REDDI BRAKE ANNOUNCES SECOND QUARTER AND SIX MONTHS RESULTS; Six Month Revenue Increases 155%.
For the second quarter of fiscal 1995 net sales increased 157% to $10,747,159 from $4,179,426 recorded in the second quarter of last year. Net income was $342,152, or $0.02 per share based on 16,359,212 weighted average shares outstanding, compared to a loss of $3,156,182, or $0.23 per share based on 13,959,756 weighted average shares outstanding for the same quarter last year. Last year's second quarter results included a loss of $1,392,395, or $0.10 per share, from the discontinued Wesco Auto Parts Division.
Net sales for the six month period ended December 31, 1994 increased 155% to $19,946,018, compared to $7,833,432 reported for the same period last year. Net income increased to $843,575, or $0.05 per share based on 16,311,224 weighted average shares outstanding, compared to a loss of $3,139,356, or $0.23 per share based on 13,610,452 weighted average shares outstanding reported for the first six months of fiscal 1994. Last year's results for the period include a loss of $1,586,096, or $0.12 per share, from the discontinued Wesco Auto Parts Division.
Commenting on the results, Bruce Douglass, Founder, President and Chief Executive Officer, stated, "We are very pleased with our results for the quarter and six month period. During the second quarter, we opened 16 additional Reddi Brake outlets for a total of 35 outlets added in the first half of fiscal 1995. Despite the substantial increase in store count, operating results were impacted by the Christmas season which historically has been a slow selling period in our business."
"Looking forward, we are very optimistic. As previously reported, the recent funds generated from the Allen & Company Incorporated financing enables us to add approximately seven new outlets a month with a planned total of at least 115 outlets by fiscal year end 1995. Our strategy is simple: to remain the leading 'just-in-time', 'two-step' distributor of quality undercar parts to the professional mechanic. So far, we are encouraged by the positive results this strategy has yielded," concluded Douglass.
Reddi Brake Supply Corporation operates 87 Reddi Brake outlets in 27 states in the West, Southwest, Southeast and Midwest. Reddi Brake outlets provide two-step distribution of brake systems, chassis components and other undercar parts mainly to the professional mechanic. -0-
REDDI BRAKE SUPPLY CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Six Months Ended December 31, December 31, 1994 1993 1994 1993
NET SALES $10,747,159 $4,179,426 $19,946,018 $7,833,432 COST OF GOODS SOLD 5,422,186 2,328,000 10,062,658 4,363,680 Gross Profit 5,324,973 1,851,426 9,883,360 3,469,752
EXPENSES: Store operating and selling 3,708,232 1,419,021 6,547,161 2,399,696 New store development 148,426 59,820 315,986 59,820 General and administrative 869,873 496,565 1,581,817 825,703 Stock compensation issued to consultant -- 1,548,400 -- 1,548,400 Interest expense, net 142,290 91,407 313,821 189,393 4,868,821 3,615,213 8,758,785 5,023,012 Income from continuing operations before income taxes 456,152 (1,763,787) 1,124,575 (1,553,260)
PROVISION FOR INCOME TAXES 114,000 -- 281,000 -- Income (loss) from continuing operations 342,152 (1,763,787) 843,575 (1,553,260)
Loss from discontinued Wesco Auto Parts Division - (1,392,395) - (1,586,096) Net income (loss) $ 342,152 $(3,156,182) $ 843,575 $(3,139,356)
EARNINGS PER COMMON SHARE: Income (loss) before discontinued operations $ 0.02 $ (0.13) $ 0.05 $ (0.11) Loss from discontinued operations - (0.10) - (0.12)
NET INCOME (LOSS) PER COMMON SHARE $ 0.02 $ (0.23) $ 0.05 $ (0.23)
WTD. AVG. NUMBER OF COMMON SHARES OUTSTANDING 16,359,212 13,959,756 16,311,224 13,610,452
The information contained herein was obtained from the management of REDDI BRAKE SUPPLY CORPORATION and other sources we believe to be reliable. This does not constitute the solicitation of the purchase or sale of securities. Lippert/Heilshorn & Associates, Inc. is employed by the Company as its investor relations firm.
CONTACT: Reddi Brake Supply Corporation
Michael J. Cassidy
Chief Financial Officer
LIPPERT/HEILSHORN & ASSOC.
John Nesbett/Jason Thompson
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|Date:||Feb 10, 1995|
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