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PERRY DRUG STORES REPORTS MAJOR TURNAROUND FOR FY-91

 PERRY DRUG STORES REPORTS MAJOR TURNAROUND FOR FY-91
 PONTIAC, Mich., Dec. 16 /PRNewswire/ -- Perry Drug Stores


(NYSE: PDS) Chairman and Chief Executive Officer Jack A. Robinson said today that "in a year that witnessed many businesses experiencing difficulties, Perry enjoyed a healthy turnaround and was reporting improved profitability and financial stability for the fourth quarter and fiscal year ended Oct. 31."
 Earnings from continuing operations for the fourth quarter were $1.9 million, or 18 cents per share, compared to a loss in the 1990 fourth quarter of $2.9 million, or 29 cents per share. Earnings from continuing operations for the year were $6.1 million, or 59 cents per share, compared to $2.9 million or 28 cents per share, in fiscal 1990.
 Fourth-quarter net earnings totaled $1.5 million, or 15 cents per share, compared to a loss in the 1990 fourth quarter of $3.8 million, or 37 cents per share. Net earnings for the year were $5.6 million, or 55 cents per share, compared to a loss of $6.2 million, or 61 cents per share, in the previous year. These net earnings reflect operating losses attributable to the discontinued health care businesses which the company divested in 1991.
 Sales from continuing operations were $165 million in the fourth quarter compared to the 1990 fourth quarter of $155 million, and $641 million for fiscal 1991 compared to 1990 sales of $633 million.
 In addition, Robinson said, Perry had several other major accomplishments, including the following:
 -- Earnings from operations before interest and taxes for the year- end were $19.5 million compared to $15 million in 1990, a 29-percent increase.
 -- Perry lowered its borrowings by $14 million, reducing its short- and long-term debt to $129 million. Working capital was $75 million compared to $43 million in fiscal 1990 and the ratio of current assets to current liabilities at year-end was 1.9 to 1, up considerably from the 1.4 to 1 in the previous year.
 -- Selling, general and administrative expenses continued to decrease. They dropped, as a percent of sales, from 25 percent in 1990 to 24.5 percent in fiscal 1991.
 -- Pharmacy sales increased 26 percent in fiscal 1991 over the previous year and now account for 44 percent of total sales.
 -- Sales in seasoned Michigan stores (stores open for at least a year) increased 8.4 percent during the fourth quarter and 3.4 percent for the year.
 -- Retained and built on the company's leadership position in all major Michigan markets.
 Robinson said during the year Perry sold its remaining health care businesses and exited from the Chicago market. This successfully completed the strategy adopted several years ago to concentrate on drugstore operations in Michigan.
 He added that "given all we accomplished in 1991, we expect even better results in fiscal 1992 despite a highly competitive retail environment and a pressured economy."
 Perry, a New York Stock Exchange company headquartered in Pontiac, operates 212 drugstores. The company is the No. 1 drugstore chain in Michigan and the 14th-largest drugstore chain in the U.S.
 PERRY DRUG STORES, INC.
 Condensed Statement of Earnings
 (In thousands of dollars)
 Three Months Ended 12 Months Ended
 Oct. 31, Oct. 31,
 1991 1990 1991 1990
 Net sales $165,088 $154,922 $640,821 $633,207
 Cost of sales 118,822 115,888 464,454 459,795
 Selling, general and
 admin. expenses 41,577 40,648 156,877 158,355
 Earnings from
 operations before
 interest, income taxes
 and effect of change
 in accounting method $4,689 ($1,614) $19,490 $15,057
 Interest expense 3,173 3,310 12,606 12,201
 Earnings before income
 taxes $1,516 ($4,924) $6,884 $2,856
 Provision for income
 taxes (359) (1,985) 800 ---
 Earnings from
 operations $1,875 ($2,939) $6,084 $2,856
 Loss on discontinued
 operations(a) (349) (827) (487) (2,261)
 Effect of change in
 accounting (net of
 tax) --- --- --- ($6,800)
 Net earnings (loss) $1,526 ($3,766) $5,597 ($6,205)
 Primary earnings
 (loss) per share:
 Operations $0.18 ($0.29) $0.59 $0.28
 Discontinued
 operations(a) ($0.03) ($0.08) ($0.04) ($0.22)
 Effect of change in
 accounting for
 inventory (net of
 tax) --- --- --- ($0.67)
 Net earnings (loss)
 per share $0.15 ($0.37) $0.55 ($0.61)
 Average primary
 shares outstanding 10,237 10,224 10,227 10,231
 Number of stores 212 228 212 228
 (a) -- Reflects as discontinued operations the operating results of the company's health care businesses, which were divested during fiscal 1991.
 -0- 12/16/91
 /CONTACT: Jerry Stone, 313-674-7783, or Berl Falbaum, 313-674-7772, both of Perry Drug Stores/
 (PDS) CO: Perry Drug Stores ST: Michigan IN: REA SU: ERN


JG-KK -- DE006 -- 2451 12/16/91 11:03 EST
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Date:Dec 16, 1991
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