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SHOE CARNIVAL ANNOUNCES SECOND QUARTER RESULTS

 EVANSVILLE, Ind., July 26, 1993 - Shoe Carnival, Inc. (NASDAQ: SCVL) today announced increases in sales and net income for the second quarter of 1993.
 For the 13 weeks ended July 3, 1993, net income of $1.8 million, or $.24 per share, increased by 41.6 percent from pro forma net income of $1.2 million, or $.23 per share. For the first six months of 1993, pro forma net income rose 49.4 percent to $2.5 million, or $.37 per share, from $1.7 million, or $.30 per share, during the first six months of 1992. The first six month period of 1993 consisted of 26 weeks, while the first six month period of 1992 consisted of 27 weeks. Each of the second quarters of 1993 and 1992 consisted of 13 weeks.
 The company operated under the Subchapter S provisions of the Internal Revenue Code prior to its initial public offering which was completed in March 1993. Upon termination of its S Corporation status, the company incurred a non-cash, non-recurring charge of $888,000 in the first quarter under the provisions of SFAS 109 "Accounting for Income Taxes." Pro forma net income and pro forma net income per share exclude consideration of this charge and include pro forma provisions for income taxes as though the company had been liable for corporate income taxes throughout the respective periods presented. The pro forma results also reflect a reduction in interest expense on certain notes payable to a shareholder which were repaid with proceeds of the initial public offering.
 Sales for the second quarter of 1993 were $35.4 million, an increase of 16.7 percent over sales of $30.4 million in the year earlier quarter. Sales of $65.7 million in the first six months of 1993 increased by 12.8 percent over sales of $58.3 million in the first six months of 1992. Comparable store sales increased 4.1 percent in the second quarter of 1993 and increased by 5.7 percent in the comparable 26 week period.
 Gross profit margin improved to 30.7 percent in the second quarter of 1993 from 29.3 percent in the year earlier quarter. This resulted primarily from an increase in gross margins in the women's product categories, partially offset by a decrease in the gross margin in the childrens' categories. Additionally, the company continued to proportionately increase its private label sales which generally result in higher gross margins as compared to branded product sales.
 Selling, general and administrative expenses were $7.8 million, or 22.1 percent of sales, in the second quarter of 1993, compared with $6.5 million or 21.3 percent of sales in the second quarter of 1992. The company incurred pre-opening expenses in the amount of $198,000, or .6 percent of total sales, in connection with three stores which were opened in the greater Cincinnati area in late June 1993. No stores were opened, and no pre-opening expenses were incurred, in the second quarter of 1992.
 Operating income increased 26.1 percent to $3.0 million in the second quarter of 1993 from $2.4 million in the second quarter of 1992. On a year to date basis, operating income increased 33.0 percent to $4.5 million from $3.4 million in the prior year. As a percent of sales, operating income increased to 8.6 percent in the second quarter from 7.9 percent in the year earlier quarter and increased to 6.9 percent on a year-to-date basis from 5.9 percent last year.
 The company also announced that it opened its first store in Greenville, S.C., on July 15, 1993, the chain's 45th store. Leases have been signed for all but one of the 10 additional stores the company plans to open during the remainder of 1993.
 Shoe Carnival, Inc. is a high volume, value oriented retailer of family footwear operating a chain of 45 stores in 11 states predominantly in the Midwest and Midsouth.
 SHOE CARNIVAL, INC.
 STATEMENTS OF INCOME (Unaudited)
 (In thousands, except for share data)
 13 Weeks 13 Weeks 26 Weeks 27 Weeks
 Ended Ended Ended Ended
 July 3, July 4, July 3, July 4,
 1993 1992 1993 1992
 Net sales $ 35,448 $ 30,368 $ 65,698 $ 58,260
 Cost of sales (including
 buying, distribution and
 occupancy costs) 24,580 21,481 46,512 42,305
 Gross profit 10,868 8,887 19,186 15,955
 Selling, general and
 administrative expenses 7,827 6,476 14,649 12,545
 Operating income 3,041 2,411 4,537 3,410
 Interest expense 44 425 458 871
 Income before income taxes 2,997 1,986 4,079 2,539
 Income taxes 1,231 14 2,370 28
 Net income $ 1,766 $ 1,972 $ 1,709 $ 2,511
 Unaudited pro forma information:
 Historical income
 before income taxes $ 1,986 $ 4,079 $ 2,539
 Adjustment to reduce
 interest expense on
 shareholder notes 128 113 266
 Income before income taxes 2,114 4,192 2,805
 Taxes on income 867 1,719 1,150
 Net income $ 1,247 $ 2,473 $ 1,655
 Net income per share $ .24 $ .23 $ .37 $ .30
 Common shares and common
 equivalent shares
 outstanding 7,464,103 5,481,639 6,610,291 5,481,639
 Supplemental pro forma net
 income per share $ .21 $ .36 $ .28
 -0- 7/26/93
 /CONTACT: Mark L. Lemond, executiv financial officer of Shoe Carnival, Inc., 812-867-4034/
 (SCVL)


CO: Shoe Carnival, Inc. ST: Indiana IN: REA SU: ERN

AR -- CL025 -- 5851 07/26/93 16:05 EDT
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Date:Jul 26, 1993
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