Duckwall-ALCO Stores Reports Operating Results for Fourth Quarter and Fiscal Year Ended January 30, 2011
April 14 2011 - 7:10PM
Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK), which specializes in
providing a superior selection of essential products for everyday
life in small-town America, today announced operating results for
its fourth quarter and fiscal year ended January 30, 2011.
Net sales from continuing operations for the fourth quarter of
fiscal 2011 increased 4.4% to $136.9 million and same-store sales,
excluding fuel center sales, increased 1.8%, compared to the same
period in the prior fiscal year. Net sales from continuing
operations for the fiscal year decreased 0.6% to $465.2 million and
same-store sales decreased 2.4%, compared to the same period in the
prior fiscal year.
Net earnings for the fourth quarter were $0.7 million, or $0.19
per diluted share, compared to $1.4 million, or $0.35 per diluted
share, for the fourth quarter of fiscal 2010. Earnings from
continuing operations for the fourth quarter were $1.8 million, or
$0.48 per diluted share compared to $1.8 million, or $0.46 per
diluted share, for the fourth quarter of fiscal 2010. During the
fourth quarter, the Company recorded a charge for discontinued
operations of approximately $1.1 million, net of tax benefit, or
$0.29 per diluted share, primarily related to the closing of the
Duckwall stores.
The fiscal year net loss was $4.6 million, or $1.20 per diluted
share, compared to net earnings of $2.8 million, or $0.72 per
diluted share, for the prior fiscal year. The fiscal year net
loss from continuing operations was $3.6 million, or $0.93 per
diluted share, compared to earnings from continuing operations of
$2.2 million, or $0.56 per diluted share, for the prior fiscal
year.
Richard Wilson, President and CEO, commented, "As evidenced by
the year-over-year earnings improvement from continuing operations
in the fourth quarter, we believe this quarter was one of those
stepping-off points where we have the sense of accomplishing many
things, are starting to see the results of our efforts, and are
well positioned for the future. While we recognize there is
still much work to do, we look forward to building upon these
accomplishments in order to deliver the sales and profitability
results our shareholders deserve. We are particularly
encouraged by the continued growth of our same store sales into the
first two months of the 2012 fiscal year."
Mr. Wilson continued, "The charge in the fourth quarter related
to a strategic action to improve results going forward. As
previously announced, the Company concluded that the small,
limited-selection Duckwall stores no longer met the needs of most
shoppers and we made the difficult decision to close these
stores. Our store operations teams accomplished much under the
challenging circumstances of closing these stores and I thank them
for all of their efforts and hard work."
Investor Conference Call
The Company will host an investor conference call at
10:00 a.m. Central Time on April 15, 2011,to discuss operating
results for the fourth quarter ended January 30, 2011. The
dial-in number for the conference call is 888-271-8608
(international/local participants dial 913-312-1482), and the
Confirmation Code is 4384694. Parties interested in
participating in the conference call should dial in approximately
five minutes prior to 10:00 a.m. Central Time. A replay of the
call will be available after 1:30 p.m. Central Time April 15, 2011
through April 20, 2011 by dialing 888-203-1112 or for
international/local callers by dialing 719-457-0820. The
Replay Passcode is 4384694. A replay of the call will also be
available four hours after completion of the call by visiting the
Investors page on the Company's website,
www.ALCOstores.com.
Supplemental Data
The Company has included certain tables in this press release
that are set forth fully in the Company's 10-K.
Certain Non-GAAP Financial Measures
The Company has included Adjusted Gross Margin and Adjusted
EBITDA, non-GAAP performance measures, as part of its
disclosure as a means to enhance its communications with
stockholders. Certain stockholders have specifically requested this
information to assist them in comparing the Company to other
retailers that disclose similar non-GAAP performance measures.
Further, management utilizes these measures in internal evaluation,
review of performance and in comparing the Company's financial
measures to those of its peers. Adjusted EBITDA differs from the
most comparable GAAP financial measure (earnings [loss] from
continuing operations) in that it does not include
certain items, as does Adjusted Gross Margin. These items are
excluded by management to better evaluate normalized operational
cash flow and expenses excluding unusual, inconsistent and non-cash
charges. To compensate for the limitations of evaluating the
Company's performance using Adjusted Gross Margin and Adjusted
EBITDA, management also utilizes GAAP performance measures
such as gross margin return on investment, return on equity and
cash flow from operating activities. As a result, Adjusted
Gross Margin and Adjusted EBITDA may not reflect important
aspects of the results of the Company's operations.
About Duckwall-ALCO Stores, Inc.
Duckwall-ALCO Stores, Inc. is a regional broad line retailer
that specializes in meeting the needs of smaller, underserved
communities across 23 states, primarily in the central United
States. The Company offers an exceptional selection of quality
products and recognized brand names at reasonable prices. Its
specialty is delivering those products with the friendly, personal
service its customers have come to expect. With 214 ALCO stores,
the Company is proud to have continually provided excellent
products at good value prices to its customers for 110 years. To
learn more about the Company visit www.ALCOstores.com.
Forward-looking statements
This press release contains forward-looking statements, as
referenced in the Private Securities Litigation Reform Act of 1995
("the Act"). Forward-looking statements can be identified by the
inclusion of "will," "believe," "intend," "expect," "plan,"
"project" and similar future-looking terms. You should not rely
unduly on these forward-looking statements. These forward-looking
statements reflect management's current views and projections
regarding economic conditions, retail industry environments, and
Company performance. Forward-looking statements inherently involve
risks and uncertainties, and, accordingly, actual results may vary
materially. Factors which could significantly change results
include but are not limited to: sales performance, expense levels,
competitive activity, interest rates, changes in the Company's
financial condition, and factors affecting the retail category in
general. Additional information regarding these and other factors
may be included in the Company's 10-Q filings and other public
documents, copies of which are available from the Company on
request and are available from the United States Securities and
Exchange Commission.
Duckwall-ALCO Stores,
Inc. |
Statements of
Operations |
(dollars in thousands, except
share and per share amounts) |
(unaudited) |
|
|
|
|
|
|
For the Thirteen Week
Periods Ended |
For the Fifty-Two Week
Periods Ended |
|
January 30, 2011 |
January 31, 2010 |
January 30, 2011 |
January 31, 2010 |
Net sales |
$ 136,919 |
131,117 |
465,199 |
468,021 |
Cost of sales |
96,815 |
91,137 |
322,226 |
316,914 |
Gross margin |
40,104 |
39,980 |
142,973 |
151,107 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
33,311 |
34,492 |
135,497 |
135,102 |
Depreciation and amortization |
2,470 |
3,003 |
10,014 |
9,949 |
Total operating expenses |
35,781 |
37,495 |
145,511 |
145,051 |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) from continuing
operations |
4,323 |
2,485 |
(2,538) |
6,056 |
Interest expense, net |
1,092 |
560 |
3,502 |
2,149 |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations before income taxes |
3,231 |
1,925 |
(6,040) |
3,907 |
Income tax expense (benefit) |
1,391 |
144 |
(2,446) |
1,735 |
|
|
|
|
|
Earnings (loss) from continuing
operations |
1,840 |
1,782 |
(3,594) |
2,172 |
|
|
|
|
|
Earnings (loss) from discontinued
operations, net of income tax benefit |
(1,108) |
(412) |
(1,041) |
614 |
Net earnings (loss) |
$ 732 |
1,370 |
(4,635) |
2,786 |
|
|
|
|
|
Earnings (loss) per diluted share |
|
|
|
|
Continuing operations |
$ 0.48 |
0.46 |
(0.93) |
0.56 |
Net earnings (loss) per share |
$ 0.19 |
0.35 |
(1.20) |
0.72 |
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
Basic |
3,841,895 |
3,797,947 |
3,832,339 |
3,797,947 |
Diluted |
3,844,630 |
3,887,940 |
3,850,874 |
3,879,656 |
|
|
|
|
|
|
For the Thirteen Week
Periods Ended |
For the Fifty-Two Week
Periods Ended |
|
January 30, 2011 |
January 31, 2010 |
January 30, 2011 |
January 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store gross margin dollar change |
1.2% |
(3.8)% |
(5.4)% |
(0.4)% |
Same-store SG&A dollar change |
1.8% |
(1.8)% |
(0.0)% |
(3.5)% |
Same-store total customer count change |
(1.5)% |
(0.6)% |
(2.7)% |
(0.1)% |
Same-store average sale per ticket
change |
3.3% |
(2.1)% |
0.3% |
(0.6)% |
|
|
|
|
|
|
|
For the
Thirty-Nine |
Trailing Twelve |
For the Thirteen |
|
|
52 Weeks |
Week Periods Ended |
Period Ended |
Week Periods Ended |
52 Weeks |
|
|
October 31, |
November 1, |
October 31, |
January 30, |
January 31, |
|
|
Fiscal 2010 |
2010 |
2009 |
2010 |
2011 |
2010 |
Fiscal 2011 |
Net earnings (loss) from continuing
operations (1) |
$ 2,173 |
(5,434) |
391 |
(3,652) |
1,840 |
1,782 |
(3,594) |
Plus: |
|
|
|
|
|
|
|
Interest |
2,149 |
2,410 |
1,590 |
2,969 |
1,092 |
559 |
3,502 |
Taxes (1) |
1,735 |
(3,837) |
1,591 |
(3,693) |
1,391 |
144 |
(2,446) |
Depreciation and amortization (1) |
9,949 |
7,544 |
6,946 |
10,547 |
2,470 |
3,003 |
10,014 |
Share-based compensation |
757 |
268 |
601 |
423 |
48 |
155 |
316 |
Preopening store costs (2) |
128 |
492 |
2 |
618 |
51 |
126 |
543 |
Store re-set costs |
-- |
895 |
-- |
895 |
-- |
-- |
895 |
Private label implementation costs |
-- |
210 |
-- |
210 |
-- |
-- |
210 |
Executive and staff severance |
-- |
540 |
-- |
540 |
-- |
-- |
540 |
Store transformation project costs |
2,096 |
-- |
2,096 |
-- |
-- |
-- |
-- |
=Adjusted EBITDA (1)(3)(4)(5) |
$ 18,986 |
3,088 |
13,218 |
8,857 |
6,892 |
5,769 |
9,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
$ 5,164 |
5,356 |
5,703 |
5,356 |
4,189 |
5,164 |
4,189 |
Debt |
40,992 |
64,835 |
54,180 |
64,835 |
59,072 |
40,992 |
59,072 |
Debt, net of cash |
$ 35,828 |
59,479 |
48,477 |
59,479 |
54,883 |
35,828 |
54,883 |
|
(1) These amounts may not agree
with 10-Qs of previous quarters due to subsequent store
closures. These closed stores are now included in discontinued
operations. |
(2) These costs are not
consistent quarter-to-quarter as the Company does not open the same
number of stores in each quarter of each fiscal year. These
costs are directly associated with the number of stores that have
been or will be opened and are incurred prior to the grand
opening of each store. |
(3) For the trailing twelve
periods ended January 30, 2011 the average open weeks for the
Company's five non same-stores was 26 weeks. |
(4) During fiscal year 2011,
the Company made changes in its executive management team and
warehouse operations. For the trailing twelve periods ended
January 31, 2010, these initiatives resulted in approximately $4.3
million reduced SG&A expenses when compared to the same prior
year trailing twelve periods. The initiatives include, but are
not limited to, executive and staff reduction. |
(5) The store transformation
project completed in fiscal 2010 continues to provide SG&A
savings in fiscal 2011. This initiative achieved approximately
$0.5 million in SG&A savings for the fifty-two weeks of fiscal
2011 when compared to the prior year same period. |
|
|
Duckwall-ALCO Stores,
Inc. |
|
Balance
Sheets |
|
(dollars in thousands, except
share and per share amounts) |
|
(unaudited) |
|
|
|
|
January 30, 2011 |
|
January 31, 2010 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,189 |
$ |
5,164 |
|
Receivables |
|
|
6,847 |
|
7,437 |
|
Prepaid income taxes |
|
|
168 |
|
594 |
|
Inventories |
|
|
151,079 |
|
144,413 |
|
Prepaid expenses |
|
|
3,720 |
|
3,517 |
|
Deferred income taxes |
|
|
2,563 |
|
2,330 |
|
Assets held for sale |
|
|
884 |
|
1,631 |
|
Total current assets |
|
|
169,450 |
|
165,086 |
|
|
|
|
|
|
|
|
Property and equipment, at cost |
|
|
101,352 |
|
98,505 |
|
Less accumulated depreciation |
|
|
72,788 |
|
67,959 |
|
Net property and equipment |
|
|
28,564 |
|
30,546 |
|
|
|
|
|
|
|
|
Property under capital leases,
net of accumulated amortization |
|
11,527 |
|
1,630 |
|
Deferred income tax - non current |
|
|
2,180 |
|
-- |
|
Other non-current assets |
|
|
990 |
|
51 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
212,711 |
$ |
197,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Duckwall-ALCO Stores,
Inc. |
|
Balance
Sheets |
|
(dollars in thousands, except
share and per share amounts) |
|
(unaudited) |
|
|
|
|
January 30, 2011 |
|
January 31, 2010 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current maturities of long-term
debt |
|
$ |
1,414 |
$ |
1,451 |
|
Current maturities of capital lease
obligations |
|
|
703 |
|
1,623 |
|
Accounts payable |
|
|
25,970 |
|
23,076 |
|
Accrued salaries and
commissions |
|
|
4,133 |
|
4,122 |
|
Accrued taxes other than
income |
|
|
4,822 |
|
4,913 |
|
Self-insurance claim reserves |
|
|
4,139 |
|
4,852 |
|
Other current liabilities |
|
|
4,608 |
|
4,499 |
|
Total current liabilities |
|
|
45,789 |
|
44,536 |
|
|
|
|
|
|
|
|
Long-term debt, less current maturities |
|
|
-- |
|
1,414 |
|
Notes payable under revolving loan
agreement |
|
|
45,282 |
|
35,159 |
|
Capital lease obligations - less current
maturities |
|
|
11,673 |
|
1,345 |
|
Deferred gain on leases |
|
|
3,826 |
|
4,212 |
|
Deferred income taxes |
|
|
-- |
|
694 |
|
Other noncurrent liabilities |
|
|
1,850 |
|
1,715 |
|
Total liabilities |
|
|
108,418 |
|
89,075 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.0001
par value, authorized 20,000,000 shares; issued and
outstanding 3,841,895 shares and 3,797,947 shares,
respectively |
1 |
|
1 |
|
Additional paid-in capital |
|
|
40,003 |
|
39,313 |
|
Retained earnings |
|
|
64,289 |
|
68,924 |
|
Total stockholders' equity |
|
|
104,293 |
|
108,238 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
|
$ |
212,711 |
$ |
197,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: Wayne S. Peterson
Senior Vice President - Chief Financial Officer
785-263-3350 X164
wpeterson@alcostores.com
Debbie Hagen
Hagen and Partners
913-652-6547
dhagen@hagenandpartners.com
Duckwall Alco (NASDAQ:DUCK)
Historical Stock Chart
From May 2024 to Jun 2024
Duckwall Alco (NASDAQ:DUCK)
Historical Stock Chart
From Jun 2023 to Jun 2024