More Good News:
Cost Plus, Inc. Reports Second Quarter Profit
August 19, 1997 08:48 AM
OAKLAND, Calif.--(BUSINESS WIRE)--Aug. 19, 1997--Cost
Plus, Inc. CPWM announced today a profit for the second quarter
ended August 2, 1997.
The Company reported net income of $187,000 or $.02 per
share, compared with a net loss of $197,000, or $.02 per share,
for the prior year's second quarter. Total sales for the second
quarter of 1997 increased 18.3%, to $47.3 million, from $40.0
million, a year ago. Same store sales increased 6.8% for the
second quarter, compared to 4.9% reported last year.
"We are very pleased to report that the Company recorded its
first ever second quarter profit. This achievement validates our
World Market merchandising strategy which offers customers an
outstanding selection of exciting home decor and entertaining
products at great prices," said Ralph D. Dillon, chairman and
chief executive officer. "We were also able to complement our
strong sales performance with continued operating efficiencies
throughout our organization." Dillon concluded, "We had excellent
sales of both indoor and outdoor furniture and home decor
accessories throughout the first half. This has been a strong first
half for Cost Plus with record profits reported for both quarters."
Year-to-date, Cost Plus reported net income of $294,000 or $.03
per share compared with last year's net loss of $592,000, or $.08
per share. Total sales increased 21.1% to $95.8 million, from
$79.1 million, for the six months ended August 3, 1996. Same
store sales for the six months ended August 2, 1997 were up
7.3%. As of August 2, 1997, Cost Plus operated 60 stores
compared to 52 stores as of August 3, 1996.
During the first two weeks of August, the Company opened its
first two stores in suburban Detroit, Michigan and its fourth store
in the San Diego market, located in Oceanside, California.
Cost Plus, Inc. is a leading retailer of casual living and home
entertaining products. The Company currently operates 63 stores
under the name "Cost Plus World Market" in 12 states.
COST PLUS, INC.
STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS
(In thousands except per share amounts, unaudited)
Second Quarter Ended
August 2, 1997 August 3, 1996
Net sales $47,287 100.0% $39,986 100.0%
Cost of sales and
occupancy 30,558 64.6 25,774 64.4
Gross profit 16,729 35.4 14,212 35.6
Selling, general and
administrative expenses 15,758 33.3 13,511 33.8
Preopening store expenses 200 .4 556 1.4
Income from operations 77 1.7 145 .4
Interest expense 460 1.0 479 1.2
Income (loss) before
income taxes 311 .7 (334) (.8)
Income tax provision
(benefit) 124 .3 (137) (.3)
Net income (loss) 187 .4 (197) (.5)
Net income (loss) per
common and common
equivalent share $.02 $(.02)
Weighted average common
and common equivalent
shares outstanding 8,563 8,511
Six Months Ended
August 2, 1997 August 3, 1996
Net sales $95,819 100.0% $79,113 100.0%
Cost of sales and
occupancy 62,364 65.1 51,326 64.9
Gross profit 33,455 34.9 27,787 35.1
Selling, general and
administrative expenses 31,544 32.9 26,566 33.5
Preopening store expenses 640 .7 840 1.1
Income from operations 1,271 1.3 381 .5
Interest expense 781 .8 1,384 1.7
Income (loss) before
income taxes 490 .5 (1,003) (1.2)
Income tax provision
(benefit) 196 .2 (411) (.5)
Net income (loss) 294 .3 (592) (.7)
Net income (loss) per
common and common
equivalent share $.03 $(.08)
Weighted average common
and common equivalent
shares outstanding 8,489 7,733
COST PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
August 2, 1997 August 3, 1996
ASSETS
Current assets:
Cash and cash equivalents $786 $1,314
Merchandise inventories 50,557 41,231
Other current assets 2,609 2,060
Total current assets 53,952 44,605
Property and equipment, net 61,459 58,026
Other assets 8,271 8,222
Total assets $123,682 $110,853
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 10,943 9,583
Accrued compensation 5,927 5,047
Other current liabilities 12,122 10,304
Total current liabilities 28,992 24,934
Capital lease obligations 13,980 14,424
Deferred income taxes 3,548 4,455
Other long-term obligations 2,854 2,228
Shareholders' equity:
Common stock 82 81
Additional paid-in capital 91,970 90,788
Deficit (17,744) (26,057)
Total shareholders' equity 74,308 64,812
Total liabilities and shareholders'
equity $123,682 $110,853
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