Printer Friendly

VALUE MERCHANTS EARNINGS INCREASES 74 PERCENT IN FISCAL 1991; FOURTH QUARTER EARNINGS ARE 60 PERCENT AHEAD OF A YEAR AGO

 VALUE MERCHANTS EARNINGS INCREASES 74 PERCENT IN FISCAL 1991;
 FOURTH QUARTER EARNINGS ARE 60 PERCENT AHEAD OF A YEAR AGO
 MILWAUKEE, March 26 /PRNewswire/ -- Earnings of Value Merchants, Inc. (NYSE: VMI) for fiscal 1991, ended Feb. 1, 1992, increased 74 percent to $9,175,000, from $5,283,000 a year ago. Per share earnings, after an 18 percent increase in common shares resulting from two stock offerings, in 1991, were up 48 percent to $1.33 per share on 6,920,000 average weighted common shares outstanding from $0.90 per share (excluding $0.12 per share from the cumulative effect on prior years of change in the method of valuing inventories) on 5,883,000 average weighted common shares outstanding a year ago.
 Revenues increased 68 percent for the year totaling $235,244,000 from revenues of $140,403,000 a year ago.
 Value Merchants, Inc. operates 224 Everything's $1.00 and 112 Toy Liquidators retail stores and Wisconsin Toy Company, the nation's largest wholesaler of close-out toys.
 In the fourth quarter, earnings increased 60 percent to $6,614,000, or $0.89 per share on 7,436,000 average weighted common shares outstanding from $4,125,000, or $0.67 per share on 6,149,000 average weighted common shares outstanding a year ago.
 Reveunes for the fourth quarter totaled $98,225,000, an increase of 67 percent from revenues of $58,883,000 for the fourth quarter a year ago.
 Everything's $1.00 (EAD) operated 207 stores at year end, an increase of 102 stores from a year ago. Total EAD store sales increased 115 percent and totaled $127,714,000 for the year compared to $59,283,000 a year ago. Comparable store sales increased 3.9 percent for the year and 1.1 percent for the fourth quarter.
 Toy operations, which included 111 Toy Liquidators stores at year end compared with 96 stores a year ago, wholesale toy and the results of the company's 41 temporary Christmas toy stores operated in 1991, compared with 20 a year ago, achieved revenues of $107,530,000, an increase of 33 percent over revenues of $81,120,000 reported a year ago. Comparable Toy Liquidators store sales for the year increased 14.9 percent and 8.6 percent for the fourth quarter.
 "We are especially pleased with our earnings this year since during 1991 we incurred $4.2 million of costs to build the company's infrastructure and open new stores. We absorbed $2.9 million of these costs in income in 1991 compared with $0.9 million a year ago," stated Steven J. Appel, president and chief executive officer. "Since we opened as many EAD stores in the last four months of fiscal 1991 as we did in all of 1990, absorbing all the pre-opening costs in just two or three months would have significantly distorted operating results," he said. Beginning with fiscal 1991, the company is amortizing pre-opening costs in the first 12 months after a new store opens rather than in the remaining periods of the fiscal year the store is opened.
 According to Appel, infrastructure costs absorbed in 1991 included implementing organizational changes, planning and executing the relocation of Everything's $1.00 Distribution Center and management group and the development of a comprehensive management information system.
 "We are working hard to build a company of lasting character and quality which requires investing heavily in the infrastructure needed to manage a company of considerably greater size than we are today," Appel stated. "The success we achieved in 1991 is a direct result of the efforts of our employees and the support and confidence of our shareholders."
 VALUE MERCHANTS, INC. AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE YEARS ENDED FEB. 1, 1992 AND FEB. 2, 1991
 Fourth Quarter
 1991 1990
 NET SALES $98,225,000 $58,883,000
 COST OF SALES, including
 warehouse expenses 55,808,000 35,057,000
 Gross profit 42,417,000 23,826,000
 OPERATING EXPENSES:
 Selling and store expenses 23,625,000 12,460,000
 General and administrative
 expenses 6,013,000 3,981,000
 Structuring and store opening
 expenses 1,455,000 482,000
 Total operating expenses 31,093,000 16,923,000
 Income from operations 11,324,000 6,903,000
 INTEREST EXPENSE, NET 638,000 278,000
 Income before income tax provision
 and cumulative effect of accounting
 change 10,686,000 6,625,000
 INCOME TAX PROVISION 4,072,000 2,500,000
 Income before cumulative effect
 of accounting change 6,614,000 4,125,000
 CUMULATIVE EFFECT ON PRIOR YEARS
 OF CHANGE IN METHOD OF VALUING
 INVENTORIES, LESS RELATED
 INCOME TAX EFFECTS 0 0
 Net income $6,614,000 $4,125,000
 INCOME PER SHARE:
 Income before cumulative effect
 of accounting change $0.89 $0.67
 Cumulative effect on prior years
 of change in method of valuing
 inventories 0 0
 Net income per common share $0.89 $0.67
 Year-to-Date
 1991 1990
 NET SALES $235,244,000 $140,403,000
 COST OF SALES, including
 warehouse expenses 135,489,000 82,636,000
 Gross profit 99,755,000 57,767,000
 OPERATING EXPENSES:
 Selling and store expenses 63,173,000 36,967,000
 General and administrative
 expenses 15,987,000 9,929,000
 Structuring and store opening
 expenses 2,896,000 875,000
 Total operating expenses 82,056,000 47,771,000
 Income from operations 17,699,000 9,996,000
 INTEREST EXPENSE, NET 2,937,000 1,571,000
 Income before income tax provision
 and cumulative effect of accounting
 change 14,762,000 8,425,000
 INCOME TAX PROVISION 5,587,000 3,142,000
 Income before cumulative effect
 of accounting change 9,175,000 5,283,000
 CUMULATIVE EFFECT ON PRIOR YEARS
 OF CHANGE IN METHOD OF VALUING
 INVENTORIES, LESS RELATED
 INCOME TAX EFFECTS 0 721,000
 Net income $9,175,000 $6,004,000
 INCOME PER SHARE:
 Income before cumulative effect
 of accounting change $1.33 $0.90
 Cumulative effect on prior years
 of change in method of valuing
 inventories 0 $0.12
 Net income per common share $1.33 $1.02
 VALUE MERCHANTS, INC. AND SUBSIDIARY
 CONSOLIDATED BALANCE SHEETS
 AS OF FEBRUARY 1, 1992 AND FEBRUARY 2, 1991
 Feb. 1, Feb. 2,
 1992 1991
 ASSETS
 CURRENT ASSETS:
 Cash and marketable securities $9,092,000 $2,396,000
 Accounts receivable, trade and
 other, less allowance for
 doubtful accounts of $504,000
 and $429,000, respectively 7,828,000 5,032,000
 Inventories 75,213,000 50,643,000
 Prepaid expenses and other
 current assets 4,400,000 2,423,000
 Future income tax benefits 0 549,000
 Total current assets 96,533,000 61,043,000
 LEASEHOLD IMPROVEMENTS, FURNITURE AND
 EQUIPMENT:
 Leasehold improvements 12,595,000 8,535,000
 Furniture and equipment 28,513,000 9,910,000
 Future store openings in progress 1,729,000 28,000
 Total 42,837,000 18,473,000
 Less: Accumulated depreciation and
 amortization 7,752,000 4,239,000
 Net leasehold improvements,
 furniture and equipment 35,085,000 14,234,000
 GOODWILL 2,879,000 3,107,000
 OTHER ASSETS 3,124,000 815,000
 TOTAL $137,621,000 $79,199,000
 LIABILITIES AND SHAREHOLDERS' INVESTMENT
 CURRENT LIABILITIES:
 Short-term borrowings 0 $16,386,000
 Accounts payable 18,700,000 13,000,000
 Accrued liabilities 4,524,000 1,844,000
 Accrued income taxes payable 3,951,000 2,563,000
 Current maturities of long-term debt 4,435,000 79,000
 Total current liabilities 31,610,000 33,872,000
 LONG-TERM DEBT 26,580,000 486,000
 DEFERRED INCOME TAXES 322,000 0
 SHAREHOLDERS' INVESTMENT:
 Cumulative preferred stock, par value
 $.10 per share, 2,000,000 shares
 authorized, none issued 0 0
 Common stock, par value $.01 per
 share, 15,000,000 shares authorized,
 7,228,452 and 6,113,642 shares
 issued and outstanding, respectively 72,000 61,000
 Additional paid-in capital 49,006,000 23,924,000
 Retained earnings 30,031,000 20,856,000
 Total shareholders' investment 79,109,000 44,841,000
 TOTAL $137,621,000 $79,199,000
 -0- 3/26/92
 /CONTACT: Gary I. Kastel, director of corporate communications for Value Merchants, Inc., 414-274-2976/
 (VMI) CO: Value Merchants, Inc. ST: Wisconsin IN: REA SU: ERN


LC -- CL007 -- 1877 03/26/92 10:23 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 26, 1992
Words:1382
Previous Article:WINN-DIXIE/THE SALVATION ARMY REPORT CONTRIBUTIONS FOR WAR AGAINST HUNGER
Next Article:BFS BANKORP ANNOUNCES MULTIFAMILY LOAN SECURITIZATION COMPLETION
Topics:


Related Articles
DEL WEBB CORP. POSTS SECOND QUARTER PROFIT
LESCO REPORTS RECORD 1991 SECOND HALF AND FOURTH QUARTER SALES AND EARNINGS
FABRI-CENTERS REPORTS RECORD SALES AND RECORD EARNINGS FOR FISCAL 1992
PERRY REPORTS 75-PERCENT INCREASE IN NET EARNINGS FOR FIRST QUARTER
SHOPKO STORES REPORTS RECORD FOURTH QUARTER AND YEAR-END RESULTS
ALBERTO-CULVER REPORTS GAINS IN SALES AND EARNINGS FOR ITS SECOND QUARTER AND SIX-MONTHS; DECLARES DIVIDEND
FLEETWOOD REPORTS IMPROVED EARNINGS FOR FOURTH QUARTER AND FISCAL YEAR 1992
CONAGRA REPORTS RECORD FISCAL 1992 EARNINGS
VALUE MERCHANTS ANNOUNCES FEBRUARY SALES RESULTS, COMMENTS ON 1993 PLANS AND PRELIMINARY 1992 RESULTS
VALUE MERCHANTS INC. REPORTS FISCAL '92 RESULTS; COMMENTS ON FISCAL 1993 PLANS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters