UNIVERSAL INTERNATIONAL ANNOUNCES PRELIMINARY RESULTS
UNIVERSAL INTERNATIONAL ANNOUNCES PRELIMINARY RESULTS MINNEAPOLIS, March 18 /PRNewswire/ -- Universal International, Inc.
(NASDAQ-NMS: UNIV) today announced that based upon a preliminary review of January and February results, it is not comfortable with analysts expectations of earnings per share in the $.90 to $.95 per share range in 1992.
As a result of the company increasing its goal from opening 20 new Only Deals stores to 30 new stores during 1992, the company decided to increase operational support for the expansion approximately 6 months earlier than originally projected. This has resulted in the hiring of a CFO, a director of Warehouse Operations, and a director of Retail Operations, as well as additional support staff. While these additions create more management depth as the company rolls out its expansion program, there are costs associated with the move that cannot be absorbed by current operations. In addition, the company is buying increased levels of inventory to have available for future store openings. Finally, the recent bankruptcy of a customer in Canada has resulted in an unexpected one-time loss. As a result of these changes the company now expects earnings per share to be approximately 20-25 percent lower than expectations for 1992. Most of the decrease will occur in the first quarter ending March 31, 1992, as the company now expects to report a loss for the quarter. The second quarter is projected to be slightly below analysts expectations. The third and fourth quarters are still expected to fall within the range of analysts expectations. Mark Ravich, chief executive officer, in announcing these changes commented: "While we are disappointed that our first two quarters will be below expectations as a result of the costs associated with building our infrastructure ahead of schedule, we feel that the positive results of this building process will be evident in the second half of this year. We remain excited about our new Only Deals stores and will be moving ahead as planned with the expansion of the concept." Universal International, Inc. is one of the nation's oldest and largest buyers and sellers of quality close-out merchandise at the wholesale level and operates a chain of Only Deals retail stores that offer merchandise priced from $1.00 to $10.00. Universal's shares are traded on the NASDAQ-NMS market under the symbol UNIV. -0- 3/18/92 /CONTACT: Mark Bartholomay of Universal International, 612-533-1169/ (UNIV) CO: Universal International, Inc. ST: Minnesota IN: REA SU: ERN
AL -- MN011 -- 9368 03/18/92 16:13 EST
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|Date:||Mar 18, 1992|
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