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SPORTMART ANNOUNCES ANNUAL, FOURTH QUARTER RESULTS

 NILES, Ill., April 6 /PRNewswire/ -- Sportmart, Inc. (NASDAQ-NMS: SPMT) today announced that pro forma net income for the year ended Jan. 31, 1993 (Fiscal 1993), was slightly higher than the prior year, despite a significant increase in pre-opening costs related to the opening of new marts during the year.
 Net sales for fiscal year 1993 (which consisted of 52 weeks) increased 16 percent to $250.5 million compared with sales of $216.0 million in the prior year (which consisted of 53 weeks). Comparable mart sales (units open more than one year), on a comparable 52 week period, increased by 7.6 percent during the year.
 Pro forma net income for the year was $5,876,000, or 66 cents per share (based on 8,907,000 weighted average shares outstanding), compared to $5,793,000, or 69 cents per share (based on 8,361,000 weighted average shares outstanding) for the prior year. Pro forma net income includes adjustments to reflect an income tax provision as if Sportmart were subject to federal and state income taxes for the period prior to the initial public offering. Pre-opening expenses related to new mart openings during the year increased by $1,717,000 from the prior year, which reduced pro forma net income by 12 cents per share.
 Net sales for the 13 week fourth quarter increased by 24.4 percent to $81.0 million as compared to $65.1 million for the 14 week fourth quarter of the prior year. Fourth quarter sales for comparable marts in the comparable 13 week period increased by 8.5 percent. The company reported net income for the quarter of $2,334,000, or 23 cents per share (based on 10,228,000 weighted average shares outstanding), compared to pro forma net income of $2,717,000 or 32 cents per share (based on 8,361,000 weighted average shares outstanding) in the prior year's quarter. Pre-opening expenses during the quarter increased by $1,783,000 from the fourth quarter last year, which reduced net income by 11 cents per share.
 Larry J. Hochberg, chairman and chief executive officer, said, "We are satisfied with our fourth quarter and fiscal 1993 results. Our comparable mart sales performances remained strong, which is significant when considering the continued soft economy in Southern California. We have also been very pleased with the sales performances in the new marts opened during the year. However, the bottom-line impact of our excellent sales results for the year was tempered somewhat by higher than anticipated pre-opening expenses resulting from an increased number of new marts and start-up costs incurred with the opening of our new distribution center in Illinois. We also made significant additions to our organization this past year by adding several key senior executives as well as upgrading our computer and operational systems to facilitate our expansion plans into the future".
 Sportmart is pursuing expansion opportunities in its existing markets of Chicago, Los Angeles, Minneapolis/St. Paul, San Diego, San Francisco/Sacramento, and St. Louis and is evaluating new market entries into a number of other major metropolitan areas.
 Sportmart currently operates 33 Sportmart sporting goods superstores and four No Contest athletic footwear and apparel superstores. The company expects to open 8 additional Sportmart sporting goods superstores during the remainder of the year ending Jan. 30, 1994.
 Sportmart common stock is traded on the NASDAQ National Market System with the symbol SPMT.
 SPORTMART, INC.
 Condensed Consolidated Statements of Operations
 (Amounts in thousands, except share data)
 Periods Ended Fourth Quarter Fiscal Year
 1/31/93 2/2/92 1/31/93 2/2/92
 Net sales $ 81,000 $ 65,100 $ 250,529 $ 216,043
 Cost of sales,
 including buying,
 distribution and
 occupancy 58,907 47,246 184,628 158,787
 Operating expenses:
 Mart and general
 and administrative
 expenses 16,064 13,222 52,904 46,206
 Mart pre-opening
 expenses 1,798 15 1,927 210
 Operating income 4,231 4,617 11,070 10,840
 Interest, net (406) (287) (1,906) (1,621)
 Other income 59 169 526 319
 Income before
 income taxes 3,884 4,499 9,690 9,538
 Provision for
 income taxes 1,550 217 1,533 460
 Net income $ 2,334 $ 4,282 $ 8,157 $ 9,078
 Pro forma data:
 Income before
 income taxes
 as reported $ 3,884 $ 4,499 $ 9,690 $ 9,538
 Pro forma provision
 for income taxes 1,550 1,782 3,814 3,745
 Pro forma net income $ 2,334 $ 2,717 $ 5,876 $ 5,793
 Pro forma net income
 per share $ 0.23 $ 0.32 $ 0.66 $ 0.69
 Pro forma weighted
 average number of
 common shares
 outstanding 10,228,000 8,361,000 8,907,000 8,361,000
 SPORTMART, INC.
 Condensed Consolidated Balance Sheets
 (Amounts in thousands)
 Period Ended Jan. 31, 1993 Feb. 2, 1992
 Assets
 Current assets:
 Cash and cash equivalents $ 820 $ 308
 Merchandise inventories 78,210 56,063
 Other assets 3,327 1,128
 Total current assets $ 82,357 $ 57,499
 Property and equipment, net 27,421 16,515
 Other assets 493 578
 Total Assets $ 110,271 $ 74,592
 Liabilities and stockholders' equity
 Current liabilities $ 36,623 $ 26,976
 Long-term liabilities 16,304 16,711
 Total liabilities $ 52,927 $ 43,687
 Stockholders' equity:
 Common and preferred stock 102 68
 Additional paid-in capital 46,942 58
 Retained earnings 10,300 30,779
 Total stockholders' equity $ 57,344 $ 30,905
 Total liabilities and
 stockholders' equity $ 110,271 $ 74,592
 -0- 4/6/93
 /CONTACT: Andrew Hochberg, 708-966-1700 ext. 214, or Thomas Hendrickson, 708-966-1700 ext. 422, both of Sportmart, Inc., or Doug Ewing of Swenson Falker Eilertsen Inc., Minneapolis, 612-371-0000, for Sportmart, Inc./
 (SPMT)


CO: Sportmart Inc. ST: Illinois IN: REA SU: ERN

LD -- NY004 -- 3287 04/06/93 06:46 EDT
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