While I cant add anything to the 3Q report, its GREAT!!
Eagle Hardware & Garden Reports Record Sales and 62%
Increase in After Tax Income From Operations for Fiscal 1997 Third
Quarter Eagle Hardware & Garden Reports Record Sales and
62% Increase in After Tax Income From Operations for Fiscal 1997
Third Quarter November 25, 1997 7:31 AM EST
RENTON, Wash.--(BUSINESS WIRE)--Nov. 25, 1997--Eagle
Hardware & Garden, Inc. (Nasdaq NM:EAGL) today reported record
sales and earnings for its third fiscal quarter ended Oct. 31, 1997.
For the quarter, sales increased 26% to $249.7 million from $198.7
million in the third quarter of fiscal 1996. Same store sales increased
8% from the previous year. Net income for the quarter was $8.9
million, or $0.29 per share, fully diluted, compared to net income of
$7.6 million, or $0.28 per share, fully diluted, in the same quarter last
year. Last year's net income included $0.08 per share, or $2.1 million,
of income from a capital gain on the sale of surplus property.
Excluding this capital gain, after tax income from operations for the
quarter increased 62% to $8.9 million from $5.5 million in 1996. Net
income per share for the third quarter of fiscal 1997 reflected a 13%
increase in the average number of common shares outstanding over
the same quarter last year.
For the first nine months of fiscal 1997, sales increased 32% to $749.0
million from $568.9 million in the comparable period of fiscal 1996.
Same store sales improved 12% for the first nine months of fiscal
1997. Net income for the first nine months increased 42% to $26.4
million or $0.85 per share, fully diluted, from net income of $18.6
million, or $0.74 per share, fully diluted, for the same period last year.
Commenting on the Company's results, Eagle President Richard
Takata said, "Our 62% increase in after tax income from operations
and our improvement in same store sales reflect a number of
favorable influences on our business. Improvement in gross margin,
continued focus on operating expenses and a strong economic
environment in our primary markets have positively affected our
operating results."
"Our Coeur d'Alene, Idaho store is scheduled to open in the fourth
quarter. The La Quinta, California store will open in February 1998,
and will be the first of six or seven store openings planned for fiscal
1998. Additionally, we are currently negotiating for a number of store
locations in the Southern California market. We anticipate that stores
in the Southern California market will comprise the majority of our
fiscal 1999 expansion plans."
Eagle Hardware & Garden operates 30 warehouse home
improvement centers in Washington, Utah, Colorado, Alaska, Hawaii,
Montana and Oregon. The Company's home centers average over
125,000 square feet of retail selling space and feature over 65,000
products under its "More of Everything"(R) merchandising
philosophy.
Some of the information in this press release constitutes
forward-looking statements. These statements are subject to a
number of risks and uncertainties that might cause actual results to
differ materially from stated expectations. These risks include, among
others, the highly competitive environment in the retail home
improvement industry, the effect of general economic conditions and
weather in the Company's markets and the Company's ability to
achieve its expansion plans and successfully manage growth. These
risks are described in detail in the Company's Annual Report on Form
10-K and other SEC filings.
CONDENSED CONSOLIDATED BALANCE SHEETS
[000]
[UNAUDITED]
Oct. 31, Jan. 31,
1997 1997
Assets
Cash and cash equivalents $70,822 $20,738
Short-term investments 0 31,330
Accounts receivable, net 4,897 4,213
Merchandise inventories 206,590 174,299
Other current assets 6,482 7,489
Total current assets 288,791 238,069
Property and equipment, net 309,361 277,493
Preopening costs 718 1,468
Other assets 3,131 2,355
Total assets $602,001 $519,385
Liabilities & Shareholders' Equity
Outstanding checks, not cleared by the bank $14,097 $8,762
Accounts payable 59,504 55,295
Other current liabilities 35,556 30,661
Total current liabilities 109,157 94,718
Deferred income taxes 10,399 8,314
Other long-term liabilities 3,206 3,094
Long-term debt 146,426 108,416
Total liabilities 269,188 214,542
Shareholders' equity 332,813 304,843
Total liabilities & shareholders' equity $602,001 $519,385
These condensed 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 Jan. 31, 1997, filed with the
Securities and Exchange Commission.
-0-
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [UNAUDITED]
[000, except store week and per share data]
13 Weeks Ended 39 Weeks Ended
Oct. 31, Oct. 25, Oct. 31, Oct. 25,
1997 1996 1997 1996
Store weeks in period [390] [321] [1,155] [945]
Net sales $249,690 $198,731 $749,035 $568,915
Cost of sales 179,050 144,071 537,553 410,660
Gross margin 70,640 54,660 211,482 158,255
Operating expenses 55,288 44,334 163,570 126,099
Preopening expenses 0 504 2,089 504
Operating income 15,352 9,822 45,823 31,652
Other income (expense):
Net interest (expense) (1,492) (1,493) (4,442) (6,108)
Other income 76 2,209 214 2,354
Income before tax 13,936 10,538 41,595 27,898
Income tax provision 5,080 2,947 15,168 9,278
Net income $8,856 $7,591 $26,427 $18,620
Net income
per share, primary $0.30 $0.29 $0.90 $0.77
Net income
per share, fully diluted $0.29 $0.28 $0.85 $0.74
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS [UNAUDITED]
[000]
39 Weeks Ended
Oct. 31, Oct. 25,
1997 1996
Operating Activities
Net income $26,427 $18,620
Expenses not requiring use of cash 12,889 6,434
Changes in current assets and
current liabilities, net (21,361) 4,741
Other 87 402
Net cash provided by operating activities 18,042 30,197
Investing Activities
Capital expenditures for property and equipment (42,802) (64,493)
Net sales (purchases) of short-term investments 31,330 (32,035)
Proceeds on sale of assets 0 8,441
Net cash used in investing activities (11,472) (88,087)
Financing Activities
Payments on note payable to bank, net 0 (34,500)
Proceeds from issuance of common stock, net 0 124,855
Proceeds on long-term borrowings, net 41,972 3,366
Other 1,542 2,478
Net cash provided by financing activities 43,514 96,199
Increase in cash and cash equivalents $50,084 $38,309
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