ST. LOUIS, May 29 /PRNewswire/ -- Edison Brothers Stores Inc.
(Nasdaq: EDBR) today announced a net loss of $22.3 million or $2.18 per common
share for the 13 weeks ended May 2, 1998. For the 13 weeks ended May 3, 1997,
Edison reported a net loss of $17.0 million. First quarter 1998 results are
not directly comparable to results for first quarter 1997 due to Edison's
emergence from Chapter 11 and the implementation of fresh start reporting.
Net sales for the 13 weeks ended May 2, 1998 were $206.2 million compared
to $224.0 million for the first quarter last year. Same-store sales for first
quarter 1998 declined 2.4 percent from the first quarter 1997. Edison
operated 1,580 stores as of May 2, 1998 compared to 1,738 as of May 3, 1997.
"Our first quarter results reflect a significant shortfall in gross
margin, which was a result of sluggish sales and an aggressive markdown
program to clear older merchandise," Chairman and CEO Lawrence E. Honig said.
"We are working to improve the content of the merchandise offerings and should
see better results starting with the back-to-school season in the third
quarter."
Honig added that areas key to leveraging resources and driving sales have
been restructured for more efficiency. The recent reorganization of field
management is expected to save more than $4 million annually and allow market
managers to spend more time in stores working with store managers and
associates. The planning and allocation, merchandising support and marketing
functions each have been centralized with anticipated savings of more than
$1.5 million annually. These functions previously were performed separately
by each chain so the company was supporting six internal structures in these
areas.
Edison Brothers Stores Inc. operates Bakers and Wild Pair footwear stores;
5-7-9 junior apparel stores; Riggings, JW, Coda, Oaktree and Repp Ltd Big &
Tall menswear stores; and Repp By Mail men's catalog. With more than $940
million in annual sales and nearly 1,600 stores in the United States, Canada,
Puerto Rico and the Virgin Islands, Edison is one of the largest specialty
retailers of apparel, footwear and accessories in North America. Additional
information about Edison can be found on the company's Web site at
http://www.edisonbrothers.com.
EDISON BROTHERS STORES INC.
Consolidated Statements of Operations
(Dollars in millions, except per share data)
As Reorganized Pre-Confirmation
13 Weeks Ended 13 Weeks Ended
May 2, 1998 May 3, 1997
Net Retail Sales $206.2 $224.0
Costs and Expenses:
Costs of goods sold, occupancy and
buying expenses 155.6 158.2
Store operating and administrative
expenses 59.3 62.5
Depreciation and amortization 9.2 7.6
Interest expense, net 3.8 0.9
Restructuring and reorganization expenses - 8.1
Other operating expenses 0.4 2.6
Total 228.3 239.9
Loss before income taxes (22.1) (15.9)
Income tax provision 0.2 1.1
Net Loss $(22.3) $(17.0)
Net Loss per basic and diluted share $(2.18) $(0.77)
Basic and diluted average shares
outstanding (millions) 10.2 22.2
Percent of Sales
Net Retail Sales 100.0% 100.0%
Costs and Expenses:
Cost of goods sold, occupancy and
buying expenses 75.5% 70.6%
Store operating and administrative expenses 28.8% 27.9%
Depreciation and amortization 4.5% 3.4%
Interest expense, net 1.8% .4%
Restructuring and reorganization expenses 3.6%
Other operating expenses .1% 1.2%
Total 110.7% 107.1%
Loss before income taxes (10.7%) (7.1%)
Income tax provision .1% .5%
Net Loss (10.8%) (7.6%)
EDISON BROTHERS STORES INC.
Consolidated Balance Sheets
(Dollars in millions)
As Reorganized Pre-Confirmation
May 2, 1998 Jan. 31,1998 May 3,1997
ASSETS
Current Assets
Cash and cash equivalents $ 18.1 $ 58.2 $159.3
Investments - - 10.1
Merchandise inventories 163.3 167.9 206.5
Other current assets 29.3 28.1 21.2
Total Current Assets 210.7 254.2 397.1
Property and Equipment, net 119.9 121.1 144.8
Reorganization Value in Excess
of Identifiable Assets, net 27.7 28.4 -
Other Assets 37.8 39.3 61.6
Total Assets $396.1 $443.0 $603.5
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Short-term borrowings $ 2.9 $ - $ -
Merchandise accounts
payable 32.2 43.2 29.4
Expense accounts payable 28.2 29.3 27.1
Other current liabilities 57.0 72.8 42.5
Total Current Liabilities 120.3 145.3 99.0
Liabilities Subject
to Settlement - - 455.7
Long-Term Debt 127.5 127.7 -
Postretirement and Other
Employee Benefits 46.8 46.7 47.3
Other Liabilities 2.1 1.6 20.6
Total Liabilities 296.7 321.3 622.6
Common Stockholders' Equity (Deficit)
Common stock 0.1 0.1 22.2
Capital in excess of
par value 130.5 130.5 76.9
Common stock warrants 7.0 7.0 -
Accumulated deficit (37.7) (15.4) (118.6)
Foreign currency
translation adjustment (0.5) (0.5) 0.4
Total Common Stockholders'
Equity (Deficit) 99.4 121.7 (19.1)
Total Liabilities and Stockholders'
Equity (Deficit) $396.1 $443.0 $603.5
EDISON BROTHERS STORES INC.
Consolidated Statements of Cash Flows
(Dollars in millions)
As Reorganized Pre-Confirmation
13 Weeks Ended 13 Weeks Ended
May 2, 1998 May 3, 1997
Cash Flows from Operating Activities:
Net loss $(22.3) $(17.0)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 9.2 7.6
Loss on disposal of fixed assets 1.2 1.7
Restructuring and reorganization expenses,
noncash portion - 2.3
Working capital changes (24.6) (20.9)
Other 1.3 (0.1)
Total Operating Activities (35.2) (26.4)
Cash Flows from Investing Activities:
Capital expenditures (7.4) (8.4)
Decrease in investments - 68.4
Other (0.1) 0.1
Total Investing Activities (7.5) 60.1
Cash Flows from Financing Activities:
Increase in short-term borrowings 2.9 -
Decrease in senior-note interest escrow (0.1) -
Other (0.2) -
Total Financing Activities 2.6 -
Cash Provided (Used) (40.1) 33.7
Beginning Cash and Cash Equivalents 58.2 125.6
Ending Cash and Cash Equivalents $18.1 $159.3
SOURCE Edison Brothers Stores, Inc.
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Related links:
http://www.edisonbrothers.com
CONTACT:
Jack Burtelow, CAO and CFO, 314-331-6530, or
Suzanne Roth, Communications Director, 314-331-6564, both of
Edison Brothers Stores
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