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 NILES, Ill., Nov. 16 /PRNewswire/ -- Sportmart, Inc. (NASDAQ-NMS: SPMT) announced today net sales of $69,830,000 for the third quarter ended Oct. 31, 1993, an increase of 38.2 percent over net sales of $50,514,000 in the comparable quarter ended Nov. 1, 1992. Sales in comparable marts (units open more than one year) increased 4 percent in the quarter.
 The company said that the third quarter has historically resulted in a net loss, due to seasonality, but the loss in this year's third quarter was less than expectations. The net loss for the third quarter decreased from last year by $103,000 to a net loss of $276,000, or 3 cents per share as compared to a pro forma net loss $379,000, or 4 cents per share for the prior year. Weighted average shares outstanding increased 18 percent to 10,235,000 from 8,689,795.
 Operating results for the quarter also improved by $592,000 to operating income of $203,000, compared to an operating loss of $389,000 last year. Pro forma net loss includes adjustments to reflect an income tax provision as if Sportmart had been subject to federal and state income taxes during the periods prior to its initial public offering.
 For the 39 weeks ended Oct. 31, 1993, net sales were $228,402,000, an increase of 34.7 percent over last year's net sales of $169,529,000. Sales in comparable marts increased 3 percent over last year. Net income increased 36.4 percent to $4,830,000, or 47 cents per share as compared to pro forma net income of $3,542,000, or 42 cents per share for the 39 weeks ended Nov. 1, 1992, as year-to-date average shares outstanding increased 21 percent.
 Larry J. Hochberg, chairman and chief executive officer, said, "We are pleased with our third quarter results, especially with the comparable mart sales performances which were positive despite the fact that more than 40 percent of our comparable mart base is in Southern California, where the economy continued to remain sluggish. We also successfully opened four additional marts during the third quarter which brought our total number of marts in operation at the end of the third quarter to 38. In fact, one of these new openings was in Seattle which represents our first entrance into the Pacific Northwest market.
 "We also continue to be pleased with our expense control efforts during the quarter which once again contributed significantly to our ability to deliver improved financial results. Lastly, we successfully opened a new, larger distribution center facility in California during the quarter which should allow us the ability to handle our merchandise distribution needs on the West Coast for the coming years."
 Sportmart is pursuing expansion opportunities in Chicago, Cleveland, Columbus, Los Angeles, Milwaukee, Minneapolis/St. Paul, San Diego, San Francisco/Sacramento, St. Louis, Seattle and Portland as well as entries into other major metropolitan areas.
 Sportmart currently operates 40 Sportmart sporting goods superstores and four No Contest athletic footwear and apparel superstores, compared with 27 Sportmart sporting goods superstores and three No Contest athletic footwear and apparel superstores at the end of last year's third quarter. The company expects to open an additional two new Sportmart sporting goods superstores during the remainder of fiscal 1993.
 Sportmart common stock is traded on the NASDAQ National Market System with the symbol SPMT.
 Condensed Consolidated Statements of Operations
 (Amounts in thousands, except share data)
 13 weeks ended 39 weeks ended
 Oct. 31, Nov. 1, Oct 31, Nov. 1,
 1993 1992 1993 1992
 Net sales $69,830 $50,514 $228,402 $169,529
 Cost of sales,
 including buying,
 distribution and
 occupancy 53,375 38,351 171,308 125,721
 Operating expenses:
 Mart and general and
 expenses 15,986 12,422 47,157 36,840
 Mart pre-opening
 expenses 266 129 509 129
 Operating (loss) income 203 (388) 9,428 6,839
 Interest, net (749) (526) (1,863) (1,500)
 Other income 57 293 194 467
 Income (loss) before
 income taxes (489) (621) 7,759 5,806
 Income tax benefit
 (provision) 213 324 (2,929) (17)
 Net income (loss) $(276) $ (297) $ 4,830 $ 5,823
 Pro forma data:
 Income (loss) before
 income taxes,
 as reported -- $(621) -- $5,806
 Pro forma benefit
 (provision) for
 income taxes -- 242 -- (2,264)
 Pro forma
 net income (loss) -- $ (379) -- $3,542
 Net income (loss)
 per share (pro forma
 for 1992) $(.03) $(.04) $0.47 $0.42
 Weighted average
 number of common
 shares outstanding
 (pro forma for 1992)10,235,000 8,689,795 10,235,000 8,481,306
 Condensed Consolidated Balance Sheets
 (Amounts in thousands)
 Oct. 31, Jan. 31,
 1993 1993
 Current assets:
 Cash and cash equivalents $2,067 $820
 Merchandise inventories 126,797 78,210
 Other assets 13,788 3,328
 Total current assets $142,652 $82,358
 Property and equipment, net 36,178 27,421
 Other assets 660 493
 Total assets $179,490 $110,272
 Current liabilities $81,474 $36,623
 Long-term liabilities 36,195 16,305
 Total liabilities $117,669 $52,928
 Stockholders' equity:
 Common stock 102 102
 Additional paid-in capital 46,942 46,942
 Retained earnings 14,777 10,300
 Total stockholders' equity $61,821 $57,344
 Total liabilities and
 stockholders' equity $179,490 $110,272
 -0- 11/16/93
 /CONTACT: Doug Ewing of Swenson/Falker Associates, 612-371-0000, for Sportmart; or Thomas Hendrickson, of Sportmart, 708-966-1700, Ext. 422/

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

DS-AL -- MN010 -- 4948 11/16/93 09:47 EST
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Publication:PR Newswire
Date:Nov 16, 1993

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