PMOR moving!
Monday May 10, 12:09 pm Eastern Time
Company Press Release
SOURCE: Phar-Mor, Inc.
Phar-Mor, Inc. Reports Third Quarter Net Income of $0.10 Per Basic Share Compared to a Net Loss of $0.39 Per Share in the Prior Year
YOUNGSTOWN, Ohio, May 10 /PRNewswire/ -- Phar-Mor, Inc. (Nasdaq: PMOR - news) today announced the results for its third quarter of fiscal 1999, the thirteen weeks ended March 27, 1999.
Total sales for the thirteen weeks ended March 27, 1999 were $290,928,000 compared to $277,319,000 for the comparable thirteen weeks of the prior year, an increase of 4.9%. Comparable store sales for the third quarter of fiscal 1999 increased 2.5% to $279,489,000 from $272,780,000 for the same period in the prior year. The increase in comparable store sales was primarily due to a 12.0% increase in comparable store pharmacy sales. Total sales for the thirty-nine weeks ended March 27, 1999 were $857,329,000 compared to $825,863,000 for the comparable thirty-nine weeks of the prior year, an increase of 3.8%. Comparable store sales for the first thirty-nine weeks of fiscal 1999 increased 2.6% to $828,905,000 from $808,278,000 for the same period in the prior year. The increase in comparable store sales was primarily due to a 9.7% increase in comparable store pharmacy sales.
The Company reported net income of $1,167,000 or $0.10 per share for the thirteen weeks ended March 27, 1999 compared to a loss of $4,712,000 or $0.39 per share for the comparable thirteen weeks ended March 28, 1998. For the thirty-nine weeks ended March 27, 1999 the Company reported net income of $3,402,000 or $0.28 per share compared to a loss of $9,505,000 or $0.78 per share for the comparable period in the prior year. The current year results include a partial settlement received from a class action lawsuit against pharmaceutical manufacturers related to certain product overcharges to retailers that increased net income per share by $0.10 and the results from the acquired Pharmhouse stores for the last twelve days of March which decreased net income per share by $0.02. The prior year results included severance expenses associated with the resignation of the Company's former CEO that decreased earnings per share by $0.06 and $0.52 for the thirteen and thirty-nine weeks ended March 28, 1998, respectively and a loss on disposal of the company's mainframe computer that decreased earnings per share by $0.38 for the thirteen and thirty-nine weeks ended March 28, 1998.
The Company has begun to integrate the recently acquired Pharmhouse stores. Dave Schwartz, the Company's President and COO commented: ''I am pleased with the progress we have made to date on the recently acquired Pharmhouse stores. As of May 1, 1999, we have completed the consolidation of all corporate overhead functions into our Youngstown, Ohio corporate office. The conversion of the store systems, our current objective, will be completed by June 30, 1999. Our warehouse located in Youngstown, Ohio is now distributing in excess of 6,000 stock keeping units (SKU's) to each of the Pharmhouse stores on a weekly basis. Most importantly, this has been accomplished without an increase in warehouse inventory thereby increasing our inventory turns. We have begun the process of introducing several new lines of merchandise into these stores and should have our complete merchandise mix in all stores by September 30, 1999.''
Phar-Mor is a retail drug store chain operating 139 stores under the names ''Phar-Mor'', ''Pharmhouse'' and ''The Rx Place'' in 24 states. The Company's common stock is traded on the NASDAQ National Market under the symbol ''PMOR.'' Phar-Mor's online vitamin store is accessible at www.pvsvitamins.com and through the Company's website at www.pharmor.com.
This press release contains statements relating to the future results of Phar-Mor, Inc. and its market share in the industry (including certain projections and business trends) that are ''forward-looking statements'' as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from projected as a result of certain risks and uncertainties, including but not limited to, market acceptance of Phar-Mor's stores and merchandising concepts, changes in political and economic conditions, demand for and market acceptance of new and existing products, availability of new products, increased competition as well as other risks and uncertainties detailed from time to time in the filings by Phar-Mor, Inc. with the Securities and Exchange Commission.
PHAR-MOR, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Thirteen Weeks Ended
March 27, 1999 March 28, 1998
Sales $290,928 $277,319
Gross profit 55,018 53,623
Selling, general and
administrative expenses 44,482 44,236
CEO severance expenses -- 720
Loss on disposal of equipment -- 4,615
Depreciation and amortization 5,992 5,463
Operating income (loss) 4,544 (1,411)
Interest expense (3,877) (4,194)
Interest income 797 839
Investment income 483 54
Profit (loss) before income taxes 1,947 (4,712)
Income taxes 780 --
Net income (loss) $1,167 $(4,712)
Income (loss) per basic share $0.10 $(0.39)
Income (loss) per diluted share $0.09 $(0.39)
Weighted average basic shares
outstanding 12,240,865 12,229,071
Weighted average
diluted shares outstanding 12,317,051 12,229,071
Thirty-nine Weeks Ended
March 27, 1999 March 28, 1998
Sales $857,329 $825,863
Gross profit 164,537 159,745
Selling, general and
administrative expenses 130,681 131,834
CEO severance expenses -- 6,387
Loss on disposal of equipment -- 4,615
Depreciation and amortization 17,270 16,518
Operating income 16,586 391
Interest expense (11,761) (12,562)
Interest income 1,568 2,612
Investment (loss) income (721) 54
Profit (loss) before income taxes 5,672 (9,505)
Income taxes 2,270 --
Net income (loss) $3,402 $(9,505)
Income (loss) per basic share $0.28 $(0.78)
Income (loss) per diluted share $0.28 $(0.78)
Weighted average basic
shares outstanding 12,240,517 12,184,541
Weighted average diluted
shares outstanding 12,306,320 12,184,541
SOURCE: Phar-Mor, Inc.
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