ABILENE, Kan., June 13, 2013 (GLOBE NEWSWIRE) -- ALCO Stores, Inc. (Nasdaq:ALCS), which specializes in providing a superior selection of essential products for everyday life in small-town America, today announced operating results for its first quarter ended May 5, 2013.
Net sales from continuing operations during the first quarter of fiscal 2014 increased 0.9% to $117.5 million, compared to $116.5 million in the first quarter of fiscal 2013. Same-store sales, excluding fuel centers, decreased 2.2% to $112.4 million during the first quarter of fiscal 2014.
Net loss for the first quarter of fiscal 2014 was $1.7 million, or $0.51 per diluted share, compared to a net loss of $1.3 million, or $0.34 per diluted share, for the first quarter of fiscal 2013. Loss from continuing operations, net of tax, for the first quarter of fiscal 2014 was $1.7 million, or $0.51 per diluted share, compared to a loss of $1.1 million, or $0.29 per diluted share, for the first quarter of fiscal 2013.
Richard Wilson, President and CEO, commented, "Operating results for the first quarter were negatively impacted by lingering winter weather conditions in many of our markets. More than 80% of our same-store sales performance came from outdoor businesses - Outdoor Living, Horticulture, Sporting Goods and Menswear. The decrease in these outdoor businesses was partially offset by favorable sales performance in Domestics, Housewares, and Women's Apparel where customers have responded favorably to the introduction of our new apparel lines."
Wilson continued, "Although consumers remain cautious due to slow economic growth, we are encouraged by the positive impact our changes in merchandise are starting to have, and we are equally excited about the potential benefit of price optimization initiatives we are rolling out in fiscal 2014."
Investor Conference Call
The Company will host an investor conference call at 10:00 a.m. Central Time on Friday, June 14, 2013, to discuss operating results for the first quarter ended May 5, 2013. The dial-in number for the conference call is 888-481-2844 (international/local participants dial 719-785-1753), and the Conference Code is 2271713. 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 1:00 p.m. Central Time June 14, 2013 through June 19, 2013, by dialing 888-203-1112 (international/local participants dial 719-457-0820), and the Replay Code is 2271713. 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 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. 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 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 EBITDA may not reflect important aspects of the results of the Company's operations.
ALCO Stores, Inc.
ALCO Stores, Inc. is a broad-line retailer, primarily located in small underserved communities across 23 states. The Company had 217 ALCO stores at the end of the first quarter ended May 5, 2013 that offer both name brand and private label products of exceptional quality at reasonable prices. We are proud to have continually provided friendly, personal service to our customers for the past 112 years. To learn more about the Company visit www.ALCOstores.com.
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 -
| ALCO Stores, Inc. | ||
| Statements of Operations | ||
| First Quarter Ended May 5, 2013 and April 29, 2012 | ||
| (dollars in thousands, except share and per share amounts) | ||
| (unaudited) | ||
| Thirteen Week | Thirteen Week | |
| Period Ended | Period Ended | |
| May 5, 2013 | April 29, 2012 | |
| Net sales | $ 117,520 | 116,500 |
| Cost of sales | 83,053 | 82,123 |
| Gross margin | 34,467 | 34,377 |
| Selling, general and administrative | 33,876 | 33,374 |
| Depreciation and amortization | 2,175 | 2,107 |
| Total operating expenses | 36,051 | 35,481 |
| Operating loss from continuing operations | (1,584) | (1,104) |
| Interest expense | 1,053 | 744 |
| Loss from continuing operations before income taxes | (2,637) | (1,848) |
| Income tax benefit | (987) | (760) |
| Loss from continuing operations | (1,650) | (1,088) |
| Loss from discontinued operations, net of income tax benefit | (18) | (196) |
| Net loss | $ (1,668) | (1,284) |
| Loss per share | ||
| Basic | ||
| Continuing operations | $ (0.51) | (0.29) |
| Discontinued operations | $ (0.00) | (0.05) |
| Net loss per share | $ (0.51) | (0.34) |
| Loss per share | ||
| Diluted | ||
| Continuing operations | $ (0.51) | (0.29) |
| Discontinued operations | $ (0.00) | (0.05) |
| Net loss per share | $ (0.51) | (0.34) |
| Weighted-average shares outstanding: | ||
| Basic | 3,258,163 | 3,822,006 |
| Diluted | 3,258,163 | 3,822,006 |
| ALCO Stores, Inc. | ||||
| Schedule of Adjusted EBITDA | ||||
| (dollars in thousands) | ||||
| (unaudited) | ||||
| For the Thirteen Week | Trailing 53 Weeks | |||
| 53 Weeks | Periods Ended | Ended | ||
| May 5, | April 29, | May 5, | ||
| Fiscal 2013 | 2013 | 2012 | 2013 | |
| Net earnings (loss) | $ 1,307 | (1,668) | (1,284) | 923 |
| Plus: | ||||
| Interest | 3,477 | 1,053 | 744 | 3,786 |
| Taxes | 311 | (998) | (880) | 193 |
| Depreciation and amortization | 8,902 | 2,183 | 2,122 | 8,963 |
| EBITDA | 13,997 | 570 | 702 | 13,865 |
| Plus: | ||||
| Share-based compensation | 381 | 140 | 130 | 391 |
| (Gain) loss asset disposals | 141 | -- | (92) | 233 |
| Adjusted EBITDA | $ 14,519 | 710 | 740 | 14,489 |
| Cash | $ 3,160 | 2,923 | 612 | 2,923 |
| Debt | 79,962 | 87,978 | 53,208 | 87,978 |
| Debt, net of cash | $ 76,802 | 85,055 | 52,596 | 85,055 |
| ALCO Stores, Inc. | ||
| Balance Sheets | ||
| (dollars in thousands, except share and per share amounts) | ||
| (unaudited) | ||
| May 5, 2013 | February 3, 2013 | |
| Assets | ||
| Current assets: | ||
| Cash | $ 2,923 | $ 3,160 |
| Receivables | 12,782 | 12,232 |
| Inventories | 190,614 | 166,671 |
| Prepaid expenses | 3,459 | 3,767 |
| Deferred income taxes | 5,884 | 3,081 |
| Property held for sale | 568 | 568 |
| Total current assets | 216,230 | 189,479 |
| Long term investments | 1,293 | 955 |
| Property and equipment, at cost: | ||
| Land and land improvements | 5,648 | 5,648 |
| Buildings and building improvements | 10,499 | 10,499 |
| Furniture, fixtures and equipment | 74,149 | 74,066 |
| Transportation equipment | 988 | 988 |
| Leasehold improvements | 21,138 | 21,138 |
| Construction work in progress | 6,383 | 5,083 |
| Total property and equipment | 118,805 | 117,422 |
| Less accumulated depreciation and amortization | 83,708 | 81,794 |
| Net property and equipment | 35,097 | 35,628 |
| Property under capital leases | 26,972 | 26,972 |
| Less accumulated amortization | 11,743 | 11,476 |
| Net property under capital leases | 15,229 | 15,496 |
| Deferred income tax - non current | -- | 1,693 |
| Other non-current assets | 558 | 624 |
| Total assets | $ 268,407 | $ 243,875 |
| ALCO Stores, Inc. | ||
| Balance Sheets | ||
| (dollars in thousands, except share and per share amounts) | ||
| (unaudited) | ||
| May 5, 2013 | February 3, 2013 | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Current maturities of capital lease obligations | $ 575 | $ 580 |
| Accounts payable | 58,215 | 39,220 |
| Accrued salaries and commissions | 3,134 | 3,111 |
| Accrued taxes other than income | 5,409 | 5,046 |
| Self-insurance claim reserves | 4,086 | 4,429 |
| Other current liabilities | 3,578 | 4,429 |
| Total current liabilities | 74,997 | 56,815 |
| Notes payable under revolving loan | 71,627 | 63,446 |
| Capital lease obligations - less current maturities | 15,777 | 15,936 |
| Deferred gain on leases | 2,956 | 3,053 |
| Other noncurrent liabilities | 2,415 | 2,462 |
| Total liabilities | 167,772 | 141,712 |
| Stockholders' equity: | ||
| Common stock, $.0001 par value, authorized 20,000,000 shares; | ||
| 3,258,163 and 3,808,338 shares issued and outstanding, respectively | 1 | 1 |
| Additional paid-in capital | 36,673 | 36,533 |
| Retained earnings | 63,961 | 65,629 |
| Total stockholders' equity | 100,635 | 102,163 |
| Total liabilities and stockholders' equity | $ 268,407 | $ 243,875 |