EX-99.1 2 c89076exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(A.C. MOORE LETTERHEAD)
     
For:
  From:
A.C. Moore Arts & Crafts, Inc.
  Gregory FCA Communications, Inc.
For More Information Contact:
  For More Information Contact:
David Stern, Chief Financial Officer
  Joe Hassett
(856) 768-4943
  (610) 642-8253
A.C. Moore Reports Second Quarter 2009 Results
Berlin, New Jersey, August 13, 2009 — A.C. Moore Arts & Crafts, Inc. (NASDAQ: ACMR) (the “Company” or “A.C. Moore”) today announced results for the three and six month periods ended July 4, 2009.
Sales for the second quarter of fiscal 2009 were $104.4 million, compared to sales of $126.4 million during the second quarter of fiscal 2008. Sales were impacted by operating six fewer stores than during the comparable period in 2008 and by a decrease in comparable store sales of 13.8%. Pre-tax loss for the quarter was $8.1 million, compared to a pre-tax loss of $6.7 million for the quarter last year. In the second quarter of 2009, the Company was not able to record a tax benefit related to the loss. In the comparable period in 2008, the Company recorded an income tax benefit of $2.4 million, or $0.12 per share. Net loss for the quarter was $8.1 million, or $0.38 per share, compared with a net loss of $4.3 million, or $0.21 per share, in the comparable period last year. Second quarter 2008 results include charges related to the non-cash fixed asset impairment of $0.07 per share.
Sales for the six months ended July 4, 2009 were $213.1 million, compared to sales of $253.0 million during the comparable period of 2008. Sales were impacted by operating fewer stores than during the comparable period in 2008 and by a decrease in comparable store sales of 13.6%. Pre-tax loss was $12.4 million for the six months ended July 4, 2009, compared to a pre-tax loss of $9.1 million for the comparable period last year. For the six months ended July 4, 2009, the Company was not able to record a tax benefit related to the loss. In the comparable period of 2008, the Company recorded an income tax benefit of $3.1 million, or $0.15 per share. Net loss for the six months ended July 4, 2009 was $12.5 million, or $0.60 per share, compared with a net loss of $6.0 million, or $0.30 per share in the comparable period of 2008. 2008 results include charges related to the non-cash fixed asset impairment of $0.07 per share.
Rick Lepley, Chief Executive Officer, said, “While we are not satisfied with the results for the second quarter, revenue was in line with our expectations. We continue to focus on driving sales and are pleased with the results of our initiatives to manage inventory, enhance our supply chain systems, and improve our cash position.”

 

 

 

The Company will host a conference call beginning at 8:30 a.m., Eastern Time, on Thursday, August 13, 2009 to discuss second quarter 2009 results. To participate in the conference call, please call 800-559-6679 and provide the operator with passcode #22416063. If you are unable to access the live call, please dial 800-642-1687 and enter pin #98363393 to access the taped digital replay. The replay will be available at approximately 9:30 a.m. ET on August 13, 2009 and will remain available until August 20, 2009 at 11:59 p.m.
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 133 stores located in the Eastern United States from Maine to Florida 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, the failure to consummate our identified strategic objectives, the effect of economic conditions and fuel prices, our ability to implement our business and operating initiatives to improve sales and profitability, our ability to comply with the terms of our credit facility, our ability to comply with NASDAQ listing requirements, changes in the labor market and our ability to hire and retain associates and members of senior management, the impact of existing or future government regulation, our ability to increase the number of stores we operate and the profitability of existing stores, how well we manage our growth, execution and results of our real estate strategy, competitive pressures, customer demand and trends in the arts and crafts industry, inventory risks, the impact of unfavorable weather conditions, disruption in our operations or supply chain, changes in our relationships with suppliers, difficulties with respect to new system technologies, difficulties in implementing measures to reduce costs and expenses and improve margins, supply constraints or difficulties, the effectiveness of and changes to advertising strategies and other risks detailed in the Company’s Securities and Exchange Commission (“SEC”) 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)
                         
    July 4,     January 3,     June 30,  
    2009     2009     2008  
ASSETS
                        
 
                        
Current assets:
                        
Cash and cash equivalents
   $ 55,981     $ 74,437     $ 45,625  
Inventories
     118,671       109,365       136,591  
Prepaid expenses and other current assets
     7,906       14,851       16,831  
 
                  
 
     182,558       198,653       199,047  
 
                  
 
                        
Non-current assets:
                        
Property and equipment, net
     89,831       92,403       98,416  
Other assets
     2,782       2,690       2,259  
 
                  
 
   $ 275,171     $ 293,746     $ 299,722  
 
                  
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
 
                        
Current liabilities:
                        
Short-term debt
   $ 19,000     $ 29,071     $ 2,571  
Trade accounts payable
     39,595       39,274       39,817  
Other current liabilities
     23,448       28,234       18,821  
 
                  
 
     82,043       96,579       61,209  
 
                  
 
                        
Non-current liabilities:
                        
Long-term debt
     —       —       17,786  
Deferred tax liability and other
     3,371       4,560       7,268  
Accrued lease liability
     17,128       18,307       20,299  
 
                  
 
     20,499       22,867       45,353  
 
                  
 
     102,542       119,446       106,562  
 
                  
 
                        
Shareholders’ Equity
     172,629       174,300       193,160  
 
                  
 
   $ 275,171     $ 293,746     $ 299,722  
 
                  

 

 

 

A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
(unaudited)
                                 
    Quarter Ended     Six months ended  
    July 4,     June 30,     July 4,     June 30,  
    2009     2008     2009     2008  
 
                                
Net sales
   $ 104,442     $ 126,430     $ 213,089     $ 252,974  
Cost of sales ( including buying and distribution costs)
     60,978       74,067       123,078       146,500  
 
                        
Gross margin
     43,464       52,363       90,011       106,474  
Selling, general and administrative expenses
     51,211       57,657       101,044       113,267  
Store pre-opening and closing expenses
     284       1,328       682       1,956  
 
                        
Loss from operations
     (8,031 )     (6,622 )     (11,715 )     (8,749 )
Net interest expense
     96       65       694       371  
 
                        
Loss before income taxes
     (8,127 )     (6,687 )     (12,409 )     (9,120 )
Provisions for (benefit of) income taxes
     22       (2,422 )     48       (3,088 )
 
                        
Net loss
   $ (8,149 )   $ (4,265 )   $ (12,457 )   $ (6,032 )
 
                        
 
                                
Basic net loss per share
   $ (0.38 )   $ (0.21 )   $ (0.60 )   $ (0.30 )
 
                        
 
                                
Diluted net loss per share
   $ (0.38 )   $ (0.21 )   $ (0.60 )   $ (0.30 )
 
                        
 
                                
Basic weighted average shares outstanding
     21,313,000       20,299,000       20,881,000       20,299,000  
 
                        
 
                                
Diluted weighted average shares outstanding
     21,313,000       20,299,000       20,881,000       20,299,000