551) (355,438) (23,343)
 Cash flows from financing
 activities:
 Proceeds from long-term
 debt 100,000 340,000 ---
 Principal payments on
 long-term debt (86,329) (121,200) (5,137)
 Net borrowings under
 revolver 56,000 22,500 ---
 Net borrowings under
 intercompany debt --- --- 46,482
 Extraordinary items -
 debt retirement 3,925 --- (546)
 Deferred financing costs (4,450) (14,300) (3,604)
 Principal payments under
 capital lease obligations (5,968) (2,585) (4,006)
 Proceeds from initial
 issuance of common stock --- 133,064 ---
 Other common stock
 activity, net 92 --- ---
 Dividends paid (5,072) (1,681) ---
 Net cash provided by
 financing activities 58,198 355,798 33,189
 Net increase (decr.) in
 cash and cash equivalents (8,467) 5,730 337
 Cash and cash equivalents:
 Beginning of period 11,460 --- 1,859
 End of period $2,993 $5,730 $2,196
 BRADLEES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands)
 Nov. 6, 1993 Jan. 30, 1993 Nov. 7, 1992
 ASSETS
 Current assets:
 Cash and cash
 equivalents $2,993 $11,460 $5,730
 Inventories 430,734 271,496 430,787
 Other current assets 60,216 38,951 52,695
 Total current assets 493,943 321,907 489,212
 Property, plant and
 equipment, net 200,936 175,478 169,298
 Lease interests and
 acquisition costs 255,888 261,705 253,338
 Other 7,337 13,012 14,284
 Total assets $958,104 $772,102 $926,132
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $297,122 $135,905 $315,407
 Accrued expenses 66,264 90,430 60,314
 Short-term and current
 portion of debt 61,828 14,557 36,971
 Total current
 liabilities 425,214 240,892 412,692
 Long-term debt 265,770 245,166 254,454
 Deferred income taxes 97,941 105,739 111,665
 Other long-term
 liabilities 29,946 17,385 14,386
 Stockholders' equity 139,233 162,920 132,935
 Total liabilities and
 stockholders' equity $958,104 $772,102 $926,132
 -0- 12/7/93
 /CONTACT: Aileen Gorman of Bradlees, 617-380-8370/
 (BLE)


CO: Bradlees, Inc. ST: Massachusetts IN: REA SU: ERN

DJ-JL -- NE002 -- 1146 12/07/93 08:30 EST
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