Eagle Reports a 36% Increase in Net Income for Fiscal 1998 First Quarter
Business Wire - May 21, 1998 08:07
RENTON, Wash--(BUSINESS WIRE)--May 21, 1998--Eagle Hardware & Garden,
Inc. (Nasdaq NM:EAGL) today reported record sales and earnings for
its first fiscal quarter ended May 1, 1998.
For the quarter, sales increased 13% to $250.2 million from $221.1
million in the first quarter of fiscal 1997. Same store sales
increased 5% over the previous year. Net income for the quarter
increased 36% to $6.3 million, or $0.21 per share, diluted, from $4.6
million, or $0.16 per share, in the same quarter of last year.
Commenting on the Company's first quarter results, Eagle President
Richard Takata said, "Our record first quarter sales and earnings are
very gratifying. We are particularly pleased with the 5% increase in
same store sales on top of an 18% increase in the same quarter of the
prior year. Despite some sales cannibalization and increased
competition, our stores prospered during the quarter. Favorable
economic climates in our primary markets continue to have a positive
influence on our operating results."
During the first quarter, Eagle opened one store in La Quinta,
California. The Company has also reached a definitive agreement to
acquire property for a future store in Covina, California and has
purchased property for a store in Norwalk, California. The Company
currently plans to open six additional stores during the second half
of fiscal 1998, including three in the state of California.
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"(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.
(financial statements follow)
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(UNAUDITED)
May 1, January 30,
1998 1998
Assets
Cash and cash equivalents $91,852 $63,557
Accounts receivable, net 3,550 4,463
Merchandise inventories 220,258 202,833
Other current assets 6,443 6,791
Total current assets 322,103 277,644
Property and equipment, net 333,448 316,133
Preopening costs 39 1,055
Other assets 8,740 6,823
Total assets $664,330 $601,655
Liabilities & Shareholders' Equity
Outstanding checks, not
cleared by the bank $17,318 $11,008
Accounts payable 70,852 55,097
Other current liabilities 44,713 38,934
Total current liabilities 132,883 105,039
Deferred income taxes 11,768 11,084
Other long-term liabilities 3,122 3,159
Long-term debt 173,732 145,836
Total liabilities 321,505 265,118
Shareholders' equity 342,825 336,537
Total liabilities &
shareholders' equity $664,330 $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
May 1, May 2,
1998 1997
Net sales $250,239 $221,107
Cost of sales 179,994 158,537
Gross margin 70,245 62,570
Operating expenses 57,435 51,894
Preopening expenses 1,030 2,089
Operating income 11,780 8,587
Other income (expense):
Net interest (expense) (1,976) (1,419)
Other income 57 58
Income before tax 9,861 7,226
Income tax provision 3,599 2,638
Net income $6,262 $4,588
Net income per share, basic $0.22 $0.16
Net income per share,
diluted $0.21 $0.16
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
13 Weeks Ended
May 1, May 2,
1998 1997
Operating Activities
Net income $6,262 $4,588
Expenses not requiring use
of cash 3,692 3,432
Changes in current assets
and current liabilities,
net 10,475 (14,950)
Other (938) 1,161
Net cash provided by (used
in) operating activities 19,491 (5,769)
Investing Activities
Capital expenditures for
property and equipment (21,431) (17,049)
Net sales of short-term
investments 0 31,329
Net cash (used in) provided
by investing activities (21,431) 14,280
Financing Activities
Proceeds on long-term
borrowings, net 30,209 8,309
Other 26 220
Net cash provided by
financing activities 30,235 8,529
Increase in cash and cash
equivalents $28,295 $17,040
CONTACT: Eagle Hardware and Garden
Richard T. Takata, 425/227-5740
or
Ronald P. Maccarone, 425/227-5740 |
