Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK), which specializes in
providing a superior selection of essential consumer products for
everyday life in the communities it serves, today announced
operating results for its third quarter ended October 30, 2011.
Net sales from continuing operations for the third quarter of
fiscal 2012 increased 3.6% to $109.8 million, compared to third
quarter of fiscal 2011. Same-store sales, excluding fuel center
sales, increased 2.7%. Net sales from continuing operations for the
39 weeks ended October 30, 2011, increased 5.8% to $346.0 million,
compared to the same period of the prior year. Same-store sales,
excluding fuel center sales, increased 4.4%.
Net earnings for the third quarter of fiscal 2012 were $0.1
million, or $0.02 per diluted share, compared to a net loss of $2.1
million, or $0.55 per diluted share, for the third quarter of
fiscal 2011. During the third quarter, the Company received an
insurance settlement for damage sustained during the second quarter
of fiscal 2012, due to wind and hail. The settlement amount
represented an appearance allowance for the roofs at the Company's
corporate office and distribution center in Abilene,
Kansas. As such, the Company recorded a one-time gain of
approximately $2.3 million (approximately $1.4 million after-tax
or, $0.37 per diluted share). Excluding this one-time gain,
net loss for the third quarter of fiscal 2012 was $1.3 million, or
$0.35 per diluted share, compared to a net loss of $2.1 million, or
$0.55 per diluted share, for the third quarter of fiscal
2011.
Net loss for the 39 weeks ended October 30, 2011, was $0.6
million, or $0.14 per diluted share, compared to a net loss of $5.4
million, or $1.42 per diluted share, for the same period of the
prior year. Excluding the one-time gain described above and
the charge of $0.3 million or $0.08 per diluted share recorded in
the second quarter for the accelerated amortization of financing
fees related to the Company's new bank agreement, net loss for the
39 weeks ended October 30, 2011, was $1.7 million, or $0.43 per
diluted share, compared to a net loss of $5.4 million, or $1.42 per
diluted share, for the same period of the prior year.
Richard Wilson, President and CEO, commented, "We are pleased
with the improvement of our third-quarter operating
results. The continued improvement in top-line sales marks our
fourth consecutive quarter of same-store sales increases. We
continued to experience top line growth in the Commodities, Home,
and Softlines divisions, with the top-performing departments for
the quarter being Candy/Food, Personal Care, Shoes, Furniture, and
Infants."
Mr. Wilson added, "While our gross margin rate was down from the
third quarter of the prior year, primarily due to mix of business
in lower-margin categories and increased transportation expense, we
were able to improve operating results. Our merchandising
strategies delivered strong same-store sales growth, our
cost-reduction initiatives reduced SG&A expenses, and our new
credit agreement benefited us during the entire third quarter."
Mr. Wilson concluded, "We are looking forward to this holiday
selling season and are riveted to our strategy of providing ALCO
customers with top-quality merchandise and exceptional value.
Consumers are responding well to the ALCO value proposition:
'Shop Smart. Save Smart.' "
Investor Conference Call
The Company will host an investor conference call at 10:00 a.m.
Central Time on Friday, December 9, 2011, to discuss operating
results for the third quarter ended October 30, 2011. The
dial-in number for the conference call is 888-219-1467
(international/local participants dial 913-312-0389), and the
Conference Code is 4966266. Parties interested in
participating in the conference call should dial in approximately
five minutes prior to 10:00 a.m. Central Time. A replay of the
call will be available after 1:30 p.m. Central Time December 9,
2011, through December 13, 2011, by dialing 888-203-1112
(international/local participants dial 719-457-0820), and the
Replay Code is 4966266. A replay of the call will also be
available four hours after completion of the call by visiting the
Investors page on the Company's website, www.ALCOstores.com.
Supplemental Data
The Company has included certain tables in this press release
that are set forth fully in the Company's 10-Q.
Certain Non-GAAP Financial Measures
The Company has included Adjusted Gross Margin and Adjusted
EBITDA, non-GAAP performance measures, as part of its
disclosure as a means to enhance its communications with
stockholders. Certain stockholders have specifically requested this
information to assist them in comparing the Company to other
retailers that disclose similar non-GAAP performance measures.
Further, management utilizes these measures in internal evaluation,
review of performance and in comparing the Company's financial
measures to those of its peers. Adjusted EBITDA differs from the
most comparable GAAP financial measure (earnings [loss] from
continuing operations) in that it does not include
certain items, as does Adjusted Gross Margin. These items are
excluded by management to better evaluate normalized operational
cash flow and expenses excluding unusual, inconsistent and non-cash
charges. To compensate for the limitations of evaluating the
Company's performance using Adjusted Gross Margin and Adjusted
EBITDA, management also utilizes GAAP performance measures
such as gross margin, return on investment, return on equity and
cash flow from operating activities. As a result, Adjusted
Gross Margin and Adjusted EBITDA may not reflect important
aspects of the results of the Company's operations.
About Duckwall-ALCO Stores, Inc.
Duckwall-ALCO Stores, Inc. is a regional broad line retailer
that specializes in meeting the needs of smaller, underserved
communities across 23 states, primarily in the central United
States. The Company offers an exceptional selection of quality
products and recognized brand names at reasonable prices. Its
specialty is delivering those products with the friendly, personal
service its customers have come to expect. With 217 ALCO stores,
the Company is proud to have continually provided excellent
products at good value prices to its customers for 110 years. To
learn more about the Company visit www.ALCOstores.com.
The Duckwall-ALCO Stores, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5865
Forward-looking statements
This press release contains forward-looking statements, as
referenced in the Private Securities Litigation Reform Act of 1995
("the Act"). Forward-looking statements can be identified by the
inclusion of "will," "believe," "intend," "expect," "plan,"
"project" and similar future-looking terms. You should not rely
unduly on these forward-looking statements. These forward-looking
statements reflect management's current views and projections
regarding economic conditions, retail industry environments, and
Company performance. Forward-looking statements inherently involve
risks and uncertainties, and, accordingly, actual results may vary
materially. Factors which could significantly change results
include but are not limited to: sales performance, expense levels,
competitive activity, interest rates, changes in the Company's
financial condition, and factors affecting the retail category in
general. Additional information regarding these and other factors
may be included in the Company's 10-Q filings and other public
documents, copies of which are available from the Company on
request and are available from the United States Securities and
Exchange Commission.
- Tables to follow -
Duckwall-ALCO Stores,
Inc. |
Statements of
Operations |
(dollars in thousands, except
share and per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended |
Thirty-Nine Week
Periods Ended |
|
October 30, |
October 31, |
October 30, |
October 31, |
|
2011 |
2010* |
2011 |
2010* |
Net sales |
$ 109,826 |
$ 106,055 |
$ 346,039 |
$ 327,200 |
Cost of sales |
76,053 |
72,625 |
241,247 |
224,593 |
|
|
|
|
|
Gross margin |
33,773 |
33,430 |
104,792 |
102,607 |
|
|
|
|
|
Selling, general and administrative |
33,105 |
33,899 |
98,066 |
101,783 |
Depreciation and amortization expenses |
2,106 |
2,570 |
6,432 |
7,533 |
|
|
|
|
|
Total operating expenses |
35,211 |
36,469 |
104,498 |
109,316 |
|
|
|
|
|
Other Operating Income |
2,270 |
— |
2,270 |
— |
|
|
|
|
|
Operating income (loss) from continuing
operations |
832 |
(3,039) |
2,564 |
(6,709) |
|
|
|
|
|
Interest expense |
619 |
1,015 |
3,336 |
2,410 |
|
|
|
|
|
Earnings (loss) from continuing operations
before income taxes |
213 |
(4,054) |
(772) |
(9,119) |
|
|
|
|
|
Income tax expense (benefit) |
76 |
(2,067) |
(292) |
(3,741) |
|
|
|
|
|
Earnings (loss) from continuing
operations |
137 |
(1,987) |
(480) |
(5,378) |
|
|
|
|
|
Earnings (loss) from discontinued operations,
net of income tax (benefit) of ($35), ($74), ($43), and ($40),
respectively |
(57) |
(122) |
(70) |
(65) |
Net income (loss) |
$ 80 |
$ (2,109) |
$ (550) |
$ (5,443) |
|
|
|
|
|
Earnings (loss) per share |
|
|
|
|
Basic |
|
|
|
|
Continuing operations |
$ 0.04 |
$ (0.52) |
$ (0.12) |
$ (1.40) |
Discontinued operations |
(0.02) |
(0.03) |
(0.02) |
(0.02) |
|
|
|
|
|
Net earnings (loss) per
share |
$ 0.02 |
$ (0.55) |
$ (0.14) |
$ (1.42) |
|
|
|
|
|
Earnings (loss) per share |
|
|
|
|
Diluted |
|
|
|
|
Continuing operations |
$ 0.04 |
$ (0.52) |
$ (0.12) |
$ (1.40) |
Discontinued operations |
(0.02) |
(0.03) |
(0.02) |
(0.02) |
|
|
|
|
|
Net earnings (loss) per
share |
$ 0.02 |
$ (0.55) |
$ (0.14) |
$ (1.42) |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
3,843 |
3,841 |
3,843 |
3,829 |
Diluted |
3,843 |
3,841 |
3,843 |
3,829 |
|
Thirteen
Week Periods Ended |
Thirty-Nine Week
Periods Ended |
|
October 30, |
October 31, |
October 30, |
October 31, |
|
2011 |
2010 |
2011 |
2010 |
Same-store adjusted gross margin dollar
change |
0.3% |
(2.7)% |
0.9% |
(8.5)% |
Same-store SG&A dollar change |
0.1% |
0.5% |
(1.0 |
0.7% |
Same-store total customer count change |
(3.9)% |
(2.2)% |
(3.0)% |
(2.9)% |
Same-store average sale per ticket
change |
6.9% |
0.1% |
7.7% |
(1.2)% |
|
Duckwall-ALCO Stores,
Inc. |
Schedule of Adjusted
EBITDA |
(dollars in thousands, except
share and per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Twenty-Six
Week Periods Ended |
Trailing 52 Weeks
Ended |
Thirteen
Week Periods Ended |
Trailing 52 Weeks
Ended |
|
|
July 31, |
August 1, |
July 31, |
October 30, |
October 31, |
October 30, |
(dollars in
thousands) |
Fiscal 2011 |
2011 |
2010 |
2011 |
2011 |
2010 |
2011 |
Net earnings (loss) from continuing
operations (1) |
$ (3,471) |
(617) |
(3,391) |
(697) |
137 |
(1,987) |
1,427 |
Plus: |
|
|
|
|
|
|
|
Interest |
3,502 |
2,717 |
1,395 |
4,824 |
619 |
1,015 |
4,428 |
Tax expense (benefit) (1) |
(2,414) |
(368) |
(1,673) |
(1,109) |
76 |
(2,067) |
1,034 |
Depreciation and amortization (1) |
10,001 |
4,327 |
4,963 |
9,365 |
2,106 |
2,570 |
8,901 |
Share-based compensation |
333 |
182 |
200 |
315 |
92 |
68 |
339 |
Insurance settlement (4) |
— |
— |
— |
— |
(2,270) |
— |
(2,270) |
Preopening store costs (2) |
543 |
3 |
382 |
164 |
233 |
110 |
287 |
Executive and staff severance |
540 |
131 |
480 |
191 |
— |
60 |
131 |
Store reset costs |
895 |
— |
— |
895 |
— |
895 |
— |
AWG transition costs |
210 |
— |
— |
210 |
— |
— |
210 |
=Adjusted EBITDA (1) (3) |
10,139 |
6,375 |
2,356 |
14,158 |
993 |
664 |
14,487 |
|
|
|
|
|
|
|
|
Cash |
4,189 |
6,431 |
3,690 |
6,431 |
3,125 |
5,356 |
3,125 |
Debt |
59,072 |
65,380 |
40,090 |
65,380 |
80,211 |
64,571 |
80,211 |
Debt, net of cash |
$ 54,883 |
58,949 |
36,400 |
58,949 |
77,086 |
59,215 |
77,086 |
|
|
|
|
|
|
|
|
(1) These amounts may not
agree with 10-Qs of previous quarters due to subsequent store
closures. These closed stores are now included in discontinued
operations. |
(2) These costs are not
consistent quarter to quarter as the Company does not open the same
number of stores in each quarter of each fiscal year. These
costs are directly associated with the number of stores that have
been or will be opened and are incurred prior to the grand opening
of each store. |
(3) During fiscal year 2011,
the Company made changes in its executive management team and
warehouse operations. For the trailing 52 weeks ended October
30, 2011, these initiatives resulted in approximately $1.6 million
reduced SG&A expenses when compared to the same prior year
trailing 52 weeks. The initiatives include, but are not
limited to, executive and staff reduction. |
(4) On September 9, 2011, the
Company received a $2.3 million settlement from Factory Mutual
Insurance Company (the "Insurer") for damage sustained during the
second quarter of fiscal 2012, due to wind and hail. The
settlement amount represented an appearance allowance for the roofs
at the Company's corporate office and distribution center in
Abilene, Kansas. The Insurer determined the roofs continue to
be functional as is without making repairs, that the life
expectancy of the standing seam roofs were not compromised, and
advised the Company that the damage and subsequent settlement would
not affect the future insurability of the roofs, nor would it
affect any future property claims should these roofs sustain future
damage from an insured peril. |
|
Duckwall-ALCO Stores,
Inc. |
Balance
Sheets |
(dollars in thousands, except
share and per share amounts) |
|
October 30, |
January 30, |
|
2011 |
2011 |
|
(Unaudited) |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 3,125 |
$ 4,189 |
Receivables |
8,693 |
6,847 |
Prepaid income taxes |
72 |
168 |
Inventories |
195,368 |
151,079 |
Prepaid expenses |
3,789 |
3,720 |
Deferred income taxes |
3,965 |
2,563 |
Property held for sale |
664 |
884 |
Total current assets |
215,676 |
169,450 |
|
|
|
Property and equipment, at cost: |
|
|
Land and land improvements |
1,834 |
1,496 |
Buildings and building improvements |
11,847 |
11,828 |
Furniture, fixtures and equipment |
70,319 |
69,924 |
Transportation equipment |
803 |
1,305 |
Leasehold improvements |
16,899 |
16,449 |
Construction work in progress |
3,495 |
350 |
Total property and
equipment |
105,197 |
101,352 |
Less accumulated depreciation and
amortization |
77,460 |
72,788 |
Net property and equipment |
27,737 |
28,564 |
|
|
|
Property under capital leases |
22,254 |
22,254 |
Less accumulated amortization |
11,300 |
10,727 |
Net property under capital
leases |
10,954 |
11,527 |
|
|
|
Deferred income taxes — non current |
1,025 |
2,180 |
Other non-current assets |
823 |
990 |
Total assets |
256,215 |
212,711 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Current maturities of long-term
debt |
$ 263 |
$ 1,414 |
Current maturities of capital
lease obligations |
553 |
703 |
Accounts payable |
48,463 |
25,968 |
Accrued salaries and
commissions |
4,188 |
4,133 |
Accrued taxes other than
income |
4,991 |
4,822 |
Self-insurance claim
reserves |
3,933 |
4,139 |
Other current liabilities |
4,556 |
4,608 |
Total current liabilities |
66,947 |
45,787 |
|
|
|
Notes payable under revolving loan |
68,217 |
45,282 |
Capital lease obligations - less current
maturities |
11,178 |
11,673 |
Deferred gain on leases |
3,536 |
3,826 |
Other non-current liabilities |
2,454 |
1,850 |
Total liabilities |
152,332 |
108,418 |
|
|
|
Stockholders' equity: |
|
|
Common stock, $.0001 par value,
20,000,000 authorized shares; 3,842,745 and 3,841,895 shares issued
and outstanding at October 30, 2011 and January 30, 2011,
respectively |
1 |
1 |
Additional paid-in capital |
40,143 |
40,003 |
Retained earnings |
63,739 |
64,289 |
Total stockholders' equity |
103,883 |
104,293 |
Total liabilities and
stockholders' equity |
$ 256,215 |
$ 212,711 |
CONTACT: Wayne S. Peterson
Senior Vice President - Chief Financial Officer
785-263-3350 X164
email: wpeterson@alcostores.com
or
Debbie Hagen
Hagen and Partners
913-642-6363
email: dhagen@hagenandpartners.com
Duckwall Alco (NASDAQ:DUCK)
Gráfico Histórico do Ativo
De Jul 2024 até Jul 2024
Duckwall Alco (NASDAQ:DUCK)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024