Printer Friendly

PERRY REPORTS ON SECOND QUARTER

 PONTIAC, Mich., June 2 /PRNewswire/ -- Perry Drug Stores, Inc. (NYSE: PDS) today reported on its financial results for the second quarter ended April 30, along with continued progress in the implementation of new technological systems and its expansion plans for the balance of the year.
 Sales for the quarter were $168,058,000, an increase of 3.2 percent over the $162,828,000 achieved in the 1992 second quarter. Sales in seasoned stores (stores open for more than a year) increased 3.0 percent. Sales in seasoned stores would have increased 4.2 percent if the extra Leap Year Day in February 1992 were excluded.
 Net earnings for the second quarter increased 5.1 percent to $1,628,000, compared to $1,549,000 in the 1992 second quarter. Earnings per share were 14 cents compared to 15 cents per share in the 1992 second quarter. The 1993 earnings per share reflect the issuance of an additional 1.6 million shares in a May 1992 public offering.
 Sales for the first six months were $348,772,000, a 3.1-percent increase over the 1992 six-month total of $338,282,000.
 Net earnings for the first six months, which reflect a $3,500,000 non-recurring pre-tax charge taken in the first quarter, were $2,190,000, or 18 cents per share, compared to $4,098,000, or 40 cents per share recorded in the first six months of fiscal 1992. Without the charge, net earnings for the first six months would have totaled $4,600,000, or 38 cents per share. The non-recurring charge established a reserve for the remaining payment due from the 1991 divestiture of Perry's Chicago-area drugstores.
 Jack A. Robinson, Perry chairman, president and chief executive officer, said Perry's sales performance of its prescription business remains strong.
 Robinson said even with relatively low pharmaceutical product cost inflation, pharmacy sales were up 9.4 percent over the same quarter a year ago, and represented 53.9 percent of total revenues. Pharmacy sales for the first six months increased 11.9 percent over the same period in 1992, and accounted for 51.8 percent of revenues.
 He also said "we continued to make excellent progress in our debt- reduction program."
 Interest expense was reduced as a result of lower borrowing levels and lower interest rates. In the quarter, interest expenditures decreased $532,000, or 20 percent, from the same period last year. For the first six months, interest expenditures decreased from $5,558,000 to $4,422,000 and total debt at April 30 was down $15,867,000 -- or 12.5 percent -- from last year.
 Selling, general and administrative expenses, as a percent of sales, although flat for the six-month period, increased slightly in the second quarter to 23.5 percent from 23.3 percent in the 1992 second quarter. This increase was primarily attributable to the accelerated installation of Perry's new point of sale and direct store delivery systems. The chainwide installation of both systems is expected to be completed within the next 90 days. These systems are proving very effective in helping Perry better manage inventory, control pricing and improve checkout procedures.
 Regarding expansion and Perry's store repositioning program, to date the company opened five new units, including the acquisition of four independent drugstores, and signed leases for six additional locations which Perry expects to operate before the end of the year. Perry also combined three drugstores into existing units.
 Robinson said, "We have made major infrastructure investments. These investments combined with our operating improvements, store expansion and repositioning program, and our emphasis on continued cost controls, will serve us well over the long term."
 Perry, a New York Stock Exchange company headquartered in Pontiac, operates 206 drugstores in the state. It is Michigan's No. 1 drugstore chain and the 14th-largest drugstore chain in the U.S.
 PERRY DRUG STORES, INC.
 Condensed Statements of Earnings
 (In Thousands of Dollars)
 Three Months Ended
 April 30,
 1993 1992
 Net sales $168,058 $162,828
 Cost of sales 124,148 120,038
 Selling, general and
 administrative expenses 39,525 37,907
 Non-recurring charge relating
 to sale of Chicago stores --- ---
 Earnings from operations before
 interest and income taxes 4,385 4,883
 Interest expense 2,157 2,689
 Earnings before income taxes 2,228 2,194
 Income tax provision 600 645
 Net earnings $1,628 $1,549
 Primary earnings per share $0.14 $0.15
 Average primary shares (000s) 12,036 10,363
 Number of stores 206 208
 Six Months Ended
 April 30,
 1993(A) 1992
 Net sales $348,772 $338,282
 Cost of sales 257,303 248,617
 Selling, general and
 administrative expenses 80,547 78,219
 Non-recurring charge relating
 to sale of Chicago stores 3,500 ---
 Earnings from operations before
 interest and income taxes 7,422 11,446
 Interest expense 4,422 5,558
 Earnings before income taxes 3,000 5,888
 Income tax provision 810 1,790
 Net earnings $2,190 $4,098
 Primary earnings per share $0.18 $0.40
 Average primary shares (000s) 12,040 10,350
 Number of stores 206 208
 (A) 1993 results include a $3.5 million non-recurring, pre-tax charge ($2.4 million after-tax, or $.20 per share) relating to the sale of the Chicago stores taken in the first quarter. Excluding this charge, earnings before income taxes and net earnings would have been:
 Six Months Ended
 April 30,
 1993 1992
 Earnings before income taxes $6,500 $5,888
 Income tax provision 1,900 1,790
 Net earnings $4,600 $4,098
 Primary earnings per share $0.38 $0.40
 -0- 6/2/93
 /CONTACT: Jerry Stone, chief financial officer, 313-674-7783, or Berl Falbaum, 313-674-7772, both of Perry Drug Stores/
 (PDS)


CO: Perry Drug Stores, Inc. ST: Michigan IN: REA SU: ERN

DH-ML -- DE008 -- 4329 06/02/93 09:19 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 2, 1993
Words:969
Previous Article:BDM AND ELECTROSOURCE FORM NEW COMPANY TO PRODUCE ADVANCED LEAD ACID BATTERIES
Next Article:ALAMO EXPANDS VALUE-ADDED BOOKLETS TO REACH BUSINESS TRAVELERS
Topics:


Related Articles
PERRY DRUG STORES REPORTS MAJOR TURNAROUND FOR FY-91
PERRY REPORTS 75-PERCENT INCREASE IN NET EARNINGS FOR FIRST QUARTER
PERRY DRUG STORES REPORTS RECORD SALES, EARNINGS FOR SECOND QUARTER; SEASONED STORE INCREASES IN DOUBLE DIGITS
PERRY'S THIRD-QUARTER EARNINGS UP 39 PERCENT; SAME STORE SALES CONTINUE DOUBLE-DIGIT INCREASES
PERRY REPORTS NET EARNINGS UP FOR FISCAL 1992
PERRY REPORTS FIRST-QUARTER RESULTS
PERRY REPORTS ON THIRD QUARTER
PERRY REPORTS YEAR END RESULTS
PERRY REPORTS IMPROVED SALES, EARNINGS FOR FIRST QUARTER ENDED JANUARY 31
PERRY REPORTS SECOND QUARTER RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters