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SHOE CARNIVAL ANNOUNCES THIRD QUARTER RESULTS

 EVANSVILLE, Ind., Oct. 25 /PRNewswire/ -- Shoe Carnival, Inc. (NASDAQ: SCVL) today announced increases in sales and net income for the third quarter of 1993. All share and per share information have been adjusted for the three-for-two stock split effected as a 50 percent stock dividend on Oct. 22, 1993.
 Net income increased 26.5 percent to $2.1 million, or $.19 per share in the quarter ended Oct. 2, 1993, from pro forma net income of $1.7 million, or $.20 per share in the year earlier quarter ended Oct. 3, 1992. For the first nine months of 1993, pro forma net income rose 37.6 percent to $4.6 million, or $.44 per share, from $3.3 million, or $.40 per share, during the first nine months of 1992. The first nine month period of 1993 consisted of 39 weeks, while the first nine month period of 1992 consisted of 40 weeks. Each of the third 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.
 Net Sales increased $10.1 million to $44.8 million in the third quarter of 1993, an increase of 29.0 percent over net sales of $34.7 million in the third quarter of 1992. During the first nine months of 1993, net sales of $110.5 million increased by 18.8 percent over net sales of $93.0 million in the first nine months of 1992. Comparable store sales increased 5.3 percent in the third quarter of 1993 and increased by 5.4 percent in the comparable thirty-nine week period.
 Gross profit margin improved to 30.1 percent in the third quarter of 1993 from 29.7 percent in the third quarter of 1992. This resulted primarily from the continued proportionate increase in private label sales which sales generally result in higher gross profit margins as compared to name brand footwear.
 Selling, general and administrative expenses were $9.8 million, or 22.0 percent of sales, in the third quarter of 1993, compared with $7.2 million or 20.8 percent of sales in the third quarter of 1992. The company incurred pre-opening expenses in the amount of $449,000, or 1.0 percent of sales, in connection with the six new stores opened in the third quarter of 1993, as compared to $194,000, or 0.5 percent of sales for the three stores opened in the third quarter of 1992.
 Operating income increased to $3.6 million in the third quarter of 1993, an 18.1 percent increase over operating income of $3.1 million in the third quarter of 1992. For the first nine months of 1993, operating income increased 26.0 percent to $8.2 million from $6.5 million in the prior year. As a percent of sales, operating income decreased to 8.1 percent in the third quarter from 8.9 percent in the year earlier quarter and increased to 7.4 percent on a year-to-date basis from 7.0 percent last year.
 Shoe Carnival, Inc. is a high volume, value oriented retailer of family footwear operating a chain of 50 stores in 13 states predominantly in the Midwest and Midsouth.
 SHOE CARNIVAL, INC.
 STATEMENTS OF INCOME (Unaudited)
 (In thousands, except for share and per share data)
 13 Weeks 13 Weeks 39 Weeks 40 Weeks
 Ended Ended Ended Ended
 October 2, October 3, October 2, October 3,
 1993 1992 1993 1992
 Net sales $ 44,772 $ 34,706 $110,470 $ 92,966
 Cost of sales
 (including buying,
 distribution and
 occupancy costs) 31,286 24,399 77,798 66,704
 Gross profit 13,486 10,307 32,672 26,262
 Selling, general and
 administrative
 expenses 9,838 7,218 24,486 19,763
 Operating income 3,648 3,089 8,186 6,499
 Interest expense 119 403 577 1,274
 Income before
 income taxes 3,529 2,686 7,609 5,225
 Income taxes 1,433 14 3,803 42
 Net income $ 2,096 $ 2,672 $ 3,806 $ 5,183
 Unaudited pro forma
 information:
 Historical income
 before income
 taxes --- $ 2,686 $ 7,609 $ 5,225
 Adjustment to
 reduce interest
 expense on
 shareholder notes --- 123 113 389
 Income before
 income taxes --- 2,809 7,722 5,614
 Taxes on income --- 1,152 3,166 2,302
 Net income --- $ 1,657 $ 4,556 $ 3,312
 Net income
 per share (A) $ .19(B) $ .20 $ .44 $ .40
 Weighted average
 Common shares
 and common
 equivalent
 shares
 outstanding(A) 11,214,819(B) 8,222,181 10,348,460 8,222,181
 Supplemental pro
 forma net
 income per
 share(A) --- $ .19 $ .43 $ .37
 (A) -- Adjusted for three-for-two stock split on Oct. 22, 1993.
 (B) -- Computed on a historical basis.
 -0- 10/25/93
 /CONTACT: Mark L. Lemond, executive vice president and chief financial officer, of Shoe Carnival, Inc., 812-867-4034/
 (SCVL)


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

AR -- CL020 -- 6287 10/25/93 11:51 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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