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WESCO AUTO PARTS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR END RESULTS

 WEST COVINA, Calif., Oct. 1 /PRNewswire/ -- Wesco Auto Parts Corp. (NASDAQ: WSCO) announced that its revenues increased by 67.3 percent and 87.7 percent, respectively, for the fiscal year and quarter ended June 30, 1993, over the same periods last year. Revenues were $26.1 million and $9.2 million, respectively, for the fiscal year and quarter ended June 30, 1993, as compared to $15.6 million and $4.9 million for the fiscal year and quarter ended June 30, 1992.
 Wesco also stated that it was unable to file in a timely fashion its 1993 Annual Report of Form 10-K by Sept. 28, 1993, because of a delay in the completion of the annual audit. The audit is in its final stage of completion, and Wesco expects to file its Form 10-K by Oct. 8, 1993.
 Despite its substantial increase in revenues, the company expects to report a net loss of approximately $2.6 million and $900,000, respectively, for the year and quarter ended June 30, 1993, as compared to net losses of $598,000 and $607,000, respectively, for the fiscal year and quarter ended June 30, 1992. The company attributes these losses primarily to (a) decreased gross profit due to price reductions to meet competition and the recession; (b) increased pre-opening, store operating, selling, and administrative expenses incurred in connection with the opening of two new Wesco stores and the Partsmart discount warehouse in the 1993 fiscal year; and (c) a reduction in commercial (dealer) sales at certain of its Wesco stores due, in part, to the continuing economic recession in Southern California and increasing competition from undercar warehouse stores.
 In response to its operating loss, the company has reduced both its personnel and overhead expenses, while selectively improving gross margins on many of the items sold in its Wesco and Partsmart stores. The company has also successfully negotiated lower purchase prices on its store merchandise. The combination of reduced operating expenses and lower acquisition costs for its inventory should improve operating results.
 Since its April 30, 1993, Reddi Brake acquisition, Wesco has opened six new Reddi Brake outlets and expects to open at least six more outlets per quarter during its 1994 fiscal year. As of Sept. 30, 1993, monthly sales at Reddi Brake have increased by 33 percent since the acquisition on April 30, 1993. Allen J. Sheerin, chairman and chief executive officer, stated, "We are pleased with the performance of our new Reddi Brake outlets. We expect to achieve an operating profit in the first quarter based on (a) our expectation of increased operating profit from the expanding Reddi Brake Supply Division and (b) improved performance from both the Wesco and Partsmart stores due to a reduction or elimination of various overhead items, and the increase in gross margins brought about by the combination of a lower cost of goods and the benefit of selective price increases."
 Wesco is a specialty retailer and supplier of automotive replacement parts, products, and accessories to both do-it-yourself and commercial auto repair shops.
 -0- 10/1/93
 /CONTACT: Michael J. Cassidy, 818-814-1541, or Steven Kessler, 212-867-6160/
 (WSCO)


CO: Wesco Auto Parts Corp. ST: California IN: AUT SU: ERN

NY-LS -- LA026 -- 7933 10/01/93 16:19 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
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