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FAY'S REPORTS 45 PERCENT INCREASE IN THIRD QUARTER EARNINGS

 LIVERPOOL, N.Y., Nov. 23 /PRNewswire/ -- Fay's Incorporated (NYSE: FAY) reported net earnings for the third quarter ended Oct. 30, 1993, increased 45 percent to $2,194,000 or $.11 per share, compared to $1,510,000 or $.08 per share in the third quarter of last year. Revenues for the quarter increased 4.6 percent to a record $226 million from $216.1 million a year earlier. Revenues for comparable stores (stores open one year or more as of Oct. 30, 1993) increased 4.1 percent for the quarter.
 After a one-time non-cash charge of $4.8 million or $.24 per share associated with the adoption of a new accounting standard for postretirement benefits, Fay's incurred a loss of $643,000 or $.03 per share for the 39 weeks ended Oct. 30, 1993. Also included in operating results for the first three quarters were charges of $2.4 million or $.12 per share for future rental obligations, abandoned leasehold improvements and other expenses related to the closing of nine Paper Cutter Stores.
 Excluding the charges relating to the store closings and the charge for the change in accounting method, Fay's net earnings for the first 39 weeks were $6,508,000 or $.33 per share, compared to $5,991,000 or $.30 per share earned in the first three quarters of last year. Revenues for the first three quarters increased 3.1 percent to $664.6 million from $644.6 million a year earlier. For the first three quarters, revenues from comparable stores increased 3.5 percent.
 Henry A. Panasci Jr., chairman of the board of Fay's, stated, "We are pleased with the improvement in sales and earnings posted in the third quarter. Sales of prescription drugs were especially strong, with total prescription revenues increasing 9.8 percent. Tighter expense controls resulted in a decrease in selling, general and administrative expenses as a percentage of sales. As we enter our important Christmas selling season, we are well positioned with merchandise and promotional programs. We are confident that with execution of our marketing plan and attention to cost containment, we will reach our fourth quarter goals."
 At the end of the third quarter, Fay's was operating 256 drug stores in New York, Pennsylvania, New Hampshire and Vermont, together with 32 Wheels Discount Auto Supply Stores and 28 Paper Cutter Stores in the State of New York.
 FAY'S INCORPORATED
 (unaudited)
 Thirteen Weeks Thirteen Weeks
 Ended Ended
 October 30, 1993 October 24, 1992
 Revenues $225,966,000 $216,090,000
 Earnings Before Taxes 3,749,000 2,582,000
 Net Earnings 2,194,000 1,510,000
 Net Earnings Per Share $ .11 $ .08
 Average Shares Outstanding 20,066,910 19,899,634
 Stores in Operation at End
 of Period 316 316
 Thirty-Nine Weeks Thirty-Nine Weeks
 Ended Ended
 October 30, 1993 October 24, 1992
 Revenues $664,633,000 $644,610,000
 Earnings Before Taxes 7,093,000 10,161,000
 Earnings Before Cumulative
 Effect of Accounting Change 4,163,000 5,991,000
 Cumulative Effect of
 Accounting Change (4,806,000) ---
 Net Earnings (Loss) (643,000) 5,991,000
 Earnings Per Share:
 Earnings Before Cumulative
 Effect of Accounting Change $ .21 $ .30
 Cumulative Effect of
 Accounting Change (.24) ---
 Net Earnings (Loss) $ (.03) $ .30
 Average Shares Outstanding 19,986,012 19,901,112
 Stores in Operation at End
 of Period 316 316
 -0- 11/23/93
 /CONTACT: Henry A. Panasci Jr., chairman of the board, of Fay's Incorporated, 315-451-8000/
 (FAY)


CO: Fay's Incorporated ST: New York IN: REA SU: ERN

AR-KL -- CL012 -- 7267 11/23/93 12:29 EST
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Publication:PR Newswire
Date:Nov 23, 1993
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