EX-99.1 2 c04553exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(A.C. MOORE LOGO)
For:
A.C. Moore Arts & Crafts, Inc.
130 A.C. Moore Drive
Berlin, NJ 08009
A.C. Moore Reports Second Quarter Fiscal 2010 Financial Results
Berlin, New Jersey, August 10, 2010 — 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 3, 2010.
Sales for the second quarter of 2010 were $99.9 million, a decrease of 4.3% compared to sales of $104.4 million during the second quarter of 2009. This decline was primarily due to a decrease in comparable store sales of 5.9% partially offset by the operation of two additional stores compared to the second quarter of last year. Net loss for the quarter was $9.7 million, or $0.40 per share, compared to a net loss of $8.1 million, or $0.38 per share in the second quarter of last year.
Sales for the six months ended July 3, 2010 were $205.2 million, a decrease of 3.7% compared to sales of $213.1 million during the comparable period of 2009. This decline is primarily attributable a 5.3% decrease in comparable store sales partially offset by the operation of two additional stores compared to the same period of last year. Net loss was $17.2 million, or $0.71 per share, for the six months ended July 3, 2010, compared to a net loss of $12.5 million, or $0.60 for the comparable period last year.
Joseph A. Jeffries, Chief Executive Officer, stated, “We will not be satisfied until we return to sustained profitability. I am confident that we have both the right team and strategy in place. We will continue to focus on our merchandise plan, remodel program, and store level execution to drive improved performance.”
The Company will host a conference call beginning at 8:30 a.m., Eastern Time, on Tuesday, August 10, 2010 to discuss second quarter 2010 results. To participate in the conference call, please dial 877-397-0272 and provide the operator with passcode #8604679. If you are unable to access the live call, please dial 888-203-1112 and enter #8604679 to access the taped digital replay. The replay will be available at approximately 9:30 a.m. ET on Tuesday, August 10, 2010 and will remain available until Tuesday, August 24, 2010 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, 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 maintain liquidity and preserve cash, our ability to comply with the terms of our credit facility, 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, execution and results of our real estate strategy, competitive pressures, customer demand and trends in the arts and crafts industry, our failure to accurately respond to inventory and merchandise requirements, 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 and marketing 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 3,     January 2,     July 4,  
    2010     2010     2009  
ASSETS
                        
 
                        
Current assets:
                        
Cash and cash equivalents
   $ 31,414     $ 45,952     $ 55,981  
Inventories
     118,360       122,058       118,671  
Prepaid expenses and other current assets
     10,116       13,288       12,405  
 
                  
 
     159,890       181,298       187,057  
 
                  
Non-current assets:
                        
Property and equipment, net
     79,592       81,938       89,831  
Other assets
     1,718       2,233       2,782  
 
                  
 
   $ 241,199     $ 265,469     $ 279,670  
 
                  
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
 
                        
Current liabilities:
                        
Short-term debt
   $ 19,000     $ 19,000     $ 19,000  
Trade accounts payable
     33,096       37,047       44,094  
Other current liabilities
     26,833       28,624       23,448  
 
                  
 
     78,929       84,671       86,542  
 
                  
Non-current liabilities:
                        
Long-term debt
     —       —       —  
Deferred tax liability and other
     2,322       3,344       3,371  
Accrued lease liability
     16,246       17,380       17,128  
 
                  
 
     18,569       20,724       20,499  
 
                  
 
     97,498       105,395       107,041  
 
                  
 
                        
Shareholders’ equity
     143,700       160,074       172,629  
 
                  
 
   $ 241,199     $ 265,469     $ 279,670  
 
                  

 

 

 

A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
(unaudited)
                                 
    Second Quarter Ended     Six months ended  
    July 3,     July 4,     July 3,     July 4,  
    2010     2009     2010     2009  
 
                                
Net sales
   $ 99,850     $ 104,442     $ 205,219     $ 213,089  
Cost of sales (including buying and distribution costs)
     56,296       60,978       116,197       123,078  
 
                        
Gross margin
     43,554       43,464       89,022       90,011  
Selling, general and administrative expenses
     51,542       51,211       104,209       101,044  
Store pre-opening and closing expenses
     970       284       1,083       682  
 
                        
Loss from operations
     (8,958 )     (8,031 )     (16,270 )     (11,715 )
Net interest expense
     219       96       446       694  
 
                        
Loss before income taxes
     (9,177 )     (8,127 )     (16,716 )     (12,409 )
Provisions for (benefit of) income taxes
     485       22       509       48  
 
                        
Net loss
   $ (9,662 )   $ (8,149 )   $ (17,225 )   $ (12,457 )
 
                        
 
                                
Basic net loss per share
   $ (0.40 )   $ (0.38 )   $ (0.71 )   $ (0.60 )
 
                        
 
                                
Diluted net loss per share
   $ (0.40 )   $ (0.38 )   $ (0.71 )   $ (0.60 )
 
                        
 
                                
Basic weighted average shares outstanding
     24,419,174       21,313,000       24,378,754       20,881,000  
 
                        
 
                                
Diluted weighted average shares outstanding
     24,419,174       21,313,000       24,378,754       20,881,000  
 
                        
For More Information Contact:
A.C. Moore Arts & Crafts, Inc.
David Stern, Chief Financial Officer
(856) 768-4943