Cost-U-Less, Inc. Reports Fiscal 1999 Second Quarter Results
On an Operating Increase in Sales of 31 Percent
Business Wire - July 21, 1999 16:01
BELLEVUE, Wash.--(BUSINESS WIRE)--July 21, 1999--Cost-U-Less, Inc. (the "Company")
(Nasdaq:CULS) today reported sales and operating results for the second quarter (13 weeks) of fiscal
1999 ended June 27, 1999.
Net income for the second quarter of fiscal 1999 increased to $477,000 or $0.13 per share on average
diluted shares outstanding of 3,611,977 compared to net income of $62,000 or $0.03 per share on
average diluted shares outstanding of 2,123,383 for the second quarter of fiscal 1998.
Net sales for the second quarter of fiscal 1999 increased 31.1 percent to $41.2 million from $31.5 million
during the second quarter of fiscal 1998. Comparable-store sales (stores open for a full 13 months)
increased 9.8 percent for the second quarter of fiscal 1999.
Net income for the first 26 weeks of fiscal 1999 increased to $753,000 or $0.21 per share on average
diluted shares outstanding of 3,610,530 compared to net income of $387,000 or $0.18 per share on
average diluted shares outstanding of 2,134,971 during the first 26 weeks of fiscal 1998.
Net sales for the first 26 weeks of fiscal 1999 increased 25 percent to $79.2 million from $63.2 million
during the first 26 weeks of fiscal 1998. The increase was due to sales from the company's two new
stores in Fiji and one in Curacao, plus a same store sales increase of 10.2 percent over the first 26
weeks of 1998.
"We are pleased to reach record sales and maintain our profitability momentum as we build the
infrastructure and incur greater costs to support our store expansion program in New Zealand and the
Caribbean," said Chairman and CEO Jim Rose.
Construction is underway on two stores in New Zealand that are scheduled to open during the first
quarter of 2000. The store under construction in St. Maarten is on schedule to open in late December
this year.
The Company also announced the following management change. Allan Youngberg, Vice
President/CFO, announced his resignation on July 20 to pursue other opportunities. Martin Moore,
Corporate Controller since December of 1998, will serve as interim CFO. Moore has an MBA in Finance
from Seattle University and formerly served as Manager of Corporate Planning and Reporting at ATL
Ultrasound, Inc., a $500 million bio-medical equipment company that was acquired by Philips
Electronics in 1998.
Cost-U-Less, a leading operator of non-membership warehouse "club-style" stores operating in U.S.
territory and foreign island markets, operated 11 stores at the end of the second quarter of 1999.
COST-U-LESS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 27, December 27,
1999 1998
-----------------------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,291 $ 4,289
Receivables, net 1,676 1,853
Inventories, net 19,423 16,685
Other current assets 1,381 721
------- -------
Total current assets 23,771 23,548
Property and equipment, net 12,867 12,712
Deposits and other assets 966 957
------ -------
Total assets $37,604 $37,217
====== =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,168 $11,420
Accrued expenses and other
liabilities 1,994 1,832
Line of credit 359 0
Current portion of long-term
liabilities 1,142 1,055
------ ------
Total current liabilities 14,663 14,307
Deferred rent 428 524
Long-term debt, less current
portion 1,744 2,036
Capital lease obligations,
less current portion 410 754
------ ------
Total liabilities 17,245 17,621
Total shareholders' equity 20,359 19,596
------ ------
Total liabilities and
shareholders' equity $37,604 $37,217
====== ======
COST-U-LESS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
13 WEEKS ENDED 26 WEEKS ENDED
-------------------------------------
June 27, June 28, June 27, June 28,
1999 1998 1999 1998
-------------------------------------
Net sales $ 41,227 $ 31,453 $ 79,214 $ 63,205
Merchandise costs 34,358 26,159 65,960 52,711
------ -------- ------ -------
Gross profit 6,869 5,294 13,254 10,494
Operating expenses:
Store 4,551 3,655 8,774 7,189
General and
administrative 1,366 890 2,710 1,871
Store opening 142 334 417 464
Store closing 0 244 0 244
------- ------- ------ ------
Total operating expenses 6,059 5,123 11,901 9,768
------- ------- ------ ------
Operating income (loss) 810 171 1,353 726
Other income (expense):
Other income (expense) 9 0 (57) 0
Interest income 23 0 71 0
Interest expense (123) (80) (222) (134)
-------- ------- ------ ------
Income (loss) before
income taxes 719 91 1,145 592
Income tax provision
(benefit) 242 29 392 205
-------- ------- ------ -------
Net income (loss) $ 477 $ 62 $ 753 $ 387
======== ======= ====== =======
Earnings (loss) per
common share:
Basic $ 0.13 $ 0.03 $ 0.21 $ 0.19
Diluted $ 0.13 $ 0.03 $ 0.21 $ 0.18
Weighted average
common shares
outstanding 3,547,340 1,999,961 3,543,651 1,999,961
========= ========= ========= =========
Weighted average common
shares outstanding,
assuming dilution 3,611,977 2,123,383 3,610,530 2,134,971
========= ========= ========= =========
CONTACT: Cost-U-Less, Inc.
Martin Moore, 425/644-4241 (ext. 51)
Email: mmoore@costuless.com |
