NAPERVILLE, Ill., Aug. 26 /PRNewswire/ -- Factory Card Outlet Corp.
(Nasdaq: FCPY) announced today results for its second quarter ended August 1,
1998.
Net loss for the second quarter was $402,000 or $0.06 per diluted share,
before a special charge of $0.05 per diluted share. This compared to net
income of $1.8 million or $0.23 per diluted share last year. Sales for the
second quarter rose 33.7% to $54.7 million from $40.9 million last year.
Comparable store sales for the quarter increased 1.4%
For the six months ended August 1, 1998, the Company reported net income
of $166,000 or $0.02 per diluted share, before a special charge of $0.05 per
diluted share. This is compared to net income of $2.2 million or $0.27 per
diluted share last year. Sales for the year to date increased 41.5% to $104.6
million from $73.9 million last year. Comparable store sales increased 2.2%.
Stewart M. Kasen, the Company's Chairman, President and Chief Executive
Officer, said, "The quarter ended with strong sales momentum for the entire
month of July. Our distribution center and information systems are now
providing us with the ability to stay in stock on everyday basic merchandise.
In addition, the customer recovery program is beginning to take hold, and our
extra promotional activity has resulted in higher customer transactions. We
are well-positioned for a continuation of this positive trend through the
Halloween and Christmas seasons."
Factory Card Outlet is a chain of company-owned superstores offering a
vast assortment of party supplies, greeting cards, gift wrap and other special
occasion merchandise at everyday value prices. The Company currently operates
205 stores in 22 states and plans to open an additional eight superstores
during the remainder of its fiscal year ending January, 1999. The Company has
signed leases for all of these locations as well as 14 signed leases for its
next fiscal year ending January, 2000.
This press release regarding the quarterly results of Factory Card Outlet
Corp. includes forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements do not constitute
historical facts and involve risks and uncertainties, including, but not
limited to, the possibility that adverse economic or other factors may cause
actual results to be materially different than current estimates and
projections. Additional detailed information concerning a number of factors
that could cause actual results to differ from the information contained in
this press release is readily available in the Company's Transition Report on
Form 10-K. Copies of this Transition Report are available on request directed
to the President of the Company.
FACTORY CARD OUTLET CORP.
AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
August 1, January 31,
(In thousands) 1998 1998
ASSETS
Current assets:
Cash $221 $30
Receivables 569 2,009
Inventories 89,207 72,911
Other current assets 2,501 2,105
Total current assets 92,498 77,055
Fixed assets, net 40,588 38,507
Deferred income taxes 493 493
Other assets 1,119 188
Total assets $134,698 $116,243
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $30,017 $20,250
Accrued expenses 4,988 4,754
Other current liabilities 1,899 1,821
Total current liabilities 36,904 26,825
Revolving credit note payable 37,280 29,700
Deferred rent liabilities 6,593 5,316
Other long-term liabilities 1,734 2,668
Total liabilities 82,511 64,509
Total stockholders' equity 52,187 51,734
Total liabilities and
stockholders' equity $134,698 $116,243
FACTORY CARD OUTLET CORP.
AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands except for earnings per share and share data)
Second Quarter Ended Six Months Ended
August 1, July 26, August 1, July 26,
1998 1997 1998 1997
Net sales $54,749 $40,919 $104,611 $73,865
Cost of sales and occupancy 36,323 24,876 68,506 45,335
Gross profit 18,426 16,043 36,105 28,530
Selling, general and
administrative expenses 18,185 12,735 34,135 24,448
Special charge 655 -- 655 --
Income (loss) from operations (414) 3,308 1,315 4,082
Interest expense 912 167 1,694 294
Income (loss) before taxes (1,326) 3,141 (379) 3,788
Income taxes (benefit) (530) 1,348 (151) 1,620
Net income (loss) $(796) $1,793 $(228) $2,168
Earnings (loss) per share
Basic $(0.11) $0.25 $(0.03) $0.30
Diluted $(0.11) $0.23 $(0.03) $0.27
Weighted average shares
outstanding
Basic 7,385,196 7,225,011 7,369,791 7,217,541
Diluted 7,385,196 7,923,200 7,369,791 7,959,076
SOURCE Factory Card Outlet
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CONTACT:
Tom Stoltz, Vice President-Finance,
630-579-2230, or Carol Travis, Vice President-Secretary,
630-579-2288, both of Factory Card Outlet
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