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REVCO REPORTS CONTINUED STRONG TRENDS IN THIRD QUARTER

 REVCO REPORTS CONTINUED STRONG TRENDS IN THIRD QUARTER
 TWINSBURG, Ohio, Feb. 26 /PRNewswire/ -- Anac Holding Corporation,


parent of Revco D.S., Inc., today reported continued strong operating trends for the third quarter of its 1992 fiscal year, ended Feb. 8, 1992, with increased sales and operating profit over the same 12-week and 36-week periods of last year.
 The company has now experienced four consecutive quarters for which results have shown steady improvement versus comparable prior periods.
 For the quarter:
 -- Sales advanced to $522.9 million, an 11.9 percent increase from last year's third quarter sales of $467.4 million. Comparable store sales increased 10.0 percent for the third quarter over the same quarter last year.
 -- Operating profit rose to $18.0 million from last year's operating profit of $3.5 million.
 -- Earnings before income taxes, bankruptcy expenses, interest and depreciation were $29.8 million, significantly improved from the $14.7 million reported for last year's third quarter.
 -- Net income for the quarter was $16.2 million. The same quarter last year had a net loss of $12.7 million. (Net income for the current quarter includes a one-time income tax refund of $9.5 million recorded on finalization of a settlement with the Internal Revenue Service of various tax years that had been under audit, and receipt of $4.4 million of interest related to that refund.)
 For the year to date:
 -- Sales advanced to $1.4 billion, a 10.2 percent increase over the prior year's sales of $1.3 billion. Comparable store sales increased 8.7 percent over last year.
 -- Operating profit increased by $38.1 million to $24.2 million. Last year's nine-month results reflected an operating loss of $13.9 million.
 -- Earnings before income taxes, bankruptcy expenses, interest and depreciation increased substantially to $59.4 million, up from last year's level of $18.9 million.
 -- Net after-tax loss dropped by 85 percent to $8.4 million, from $62.2 million for last year.
 -- Cash reserves remained high at $157.6 million and there were no borrowings under Revco's $80 million debtor-in-possession credit facility.
 Gregory K. Raven, Revco executive vice president-finance and chief financial officer, said, "The ten percent increase achieved in comparable store sales is only one of the many encouraging signs in current operations. We believe that increase puts Revco at the top of our industry for the second quarter in a row, and reflects an excellent Christmas selling season.
 "Our year-to-date operating profit results are, by far, the strongest third quarter and nine-month results Revco has posted since filing for Chapter 11 protection more than three years ago. The improved sales and operating profit trend that began in late spring 1991 has gathered speed and is continuing.
 "With operating profit more than $38 million ahead of last year (as well as ahead of this year's plan), we are very pleased with the progress made so far. We have $158 million in the bank, which is more than adequate to allow Revco to fund the plan of reorganization currently being voted on by creditors."
 Boake A. Sells, chairman and chief executive officer, said, "Revco has been reinvented for the 90s. The success of the job we set out to do four years ago -- new marketing strategies, systems technology, the right size and the right markets -- is evident in our improved operating results.
 "We have seen an increase of more than 11 percent over last year in the number of prescriptions filled in Revco stores currently operating. In the United States, the average number of prescriptions grows only at a rate of 1 percent. Clearly, Revco has become a serious competitor."
 Creditors voting on uncontested Revco Debtor plan of reorganization
 The creditors in Revco's bankruptcy proceedings have recently received materials for voting on Revco's uncontested plan of reorganization. Deadline for votes is March 6, 1992. The Court has scheduled a hearing to consider confirmation of the plan on March 11, 1992.
 Revco operates 1,150 drug stores in 10 contiguous eastern states, filling more than 46 million prescriptions yearly. The privately held company is based in Twinsburg, Ohio.
 EDITOR'S NOTE: The company will file its 10Q document with the SEC on or about March 24, 1992, with copies available after that from: Xerox Copy Center, 2383 S. Main St., Akron, OH 44319, 216-773-1577.
 ANAC HOLDING CORPORATION AND SUBSIDIARIES
 Consolidated Results of Operations
 (dollars in thousands)
 Third Quarter (Unaudited)
 For the 12 weeks ended: 2/8/92 2/9/91
 Sales $522,886 $467,440
 Cost of sales and operating
 expenses 493,107 452,766
 Depreciation and amortization 11,776 11,189
 Operating profit (loss) 18,003 3,485
 Interest expense, net 4,250 10,827
 Income (loss) before reorganization
 items and income taxes 13,753 (7,342)
 Reorganization items 7,080 5,362
 Pre-tax income (loss) 6,673 (12,704)
 Income tax benefit 9,522 0
 Net income (loss) $16,195 ($12,704)
 Supplementary data:
 LIFO earnings before income taxes,
 reorganization items, interest,
 depreciation and amortization $29,771 $14,675
 Number of drug stores at end of
 period 1,141 1,126
 For the 36 weeks ended: 2/8/92 2/9/91
 Sales $1,425,651 $1,293,169
 Cost of sales and operating
 expenses 1,366,286 1,274,291
 Depreciation and amortization 35,177 32,742
 Operating profit (loss) 24,188 (13,864)
 Interest expense, net 23,687 32,213
 Income (loss) before reorganization
 items and income taxes 501 (46,077)
 Reorganization items 18,372 16,155
 Pre-tax income (loss) (17,871) (62,232)
 Income tax benefit 9,522 0
 Net income (loss) ($ 8,349) ($62,232)
 Supplementary data:
 LIFO earnings before income taxes,
 reorganization items, interest,
 depreciation and amortization $59,357 $18,878
 Number of drug stores at end of
 period. 1,141 1,126
 -0- 2/26/92
 /CONTACT: Diana Lueptow of Revco D.S., Inc., 216-425-9811, ext. 6145/ CO: Revco D.S., Inc. ST: Ohio IN: REA SU: REA


KK -- CL004 -- 2673 02/26/92 09:30 EST
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