not pretty
Weiner's Stores Inc. Announces Third Quarter and First Nine Months 2000 Results of Operations
HOUSTON--(BUSINESS WIRE)--Dec. 12, 2000--Weiner's Stores Inc. (OTCBB:WEIR) announced a net loss of $22.9 million, or $1.23 per share of common stock for its third quarter ended October 28, 2000 compared to a net loss of $2.4 million, or $0.13 per share of common stock for the third quarter 1999. Net loss for the nine months ended October 28, 2000 was $28.3 million, or $1.53 per share of common stock compared to net income of $0.06 million, or less than $0.01 per share of common stock for the first nine months of 1999.
As previously reported, the Company filed for protection under Chapter 11 on October 16, 2000 and is in the process of closing 44 stores. For the third quarter and the first nine months of 2000 the Company recognized $11.0 million of reorganization expense and $9.0 million of store closing costs. Had the Company not incurred reorganization expense and store closing costs in relation to filing under Chapter 11, the net loss for the third quarter and first nine months of 2000 would have been $3.0 million, or $0.16 per share of common stock and $8.5 million, or $0.46 per share of common stock, respectively.
Sales for the Company's third quarter increased 10.1% to $64.8 million from $58.9 million in the third quarter of 1999. Comparable stores sales increased 10.3% compared to the same period last year. Comparable store sales were favorably impacted by the Company's adoption of Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements." The Company recognized, in the third quarter of 2000, $5.8 million in layaway transactions from prior periods. Sales for the first nine months of 2000 decreased 7.0% to $193.5 million from $208.0 million for the first nine months of 1999. Comparable stores sales decreased 10.3% compared to the same period last year.
The Company further announced today that on December 6, 2000 the United States Bankruptcy Court for the District of Delaware issued the final order approving the Company's Debtor in Possession Revolving Credit Agreement. |
