-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RRKB05OubZwfoqGKOn8F4A5ikklJL3mzaFN74sedMxDbYrziZj6tmJin8GDH3grn Dhczo0egVxgFb4cGMcvaIg== 0001125282-06-004183.txt : 20060720 0001125282-06-004183.hdr.sgml : 20060720 20060720102058 ACCESSION NUMBER: 0001125282-06-004183 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060720 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060720 DATE AS OF CHANGE: 20060720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: A.C. Moore Arts & Crafts, Inc. CENTRAL INDEX KEY: 0001042809 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOBBY, TOY & GAME SHOPS [5945] IRS NUMBER: 223527763 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23157 FILM NUMBER: 06970774 BUSINESS ADDRESS: STREET 1: 130 A.C. MOORE DRIVE CITY: BERLIN STATE: NJ ZIP: 08009 BUSINESS PHONE: (856) 768-4930 MAIL ADDRESS: STREET 1: 130 A.C. MOORE DRIVE CITY: BERLIN STATE: NJ ZIP: 08009 FORMER COMPANY: FORMER CONFORMED NAME: A C MOORE ARTS & CRAFTS INC DATE OF NAME CHANGE: 19970722 8-K 1 b414104_8k.txt FORM 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) July 20, 2006 ------------- A.C. MOORE ARTS & CRAFTS, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Pennsylvania 000-23157 22-3527763 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 130 A.C. Moore Drive, Berlin, NJ 08009 - -------------------------------------------------------------------------------- (Address of principal executive offices)(Zip Code) Registrant's telephone number, including area code (856) 768-4930 -------------- Not Applicable -------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 20, 2006, A.C. Moore Arts & Crafts, Inc. issued a press release. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (d) Exhibits. Exhibit No. Description - ----------- ----------- 99.1 Press release dated July 20, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. A.C. MOORE ARTS & CRAFTS, INC. Date: July 20, 2006 By: /s/ Leslie H. Gordon -------------------------------- Name: Leslie H. Gordon Title: Executive Vice President and Chief Financial Officer EXHIBIT INDEX ------------- Exhibit No. Description - ----------- ----------- 99.1 Press release dated July 20, 2006. EX-99.1 2 b414104_ex99-1.txt EX-99.1 Exhibit 99.1 A.C. Moore [Logo} General Office o Distribution Center - -------------------------------------------------------------------------------- 130 A.C. Moore Drive o Berlin, NJ 08009 PHONE: (856) 768-4930 o FAX (856) 753-4723 FOR: FROM: A.C. Moore Arts & Crafts, Inc. Gregory FCA Communications, Inc. Leslie Gordon For More Information Contact: Chief Financial Officer Joe Crivelli (856) 768-4930 (610) 642-8253 FOR IMMEDIATE RELEASE - --------------------- A.C. MOORE REPORTS SECOND QUARTER RESULTS BERLIN, NEW JERSEY, JULY 20, 2006 - A.C. Moore Arts & Crafts, Inc. (Nasdaq: ACMR) today announced results for the second quarter ended June 30, 2006. Sales for the second quarter of 2006 grew to $129.8 million, an increase of 14% over sales of $113.5 million during the second quarter of 2005. Same store sales increased by 3% versus 2005. Net loss in the second quarter was $1.8 million, or $0.09 per share, compared with a loss of $50,000 or $0.00 per share in the second quarter of 2005. Second quarter 2006 results include pre-tax expenses of $1.8 million related to the changes in management. These costs include severance costs relating to departing executives as well as recruiting costs. The impact of these costs was $0.05 per share after tax. Beginning in January 2006, the Company started expensing stock based compensation, which resulted in a second quarter pre-tax expense of $885,000, or $0.03 per share after-tax. Sales for the six months ended June 30, 2006, were $262.8 million, an increase of 11% over sales of $236.4 million in the first six months of 2005. Same store sales increased by less than 1% for the six month period. The net loss for the first half of 2006 was $1.5 million or $0.08 per share versus last year's net income of $1.2 million or $0.06 per share. Results for the first half of 2006 include pre-tax expenses of $2.0 million related to the changes in management and $1.6 million for stock based compensation. Rick Lepley, Chief Executive Officer, stated, "We are very pleased with the 14% total sales growth and the 3% comp store increase for the quarter. We are not satisfied with our operating margins and our future plans are focused on improving our merchandise margins and reducing our SG&A expenses." A.C. Moore will host a conference call today, Thursday, July 20, 2006 at 11:00 AM Eastern Daylight time to discuss these financial results in detail. To participate, please call 973-935-8504. If you are unable to access the live call, please dial 973-341-3080 and enter pin number 7588167 to access the taped digital replay. The replay will be available at approximately 1:00 PM on July 20th and will remain available until Thursday, July 27th at 11:59 PM Eastern Daylight Time. A simultaneous webcast of the conference call may be accessed at http://www.acmoore.com. Go to "Investor Relations" and click on "Corporate Profile." To listen to the live call, please go to the web site at least fifteen 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 and will remain available on the company's website until July 20, 2007. A.C. Moore operates arts and crafts stores that offer a vast assortment of traditional and contemporary arts and crafts merchandise for a wide range of customers. The Company operates 114 stores in the Eastern United States. For more information about the Company, 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. The Company undertakes no obligation to update or revise any forward-looking statement whether the result of new developments or otherwise. 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 costs associated with a change in senior management, the impact of the adoption of FAS 123R, customer demand and trends in the arts and crafts industry, related inventory risks due to shifts in customer demand, the effect of economic conditions, the impact of adverse weather conditions, the impact of competitors' locations or pricing, the availability of acceptable real estate locations for new stores, difficulties with respect to new system technologies, difficulties in implementing measures to reduce costs and expenses, supply constraints or difficulties, the effectiveness of advertising strategies, the impact of the threat of terrorist attacks and war, and other risks detailed in the Company's Securities and Exchange Commission filings. A.C. MOORE ARTS & CRAFTS, INC. CONSOLIDATED STATEMENT OF OPERATIONS (dollars in thousands, except per share data) (unaudited)
Three months ended Six months ended June 30, June 30, ----------------------------------- --------------------------------- 2006 2005 2006 2005 --------------- --------------- --------------- --------------- Net sales $ 129,817 $ 113,489 $ 262,735 $ 236,368 Cost of sales 77,023 67,800 156,788 142,551 --------------- --------------- --------------- --------------- Gross Margin 52,794 45,689 105,947 93,817 Selling, general and administrative expenses 53,185 44,766 105,029 90,610 Costs related to change in management 1,811 - 2,027 - Store pre-opening expenses 671 944 1,295 1,105 --------------- --------------- --------------- --------------- Income (loss) from operations (2,873) (21) (2,404) 2,102 Net interest expense 73 61 126 122 --------------- --------------- --------------- --------------- Income (loss) before income taxes (2,946) (82) (2,530) 1,980 Provision (benefit) for income taxes (1,178) (32) (1,012) 778 --------------- --------------- --------------- --------------- Net income (loss) $ (1,768) $ (50) $ (1,518) $ 1,202 =============== =============== =============== =============== Basic net income (loss) per share $ (0.09) $ (0.00) $ (0.08) $ 0.06 =============== =============== =============== =============== Diluted net income (loss) per share $ (0.09) $ (0.00) $ (0.08) $ 0.06 =============== =============== =============== =============== Weighted average shares outstanding 19,857,369 19,743,566 19,846,614 19,709,047 =============== =============== =============== =============== Weighted average shares outstanding plus impact of stock options 19,857,369 19,743,566 19,846,614 20,186,464 =============== =============== =============== ===============
A.C. MOORE ARTS & CRAFTS, INC. CONSOLIDATED BALANCE SHEETS (dollars in thousands) (unaudited) June 30, ------------------------------ 2006 2005 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 24,716 $ 22,229 Marketable securities - 14,237 Inventories 176,068 154,019 Prepaid expenses and other current assets 8,803 10,771 ------------- ------------- 209,587 201,256 Property and equipment, net 91,834 83,060 Other assets 1,797 1,398 ------------- ------------- $ 303,218 $ 285,714 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 2,571 $ 2,571 Trade accounts payable 41,002 34,432 Other current liabilities 12,419 10,540 ------------- ------------- 55,992 47,543 ------------- ------------- Non-current liabilities: Long-term debt 22,929 25,500 Deferred tax liability 7,837 8,076 Accrued lease liability 17,402 15,176 ------------- ------------- 48,168 48,752 ------------- ------------- 104,160 96,295 ------------- ------------- Shareholders' Equity 199,058 189,419 ------------- ------------- $ 303,218 $ 285,714 ============= ============= -----END PRIVACY-ENHANCED MESSAGE-----