MATTHEWS, N.C., March 4 /PRNewswire/ -- PCA International, Inc.
(Nasdaq: PCAI), reported record sales for its fiscal 1997 fourth quarter ended
February 1, 1998 of $75.8 million, an increase of 46% compared to $51.8
million reported in the fiscal 1996 fourth quarter. Net income for the
period rose to a record $7.8 million, or $0.94 per diluted share, compared to
net income of $1.0 million, or $0.12 per diluted share in 1996. The prior
year's fourth quarter net income includes an after-tax charge of $3.6 million,
or $0.45 per diluted share, for the closing of underperforming portrait
studios.
PCA's fiscal 1997 sales of $242.9 million were the highest in the
Company's history, rising 56% from $156.1 million reported in fiscal 1996.
Net income for the full year was $8.7 million, or $1.07 per diluted share,
versus net income of $3.0 million, or $0.38 per diluted share, reported last
year. The full year 1997 results include interest expense of $6.6 million, or
$0.47 per diluted share after tax, and $1.9 million for amortization of
intangible assets related to the acquisition of American Studios.
"We are pleased with the financial and operating results achieved by our
Company in 1997," stated John Grosso, PCA President and Chief Executive
Officer. "Our strong performance resulted from the operating synergies
realized from the successful integration of American Studios and the
completion of several strategic initiatives which strengthened the Company's
competitive position and improved the profitability of our studio operations.
Going into 1998, our Company is stronger than ever with a leading market
position in the discount retail portrait market, diversified and improved
studio operations, and a solid financial base."
The Company also announced the addition of Ms. Bridgette P. Heller to its
Board of Directors. As General Manager for GEVALIA Kaffe, a division of Kraft
Foods, Ms. Heller brings a depth of brand management and marketing experience
to PCA's Board of Directors. Ms. Heller is a 1998 recipient of the YMCA Black
Achievers of Industry Award and was recognized as one of six "Women to Watch"
by Black Enterprise (August 1997) and as one of the "100 Best and Brightest
African Americans in Business" by Dollars & Sense (1994).
The Company's Board of Directors also announced today a cash dividend of
$0.07 per share, payable April 7, 1998, for shareholders of record as of
March 7, 1998.
PCA is the largest operator of discount retail portrait studios worldwide.
At February 1, 1998, the Company operated 2,075 permanent portrait studios
within Kmart and Wal-Mart stores and supercenters, including 1,953 in the
United States and 122 internationally. PCA also operates traveling promotions
in more than 1,400 U.S. locations and offers on-site photography services to
churches and other institutions. The Company's studios are located in the
United States, Canada, Mexico, Puerto Rico, and South America.
PCA INTERNATIONAL, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
February 1, February 2,
ASSETS: 1998 1997
Current Assets:
Cash and cash equivalents $12,289,761 $1,536,234
Other current assets 24,454,236 25,464,269
Total Current Assets 36,743,997 27,000,503
Net Property and Equipment 54,923,487 58,264,560
Intangible Assets 59,733,731 60,256,854
Other Assets 1,899,611 1,139,305
TOTAL ASSETS $153,300,826 $146,661,222
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Liabilities:
Current portion of
long-term debt $8,750,000 $ --
Accounts payable-trade 25,915,285 19,799,067
Other current liabilities 22,413,041 25,672,985
Total Current Liabilities 57,078,326 45,472,052
Long-term debt 42,063,857 58,679,770
Deferred Income Taxes 1,738,255 --
Other Liabilities 7,730,964 8,868,660
Shareholders' Equity 44,689,424 33,640,740
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $153,300,826 $146,661,222
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended For the Fiscal Years
Ended
February 1, February 2, February 1,
February 2,
1998 1997 1998 1997
SALES $75,834,923 $51,801,203 $242,899,027 $156,099,050
COSTS AND EXPENSES:
Advertising and
promotional
costs 3,467,248 4,298,982 16,661,542 16,163,273
Costs of photographic
sales 23,799,706 16,301,732 85,707,294 52,558,425
Store commissions
and selling
costs 22,998,048 15,949,870 79,597,084 50,384,753
General and
administrative
expenses 8,983,108 13,456,946 36,160,218 31,676,471
Amortization of
intangibles 462,720 -- 1,909,772 --
Total costs and
expenses 59,710,830 50,007,530 220,035,910 150,782,922
OPERATING INCOME FROM
CONTINUING
OPERATIONS 16,124,093 1,793,673 22,863,117 5,316,128
Interest
expense, net 1,581,069 95,736 6,570,945 179,221
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 14,543,024 1,697,937 16,292,172 5,136,907
INCOME TAXES 6,731,722 716,270 7,557,320 2,143,053
NET INCOME $7,811,302 $981,667 $8,734,852 $2,993,854
WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
Basic 7,880,481 7,589,484 7,779,176 7,522,188
Diluted 8,341,963 7,904,221 8,195,108 7,835,613
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
Basic $0.99 $0.13 $1.12 $0.40
Diluted $0.94 $0.12 $1.07 $0.38
CASH DIVIDENDS PER
COMMON SHARE $0.07 $ -- $0.21 $0.21
SOURCE PCA International, Inc.
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Related links:
http://www.pca-online.com
CONTACT:
Jean Veatch, Director, Investor Relations and
Corporate Communications, PCA International, Inc., 704-847-8011
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
114272
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