BERLIN, N.J.--(BUSINESS WIRE)--A.C. Moore Arts & Crafts, Inc. (NASDAQ: ACMR) (the “Company” or “A.C. Moore”) today announced results for the three and nine month periods ended October 3, 2009.
Sales for the third quarter of fiscal 2009 were $106.1 million, compared to sales of $116.7 million during the third quarter of fiscal 2008. Sales were impacted by operating two fewer stores than during the same period in 2008 and by a decrease in comparable store sales of 7.7%. Pre-tax loss for the quarter was $12.9 million, compared to a pre-tax loss of $4.4 million for the quarter last year. In the third quarter of 2008, the Company recorded a valuation allowance against the net deferred tax asset which resulted in income tax expense of $3.1 million, or $0.15 per share. Net loss for the quarter was $12.9 million, or $0.53 cents per share, compared to a net loss of $7.5 million, or $0.37 per share, for the comparable period last year.
Sales for the nine months ended October 3, 2009 were $319.2 million, compared to sales of $369.6 million during the comparable period of 2008. Sales were impacted by operating fewer stores than during the first nine months in 2008 and by a decrease in comparable store sales of 11.7%. Net loss for the nine months ended October 3, 2009 was $25.4 million, or $1.16 per share, compared to a net loss of $13.6 million, or $0.67 per share, for the same period last year. Prior year results include charges related to the non-cash fixed asset impairment of $0.07 per share.
Rick Lepley, Chief Executive Officer, said, “We were highly promotional in the quarter which adversely affected our margins. However, we are encouraged with the customer count increase from the second quarter, suggesting that shoppers were pleased with our advertising message and promotions.”
The Company will host a conference call beginning at 8:30 a.m., Eastern Time, on Friday, November 6, 2009 to discuss third quarter 2009 results. To participate in the conference call, please dial (888) 503-8163 and provide the operator with passcode #7326849. If you are unable to access the live call, please dial (888) 203-1112 and enter pin #7326849 to access the taped digital replay. The replay will be available at approximately 9:30 a.m. ET on November 6, 2009 and will remain available until November 13, 2009 at 11:59 p.m.
A simultaneous webcast of the conference call may be accessed at www.acmoore.com. Go to “About Us” and click on “Corporate Profile.” To listen to the live call via webcast, please go to the Company’s website at least 15 minutes early to register, download and install any necessary audio software. An archive of the conference call will be available approximately two hours after the conference call ends on the Company’s website.
About A.C. Moore:
A.C. Moore is a specialty retailer of arts, crafts and floral merchandise for a wide range of customers. The Company currently serves customers through its 134 stores located in the Eastern United States from Maine to Florida and nationally via its e-commerce site, www.acmoore.com. For more information about A.C. Moore, visit our website at www.acmoore.com.
This press release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based on A.C. Moore’s current expectations and assumptions as of this date. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could cause actual results to differ from those anticipated include, but are not limited to, the failure to consummate our identified strategic objectives, the effect of economic conditions and fuel prices, our ability to implement our business and operating initiatives to improve sales and profitability, our ability to comply with the terms of our credit facility, our ability to comply with NASDAQ listing requirements, changes in the labor market and our ability to hire and retain associates and members of senior management, the impact of existing or future government regulation, our ability to increase the number of stores we operate and the profitability of existing stores, how well we manage our growth, execution and results of our real estate strategy, competitive pressures, customer demand and trends in the arts and crafts industry, inventory risks, the impact of unfavorable weather conditions, disruption in our operations or supply chain, changes in our relationships with suppliers, difficulties with respect to new system technologies, difficulties in implementing measures to reduce costs and expenses and improve margins, supply constraints or difficulties, the effectiveness of and changes to advertising strategies and other risks detailed in the Company’s Securities and Exchange Commission (“SEC”) filings. A.C. Moore undertakes no obligation to update or revise any forward-looking statement whether as the result of new developments or otherwise.
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[Tables Follow] |
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| A.C. MOORE ARTS & CRAFTS, INC. | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (dollars in thousands) | |||||||||
| (unaudited) | |||||||||
| October 3, | January 3, | September 30, | |||||||
| 2009 | 2009 | 2008 | |||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 31,326 | $ | 74,437 | $ | 46,756 | |||
| Inventories | 138,151 | 109,365 | 142,004 | ||||||
| Prepaid expenses and other current assets | 5,964 | 14,851 | 8,907 | ||||||
| 175,441 | 198,653 | 197,667 | |||||||
| Non-current assets: | |||||||||
| Property and equipment, net | 88,069 | 92,403 | 98,510 | ||||||
| Other assets | 2,485 | 2,690 | 2,544 | ||||||
| $ | 265,995 | $ | 293,746 | $ | 298,721 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Short-term debt | $ | 19,000 | $ | 29,071 | $ | 12,571 | |||
| Trade accounts payable | 44,187 | 39,274 | 42,346 | ||||||
| Other current liabilities | 22,666 | 28,234 | 17,707 | ||||||
| 85,852 | 96,579 | 72,624 | |||||||
| Non-current liabilities: | |||||||||
| Long-term debt | - | - | 17,143 | ||||||
| Deferred tax liability and other | 2,722 | 4,560 | 3,742 | ||||||
| Accrued lease liability | 17,242 | 18,307 | 19,087 | ||||||
| 19,964 | 22,867 | 39,972 | |||||||
| 105,816 | 119,446 | 112,596 | |||||||
| Shareholders' equity | 160,179 | 174,300 | 186,125 | ||||||
| $ | 265,995 | $ | 293,746 | $ | 298,721 | ||||
| A.C. MOORE ARTS & CRAFTS, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Quarter Ended | Nine Months ended | |||||||||||||||
| October 3, | September 30, | October 3, | September 30, | |||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Net sales | $ | 106,083 | $ | 116,661 | $ | 319,172 | $ | 369,635 | ||||||||
|
Cost of sales (including buying and distribution costs) |
65,350 | 66,228 | 188,428 | 212,728 | ||||||||||||
| Gross margin | 40,733 | 50,433 | 130,744 | 156,907 | ||||||||||||
| Selling, general and administrative expenses | 53,177 | 53,390 | 154,221 | 166,657 | ||||||||||||
| Store pre-opening and closing expenses | 250 | 1,328 | 932 | 3,284 | ||||||||||||
| Loss from operations | (12,694 | ) | (4,285 | ) | (24,409 | ) | (13,034 | ) | ||||||||
| Net interest expense | 191 | 158 | 885 | 529 | ||||||||||||
| Loss before income taxes | (12,885 | ) | (4,443 | ) | (25,294 | ) | (13,563 | ) | ||||||||
| Provisions for income taxes | 24 | 3,096 | 72 | 8 | ||||||||||||
| Net loss | $ | (12,909 | ) | $ | (7,539 | ) | $ | (25,366 | ) | $ | (13,571 | ) | ||||
| Basic net loss per share | $ | (0.53 | ) | $ | (0.37 | ) | $ | (1.16 | ) | $ | (0.67 | ) | ||||
| Diluted net loss per share | $ | (0.53 | ) | $ | (0.37 | ) | $ | (1.16 | ) | $ | (0.67 | ) | ||||
| Basic weighted average shares outstanding | 24,324,860 | 20,299,501 | 21,913,991 | 20,298,961 | ||||||||||||
| Diluted weighted average shares outstanding | 24,324,860 | 20,299,501 | 21,913,991 | 20,298,961 | ||||||||||||
A.C. Moore Arts & Crafts, Inc.
David Stern, Chief
Financial Officer
856-768-4943
or
Gregory FCA
Communications, Inc.
Joe Hassett
610-642-8253
158.94 (1.43%)
