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BUILDERS WAREHOUSE ASSOCIATION ANNOUNCES OPERATING RESULTS

 CONWAY, Ark., Jan. 10 /PRNewswire/ -- Builders Warehouse Association, Inc. (NASDAQ Small Cap: BWAI) today announced operating results for the quarter ended Nov. 30, 1993. Revenues for the period were $5.9 million versus $4.5 million for the same period last year. The Company reported a loss of $188,305 for the period, versus a profit of $28,923 for the same period last year.
 For the six months ended Nov. 30, 1993 period, revenues were $11.4 million versus $8.5 million for the same period last year. The Company reported a loss of $711,009 versus a profit of $62,640 for the same period last year.
 Commenting on the results, Joe McCartney, President of the Company, stated the approximately 34% increase in sales for the six month period ended Nov. 30, 1993 is largely due to the four outlets added during the year ended May 31, 1993 and the two outlets acquired in the first quarter ended Aug. 31, 1993. Net sales increased approximately 30% for the three months ended Nov. 30, 1993 as compared with the same period ended Nov. 30, 1992. These sales increases were due to additional sales growth from the maturing of the growth in same store sales by outlets established in prior years. Growth is achieved by establishing quality customer relationships resulting in more and more repeat customers. As repeat business is established at the newer outlets, increased sales volume is expected, and overall profitability should continue to improve.
 Commenting on the loss for both the six and three months periods ended Nov. 30, 1993, Mr. McCartney stated that of the $711,009 loss for the six month period, $352,000 was directly attributed to consulting fees which were expensed immediately and which management does not anticipate to reoccur in subsequent periods. Additionally the Company incurred significant payroll costs during the period due to additional personnel required to operate the new outlets and the hiring of a Chief Financial Officer and several other administrative personnel required to meet the demands of the Company's growth. Management anticipates that these higher costs will be offset by improved sales and gross margin performance at existing stores as well as incremental profit from each new location.
 Commenting specifically on the three months ended Nov. 30, 1993 period, Mr. McCartney stated that while the Company still reported a $188,000 loss, this is an improvement over the $523,000 loss generated for the first three months of the fiscal year. Management anticipates that increased margins on sales as well as increased sales from the acquired and existing outlets will result in improved profitability in future periods.
 -0- 1/10/94
 /CONTACT: Joe McCartney, president of Builders Warehouse Association, 501-327-8961/
 (BWAI)


CO: Builders Warehouse Association, Inc. ST: Arkansas IN: REA SU: ERN

CB-PS -- NY056 -- 0597 01/10/94 12:48 EST
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Publication:PR Newswire
Date:Jan 10, 1994
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