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THE MAY DEPARTMENT STORES REPORTS SECOND QUARTER EARNINGS, EXCLUDING NONRECURRING GAIN, OF $.71 PER SHARE, UP 16 PERCENT

THE MAY DEPARTMENT STORES REPORTS SECOND QUARTER EARNINGS, EXCLUDING
 NONRECURRING GAIN, OF $.71 PER SHARE, UP 16 PERCENT
 ST. LOUIS, Aug. 10 /PRNewswire/ -- The May Department Stores Company (NYSE: MA) today reported fully diluted earnings per share of $.71, excluding a nonrecurring gain, for the second quarter of 1992, the 13 weeks ended Aug. 1, a 16 percent increase from $.61 per share in the similar quarter last year. Net earnings were $95 million, excluding a nonrecurring gain, for the quarter compared to $82 million in the year- ago period. Sales in the quarter were $2.40 billion, up 8 percent from $2.23 billion last year.
 During the second quarter, the company recognized a nonrecurring gain of $298 million as a result of the distribution of the May Centers Associates partnership assets. Including the nonrecurring gain, second quarter fully diluted earnings per share were $2.96 and net earnings were $393 million.
 For the six months ended August 1, fully diluted earnings per share were $1.31, excluding the nonrecurring gain, a 12 percent increase from $1.17 reported in the similar six-month period last year. Net earnings for the first six months of fiscal 1992 were $176 million, excluding the nonrecurring gain, compared to $158 million in the same year-ago period. Including the nonrecurring gain, year-to-date fully diluted earnings per share were $3.56 and net earnings were $474 million. Sales for the first half totaled $4.69 billion, up 7 percent from $4.40 billion in the 1991 first half.
 During the second quarter, May opened a Foley's department store in San Antonio and 99 net new Payless ShoeSource stores. In the balance of 1992, three department stores -- one for Lord & Taylor and two for May Company, California -- and approximately 210 net new Payless ShoeSource stores will be opened.
 The May Department Stores Company is the largest department store retailer in the United States, operating 319 department stores and 3,403 Payless ShoeSource stores at the end of the second quarter.
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 Condensed Consolidated Results of Operations
 (millions, except per share)
 13 Weeks Ended 26 Weeks Ended
 8/1/92 8/3/91 8/1/92 8/3/91
 Net Retail Sales:
 Department stores $ 1,951 $ 1,845 $ 3,809 $ 3,619
 Payless ShoeSource 452 388 881 777
 Total Net Retail Sales $ 2,403 $ 2,233 $ 4,690 $ 4,396
 Revenues $ 2,486 $ 2,379 $ 4,874 $ 4,692
 Cost of sales 1,736 1,664 3,404 3,264
 Selling, general and
 administrative expenses 526 508 1,034 1,022
 Interest expense, net 67 78 149 158
 Nonrecurring gain (A) (298)(A) - (298)(A) -
 Earnings before income taxes 455 129 585 248
 Provision for income taxes 62 47 111 90
 Net Earnings (A) $ 393(A) $ 82 $ 474(A) $ 158
 Primary Earnings per
 Share(A) $ 3.13(A) $ .62 $ 3.75(A) $ 1.20
 Fully Diluted Earnings
 per Share (A) $ 2.96(A) $ .61 $ 3.56(A) $ 1.17
 Dividends Paid per Common
 Share $ .41-1/2 $ .40-1/2 $ .82 $ .80
 Primary Average Shares and
 Equivalents 124.3 124.3 124.3 124.0
 Fully Diluted Average Shares
 and Equivalents 132.4 132.3 132.4 132.1
 (A) During the 1992 second quarter, the company recognized a $298 million pretax (and aftertax) nonrecurring gain, $2.25 per share on a fully diluted basis ($2.40 per share on a primary basis), from the distribution of the May Centers Associates partnership assets.
 RESULTS OF OPERATIONS - SUPPLEMENTAL INFORMATION
 (Millions, except per share)
 13 Weeks Ended 26 Weeks Ended
 8/1/92 8/3/91 8/1/92 8/3/91,
 Earnings Before Nonrecurring
 Gain
 Earnings before income
 taxes $ 157 $ 129 $ 287 $ 248
 Net Earnings $ 95 $ 82 $ 176 $ 158
 Primary Earnings per Share $ .73 $ .62 $ 1.35 $ 1.20
 Fully Diluted Earnings per
 Share $ .71 $ .61 $ 1.31 $ 1.17
 Percent to Revenues Before
 Nonrecurring Gain
 Cost of sales (in percents) 69.8 69.9 69.8 $ 69.5
 Selling, general and
 administrative expenses (B) 21.2 21.4 21.2 21.8
 Interest expense, net (B) 2.7 3.3 3.1 3.4
 Erns. bef. inc. taxes
 (in percents) 6.3 5.4 5.9 5.3
 Effective income
 tax rate (in percents) (B) 39.2 36.5 38.6 36.4
 Net Earnings (in percents) 3.8 3.4 3.6 3.4
 (B) For comparability, adjusting 1991 to reflect the current status of the May Centers Associates partnership, the percent to revenue of selling, general and administrative expenses and interest expense, and the effective income tax rate would have been 21.6 percent, 2.9 percent and 37.9 percent respectively for the second quarter and 21.9 percent, 3.2 percent and 37.2 percent respectively for the year-to-date period.
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 NET RETAIL SALES - PERCENT INCREASE VERSUS LAST YEAR
 Net retail sales represent the sales of stores operating at the end of the latest period. They exclude finance charge revenue and the sales of stores which have been closed and not replaced.
 Store-for-store sales represent sales of those stores open during both periods.
 13 Weeks Ended 26 Weeks Ended
 Aug. 1, 1992 Aug. 1, 1992
 Store-for- Store-for-
 Total Store Total Store
 As a percent
 Department stores 5.7 2.7 5.3 2.2
 Payless ShoeSource 16.6 3.5 13.4 0.9
 Total 7.6 2.8 6.7 1.9
 NOTES TO CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
 Interim Results. The unaudited condensed consolidated results of operations have been prepared in accordance with the company's accounting policies as described in the 1991 Annual Report to Shareowners and should be read in conjunction with that report. In the opinion of management, this information is fairly presented and all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods have been included; however, certain items are included in this statement based on estimates for the entire year. Also, operating results of periods which exclude the Christmas season may not be indicative of the operating results that may be expected for the full fiscal year.
 Nonrecurring Gain. On May 18, 1992, the company and an affiliate of The Prudential Insurance Company of America completed the dissolution of the May Centers Associates partnership. The partnership dissolution resulted in the company receiving 79 percent of the stock of May Centers Associates Corporation (MCAC) and The Prudential receiving 21 percent of the stock of MCAC and 100 percent of the stock of CenterMark Properties (formerly known as May Centers, Inc.). As a result of the distribution of the partnership assets, the company recognized a $298 million pretax (and aftertax) nonrecurring gain ($2.25 per share on a fully diluted basis) in the 1992 second quarter. The company has an option to acquire the stock of MCAC held by The Prudential in the 1992 fourth quarter for $156 million. In connection with the company's consolidation of MCAC in its Aug. 1, 1992 balance sheet, the $156 million is included in accrued expenses to reflect the future cost of acquiring the stock of MCAC held by The Prudential.
 Trailing Years' Results.
 Operating results for the trailing years were as follows (millions, except per share):
 52 Weeks Ended
 8/1/92 8/3/91
 Net retail sales $10,301 $ 9,737
 Revenues $10,797 $10,348
 Net earnings $ 831 $ 500
 Net earnings before nonrecurring
 gain $ 533 $ 500
 Fully diluted earnings per share $ 6.26 $ 3.75
 Fully diluted earnings per share
 before nonrecurring gain $ 4.01 $ 3.75
 -0- 8/10/92
 /CONTACT: Jim Abrams of May Department Stores, 314-342-6343/
 (MA) CO: May Department Stores Company ST: Missouri IN: REA SU: ERN


SH -- NY017 -- 8423 08/10/92 10:24 EDT
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