COLUMBUS,
Ohio, August 28 /PRNewswire/-- (NYSE: VCD
- news) today announced financial
results for the quarter ended August 4, 2001.
Sales
for the second quarter increased 1.6% to $536.5 million from $528.2 million.
Same store sales decreased 4.5%. The Company's net loss for the quarter was
$5.8 million, or $0.17 per share, versus a net income of $0.1 million, or zero
per share for last year's quarter. Sales
for the six months ended August 4, 2001, increased 7.7% to $1,066.6 million
from $990.3 million. Same store sales decreased 4.2%. The Company's net loss
for the six months was $13.6 million, or $0.40 per share, versus net income
of $0.1 million, or zero per share in the prior year to date period. The
Company also announced that Schottenstein Stores Corporation has agreed to immediately
increase its line of credit under the Value City Subordinated Credit Facility
from $50.0 million to $100.0 million. The necessary verbal approvals from the
bank group have been received as required under the Company's senior credit
facility. Value
City Department Stores, Inc. is a leading off-price retailer, currently operating
118 full-line department stores in the midwest, mid- Atlantic and southeastern
U.S., 19 Filene's Basement stores primarily in the northeastern U.S. as well
as 90 better-branded, off-price DSW Shoe Warehouse stores in major metropolitan
areas throughout the country. Safe
Harbor Statement Under the Private Securities Litigation Reform Act of 1995 The
Company cautions that members of management may make certain forward- looking
statements based on the Company's current expectations or beliefs. We caution
investors that our actual results may differ materially from our current expectation
and beliefs based on the risk factors described in the reports we file with
the SEC.
VALUE CITY DEPARTMENT STORES, INC. (NYSE: VCD - news)
(in millions except per share and footnote data)
(unaudited)
Second Quarter Ended Six Months Ended
8/04/01 7/29/00 8/04/01 7/29/00
NET OWNED SALES $536.5 $528.2 $1,066.6 $990.3
NET (LOSS) INCOME $(5.8) $0.1 $(13.6) $0.1
BASIC AND DILUTED (LOSS)
EARNINGS PER SHARE $(0.17) $0.00 $(0.40) $0.00
WEIGHTED AVERAGE SHARES
OUTSTANDING (a) 33.5 33.5 33.5 33.4
SHARES USED FOR
DILUTED EPS (a) 33.5 33.7 33.5 33.6
(a) Excludes 7,681 treasury shares at August 4, 2001 and July 29, 2000.
VALUE CITY DEPARTMENT STORES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended
August 4, 2001 July 29, 2000
Net sales 536,477 528,246
Cost of sales (330,876) (327,958)
Gross profit 205,601 38.3% 200,288 37.9%
Selling, general and
administrative expenses (211,288) -39.4% (197,063) -37.3%
License fees from affiliates and
other operating income 4,233 0.8% 3,887 0.7%
Operating (loss) profit (1,454) -0.3% 7,112 1.3%
Interest expense, net (8,058) -1.5% (7,963) -1.5%
Gain on sale of assets, net 4 0.0% 861 0.2%
(Loss) income before equity
in loss of joint venture
and benefit (provision)
for income taxes (9,508) -1.8% 10 0.0%
Equity in loss of joint venture (328) -0.1% 107 0.0%
(Loss) income before benefit
(provision) for income taxes (9,836) -1.8% 117 0.0%
Benefit (provision) for income
taxes 4,065 0.8% (49) 0.0%
Net (loss) income ($5,771) -1.1% $68 0.0%
Basic and diluted (loss) earnings
per share ($0.17) $0.00
Same store sales percent
Value City Department Stores (7.2)% (1.0)%
DSW Shoe Warehouse 1.3 % 26.8 %
Filene's Basement 2.8 % N/A
Total consolidated (4.5)% 3.2 %
VALUE CITY DEPARTMENT STORES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Six months ended
August 4, 2001 July 29, 2000
Net sales 1,066,591 990,299
Cost of sales (659,098) (612,279)
Gross profit 407,493 38.2% 378,020 38.2%
Selling, general and
administrative expenses (419,801) -39.4% (371,255) -37.5%
License fees from affiliates and
other operating income 6,840 0.6% 6,083 0.6%
Operating (loss) profit (5,468) -0.5% 12,848 1.3%
Interest expense, net (16,494) -1.5% (13,318) -1.3%
Gain on sale of assets, net 5 0.0% 841 0.1%
(Loss) income before equity
in loss of joint venture
and benefit (provision)
for income taxes (21,957) -2.1% 371 0.0%
Equity in loss of joint venture (1,211) -0.1% (161) 0.0%
(Loss) income before benefit
(provision) for income taxes (23,168) -2.2% 210 1.4%
Benefit (provision) for income
taxes 9,598 0.9% (87) 0.0%
Net (loss) income ($13,570) -1.3% $123 0.0%
Basic and diluted (loss) earnings
per share ($0.40) $0.00
Same store sales percent
Value City Department Stores (6.8)% 1.3 %
DSW Shoe Warehouse 1.8 % 23.6 %
Filene's Basement 6.3 % N/A
Total consolidated (4.2)% 4.8 %
VALUE CITY DEPARTMENT STORES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
August 4, July 29,
2001 2000
ASSETS
Current assets:
Cash and equivalents $23,124 $15,146
Inventories 446,955 598,912
Other current assets 97,979 54,747
Total current assets 568,058 668,805
Property, net 243,498 236,544
Other noncurrent assets 113,465 140,769
Total assets $925,021 $1,046,118
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities 294,218 389,610
Total long-term liabilities 394,590 305,453
Total liabilities 688,808 695,063
Total shareholders' equity 236,213 351,055
Total liabilities and
shareholders' equity $925,021 $1,046,118
Value City Department Stores, Inc. is a leading off-price retailer currently operating 119 full-line department stores in the Midwest, mid-Atlantic and southeastern U.S., 19 Filene's Basement Stores and 89 better- branded DSW Shoe Warehouse Stores in major metropolitan areas throughout the country.
For
More Information Contact:
James McGrady
Phone: (614) 478-2300
Value City Department Stores, Inc.
3241 Westerville Road, Columbus, OH 43224