GANTOS, INC. REPORTS FIRST-QUARTER 1992 EARNINGS
GANTOS, INC. REPORTS FIRST-QUARTER 1992 EARNINGS GRAND RAPIDS, Mich., May 20 /PRNewswire/ -- Gantos, Inc.
(NASDAQ: GTOS) today reported net income for the first quarter ended May 2, 1992, of $141,000, or $0.03 per share, compared to a net loss of $1,636,000, or $0.31 per share, for the same period a year ago.
Total company net sales were $62.7 million for the quarter, an increase of 4 percent over net sales of $60.5 million in the prior year. Sales for stores open throughout both periods increased by 9 percent. As previously announced, the company discontinued its catalog operations during the first quarter of 1991. Excluding catalog sales, the company's 1992 first-quarter net sales of $62.7 million increased 7 percent from 1991 net sales of $59.2 million. L. Douglas Gantos, chairperson of the board and chief executive officer of the company, said, "As stated earlier, the company's goals are to strengthen its financial position and improve sales in existing markets while continuing to lower its cost structure. I am happy to report that we are succeeding on these fronts. Our debt levels are significantly lower than a year ago; we've led much of our industry in comparable store sales increases and we have greatly reduced our overhead expense structure. Additionally, we've strengthened senior management and our board of directors in recent months. As our sales improvement continues, I look forward with confidence to Gantos' future." Michele Fortune, president and chief operating officer, added, "Even though this is our third consecutive quarter of profitable performance, we recently implemented significant staff reductions, largely concentrated at the corporate headquarters. These reductions were taken to better position the company to compete in today's highly competitive retailing environment. We will continue in our cost-control efforts while maintaining our emphasis on the highest levels of customer service and merchandise quality." Gantos, Inc. is a major retailer of quality women's fashions and accessories. The company currently operates 158 stores in 25 states. GANTOS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited; amounts in thousands, except per-share and store data) First Quarter Ended May 2, May 4, 1992 1991 Net sales $62,655 $60,458 Cost of sales (including buying, distribution and occupancy costs) 50,196 48,207 Gross income 12,459 12,251 Selling, general and administrative expense 13,221 15,069 Operating loss (762) (2,818) Interest expense (957) (1,337) Finance charge and other revenue 1,928 1,599 Income (loss) before income taxes 209 (2,556) Provision (credit) for income taxes 68 (920) Net income (loss) $141 ($1,636) Net income (loss) per share $0.03 ($0.31) Weighted average shares outstanding 5,424 5,256 Stores open at end of period 158 164 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; amounts in thousands) May 2, May 4, ASSETS 1992 1991 Current assets: Cash $2,117 $1,629 Accounts receivable (net) 42,711 39,913 Merchandise inventories 34,662 37,382 Prepaid expenses and other 4,907 5,278 Total current assets 84,397 84,202 Property and equipment (net) 43,098 52,258 Total assets $127,495 $136,460 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $22,411 $20,343 Accrued expenses and other 17,454 13,551 Deferred income taxes 947 1,059 Total current liabilities 40,812 34,953 Long-term debt 44,706 57,208 Other long-term liabilities 0 3,740 Deferred taxes 1,814 2,586 Shareholders' equity 40,163 37,973 Total liabilities and shareholders' equity $127,495 $136,460 -0- 5/20/92 /CONTACT: James P. Curley of Gantos, Inc., 616-940-9295/ (GTOS) CO: Gantos, Inc. ST: Michigan IN: REA SU: ERN
JB-SM -- DE007 -- 2208 05/20/92 09:29 EDT
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|Date:||May 20, 1992|
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