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 Company's 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 Company's 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. Moore's 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 Company's 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.
A.C. MOORE ARTS & CRAFTS, INC. | ||||||||||
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) | ||||||||||
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.
A.C. Moore Arts & Crafts, Inc.
David Stern, Chief Financial and
Administrative Officer
856-768-4943