Printer Friendly

VENTURE STORES, INC. REPORTS SECOND QUARTER EARNINGS

 O'FALLON, Mo., Aug. 10 /PRNewswire/ -- Venture Stores, Inc. (NYSE: VEN) today reported earnings per share of $0.22 for the second quarter of 1993 (13 weeks ended July 31, 1993). Earnings per share were $0.28 for the same period a year ago (13 weeks ended Aug. 1, 1992). Net earnings available to common shareowners for the quarter were $3.7 million compared to $4.7 million a year ago. Second quarter 1993 sales were $403.1 million versus $387.0 million for the second quarter of 1992. Comparable store sales decreased 0.5 percent.
 Earnings per share before the cumulative effect of a change in accounting principle for the 26 weeks ended July 31, 1993 were $0.32 versus $0.61 for the same period last year (26 weeks ended Aug. 1,
1992). Net earnings available to common shareowners were $5.4 million (excluding a $10.3 million increase to earnings resulting from the cumulative effect of a change in accounting for income taxes recorded in the first quarter of 1993), compared to $10.2 million in 1992. Sales for the period were $766.7 million versus $750.9 million in 1992, a 2.1 percent increase. Comparable store sales decreased 2.2 percent.
 Venture Chairman and Chief Executive Officer Julian Seeherman said, "The second quarter, like the first, was significantly impacted by higher than normal store openings by competitors and by a continuingly sluggish economy. We did not benefit from the unseasonably warm temperatures which many other parts of the country experienced, especially in July. The flooding also negatively effected several of our markets. Despite the weak sales results, our inventories are clean and we have completed the transition into Back-to-School. We feel that we are well positioned as we head into the rest of the year."
 Cost of merchandise sold included LIFO charges of $0.8 million and $1.6 million for the second quarter and year-to-date periods of 1993, respectively. These compare to $1.5 million and $2.5 million for the same periods in 1992. Cost of merchandise sold, as a percent of sales, is higher in 1993 primarily for two reasons. Sales of advertised items were proportionately greater than non-advertised items, causing temporary markdowns as a percent of total sales, to be greater than a year ago. The continuing pressures of competitive pricing also contributed to the increase.
 Venture operates 103 quality discount retail stores in Illinois, Missouri, Kansas, Indiana, Oklahoma, Arkansas, Iowa, Kentucky and Texas. Venture's common stock is traded on the New York Stock Exchange under the symbol VEN.
 VENTURE STORES, INC.
 Condensed Statement Of Earnings
 (Unaudited, in thousands, except per share)
 13 Weeks Ended 7/31/93 8/1/92
 Net Sales $ 403,081 $ 386,967
 Costs and Expenses:
 Cost of merchandise sold 301,466 285,783
 S, G & A expenses 92,592 90,704
 Net interest expense 1,910 2,030
 Earnings before income taxes and cumulative
 effect of a change in accounting principle 7,113 8,450
 Provision for income taxes 2,744 3,127
 Net earnings before cumulative effect of
 a change in accounting principle 4,369 5,323
 Cum. effect of a change in acctg principle -- --
 Net earnings 4,369 5,323
 Dividends on preferred stock 625 621
 Net earnings available to common 3,744 4,702
 Earnings per common share:
 Before cum. effect of a change in accounting
 principle $ 0.22 $ 0.28
 Cum. effect of a change in accounting
 principle -- --
 Net Earnings $ 0.22 $ 0.28
 Dividends declared per common share $ 0.145 $ 0.14
 Average common shares outstanding 17,034 16,866
 Components of Earnings as a Percent of Sales:
 Net sales (As a percent) 100.0 100.0
 Cost of merchandise sold (before LIFO charge) 74.6 73.5
 LIFO charge 0.2 0.4
 Selling, general, admin. and other expenses 23.0 23.4
 Net interest expense 0.4 0.5
 Earnings before income taxes and cum. effect
 of a change in accounting principle 1.8 2.2
 Provision for income taxes 0.7 0.8
 Net earnings before cumulative effect
 of a change in accounting principle
 (as a percent) 1.1 1.4
 VENTURE STORES, INC.
 Condensed Statement of Earnings
 (Unaudited, in thousands, except per share)
 26 Weeks Ended 7/31/93 8/1/92
 Net Sales $ 766,696 $ 750,937
 Costs and Expenses:
 Cost of merchandise sold 569,886 550,386
 S, G & A expenses 182,549 179,171
 Net interest expense 3,479 4,097
 Earnings before income taxes and cumulative
 effect of a change in accounting principle 10,782 17,283
 Provision for income taxes 4,139 6,395
 Net earnings before cumulative effect of
 a change in accounting principle 6,643 10,888
 Cum. effect of a change in acctg principle 10,323 -
 Net earnings 16,966 10,888
 Dividends on preferred stock 1,250 684
 Net earnings available to common 15,716 10,204
 Earnings Per Common Share:
 Before cum. effect of a change in accounting
 principle $ 0.32 $ 0.61
 Cum. effect of a change in accounting
 principle 0.61 --
 Net Earnings $ 0.93 $ 0.61
 Dividends declared per common share $ 0.285 $ 0.275
 Average common shares outstanding 16,973 16,836
 Components of Earnings as a Percent of Sales:
 Net sales (as a percent) 100.0 100.0
 Cost of merchandise sold (before LIFO charge) 74.1 73.0
 LIFO charge 0.2 0.3
 Selling, general, admin. and other expenses 23.8 23.9
 Net interest expense 0.5 0.5
 Earnings before income taxes and cum. effect
 of a change in accounting principle 1.4 2.3
 Provision for income taxes 0.5 0.9
 Net earnings before cumulative effect
 of a change in accounting principle 0.9% 1.4%
 VENTURE STORES, INC.
 Condensed Balance Sheet
 (Unaudited, in thousands)
 7/31/93 8/1/92
 ASSETS
 Current Assets:
 Cash and cash equivalents $ 13,002 $ 48,235
 Accounts receivable, net 8,873 7,287
 Receivable from May 4,078 3,493
 Merchandise inventories 268,746 246,134
 Prepaid income taxes 3,590 425
 Other current assets 7,227 5,705
 Total Current Assets $305,516 $ 311,279
 Property and equipment, net 299,012 198,724
 Other assets 6,041 9,993
 Total assets $610,569 $ 519,996
 LIABILITIES AND SHAREOWNERS' INVESTMENT
 Current Liabilities:
 Short-term debt $ 10,000 $ --
 Current maturities of long-term 2,893 889
 Accounts payable 178,833 157,792
 Accrued expenses 64,122 53,729
 Total Current Liabilities 255,848 212,410
 Long-term debt 101,740 92,063
 Deferred income taxes 8,489 14,411
 Deferred investment tax credit 1,065 1,733
 Other liabilities 3,813 4,983
 Deferred gain on sale/leaseback 24,100 25,537
 Shareowners' investment 215,514 168,859
 Total liabilities and shareowners'
 investment $610,569 $519,996
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 Interim Presentation
 The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements for the fiscal year ended Jan. 30, 1993, and the accompanying notes thereto, included in the company's 1992 annual report to shareowners. In the opinion of management, this interim financial information is fairly presented and all adjustments necessary for a fair statement of the results for the interim periods have been included; however, certain items are included in these statements based on estimates for the entire year. The interim operating results exclude the Christmas season and therefore may not be indicative of the operating results that may be expected for the full fiscal year. Certain prior year items have been reclassified to conform to the current year presentation.
 Cumulative Effect Of A Change In Accounting Principle
 During the first quarter of 1993, the company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes". This statement, which was issued in February 1992, requires the adjustment of previously deferred taxes for changes in tax rates (the liability method). Deferred income taxes on the company's balance sheet had been based on historical income tax rates, and amounts provided for years prior to 1988 did not reflect the reduced rates established by the Tax Reform Act of 1986. The cumulative effect of this change increased net earnings by $10.3 million, or $0.61 per common share.
 -0- 8/10/93
 /CONTACT: Jack Burtelow of Venture Stores, 314-281-7800/
 (VEN)


CO: Venture Stores, Inc. ST: Missouri IN: REA SU: ERN

TS -- NY020 -- 1084 08/10/93 09:42 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 10, 1993
Words:1402
Previous Article:CYBER DIGITAL, INC. REPORTS RECORD FIRST QUARTER RESULTS FOR FISCAL YEAR 1994
Next Article:D.R. HORTON, INC. ANNOUNCES SPECIAL 5 PERCENT STOCK DIVIDEND AND CHANGE TO SEPT. 30 FISCAL YEAR END
Topics:

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