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HEILIG-MEYERS REPORTS RESULTS

 RICHMOND, Va., March 25 /PRNewswire/ -- Heilig-Meyers Company (NYSE: HMY), the Richmond-based home furnishings retailer, today announced record results for the fiscal year ended Feb. 28, 1993. Total revenues for the year increased 26.5 percent to $657.5 million from $519.9 million last year while earnings rose 40.7 percent to $38.0 million from $27.0 million in the prior year. Fully diluted earnings per share rose 31.6 percent to $1.25 compared to $0.95 last year, based on 30,429,000 and 28,278,000 weighted average shares outsti?ng, respectively.
 Troy A. Peery Jr., president and chief operating officer, stated that these record results were attributable to the company's continued focus on serving its small-town-market niche while improving the execution of its business plan. He added that the company's 40.7 percent earnings increase was among the largest in the retail industry and was achieved despite an uncertain economy. This exceptional earnings gain was driven by a 25.9 percent overall sales increase and a 10.1 percent sales increase in stores which were open for the comparable period in the prior year. Further modifications to the company's merchandise line-up and more aggressive utilization of its targeted advertising program contributed to these sales gains. Earnings were also favorably impacted by continued emphasis on cost and inventory control, refinement of the point-of-sale system and improvements to the distribution network.
 William C. DeRusha, chairman and chief executive officer, commented that the company's strong performance should continue as Heilig-Meyers builds on the solid foundation provided by its proven operating strategies. During the coming year, the company expects to open approximately 60 new stores in both current and contiguous geographic markets. The design of these stores will include innovative architecture and display techniques developed for an advanced prototype model which was successfully introduced in the recently constructed Thomasville, Ga., store. To support this expansion, the company will open a sixth distribution center in Moberly, Mo., in the fall of 1993. DeRusha also noted that the company has entered a new advertising arena through the sponsorship of a NASCAR racing team. This institutional advertising vehicle is expected to enhance the company's name recognition as well as increase store traffic through related promotions. This combination of consistent expansion, increased distribution capacity and advanced advertising has prepared the company for continued success.
 During the year, the company opened 51 stores bringing the total in operation to 425 stores in 16 states as of Feb. 28, 1993.
 HEILIG-MEYERS COMPANY
 Consolidated Statements of Earnings
 (Amounts in thousands except per share data)
 Twelve Months Ended Three Months Ended
 Feb. 28 (29) Feb. 28 (29)
 1993 1992 1993 1992
 (Unaudited)
 Revenues:
 Sales $549,660 $436,664 $151,977 $123,150
 Other income 107,883 83,229 30,431 24,211
 Total revenues 657,543 519,893 182,408 147,361
 Costs and expenses:
 Costs of sales 351,361 276,971 98,349 79,157
 Selling, general
 and administrative 199,519 159,998 56,059 46,265
 Interest 23,084 21,389 6,122 5,078
 Provision for
 doubtful accounts 24,185 20,298 6,814 6,349
 Total costs
 and expenses 598,149 478,656 167,344 136,849
 Earnings before
 provision for income
 taxes 59,394 41,237 15,064 10,512
 Provision for income
 taxes 21,394 14,232 5,462 3,693
 Net earnings $ 38,000 $ 27,005 $ 9,602 $ 6,819
 Net earnings per share
 of common stock:
 Primary $1.26 $0.96 $0.32 $0.23
 Fully diluted $1.25 $0.95 $0.32 $0.23
 Cash dividends per share
 of common stock $0.24 $0.21 $0.06 $0.05
 HEILIG-MEYERS COMPANY
 Consolidated Balance Sheets
 (Amounts in thousands except par value data)
 Feb. 28, Feb. 29,
 1993 1992
 ASSETS
 Current assets:
 Cash $ 3,868 $ 2,813
 Accounts receivable, net 397,974 315,949
 Other receivables 14,363 15,938
 Inventories 131,889 119,803
 Other 18,483 15,860
 Total current assets 566,577 470,363
 Property and equipment, net 125,874 107,954
 Other assets 48,276 39,276
 Total $740,727 $617,593
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
 Notes payable $113,400 $ 28,500
 Long-term debt due
 within one year 49,771 13,586
 Accounts payable 50,666 40,578
 Accrued expenses 37,879 37,669
 Total current liabilities 251,716 120,333
 Long-term debt 176,353 226,112
 Deferred income taxes 7,108 7,216
 Commitments -- --
 Stockholders' equity:
 Preferred stock, $10 par value -- --
 Common stock, $2 par value 59,296 38,652
 Capital in excess of par value 73,969 83,942
 Retained earnings 172,285 141,338
 Total stockholders' equity 305,550 263,932
 Total $740,727 $617,593
 -0- 3/25/93
 /CONTACT: Roy Goodman of Heilig-Meyers, 804-359-9171, ext. 2531/
 (HMY)


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

MH-TW -- DC006 -- 9461 03/25/93 09:54 EST
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Date:Mar 25, 1993
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