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HOOK-SUPERX, INC. REPORTS FISCAL 1992 INCOME BEFORE EXTRAORDINARY ITEMS INCREASED MORE THAN 300 PERCENT

 HOOK-SUPERX, INC. REPORTS FISCAL 1992 INCOME BEFORE
 EXTRAORDINARY ITEMS INCREASED MORE THAN 300 PERCENT
 CINCINNATI, Nov. 4 /PRNewswire/ -- Hook-SupeRx, Inc. (HSI or the "company") (NYSE: HSX) announced today that income before extraordinary items for the year ended Aug. 31, 1992 was $15.6 million or $.99 per share as compared to $3.5 million or $.27 per share for the year earlier period, an increase of more than 300 percent. Net loss for the year ended Aug. 31, 1992 was $7.3 million or $.46 per share as compared to a net income of $4.5 million or $.35 per share for the prior year. An extraordinary charge to earnings of $22.9 million (net of tax benefits of $5.9 million) or $1.45 per share was recorded during the year ended Aug. 31, 1992 to reflect the early retirement of debt. For the year ended Aug. 31, 1991, the company recorded an extraordinary credit of $1 million or $.08 per share resulting from the income tax benefits from utilizing net operating loss carryforwards.
 Net sales increased 7.0 percent for the year ended Aug. 31, 1992 from $1,994.5 million for the year ended Aug. 31, 1991 to $2,134.7 million, with sales from stores opened one year or more increasing 5.9 percent. Gross profit increased 7.8 percent from $605.4 million for the year ended Aug. 31, 1991 to $652.9 million. The gross margin improved from 30.3 percent to 30.6 percent. For the year ended Aug. 31, 1992, the company recorded a LIFO charge of $10.8 million as compared with $14.1 million for the prior year. Operating income improved 17 percent from $58.3 million to $68.3 million. The operating margin improved from 2.9 percent to 3.2 percent.
 Net sales for the three months ended Aug. 31, 1992 increased 5.1 percent from $511 million for the three months ended Aug. 31, 1991 to $537.3 million, with sales from stores opened one year or more increasing 4.7 percent. Sales trends for the three months ended Aug. 31, 1992 were negatively impacted by the calendar shift in Labor Day which resulted in a later "back to school" sales event coupled with the fact that the sales for the three months ended Aug. 31, 1991 included an additional week sales for the company's Brooks division. Gross profit increased 6.9 percent from $154.8 million to $165.6 million. The gross margin improved from 30.3 percent to 30.8 percent. For the three months ended Aug. 31, 1992 the company recorded a favorable LIFO adjustment of $1.1 million as compared with a charge of $3.9 million for the prior year same three months. Operating income increased 25 percent from $12.7 million to $15.9 million.
 Philip E. Beekman, chairman and chief executive officer of HSI, commented, "We are pleased with our results for fiscal 1992, particularly in light of the difficult economic environment over the past twelve months."
 As was previously announced, HSI completed in June 1992 an initial public offering of 7.9 million shares of common stock and sold $145 million aggregate principal amount of 10 1/8 percent senior notes. These two offerings were components of the company's Recapitalization Plan which has increased stockholders' equity, reduced indebtedness and interest expense and improved the company's operating and financial flexibility. Beekman stated, "The lower debt level and reduced cost of borrowing as a result of the Recapitalization Plan, mean more money will be available to invest in the growth of HSI."
 HSI operates the sixth largest retail drug chain in the United States in terms of store count. At Aug. 31, 1992, HSI operated 1,134 drug stores and 32 home health care centers as compared with 1,107 drug stores and 32 home health care centers for the year earlier period.
 Digest of Earnings
 (dollars in thousands
 except per share amounts)
 For The Year Ended Aug.31,
 1992 Pct. 1991 Pct.
 Net sales $2,134,670 --- $1,994,553 ---
 Gross profit 652,861 30.6 605,420 30.3
 Selling, general
 and administrative
 expenses (a) 584,582 27.4 547,084 27.4
 Operating income 68,279 3.2 58,336 2.9
 Interest 46,728 2.2 53,312 2.7
 Income before
 income taxes and
 extraordinary
 items 21,551 1.0 5,024 .2
 Income taxes 5,967 .3 1,542 ---
 Income before
 extraordinary
 items 15,584 .7 3,482 .2
 Extraordinary charge
 resulting from
 early retirement of
 debt (net of tax
 benefits $5,908) (22,855) (1.0) --- ---
 Extraordinary item
 resulting from
 income tax benefits
 from utilizing net
 operating loss
 carryforward --- --- 1,046 ---
 Net income
 (loss) $ (7,271) (.3) $ 4,528 .2
 Average shares (b) 15,691,305 12,922,363
 Earnings per share
 Income before extra-
 ordinary items
 (restated for
 1991) (c) $.99 $.27
 Extraordinary item
 resulting from early
 retirement of debt (1.45) ---
 Extraordinary item
 resulting from net
 operating loss
 carryforward --- .08
 Net income (loss)
 (restated for
 1991) (c) $(.46) $.35
 Digest of Earnings
 (dollars in thousands
 except per share amounts)
 Three Months Ended Aug. 31,
 1992 Pct. 1991 Pct.
 Net sales $ 537,274 --- $ 511,011 ---
 Gross profit 165,554 30.8 154,836 30.3
 Selling, general
 and administrative
 expenses (a) 149,644 27.8 142,121 27.8
 Operating income 15,910 3.0 12,715 2.5
 Interest 9,995 1.9 12,547 2.4
 Income before
 income taxes and
 extraordinary
 items 5,915 1.1 168 .1
 Income taxes 1,446 .3 (310) ---
 Income before
 extraordinary
 items 4,469 .8 478 .1
 Extraordinary charge
 resulting from
 early retirement of
 debt (net of tax
 benefits $5,908) (22,855) (4.2) --- ---
 Extraordinary item
 resulting from
 income tax benefits
 from utilizing net
 operating loss
 carryforward (2,100) (.4) 1,046 .2
 Net income
 (loss) $ (20,486) (3.8) $ 1,524 .3
 Average shares (b) 21,061,768 12,920,440
 Earnings per share
 Income before extra-
 ordinary items
 (restated for
 1991) (c) $.21 $.04
 Extraordinary item
 resulting from early
 retirement of debt (1.08) ---
 Extraordinary item
 resulting from net
 operating loss
 carryforward (.10) .08
 Net income (loss)
 (restated for
 1991) (c) $(.97) $.12
 (a) -- Includes rent expense of $60,060 and $55,682 for the years ended Aug. 31, 1992 and 1991, respectively and $15,958 and $14,113 for the three months ended Aug. 31, 1992 and 1991, respectively. Additionally, includes depreciation and amortization of $32,570 and $36,065 for the years ended Aug. 31, 1992 and 1991, respectively, and $8,745 and $9,099 for the three months ended Aug. 31, 1992 and 1991, respectively.
 (b) -- Reflects a 1-for-3 reverse stock split which was effective May 19, 1992. Accordingly, the average number of shares and per share data for the year ended and for the three months ended Aug. 31, 1991 have been restated.
 (c) -- Earnings per share data for the year ended and the three months ended Aug. 31, 1991 have been restated to eliminate the effect of the change in redemption value of common stock and options held by management investors due to the termination, in connection with the initial public offering, of the stockholders agreement which provided for this redemption option.
 -0- 11/4/92
 /CONTACT: Keith Cheesman, 513-782-3573, or Chris Beseler, 513-782-3115, both of Hook-SupeRx, Inc./
 (HSX) CO: Hook-SupeRx, Inc. ST: Ohio IN: REA SU: ERN


BM -- CL003 -- 2347 11/04/92 09:38 EST
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