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TRAK AUTO CORPORATION ANNOUNCES RESTRUCTURING CHARGE IMPACTS EARNINGS

 LANDOVER, Md., April 30 /PRNewswire/ -- Herbert H. Haft, chairman and chief executive officer of Trak Auto Corporation (NASDAQ: TRKA) announced that the company recorded a one-time restructuring charge of $5 million net of income taxes during the 13 weeks ended Jan. 30, 1993, to accelerate the development and roll-out of its superstore concept. The charge reflects the anticipated costs associated with relocating, expanding, closing and converting existing stores to larger Super Trak stores.
 Net income for the fiscal year ended Jan. 30, 1993, increased to $5,013,000 or $.85 per share compared to $2,084,000 or $.36 per share in the previous year. For the 13 weeks ended Jan. 30, 1993, the company had a net loss of $(3,101,000) or $(.51) per share compared to net income of $1,364,000 or $.23 per share in the same period one year ago.
 Net income for the 13 and 52 weeks ended Jan. 30, 1993, was affected by an unusual item recognizing pretax gains of $2,296,000 and $3,894,000, respectively, from the settlement of insurance claims related to losses incurred in the Los Angeles disturbances as well as the one-time restructuring charge. In addition, net income for the year ended Jan. 30, 1993, was affected by the recognition of a tax benefit of $1,658,000, related to adoption of Statement of Financial Accounting Standards No. 109, accounting for income taxes, retroactively to Feb. 2, 1992.
 Sales for the 13 and 52 weeks ended Jan. 30, 1993 were $75,292,000 and $315,793,000, respectively, compared to $78,944,000 and $319,635,000 for the three months and 12 months ended Feb. 1, 1992.
 The board of directors of Trak Auto Corporation in December 1991, approved a change in the fiscal year end from Jan. 31 to a 52/53 week fiscal year ending on the Saturday closest to Jan. 31. As a result, the above sales reflect two fewer days for the 13 and 52 weeks ended Jan. 30, 1993. If prior year sales are adjusted to reflect the 52/53 week fiscal year adopted in December 1991, comparable store sales increased 2.4 percent for the year ended Jan. 30, 1993.
 Trak had 15 stores substantially damaged or completely destroyed during the disturbances in Los Angeles. In addition to the stores damaged or destroyed, other stores were impacted from early closings or curfews. Nine such stores have subsequently reopened. During the year ended Jan. 30, 1993, Trak recognized a pre-tax gain as a result of payments received from its insurance carriers, which represent settlement of the company's insurance claims. These payments, less related expenses, have been recorded as a gain classified as an unusual item. Also, during the fiscal year, 11 underperforming stores in the San Diego market were closed.
 Trak Auto Corporation currently operates 319 discount auto parts stores in the Washington, D.C.; Baltimore; Richmond, Va.; Chicago; Los Angeles metropolitan areas, compared with 331 stores in operation one year ago.
 TRAK AUTO CORPORATION
 (In thousands, except earnings per share)
 Fiscal Year Ended Quarter Ended
 1/30/93 2/1/92 1/30/93 2/1/92
 Sales $315,793 $319,635 $75,292 $78,944
 Income (loss) before
 unusual item and
 income taxes 1,077 3,038 (7,471) 1,926
 Unusual item 3,894 -- 2,296 --
 Income (loss) before
 income taxes 4,971 3,038 (5,175) 1,926
 Income (loss) before
 cumulative effect
 of change in accounting
 principle 3,355 2,084 (3,101) 1,364
 Cumulative effect of
 change in accounting
 principle 1,658 -- -- --
 Net income (loss) 5,013 2,084 (3,101) 1,364
 Earnings per share:
 Income before cumulative
 effect of change in
 accounting principle $.57 $.36 $(.51) $.23
 Cumulative effect of
 change in accounting
 principle .28 -- -- --
 Net income .85 .36 (.51) .23
 Weighted average
 shares outstanding 5,928 5,795 6,088 5,836
 -0- 4/30/93
 /CONTACT: Stanley Rubenstein of Trak Auto Corporation, 212-297-6108/
 (TRKA)


CO: Trak Auto Corporation ST: Maryland IN: AUT SU: ERN

PS-OS -- NY047 -- 3188 04/30/93 12:10 EDT
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Publication:PR Newswire
Date:Apr 30, 1993
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