BERLIN, N.J., Feb. 23 /PRNewswire-FirstCall/ -- A.C. Moore Arts & Crafts, Inc. (NASDAQ:ACMR) announced today that sales for the fourth quarter ended December 31, 2005 were $188.0 million, an increase of 6.1% over sales of $177.3 million for the fourth quarter ended December 31, 2004. Same store sales decreased 4.0% versus the previous year. Net income for the fourth quarter ended December 31, 2005 was $10.7 million or $0.53 per fully-diluted share compared to a net income of $14.4 million or $0.72 per fully-diluted share for the comparable prior period.
Sales for the year ended December 31, 2005 were a record $539.4 million, an increase of 8.4% over sales of $497.6 million during the year ended December 31, 2004. Same store sales declined by 2.6% for the year. Net income for the year 2005 was $10.0 million or $0.50 per fully-diluted share, compared to net income of $16.8 million or $0.84 per fully-diluted share in 2004.
Jack Parker, Chief Executive Officer, said, "We were disappointed with our 2005 results. Thus far in 2006, as we anticipated, sales in yarn continue to decline, but we are encouraged with the sales in many of our other categories. We re-iterate our forecast for 2006 net income to be in the range of $0.71 to $0.76 per fully-diluted share." A.C. Moore will host a conference call today, Thursday, February 23, 2006 at 11:00 a.m. EST to discuss the results.
To participate, please call 973 409-9254 and give the operator pin number 7056603. If you are unable to access the live call, please dial 973-341-3080 and enter pin number 7056603 to access the taped digital replay. The replay will be available at approximately 1:00 p.m. on February 23rd and will remain available until Wednesday, March 8th at 11:59 p.m. A simultaneous webcast of the conference call may be accessed at http://www.acmoore.com/. Go to "Investor Relations" and click on "Corporate Profile." To listen to the live call, please go to the web site at least fifteen 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 and will remain available on the company's website until February 23, 2007.
The company plans to release its first quarter 2006 sales results on Thursday, April 6, 2006. The company also plans to release its first quarter 2006 earnings on Thursday, April 20, 2006, and will host a conference call at 11:00 AM EDT on that date to discuss the results.
A.C. Moore operates arts and crafts stores that offer a vast assortment of traditional and contemporary arts and crafts merchandise for a wide range of customers. The Company operates 110 stores on the eastern United States. For more information about the Company, visit our website at http://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. The Company undertakes no obligation to update or revise any forward-looking statement whether the result of new developments or otherwise. 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 impact of the adoption of FAS 123R, customer demand and trends in the arts and crafts industry, related inventory risks due to shifts in customer demand, the effect of economic conditions, the impact of adverse weather conditions, the impact of competitors' locations or pricing, the availability of acceptable real estate locations for new stores, difficulties with respect to new system technologies, supply constraints or difficulties, the effectiveness of advertising strategies, the impact of the threat of terrorist attacks and war, and other risks detailed in the Company's Securities and Exchange Commission filings.
A.C. MOORE ARTS & CRAFTS, INC. CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands, except per share data)
(unaudited) Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004 Net sales $187,974 $177,250 $539,436 $497,626
Cost of sales 115,628 104,471 326,581 299,872
Gross Margin 72,346 72,779 212,855 197,754
Selling, general
and
administrative
expenses 53,842 47,686 192,878 166,485
Store pre-opening
expenses 1,160 1,579 3,459 4,036
Income from
operations 17,344 23,514 16,518 27,233
Net interest
expense
(income) 126 66 450 (163)
Income before
income taxes 17,218 23,448 16,068 27,396
Provisions
for income
taxes 6,478 9,028 6,026 10,548
Net income $10,740 $14,420 $10,042 $16,848 Basic net income
per share $0.54 $0.74 $0.51 $0.86 Diluted net
income per share $0.53 $0.72 $0.50 $0.84 Weighted average
shares
outstanding 19,816,074 19,604,070 19,757,988 19,481,623 Weighted average
shares
outstanding
plus impact
of stock
options 20,104,802 20,167,269 20,149,184 20,011,503 A.C. MOORE ARTS & CRAFTS, INC. CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited) December 31,
2005 2004 ASSETS Current assets:
Cash and cash equivalents $57,748 $27,730
Marketable securities 5,224 13,368
Inventories 152,646 137,976
Prepaid expenses and other current
assets 7,634 10,266
223,252 189,340 Property and equipment, net 88,098 80,762
Other assets 1,407 1,742
$312,757 $271,844 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Current portion of long-term debt $2,571 $2,571
Trade accounts payable 46,445 40,602
Other current liabilities 15,651 12,325
64,667 55,498
Long-term liabilities:
Long-term debt 24,215 27,429
Deferred tax liability 8,039 6,969
Accrued lease liability 17,327 12,321
49,581 46,719
114,248 102,217 Shareholders' Equity 198,509 169,627
$312,757 $271,844
DATASOURCE: A.C. Moore Arts & Crafts, Inc.
CONTACT: Leslie Gordon, Chief Financial Officer of A.C. Moore Arts & Crafts, Inc., +1-856-768-4930; or Joe Crivelli of Gregory FCA Communications, Inc., +1-610-642-8253 Web site: http://www.acmoore.com/
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