Joel, your comments bring new meaning to the "More of Everything" slocan. Scott
Eagle Hardware & Garden reports a 37% increase in sales and a
55% increase in net income for fiscal 1997 first quarter Eagle
Hardware & Garden reports a 37% increase in sales and a 55%
increase in net income for fiscal 1997 first quarter May 27, 1997
8:07 AM EDT
RENTON, Wash.--(BUSINESS WIRE)--May 27, 1997--Eagle Hardware & Garden, Inc. (Nasdaq NM:EAGL) today reported record
sales and earnings and an 18% increase in same store sales for its first
fiscal quarter ended May 2, 1997.
For the quarter, sales increased 37% to $221.1 million from $161.1 million in the first quarter of fiscal 1996. Same store sales increased 18% over the previous year due primarily to a 16% increase in the number of customer transactions. Net income for the quarter increased 55% to $4.6 million, or $0.16 per share, from $3.0 million, or $0.13 per share, in the same quarter of last year. Results for the current quarter included the effect of $2.1 million ($0.05 per share after tax) in preopening costs, compared to no preopening costs in the first quarter of 1996. Additionally, the Company had 26% more common and common equivalent shares outstanding during the current quarter primarily as a result of a 5,750,000 share, $125 million Common Stock offering completed in September 1996.
Commenting on the Company's first quarter results, Eagle President Richard Takata said, "Our record first quarter sales and earnings are extremely gratifying. A strong economic environment in our primary markets continues to be a positive influence on our operating results. In addition, the Company's market share increased in most of our markets as we continue to realize the benefits from the closing of a primary competitor."
The Company opened three stores during the first quarter of fiscal 1997, including two stores in the Puget Sound market (North Seattle and Tacoma, Washington) and one store in Kahului (Maui), Hawaii. The Company currently plans to open two additional stores during fiscal 1997.
Eagle Hardware & Garden operates 30 warehouse home improvement centers in Washington, Colorado, Utah, Alaska, Hawaii, Montana and Oregon. The Company's home centers average 125,000 square feet of retail selling space and feature over 60,000 products under its "More of Everything"(R) merchandising philosophy.
CONDENSED CONSOLIDATED BALANCE SHEETS
(000)
(UNAUDITED)
MAY 2, JAN 31,
1997 1997
Assets
Cash and cash equivalents $37,778 $20,738
Short-term investments 0 31,330
Accounts receivable, net 4,118 4,213
Merchandise inventories 205,890 174,299
Other current assets 7,047 7,489
Total current assets 254,833 238,069
Property and equipment, net 291,111 277,493
Preopening costs 2 1,468
Other assets 2,718 2,355
Total assets $548,664 $519,385
Liabilities & Shareholders' Equity
Outstanding checks,
not cleared by the bank $15,496 $8,762
Accounts payable 65,369 55,295
Other current liabilities 29,985 30,661
Total current liabilities 110,850 94,718
Deferred income taxes 8,940 8,314
Other long-term liabilities 3,151 3,094
Long-term debt 116,072 108,416
Total liabilities 239,013 214,542
Shareholders' equity 309,651 304,843
Total liabilities & shareholders'
equity $548,664 $519,385
These summary financial statements should be read in conjunction
with the financial statements and accompanying footnotes included in
the Eagle Hardware & Garden, Inc. Annual Report on Form 10-K for the
fiscal year ended January 31, 1997, filed with the Securities and
Exchange Commission.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(000, except store week and per share data)
13 WEEKS ENDED
MAY 2, APR 26,
1997 1996
Store weeks in period (375) (312)
Net sales $221,107 $161,106
Cost of sales 158,537 115,850
Gross margin 62,570 45,256
Operating expenses 51,894 38,294
Preopening expenses 2,089 0
Operating income 8,587 6,962
Other income (expense):
Net interest (expense) (1,419) (2,423)
Other income 58 129
Income before tax 7,226 4,668
Income tax provision 2,638 1,704
Net income $4,588 $2,964
Net income per share $0.16 $0.13
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(000)
13 WEEKS ENDED
MAY 2, APR 26,
1997 1996
Operating Activities
Net income $4,588 $2,964
Expenses not requiring use of cash 3,432 2,056
Changes in current assets and
current liabilities, net (14,950) 3,421
Other 1,161 121
Net cash (used in) provided by
operating activities (5,769) 8,562
Investing Activities
Capital expenditures for property
and equipment (17,049) (8,855)
Net sales of short-term investments 31,329 0
Proceeds on sale of assets 0 4,248
Net cash provided by (used in)
investing activities 14,280 (4,607)
Financing Activities
Payments on note payable to bank, net 0 (700)
Proceeds on long-term borrowings, net 8,309 (5,048)
Other 220 57
Net cash provided by (used in)
financing activities 8,529 (5,691)
Increase (decrease) in cash and
cash equivalents $17,040 ($1,736)
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Additional sources of information
Tell Me More - From Infoseek
Company Profile - From E*TRADE: EAGL
Stock Charts - From Quote.Com: EAGL
SEC Filings - From EDGAR Online: EAGL
Company Capsule - From Hoover's Online: EAGL
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