A.C. Moore Reports Second Quarter Results
BERLIN, N.J., July 20 /PRNewswire-FirstCall/ -- A.C. Moore Arts & Crafts, Inc. (NASDAQ:ACMR) sales for the second quarter ended June 30, 2005, grew to $113.5
million, an increase of 12.1% over sales of $101.2 million for the second
quarter of 2004. Same store sales increased 0.5%. There was a net loss in the
second quarter of $50,000 compared with income of $335,000 for the second
quarter of 2004. The loss per fully diluted share was $0.00 versus income of
$0.02 per fully diluted share in the prior comparable period.
Sales for the six months ended June 30, 2005, were $236.4 million, an increase
of 11.1% over 2004 first half sales of $212.7 million. Same store sales
declined by 0.6%. Net income for the first half of 2005 was $1.20 million or
$0.06 per fully diluted share versus last year's net income of $1.56 million or
$0.08 per fully diluted share.
Jack Parker, Chief Executive Officer, stated, "The second quarter was one of
significant change and accomplishment as we re-merchandised the majority of our
basic departments. During this period of activity, we were not satisfied with
our sales results but we believe that we are well positioned to capitalize on
business in the critical back half of the year. We are maintaining our
earnings forecast for the year in the range of $1.00 to $1.03 per fully diluted
share." A.C. Moore will host a conference call today, Wednesday, July 20, 2005 at 5:00
PM Eastern Daylight time to discuss these financial results in detail. To
participate, please call 973-409-9254. If you are unable to access the live
call, please dial 973-341-3080 and enter pin number 6248054 to access the taped
digital replay. The replay will be available at approximately 7:00 PM on July
20th and will remain available until Wednesday, July 27th at 11:59 PM Eastern
Daylight time.
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 July 20, 2006.
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 99 stores in 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 EITF Issue 02-16, 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, the
uncertainty of the final resolution of the insurance claim relating to the roof
collapse, our ability to maintain an effective system of internal control over
financial reporting, and other risks detailed in the Company's Securities and
Exchange Commission filings.
Tables to Follow
A.C. MOORE ARTS & CRAFTS, INC. CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands, except per share data)
(unaudited) Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004 Net sales $113,489 $101,194 $236,368 $212,663
Cost of sales 67,800 61,852 142,551 131,391
Gross Margin 45,689 39,342 93,817 81,272
Selling, general and
administrative expenses 44,766 38,541 90,610 78,005
Store pre-opening expenses 944 380 1,105 968
Income (loss) from operations (21) 421 2,102 2,299
Net interest expense (income) 61 (123) 122 (243)
Income (loss) before income
taxes (82) 544 1,980 2,542
Provision for income taxes (32) 209 778 979
Net income (loss) $(50) $335 $1,202 $1,563 Basic net income (loss)
per share $(0.00) $0.02 $0.06 $0.08 Diluted net income (loss)
per share $(0.00) $0.02 $0.06 $0.08 Weighted average shares
outstanding 19,743,566 19,438,837 19,709,047 19,407,541 Weighted average shares
outstanding plus impact
of stock options 19,743,566 20,108,417 20,186,464 20,044,554 A.C. MOORE ARTS & CRAFTS, INC. CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited) June 30,
2005 2004 ASSETS Current assets:
Cash and cash equivalents $22,229 $34,013
Marketable securities 14,237 13,396
Inventories 154,019 123,416
Prepaid expenses and other current assets 10,771 5,592
201,256 176,417 Property and equipment, net 83,060 72,746
Other assets 1,398 1,768
$285,714 $250,931 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Current portion of long-term debt $2,571 $1,930
Trade accounts payable 34,432 27,537
Other current liabilities 10,540 13,120
47,543 42,587
Long-term liabilities:
Long-term debt 25,500 28,070
Deferred tax liability 8,076 5,367
Accrued lease liability 15,176 5,241
48,752 38,678
96,295 81,265 Shareholders' Equity 189,419 169,666
$285,714 $250,931
DATASOURCE: A.C. Moore Arts & Crafts, Inc.
CONTACT: Leslie Gordon, Chief Financial Officer, A.C. Moore Arts & Crafts, Inc., +1-856-768-4930; or Joe Crivelli, Gregory FCA Communications, Inc., +1-610-642-8253, for A.C. Moore Arts & Crafts Web site: http://www.acmoore.com/
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