Printer Friendly

ECKERD CORPORATION REPORTS INCREASED SALES AND EARNINGS IN THIRD QUARTER AND NINE-MONTH PERIOD

 CLEARWATER, Fla., Nov. 30 /PRNewswire/ -- Eckerd Corporation (NYSE: ECK) today reported increases in sales and operating profit in the third quarter and nine-month period ended Oct. 30, 1993. Eckerd's pharmacy operations continued to pace sales gains.
 Sales in the third quarter were $972.7 million, a 7.2 percent increase from sales of $907.5 million a year ago. Operating profits for the quarter rose to $15.6 million, a 14.7 percent increase over last year's third quarter operating profit of $13.6 million. For the nine- month period, Eckerd reported record sales of $3.01 billion, a 7.5 percent increase from sales of $2.80 billion a year ago. Operating profits for the nine-month period were $96.0 million, an 18.8 percent increase over last year's operating profits of $80.8 million.
 Comparable store sales, measuring the performance of stores open one year or more, increased 5.8 percent for the nine-month period and 5.5 percent for the quarter.
 For the nine-month period, the company had net earnings (before extraordinary items) of $5.5 million or $.19 per share, compared to a net loss of $23.4 million or an $.88 loss per share last year. For the quarter, the company reduced its net loss before extraordinary items to $9.1 million or a $.29 loss per share, compared to $21.1 million or a $.78 loss per share a year ago.
 In the third quarter, Eckerd experienced a one-time extraordinary item charge of $2.4 million for early repayment of debt from proceeds of the company's August 1993 IPO. Year-to-date extraordinary item charges related to debt refinancing and the IPO were $30.1 million. In the fourth quarter, the company will have another extraordinary charge of approximately $14 million from additional debt refinancing activities. Had all of the debt refinancings and IPO occurred as of the beginning of the current fiscal year, net earnings (before extraordinary items) would have been $21.0 million for the nine months ended Oct. 30, 1993.
 "We are pleased with our sustained increased in sales for the third quarter and year-to-date period," said Stewart Turley, Eckerd chairman and chief executive officer. "Our pharmacy operations, especially third- party plans, health related products, skincare, greeting cards and convenience food categories continue to post notable gains, in spite of continued deflation in certain categories and last year's sales bulge due to Hurricane Andrew.
 Commenting on current business developments, including the company's recent acquisition of the 19-store Crown Drugs chain in North Carolina, Turley said, "The Crown acquisition will significantly enhance our existing presence in the Winston-Salem area as more customers come to rely on our services."
 Turley also noted Eckerd's October $200 million subordinated debt offering, saying, "We see the financial community's enthusiastic support of the debt offering as indicative of our being on-target with the right strategies and direction." Eckerd doubled the size of the offering because of strong response from the financial community and rates below the original range.
 Eckerd Corporation currently operates 1,710 drug stores in 13 states. In addition, Eckerd operates 405 Eckerd Express Photo labs, 47 Visionworks optical superstores, 30 Eckerd Optical Centers and Insta- Care Pharmacy Services, which provides pharmaceutical care to institutions.
 ECKERD CORPORATION
 Condensed Consolidated Statements of Operations
 (Unaudited, In Thousands Except Per Share Data)
 13 Weeks Ended
 10/30/93
 Proforma(A) Actual 10/31/92
 Sales $ 972,675 $ 972,675 $ 907,493
 Cost of Sales 744,906 744,906 686,109
 Operating and
 Administrative Expenses 204,232 204,232 198,061
 Amortization of Intangibles 7,968 7,968 9,755
 Operating Profit 15,569 15,569 13,568
 Interest Expense 23,724 25,161 34,002
 Income Taxes (426) (455) 664
 Earnings (Loss) Before
 Extraordinary Items (7,729) (9,137) (21,098)
 Extraordinary Items (2,421) (2,421) ---
 Net Earnings (Loss) (10,150) (11,558) (21,098)
 Preferred Stock Dividends --- --- 2,709
 Net Earnings (Loss) Available
 to Common Shares $ (10,150) $ (11,558) $ (23,807)
 Net Earnings (Loss) per
 Common Share ($.32) ($.37) ($.88)
 Weighted Average Number
 of Shares Outstanding 31,606 31,606 26,977
 Earnings Before Interest,
 Income Taxes,
 Depreciation and
 Amortization (EBITDA) $ 34,725 $ 34,725 $ 36,378
 Earnings Before Interest,
 Income Taxes and
 Amortization (EBITA) $ 22,920 $ 22,920 $ 23,152
 39 Weeks Ended
 10/30/93
 Proforma(A) Actual 10/31/92
 Sales $3,009,022 $3,099,022 $2,795,211
 Cost of Sales 2,280,907 2,280,907 2,079,167
 Operating and
 Administrative Expenses 607,028 605,360 604,751
 Amortization of Intangibles 26,786 26,786 30,545
 Operating Profit 94,301 95,969 80,748
 Interest Expense 71,210 88,691 102,333
 Income Taxes 2,116 1,800 1,860
 Earnings (Loss) Before
 Extraordinary Items 20,975 5,478 (23,445)
 Extraordinary Items (30,084) (30,084) ---
 Net Earnings (Loss) (9,109) (24,606) (23,445)
 Preferred Stock Dividends --- 4,924 8,076
 Net Earnings (Loss) Available
 to Common Shares $ (9,109) $ (29,530) $ (31,521)
 Net Earnings (Loss) per
 Common Share ($.29) ($1.04) ($1.19)
 Weighted Average Number
 of Shares Outstanding 31,949 28,499 26,543
 Earnings Before Interest,
 Income Taxes,
 Depreciation and
 Amortization (EBITDA) $ 159,495 $ 161,163 $ 149,097
 Earnings Before Interest,
 Income Taxes and
 Amortization (EBITA) $ 120,351 $ 122,019 $ 110,027
 (A) -- The proforma financial data is based on the historical financial statements of the company, adjusted to give effect to the company's debt refinancing, the 9 1/4 percent Senior Subordinated Notes Offering and common stock initial public offering and the use of the net proceeds therefrom as if such transactions had occurred as of the beginning of the periods presented.
 -0- 11/30/93
 /CONTACT: Gerry Hoeppner of Eckerd, 813-399-6380/
 (ECK)


CO: Eckerd Corporation ST: Florida IN: REA SU: ERN

AW-JB -- FL011 -- 8879 11/30/93 16:09 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 30, 1993
Words:979
Previous Article:KNAPE & VOGT MANUFACTURING COMPLETES HIRSH ACQUISITION
Next Article:PETRAZZOLO JOINS ARIZONA TECHNOLOGY FIRM AFTER 19 YEARS WITH DEC
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters