Value City Department Stores Reports Third Quarter Operating Results

Columbus, Oh, Nov. 27 /PRNewswire/ -- Value City Department Stores, Inc. (NYSE: VCD) today announced its consolidated financial results for the third quarter ended November 3, 2001.

Third Quarter Ended November 3, 2001

·  Net sales for the third quarter ended November 3, 2001 increased 4.4% to $584.4 million from $559.8 million for the quarter ended October 28, 2000.

·  Comparable store sales decreased 0.7% when compared to the same period last year.

·  Net loss for the quarter was $6.5 million, or $0.19 per share on a diluted basis, compared to a net loss of $79.0 million, or $2.35 per share on a diluted basis last year. The thirteen weeks ended October 28, 2000 include pretax charges of $87.4 million to address excess inventory quantities plus $3.0 million attributable to severance and asset impairment.

Year-to-Date For The Thirty-Nine Weeks Ended November 3, 2001

·  Net sales for the thirty-nine weeks ended November 3, 2001 increased 6.5% to $1.651 billion from $1.550 billion for the thirty-nine week period last year.

·  Comparable store sales declined 3.0% when compared to the same thirty-nine week period last year.

·  Net loss for the period was $20.0 million, or $0.60 per share on a diluted basis, compared to a net loss of $78.9 million, or $2.36 per share on a diluted basis last year. The thirty-nine weeks ended October 28, 2000 include pretax charges of $87.4 million to address excess inventory quantities plus $3.0 million attributable to severance and asset impairment.

At 8:30 a.m. EST, on November 28, 2001, the Company's management team will host a conference call to review the financial results.  The conference call will be simultaneously broadcast over the Internet at www.valuecity.com. A replay will be available from 12 p.m. EST November 28, 2001 through December 28, 2001. To listen to the replay, dial 1-800-839-0860 and reference confirmation code number 1216.

Value City Department Stores, Inc. is a leading off-price retailer operating 118 full-line department stores in the Midwest, mid-Atlantic and southeastern U.S., 20 Filene’s Basement Stores and 102 better-branded DSW Shoe Warehouse Stores in major metropolitan areas throughout the country.

SOURCE: Value City Department Stores, Inc.

Contact: Jim McGrady, Chief Financial Officer - (614) 478-2300


VALUE CITY DEPARTMENT STORES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

                                                                                       (Unaudited)                                 (Unaudited)  

                                                                                      November 3,    February 3,    October 28,

                                                                                                   2001               2001               2000

ASSETS                                                                                           

Cash and equivalents                                                     $    25,342      $    10,562      $      5,114

Accounts receivable, net                                                        5,805            44,927            50,528

Receivables from affiliates                                                    2,839              9,452            10,260

Inventories                                                                           493,125          393,577          502,916

Prepaid expenses and other assets                                  18,705            22,290              7,723

Deferred income taxes                                                        74,165            51,732            25,919

Total current assets                                                            619,981          532,540          602,460

                                                                                                           

Property and equipment, net                                             239,589          249,039          244,922

                                                                                                           

Investment in joint venture                                                      5,840              8,292              8,941

Goodwill and tradenames                                                    60,044            67,056            55,202

Other assets                                                                          48,304            51,082            75,521

Total assets                                                                     $ 973,758      $ 908,009      $ 987,046

                                                                                                           

LIABILITIES AND SHAREHOLDERS' EQUITY                       

Accounts payable                                                           $ 205,748      $ 180,736      $ 213,467

Accounts payable to affiliates                                             19,804            13,655            30,865

Accrued expenses                                                             121,590          126,144          105,727

Current maturities long-term obligations                                 623                 603                 539           

Total current liabilities                                                        347,765          321,138          350,598

                                                                                                           

Long-term obligations, net of current maturities              381,382          326,449          356,597

Deferred income taxes and

     other noncurrent liabilities                                               15,127            10,115              6,859           

                                                                                                           

Shareholders' equity                                                          229,484          250,307          272,992

Total Liabilities and Stockholders' Equity                    $ 973,758      $ 908,009      $ 987,046

           


VALUE CITY DEPARTMENT STORES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except share amounts)

(Unaudited)    

                                                                 Thirteen Weeks Ended       Thirty-nine Weeks Ended

                                                              November 3,    October 28,   November 3,  October 28,

                                                                           2001               2000               2001               2000

Net sales, excluding sales

      of licensed departments                   $ 584,403      $ 559,820   $1,650,994    $ 1,550,119

Cost of sales                                               360,943          446,973      1,020,041      1,059,252

Gross profit                                                 223,460          112,847          630,953          490,867

Selling, general and

     administrative expenses                       229,167          235,835          648,968          607,090

License fees from affiliates                            2,592              1,599              6,843              6,248

Other operating income                                 1,658                 614              4,247              2,048

Operating loss                                                (1,457)       (120,775)            (6,925)       (107,927)

Interest expense, net                                       7,406              7,873            23,900            21,191

Other income (expense), net                              (18)               (597)                 (13)                244

Loss before equity in loss of joint

     venture and benefit

     for income taxes                                        (8,881)       (129,245)         (30,838)       (128,874)

Equity in loss of joint venture                        (1,242)               (551)            (2,453)               (712)

Loss before benefit for income taxes        (10,123)       (129,796)         (33,291)       (129,586)

Benefit provision for income taxes                3,645            50,781            13,243            50,694

Net loss                                                    $     (6,478)     $  (79,015)  $     (20,048)  $     (78,892)

 

Basic loss per share                               $      (0.19)     $      (2.35)  $         (0.60)  $         (2.36)

Diluted loss per share                            $      (0.19)     $      (2.35)  $         (0.60)  $         (2.36)

 

Weighted average shares:

     Common                                                     33.6                33.6                33.5                33.4

     Diluted                                                         33.6                33.6                33.5                33.4

 

Same store sales:

     Value City Department Stores                  (0.1)%             (8.1)%             (4.6)%             (2.1)%

     DSW Shoe Warehouse                             (2.4)               18.3                   0.4                21.7

     Filene's Basement                                      (1.2)                 n/a                   2.3                   n/a

Total                                                                  (0.7)%             (4.3)%             (3.0)%              1.5%

 

Store count at end of period:

     Value City Department Stores                                             118                                         120           

     DSW Shoe Warehouse                                                        100                                            75

     Filene's Basement                                                                   20                                            19

Total                                                                                             238                                         214

 

SOURCE Value City Department Stores, Inc.