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HEILIG-MEYERS COMPANY ANNOUNCES RECORD REVENUES, EARNINGS FOR SECOND QUARTER ENDED AUG. 31, 1993

 RICHMOND, Va., Sept. 16 /PRNewswire/ -- Heilig-Meyers Company (NYSE: HMY), the Richmond-based home furnishings retailer, today announced record revenues and earnings for the second quarter ended Aug. 31, 1993. Net earnings rose 42.2 percent to $11,417,000 from $8,029,000 in the prior year. Earnings per share increased to 23 cents from 18 cents for the quarter ended Aug. 31, 1992. Total revenues for the quarter rose 34.2 percent to $204.7 million from $152.5 million in the prior year.
 For the six months ended Aug. 31, 1993, net earnings increased by 34.5 percent to $24,878,000 from $18,497,000 in the prior year. Earnings per share increased to 52 cents from 41 cents for the six months ended Aug. 31, 1992. Revenues for the six months rose 29.0 percent to $391.5 million from $303.4 million in the prior year.
 The financial statements for all periods presented have been adjusted to reflect a three-for-two split of the company's outstanding common stock distributed on July 28, 1993.
 During the first quarter of this year, the company implemented the Financial Accounting Standards Board Statement of Financial Accounting Standards No. 109 (SFAS 109) on accounting for income taxes. Accordingly, the financial statements for all periods presented have been restated. There was no material impact on net earnings in either the current or prior year resulting from the implementation of SFAS 109.
 On Aug. 10, 1993, the Omnibus Budget Reconciliation Act of 1993 was signed into law. Among other things, the Budget Act increases the corporate tax rate to 35.0 percent from 34.0 percent retroactive to Jan. 1, 1993. In addition, under the provisions of SFAS 109, the company is required to adjust its deferred income tax balances to reflect the higher tax rate and recognize the effects of this adjustment in the current period. As a result, the company's effective tax rate for the quarter rose to 40.6 percent as compared to 34.6 percent last year.
 Troy A. Peery Jr., president and chief operating officer, noted that pretax earnings for the quarter rose 56.7 percent from the prior year. These record earnings were favorably impacted by a 13.9 percent same store sales increase during the period. He added that management expects the company's ongoing expansion program to provide continued opportunities for future sales and earnings gains.
 William C. DeRusha, chairman and chief executive officer, stated that management was pleased to achieve these results while continuing to increase market share both in existing locations and through newly acquired stores. During the quarter, the company opened 28 new stores, including 11 acquired from the L. Fish Furniture Company of Chicago. He further noted that while Heilig-Meyers was taking advantage of a strategic opportunity in the Chicago market, the company's primary expansion focus would continue to be on smaller cities and towns.
 As of Aug. 31, 1993, the company operated 466 stores in 16 states.
 HEILIG-MEYERS COMPANY
 Consolidated Statements of Earnings
 (Amounts in thousands except per share data)
 (Unaudited)
 Three Months Ended Six Months Ended
 Aug. 31, Aug. 31,
 1993 1992 1993 1992
 Revenues:
 Sales $171,578 $127,500 $327,603 $253,579
 Other income 33,115 24,975 63,851 49,844
 Total revenues 204,693 152,475 391,454 303,423
 Costs and Expenses:
 Costs of sales 110,586 82,875 207,817 161,925
 Selling, general
 and administrative 61,584 45,928 117,376 91,098
 Interest 5,753 5,794 11,880 10,928
 Provision for
 doubtful accounts 7,549 5,610 14,258 11,031
 Total costs
 and expenses 185,472 140,207 351,331 274,982
 Earnings before
 provision
 for income taxes 19,221 12,268 40,123 28,441
 Provision for
 income taxes 7,804 4,239 15,245 9,944
 Net earnings $ 11,417 $ 8,029 $ 24,878 $ 18,497
 Net earnings per share
 of common stock:
 Primary and fully
 diluted $ 0.23 $ 0.18 $ 0.52 $ 0.41
 Cash dividends
 per share
 of common stock $ 0.05 $ 0.04 $ 0.10 $ 0.08
 HEILIG-MEYERS COMPANY
 Consolidated Balance Sheets
 (Amounts in thousands except par value data)
 Aug. 31, Feb. 28,
 1993 1993
 (unaudited)
 ASSETS
 Current assets:
 Cash $ 3,992 $ 3,868
 Accounts receivable, net 461,357 397,974
 Other receivables 15,608 14,363
 Inventories 153,508 131,889
 Other 19,363 18,483
 Total current assets 653,828 566,577
 Property and equipment, net 138,173 126,611
 Other assets 79,664 73,297
 Total $871,665 $766,485
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Notes payable $125,500 $113,400
 Long-term debt due within one year 49,751 49,771
 Accounts payable 54,962 50,666
 Accrued expenses 24,071 29,944
 Total current liabilities 254,284 243,781
 Long-term debt 171,113 176,353
 Deferred income taxes 43,858 40,796
 Commitments -- --
 Stockholders' equity:
 Preferred stock, $10 par value -- --
 Common stock, $2 par value 96,087 59,296
 Capital in excess of par value 113,634 73,969
 Retained earnings 192,689 172,290
 Total stockholders' equity 402,410 305,555
 Total $871,665 $766,485
 -0- 9/16/93
 /CONTACT: Roy Goodman of Heilig-Meyers, 804-359-9171, ext. 2531/
 (HMY)


CO: Heilig-Meyers Company ST: Virginia IN: REA SU: ERN

MH -- DC004 -- 2567 09/16/93 09:15 EDT
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Date:Sep 16, 1993
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