Bob thread dead, 3Q is out, record sales and earnings again, beat
analysts estimates again..Ho Hum..
Thursday November 19, 7:30 am Eastern Time
Company Press Release
Eagle Hardware & Garden Reports Record
Sales and Earnings for Fiscal 1998 Third
Quarter
Net Income Increases 21%
Same Store Sales Increase 5%
RENTON, Wash.--(BUSINESS WIRE)--Nov. 19, 1998--Eagle Hardware &
Garden, Inc. (Nasdaq
NM:EAGL - news) today reported record sales and earnings for its third
fiscal quarter ended October
30, 1998.
For the quarter, sales increased 10% to $274.3 million from $249.7
million in the third quarter of fiscal
1997. Same store sales increased 5% over the previous year. Net income
for the quarter increased 21%
to $10.7 million, or $0.34 per share, diluted, from $8.9 million, or
$0.29 per share, diluted, in the same
quarter of last year.
For the first nine months of fiscal 1998, sales increased by 11% to
$832.5 million from $749.0 million
in the same period of fiscal 1997. Net income for the first nine
months of fiscal 1998 increased 22% to
$32.3 million, or $1.02 per share, diluted, from $26.4 million, or
$0.85 per share, diluted, for the same
period last year. Same store sales increased 5% for the first nine
months of fiscal 1998.
Commenting on the Company's third quarter results, Eagle President
Richard Takata said, ''Our third
quarter results represented another strong quarter of operations for
our Company. Our 5% increase in
same store sales and the resulting leverage of expenses led to a 21%
increase in net income for the
quarter.''
''Four new stores are currently scheduled to open in the fourth
quarter. Stores in Chino Hills and
Westminster, California, and Sparks, Nevada, are planned for the month
of December. A store in
Smokey Point, Washington, is scheduled for January,'' Takata added.
Eagle Hardware & Garden operates 32 warehouse home improvement centers
in Washington,
Colorado, Utah, Hawaii, Alaska, California, Idaho, Montana and Oregon.
The Company's home
centers average 128,000 square feet of retail selling space and
feature over 65,000 products under its
''More of Everything''® 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.
(financial statements follow)
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(UNAUDITED)
October 30, January 30,
1998 1998
---------- -----------
Assets
Cash and cash equivalents $ 35,148 $ 63,557
Accounts receivable, net 2,311 4,463
Merchandise inventories 229,353 202,833
Other current assets 6,506 6,791
Total current assets 273,318 277,644
Property and equipment, net 407,097 316,133
Preopening costs 2,125 1,055
Other assets 10,978 6,823
Total assets $693,518 $601,655
Liabilities & Shareholders' Equity
Outstanding checks, not cleared by the bank $18,429 $11,008
Accounts payable 73,556 55,097
Other current liabilities 44,562 38,934
Total current liabilities 136,547 105,039
Deferred income taxes 14,282 11,084
Other long-term liabilities 3,362 3,159
Long-term debt 169,579 145,836
Total liabilities 323,770 265,118
Shareholders' equity 369,748 336,537 =================== ===================
Total liabilities & shareholders' equity $693,518 $601,655
=================== ===================
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 January 30, 1998, filed with the
Securities and Exchange Commission.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
---------------------------------------
Oct. 30, Oct. 31, Oct. 30, Oct. 31,
1998 1997 1998 1997
---------------------------------------
Net sales $274,305 $249,690 $832,501 $749,035
Cost of sales 196,588 179,050 597,913 537,553
Gross margin 77,717 70,640 234,588 211,482
Operating expenses 59,228 55,288 177,590 163,570
Preopening expenses 0 0 1,030 2,089
Operating income 18,489 15,352 55,968 45,823
Other income (expense):
Net interest (expense) (1,258) (1,492) (4,797) (4,442)
Other income (expense) (400) 76 (272) 214
Income before tax 16,831 13,936 50,899 41,595
Income tax provision 6,143 5,080 18,578 15,168
Net income $ 10,688 $ 8,856 $ 32,321 $ 26,427
Net income per share, basic $0.37 $0.30 $1.11 $0.91
Net income per share, diluted $0.34 $0.29 $1.02 $0.85
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
39 Weeks Ended
-----------------------
Oct. 30, Oct. 31,
1998 1997
---------- ----------
Operating Activities
Net income $ 32,321 $ 26,427
Expenses not requiring use of cash 16,089 12,889
Changes in current assets and current
liabilities, net 4,966 (21,361)
Other (5,019) 87
Net cash provided by operating activities 48,357 18,042
Investing Activities
Capital expenditures for property and
equipment (103,931) (42,802)
Net sales of short-term investments 0 31,330 ----------------- -----------------
Net cash used in investing activities (103,931) (11,472)
Financing Activities
Proceeds on long-term borrowings, net 26,275 41,972
Other 890 1,542
----------------- -----------------
Net cash provided by financing activities 27,165 43,514 ================= =================
(Decrease) increase in cash and cash
equivalents ($28,409) $ 50,084
Contact:
Eagle Hardware & Garden
President & CEO
Richard T. Takata, 425/227-5740
or
Chief Financial Officer
Ronald P. Maccarone, 425/227-5740 |
