Printer Friendly

COMPUSA REPORTS NET INCOME BEFORE EXTRAORDINARY ITEM INCREASED 566 PERCENT IN FISCAL 1992 SECOND QUARTER AS SALES EXCEED $200 MILLION

 COMPUSA REPORTS NET INCOME BEFORE EXTRAORDINARY ITEM INCREASED 566 PERCENT IN FISCAL 1992 SECOND QUARTER AS SALES EXCEED $200 MILLION
 DALLAS, Feb. 11 /PRNewswire/ -- CompUSA Inc. (NASDAQ: CUSA), the nation's largest computer superstore retailer, today announced that for the fiscal 1992 second quarter ended Dec. 31, 1991, net income before extraordinary item increased 566 percent to $3,655,000 or 34 cents per share. After an extraordinary charge of $233,000 or 3 cents per share for early repayment of debt, net income was $3,422,000 or 31 cents per share over the same period last year. Sales for the second quarter were up 42 percent to $201.9 million. In the comparable fiscal 1991 period, both net income before extraordinary item and net income were $549,000 or 6 cents per share on sales of $142.3 million.
 For the first six months of fiscal 1992, net income before extraordinary item increased 1,293 percent to $4,849,000 or 41 cents per share on sales of $374.0 million, compared with net income before extraordinary item of $348,000 or 2 cents per share on sales of $250.2 million a year ago. Net income for the fiscal 1992 six months, including the extraordinary charge, was $4,616,000 or 38 cents per share.
 "Our dramatic increase in profitability this quarter primarily resulted from our ability to improve gross margins and significantly increase sales during what was for many retailers a very disappointing Christmas season," said Nathan Morton, president and chief executive officer. "The substantial investment we have made in systems and infrastructure to effectively support our rapidly growing national chain is beginning to positively impact our bottom line.
 "We also expect profitability to be enhanced by a planned doubling of our store base to 48 units by June 1993, which should enable us to spread our fixed costs even more efficiently," Morton said. "We have already established CompUSA's presence in 15 major U.S. markets nationwide, and expect to enter additional ones in the future. As such, we are able to balance out the effects of any regional economic differences that may affect other more regionally oriented retailers.
 "In addition, as CompUSA's stores become more established in their individual markets in their second and third years of operation, we are seeing their volume comparisons improve," Morton added. "Comparable- store sales, excluding the Dallas store, were up a solid 10.3 percent during the 1992 second quarter compared to the same period last year. Including Dallas, comparable-store sales were up 8.3 percent for the quarter."
 CompUSA has recently opened four more superstores, including the first units in Tampa, Fla., and Phoenix, Ariz., the second store in Philadelphia, and the third store in Chicago. Six more superstores are scheduled to open by June 30, 1992. Another 18 are planned for fiscal 1993.
 CompUSA Inc. operates 24 high-volume superstores in 15 major metropolitan areas, and offers more than 5,000 microcomputer hardware, software and related products at deep-discount prices to retail, business and government customers.
 COMPUSA INC.
 Consolidated Statements of Operations
 (Unaudited, in thousands, except per share data)
 Periods ended: Three months Six months
 Dec. 31: 1991 1990 1991 1990
 Net sales $ 201,925 $ 142,339 $ 374,045 $ 250,184
 Cost of sales
 and occupancy 173,933 124,385 324,280 217,968
 Gross profit 27,992 17,954 49,765 32,216
 Store operating
 expenses 17,702 12,233 32,747 22,137
 Pre-opening
 expenses -- 493 -- 1,338
 General and
 administrative
 expenses 5,645 3,423 10,198 6,399
 Operating income 4,645 1,805 6,820 2,342
 Interest expense 1,068 911 2,058 1,794
 Other expense, net (78) 8 (87) (14)
 Income before income
 taxes and
 extraordinary
 items 3,655 886 4,849 562
 Income tax
 expense -- 337 -- 214
 Net income before
 extraordinary
 items $ 3,655 $ 549 $ 4,849 $ 348
 Extraordinary
 item - early
 extinguishment
 of debt 233 -- 233 --
 Net income $ 3,422 $ 549 $ 4,616 $ 348
 Earnings per
 share before
 extraordinary
 item $ 0.34 $ 0.06 $ 0.41 $ 0.02
 Extraordinary
 item per share
 - early
 extinguishment
 of debt (A) 0.03 -- 0.03 --
 Earnings per
 share (B) $ 0.31 $ 0.06 $ 0.38 $ 0.02
 Weighted average
 common and
 common
 equivalent
 shares 8,910 9,501 8,579 7,879
 (A) -- A portion of the proceeds of the company's December, 1991 initial pubic offering were used to repay the company's subordinated note. Unamoritzed debt issuance costs and the original issue discount related to the subordinated note were written off at the time of the repayment as an extraordinary item.
 (B) -- In conjunction with the company's December, 1991 initial public offering, the preferred stock of the company was converted into 3,737,443 shares of common stock. If the conversion of the stock had occurred at the beginning of each of the periods presented, the earnings per share would be $0.28 per share ($0.30 per share before extraordinary item) for the three months and $0.38 per share ($0.40 per share before extraordinary item) for the six months ended Dec. 31, 1991.
 -0- 2/11/92
 /CONTACT: Nathan Morton, president and CEO of CompUSA, 214-406-4700/
 (CUSA) CO: CompUSA Inc. ST: Texas IN: CPR SU: ERN


TS -- NY016 -- 8700 02/11/92 10:08 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 11, 1992
Words:884
Previous Article:ATHLONE REPORTS 1991 YEAR-END RESULTS
Next Article:TSI CORPORATION REPORTS RECORD FIRST HALF AND SECOND QUARTER REVENUES
Topics:


Related Articles
COMPUSA REPORTS NET INCOME BEFORE EXTRAORDINARY ITEM INCREASED 566 PERCENT IN FISCAL 1992 SECOND QUARTER AS SALES EXCEED $200 MILLION
FILENE'S BASEMENT REPORTS RECORD EARNINGS FOR THE FOURTH QUARTER AND FISCAL YEAR
AIR PRODUCTS' SECOND QUARTER PROFIT UP 11 PERCENT BEFORE DEBT RETIREMENT CHARGE
PLAYBOY ENTERPRISES POSTS 9 PERCENT REVENUES INCREASE FOR THE THIRD QUARTER OF FISCAL 1992; OPERATING INCOME UP 5 PERCENT
FOXMEYER REPORTS RECORD EARNINGS FOR YEAR, FOURTH QUARTER NET INCOME UP 42.4 PERCENT FOR FISCAL 1992
COMP USA, INC. REPORTS RECORD SALES AND EARNINGS FOR THE THIRD QUARTER AND NINE MONTHS OF FISCAL 1992
FOXMEYER REPORTS SHARP GAINS IN SALES, EARNINGS; OPERATING INCOME INCREASES 32.5 PERCENT FOR FIRST QUARTER
AIR PRODUCTS' EARNINGS GROWTH CONTINUES IN THIRD QUARTER
CompUSA INC. REPORTS STRONG FINANCIAL RESULTS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF FISCAL 1993
CompUSA INC. FISCAL 1993 SALES AND NET INCOME AT RECORD LEVELS; FOURTH QUARTER FULLY TAXED INCOME UP 123.5 PERCENT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters