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8-K - FORM 8-K - A.C. Moore Arts & Crafts, Inc. | c16870e8vk.htm |
Exhibit 99.1
For:
A.C. Moore Arts & Crafts, Inc.
130 A.C. Moore Drive
Berlin, NJ 08009
A.C. Moore Arts & Crafts, Inc.
130 A.C. Moore Drive
Berlin, NJ 08009
A.C. Moore Reports First Quarter Fiscal 2011 Financial Results
Berlin, New Jersey, May 10, 2011 A.C. Moore Arts & Crafts, Inc. (NASDAQ: ACMR) (the Company or
A.C. Moore) today announced results for the first quarter ended April 2, 2011.
Sales for the first quarter of 2011 were $102.7 million, a decrease of 2.5% compared to sales
of $105.4 million during the first quarter of 2010. This decline was due to a decrease in
comparable store sales of 2.6%. Net loss for the quarter was $7.4 million, or $0.30 per share,
compared to a net loss of $7.6 million, or $0.31 per share in the first quarter of last year.
Joseph A. Jeffries, Chief Executive Officer, stated, As anticipated, the shift of the Easter
selling season into the second quarter of this year impacted our first quarter results. We remain
focused on executing our strategic plan for 2011.
The Company will host a conference call beginning at 8:30 a.m., Eastern Time, on Tuesday,
May 10, 2011 to discuss first quarter 2011 results. To participate in the conference call, please
dial 888-287-5534 and provide the operator with passcode #9061575. If you are unable to access the
live call, please dial 888-203-1112 and enter pin #9061575 to access the taped digital replay. The
replay will be available at approximately 9:30 a.m. ET on Tuesday, May 10, 2011 and will remain
available until Tuesday, May 24, 2011 at 11:59 p.m. ET.
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
Companys 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 Companys 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 135 stores located in the Eastern
United States 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. Moores 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, failure of
our planned strategies, the effect of future losses on our financial condition and cash flows, the
outcome of the strategic alternatives process, the availability of future capital and our ability
to comply with the terms of our credit facility, the effect of economic conditions, competitive
pressures, further declines in total sales and comparable store sales, failure to realize
anticipated results from our real estate strategy, changes in estimates, assumptions or judgments
related to store closure reserves or impairments, higher costs associated with or failure to
achieve anticipated results through the implementation of new programs or initiatives, weakness in
fourth quarter results, fluctuation in quarterly results due to the seasonality of our business,
changes in merchandise trends and consumer demands and any failure by us to anticipate such changes
successfully, failure to manage inventory and merchandise requirements, unfavorable consumer
response to our promotional strategies, material adverse events in the regions in which we operate,
including but not limited to, weather conditions, disruption in our operations or supply chain due
to disaster or other events that might cause a delay in our business, changes in our relationships
with key suppliers, disruption or increased costs that impact our reliance on imported merchandise,
inadequacies in our information technology or systems, changes in the labor market or our ability
to hire and retain associates and members of senior management, increases or fluctuations in fuel
or oil costs, the impact of existing or future government regulation, volatility in the price or
volume of our common stock and other risks detailed in the Companys Securities and Exchange
Commission filings. A.C. Moore undertakes no obligation to update or revise any forward-looking
statement whether as the result of new developments or otherwise.
[Tables Follow]
A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
April 2, | January 1, | April 3, | ||||||||||
2011 | 2011 | 2010 | ||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 26,654 | $ | 39,970 | $ | 31,929 | ||||||
Inventories |
115,707 | 111,266 | 121,985 | |||||||||
Prepaid expenses and other current assets |
9,550 | 11,257 | 11,955 | |||||||||
151,911 | 162,493 | 165,869 | ||||||||||
Property and equipment, net |
71,760 | 73,771 | 80,679 | |||||||||
Other assets |
1,366 | 1,192 | 1,989 | |||||||||
$ | 225,037 | $ | 237,456 | $ | 248,537 | |||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term debt |
$ | 19,000 | 19,000 | $ | 19,000 | |||||||
Trade accounts payable |
38,362 | 43,131 | 29,461 | |||||||||
Other current liabilities |
27,472 | 27,517 | 27,346 | |||||||||
84,834 | 89,648 | 75,807 | ||||||||||
Non-current liabilities: |
||||||||||||
Deferred and other tax liabilities |
1,574 | 1,920 | 2,993 | |||||||||
Accrued lease liability |
14,108 | 14,475 | 16,789 | |||||||||
15,682 | 16,395 | 19,782 | ||||||||||
100,516 | 106,043 | 95,589 | ||||||||||
Shareholders equity |
124,521 | 131,413 | 152,948 | |||||||||
$ | 225,037 | $ | 237,456 | $ | 248,537 | |||||||
A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share data)
(unaudited)
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share data)
(unaudited)
Quarter Ended | ||||||||
April 2, | April 3, | |||||||
2011 | 2010 | |||||||
Net sales |
$ | 102,724 | $ | 105,369 | ||||
Cost of sales (including buying and distribution costs) |
58,622 | 60,300 | ||||||
Gross margin |
44,102 | 45,069 | ||||||
Selling, general and administrative expenses |
50,661 | 52,268 | ||||||
Store pre-opening and closing expenses |
629 | 113 | ||||||
Loss from operations |
(7,188 | ) | (7,312 | ) | ||||
Net interest expense |
230 | 227 | ||||||
Loss before income taxes |
(7,418 | ) | (7,539 | ) | ||||
Provision for income taxes |
20 | 24 | ||||||
Net loss |
$ | (7,438 | ) | $ | (7,563 | ) | ||
Basic net loss per share |
$ | (0.30 | ) | $ | (0.31 | ) | ||
Diluted net loss per share |
$ | (0.30 | ) | $ | (0.31 | ) | ||
Basic weighted average shares outstanding |
24,570 | 24,342 | ||||||
Diluted weighted average shares outstanding |
24,570 | 24,342 | ||||||
Certain prior year amounts have been reclassified to correspond to current year
presentation.
For More Information Contact:
A.C. Moore Arts & Crafts, Inc.
David Stern, Chief Financial and Administrative Officer
(856) 768-4943
A.C. Moore Arts & Crafts, Inc.
David Stern, Chief Financial and Administrative Officer
(856) 768-4943