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MAY DEPARTMENT STORES REPORTS RECORD RESULTS IN EARNINGS PER SHARE, NET EARNINGS AND SALES FOR THIRD QUARTER, FIRST NINE MONTHS OF FISCAL 1993

 ST. LOUIS, Nov. 8 /PRNewswire/ -- Earnings per share, net earnings and sales of The May Department Stores Company (NYSE: MA) for the third quarter and first nine months of fiscal 1993 were the highest for any third quarter and first nine-month period in the company's history, it was announced today by David C. Farrell, chairman and chief executive officer.
 For the third quarter, the 13 weeks ended Oct. 30, the company's fully diluted earnings per share were 49 cents, a 23 percent increase from 40 cents per share, excluding special and non-recurring charges, in the similar year-ago quarter. Net earnings were $133 million for the quarter compared to $108 million last year, excluding special and non-recurring charges. Sales in the 1993 third quarter were $2.73 billion, up 9 percent from $2.51 billion in the same year-ago quarter.
 For the nine months ended Oct. 30, fully diluted earnings per share were $1.28, up 21 percent over the $1.06 reported in the same nine-month period last year. Net earnings for the nine months of fiscal 1993 were $346 million compared to $284 million in the similar 1992 period. Sales for the first nine months of fiscal 1993 totaled $7.54 billion, up 8 percent from $7.02 billion in the similar year-ago period.
 In announcing the record results, May Chairman and Chief Executive Officer David C. Farrell said: "Our organization has performed well in achieving these results and in completing the consolidation of department stores and the move of May Merchandising to St. Louis from New York. All of these changes are working well. Our inventories are in good shape and we are well-positioned going into the fourth quarter."
 Including the third quarter 1992 special and non-recurring charges, fully diluted earnings per share were a loss of 72 cents and net earnings were a loss of $190 million for the 1992 third quarter. On a year-to-date basis for 1992, the special and non-recurring items had no impact on earnings per share or net earnings.
 During the 1993 third quarter, May opened nine new department stores including Lord & Taylor in North Atlanta and Boston; Robinsons-May in Glendale, Ariz., and in West Covina and Glendale, Calif.; Hecht's in Charlotte, N.C., and Fredericksburg, Va.; and Filene's in Nashua, N.H., and Boston. Payless ShoeSource opened 49 net new stores during the quarter.
 The May Department Stores Company is one of the largest department store retailers in the United States, operating 310 department stores and 3,699 Payless ShoeSource stores at the end of the 1993 third quarter.
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 Condensed Consolidated Results Of Operations
 (Millions, except per share)
 13 Weeks Ended 39 Weeks Ended
 Oct. 30, Oct. 31, Oct. 30, Oct. 31,
 1993 1992 1993 1992
 Net Retail Sales:
 Department stores $2,208 $2,043 $6,054 $5,674
 Payless ShoeSource 519 464 1,489 1,345
 Total Net Retail Sales $2,727 $2,507 $7,543 $7,019
 Revenues $2,814 $2,671 $7,822 $7,545
 Cost of sales 1,956 1,874 5,430 5,278
 Selling, general and
 administrative expenses 578 553 1,631 1,587
 Interest expense, net 60 66 183 215
 Special and non-recurring
 items -- 485(A) -- 187(A)
 Earnings (loss) before
 income taxes 220 (307) 578 278
 Provision (benefit) for
 income taxes 87 (117) 232 (6)
 Net Earnings (Loss) $133 $(190)(A) $346 $284(A)
 Primary Earnings (Loss)
 per Share $.51 $(.78)(A) $1.33 $1.09(A)
 Fully Diluted Earnings
 (Loss) per Share $.49 $(.72)(A) $1.28 $1.06(A)
 Dividends Paid per
 Common Share $.23 $.20-3/4 $.66-3/4 $.61-3/4
 Primary Average Shares
 and Equivalents 250.3 249.1 249.9 248.7
 Fully Diluted Average Shares
 and Equivalents 265.9 265.6 266.1 265.5
 (A) -- During the 1992 third quarter, the company recorded pretax charges of $485 million, $298 million after tax and $1.12 per share on a fully diluted basis ($1.20 per share on a primary basis), for special and non-recurring charges. During the 1992 second quarter, the company recorded a $298 million pretax and after tax non-recurring gain, $1.12 per share on a fully diluted basis ($1.20 per share on a primary basis), from the distribution of the May Centers Associates partnership assets. On a year-to-date basis, the special and non-recurring items had no impact on net earnings or earnings per share.
 Results Of Operations - Supplemental Information
 (Millions, except per share)
 13 Weeks Ended 39 Weeks Ended
 Oct. 30, Oct. 31, Oct. 30, Oct. 31,
 1993 1992 1993 1992
 Earnings Before Special
 and Non-recurring Items
 Earnings before income taxes $220 $178 $578 $465
 Net Earnings $133 $108 $346 $284
 Primary Earnings per Share $.51 $.42 $1.33 $1.09
 Fully Diluted Earnings
 per Share $.49 $.40 $1.28 $1.06
 Percent to Revenues Before
 Special and Non-recurring
 Items
 Cost of sales 69.6 pct. 70.2 pct. 69.4 pct. 70.0 pct.
 Selling, general and
 administrative expenses 20.5 20.7 20.9 21.0(B)
 Interest expense, net 2.1 2.4 2.3 2.8(B)
 Earnings before income
 taxes 7.8 pct. 6.7 pct. 7.4 pct. 6.2 pct.
 Effective income tax rate 39.8 pct. 39.3 pct. 40.1 pct. 38.9 pct.(B)
 Net Earnings 4.7 pct. 4.1 pct. 4.4 pct. 3.8 pct.
 (B) -- On May 18, 1992, the May Centers Associates (MCA) partnership was dissolved. Adjusting 1992 as if the MCA partnership had been dissolved on the first day of fiscal 1992, the percent to revenues of selling, general and administrative expenses and interest expense, and the effective income tax rate would have been 21.1 percent, 2.6 percent and 39.3 percent, respectively, for the year-to-date period.
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 Net Retail Sales - Percent Increase vs. Last Year
 Net retail sales represent the sales of stores operating at the end of the latest period. They exclude finance charge revenue and the sales of stores which have been closed and not replaced. Store-for-store sales represent sales of stores open during both periods.
 13 Weeks Ended 39 Weeks Ended
 Oct. 30, 1993 Oct. 30, 1993
 Store-for- Store-for-
 Total Store Total Store
 Department stores 8.1 pct. 6.5 pct. 6.7 pct. 5.4 pct.
 Payless ShoeSource 12.0 3.5 10.8 2.1
 Total 8.8 pct. 5.9 pct. 7.5 pct. 4.8 pct.
 Notes To Condensed Consolidated Results Of Operations
 Interim Results. The unaudited condensed consolidated results of operations have been prepared in accordance with the company's accounting policies as described in the 1992 Annual Report to Shareowners and should be read in conjunction with that report. In the opinion of management, this information is fairly presented and all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods have been included; however, certain items are included in this statement based on estimates for the entire year. Also, operating results of periods which exclude the Christmas season may not be indicative of the operating results that may be expected for the full fiscal year.
 Common Stock Split. During June 1993, the company effected a two- for-one stock split in the form of a 100 percent stock dividend. All share and per share data included herein has been restated to reflect the stock split.
 Inventories. Department store merchandise inventories are stated on the LIFO (last-in, first-out) cost basis. The LIFO provision for the third quarter was $4 million in 1993 and 1992. The year-to-date LIFO provision was $20 million in 1993 and 1992.
 Income Taxes. In the 1993 first quarter, the company adopted Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes." The cumulative effect of the adoption of SFAS No. 109 at the beginning of 1993 was insignificant and, therefore, no adjustments were reflected in the financial statements.
 Trailing Years' Results. Results for the trailing years were as follows (millions, except per share):
 52 Weeks Ended
 Oct. 30, 1993 Oct. 31, 1992
 Net retail sales $10,912 $10,077
 Revenues $11,427 $10,907
 Net earnings $ 665 $ 550
 Fully diluted earnings per share $ 2.48 $ 2.06
 -0- 11/8/93
 /CONTACT: Jim Abrams of The May Department Stores Company, 314-342-6343/
 (MA)


CO: The May Department Stores Company ST: Missouri IN: REA SU: ERN

TW -- NY028 -- 1657 11/08/93 10:05 EST
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