CompUSA INC. REPORTS STRONG GAINS IN SALES
AND NET INCOME FOR THE FIRST QUARTER OF FISCAL 1993
DALLAS, Nov. 5 /PRNewswire/ -- CompUSA Inc. (NASDAQ: CUSA), America's largest computer superstore retailer, today announced that sales were up 55.8 percent and net income up 48.2 percent for the fiscal 1993 first quarter ended Sept. 26, 1992.
Net sales for the fiscal 1993 first quarter were $263.4 million, compared with $169.1 million for the fiscal 1992 first quarter ended Sept. 28, 1991. Income before income taxes increased 139.0 percent to $2,049,000 in the first quarter of fiscal 1993, compared with $857,000 in the prior year. Net income was $1,270,000 or 8 cents per share for the first quarter of fiscal 1993, compared with $857,000 the prior year. After an adjustment primarily for preferred stock dividends, fiscal 1992 first quarter income applicable to common stock was a loss of $4,000 or zero cents per share. Due to the utilization of tax loss carryforwards, fiscal 1992 operating results did not include any income tax expense until the fourth quarter, when they were fully utilized. There were 16.9 million average shares outstanding for the fiscal 1993 first quarter, compared with 6.6 million shares for the first quarter of fiscal 1992.
"CompUSA enjoyed very strong sales during the first quarter in both 11 new and 20 existing stores. We were particularly pleased by our 21.1 percent comparable store sales increase," said Nathan Morton, president and chief executive officer. "The company's ongoing expansion and the maturation of its store base are enhancing profitability as store operating and general and administrative expenses are continuing to decline as a percentage of sales.
"We are benefiting from the lowering of prices by major computer manufacturers as demand increases for more powerful, yet lower-priced, computers," said Morton. "We also see an increase in the average system sales price as customers buy these more fully configured units. We believe that this pricing trend will not only continue to enhance our computer sales, but will expand the overall market and increase long- term demand for peripheral equipment and software.
"During the first quarter, we opened three new stores, including our first stores in the Sacramento, Calif., and metropolitan New York markets and our third store in the Dallas-Fort Worth market," Morton added. "We remain confident that we will achieve our plan to have 48 superstores opened throughout the United States by June 1993."
Effective with the first quarter of fiscal 1993, CompUSA has changed to a 52/53-week fiscal year to provide more comparable results on a period-to-period basis. Fiscal years will end on the last Saturday of each June. Each 13-week quarter will end on a Saturday and be divided into an initial five-week period and two four-week periods. The 13-week first quarter of fiscal 1993 ended Sept. 26, 1992, while financial results for the first quarter of fiscal 1992 have been adjusted to reflect a 13-week period ended Sept. 28, 1991.
CompUSA Inc. currently operates 33 high-volume computer superstores in 22 major metropolitan markets throughout the U.S. Each superstore offers more than 5,000 computer products, including hardware, software, accessories and related products, at deep- discount prices to retail, business, governmental and institutional customers. The superstores also maintain full-service technical departments and classroom training facilities.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - in thousands, except per share data)
13 weeks ended 9/26/92 9/28/91(a)
Net sales $263,391 $169,109
Cost of sales and occupancy expense 231,199 147,735
Gross profit 32,192 21,374
Store operating expenses 22,296 14,980
Pre-opening expenses 898 ---
General and administrative expenses 6,488 4,549
Operating income 2,510 1,845
Interest expense 497 990
Other income, net (36) (2)
Income before income taxes 2,049 857
Income tax expense 779 ---
Net income $ 1,270 $ 857
Income (loss) applicable to
common stock $ 1,270 $ (4)(b)
Earnings per share $ 0.08 $ 0.00
Weighted avg. common and common
equivalent shares 16,875 6,574
(a) Adjusted from previously reported figures to reflect a 13-week quarter ended Sept. 28, 1991.
(b) Net income has been reduced by certain items, primarily preferred stock dividends related to redeemable securities, to calculate loss applicable to common stock. The preferred stock was converted to common stock, and the redeemable feature of the warrants was removed concurrent with the company's initial public offering in December 1991.
/CONTACT: Nathan Morton, president and CEO, or Mervyn Benjet, executive vice president and CFO of COMPUSA, 214-406-4700/
(CUSA) CO: CompUSA Inc. ST: Texas IN: CPR REA SU: ERN
BR-TG -- AT001 -- 2836 11/05/92 08:29 EST