-----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, PS3LEUqBb5Qh65jPdxzB1WFCkNfyshaIdVN3kCD0kzAVvenvz6d1pdaHInDEm7jW 8X3SeNPtxg7ZDekZCJvMsQ== 0000813775-03-000031.txt : 20030814 0000813775-03-000031.hdr.sgml : 20030814 20030814150551 ACCESSION NUMBER: 0000813775-03-000031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030813 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FACTORY 2 U STORES INC CENTRAL INDEX KEY: 0000813775 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FAMILY CLOTHING STORES [5651] IRS NUMBER: 510299573 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10089 FILM NUMBER: 03846820 BUSINESS ADDRESS: STREET 1: 4000 RUFFIN ROAD STREET 2: 6TH FLR CITY: SAN DIEGO STATE: CA ZIP: 92123-1866 MAIL ADDRESS: STREET 1: 4000 RUFFIN ROAD STREET 2: 6TH FLOOR CITY: SAN DIEG STATE: CA ZIP: 92123-1866 FORMER COMPANY: FORMER CONFORMED NAME: FAMILY BARGAIN CORP DATE OF NAME CHANGE: 19940202 FORMER COMPANY: FORMER CONFORMED NAME: DRS INDUSTRIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: LONGWOOD GROUP LTD DATE OF NAME CHANGE: 19920527 8-K 1 a8kq2er.txt FORM 8K FURNISHED RE Q2 EARNING RELEASE 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): August 13, 2003 FACTORY 2-U STORES, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE ---------------------------------------------- (State or other jurisdiction of incorporation) 1-10089 51-0299573 - ------------------------ --------------------------------- (Commission File Number) (IRS Employer Identification No.) 4000 RUFFIN ROAD, SAN DIEGO, CALIFORNIA 92123 --------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (858) 627-1800 NA ------------------------------------------------------------- (Former name or former address, if changed since last report) The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 12 and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. In addition, the information in this Current Report on Form 8-K, including the exhibits, shall not be deemed to be incorporated by reference into the filings of Factory 2-U Stores, Inc. under the Securities Act of 1933, as amended. Item 7. Exhibits Exhibit No. Description ----------- ----------- 99.1 Press release of Factory 2-U Stores, Inc., dated August 13, 2003. Item 12. Results of Operations and Financial Condition On August 13, 2003, we announced the operating results for the 13 and 26 weeks ended August 2, 2003. In addition, we held a web-cast presentation and live conference call discussing the operating results of our second quarter. The full text of our press release dated August 13, 2003 is attached as exhibit thereto. A replay of the conference call is available for 48 hours by telephone or on the internet for two weeks from August 13, 2003. A transcript of the conference call is available by contacting Kehoe, White & Co., Inc. at 1-562-437-0655. 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 thereunto duly authorized. FACTORY 2-U STORES, INC. (Registrant) By: /s/ Douglas C. Felderman ------------------------ Douglas C. Felderman Executive Vice President and August 14, 2003 Chief Financial Officer - --------------- Date EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press release of Factory 2-U Stores, Inc., dated August 13, 2003. EX-99 3 exher081303.txt PRESS RELEASE DATED 081303 Exhibit 99.1 FACTORY 2-U STORES, INC. ANNOUNCES FISCAL 2003 SECOND QUARTER OPERATING RESULTS SAN DIEGO, CA, August 13, 2003 - FACTORY 2-U STORES, INC. (Nasdaq:FTUS) today announced operating results for the second quarter ended August 2, 2003. Net sales for the second quarter were $123.7 million as compared to $128.1 million for the same period last year, a decrease of 3.5%. Comparable store sales for the second quarter increased 0.1% versus a decrease of 8.7% for the same period last year. Comparable customer transaction counts increased 8.9%, the market basket size increased 12.2% and the average unit retail decreased 21.0% for the second quarter this year. The Company reported a net loss of $5.4 million, or $0.35 per share, compared to a net loss of $5.8 million, or $0.45 per share for the same period last year. Included in last year's results was a pre-tax charge of $2.1 million, or $0.10 per share related to the legal settlement agreement which alleged that the Company violated the California Labor Code and Internal Wage Commission Orders, by classifying store managers and assistant managers as exempt salaried employees and thereby failing to pay them overtime. Excluding this pre-tax charge of $2.1 million, our net loss for the second quarter of last year was $4.6 million, or $0.35 per share. Net sales for the six months ended August 2, 2003 were $228.0 million compared to $245.0 million for the same period last year, a decrease of 7.0%. Comparable store sales decreased 3.5% versus a decrease of 10.2% for the same period last year. Comparable customer transaction counts increased 5.9%, the market basket size increased 12.6% and the average unit retail decreased 22.0% for the six-month period this year. The Company reported a net loss of $8.1 million, or $0.54 per share compared to a net loss of $9.0 million, or $0.69 per share for the same period last year, before special items. Excluding the previously announced pre-tax reduction of approximately $1.2 million to valuation reserves established at the end of our fiscal 2002 for slow and aged inventory and certain stock subscriptions notes receivable secured by our common stock and the pre-tax $2.1million legal settlement for the same period last year, our loss would have been $8.9 million, or $0.60 per share, compared a net loss of $7.7 million, or $0.60 per share for the same period last year. Bill Fields, Chief Executive Officer said, "Our second quarter results were below the low end of our expectations as a result of lower than expected sales in July, promotional efforts during the quarter and costs associated with the start-up of our new distribution center in San Diego, CA." Mr. Fields concluded, "We spent the majority of the first half of this fiscal year focusing on strengthening our price position in the marketplace, increasing transaction counts and improving store operations. We made a significant investment during this period and expect operating results to improve in the second half of this fiscal year. We are optimistic about the "Back to School" season and entered this period in an excellent inventory position. As mentioned in our July sales release, we expect comparable store sales for the third quarter to be in the range of positive 3% to 4%, gross margins to improve and earnings of approximately $0.01 per diluted share." The Company will host a real-time web-cast presentation and live conference call to discuss our second quarter operating results and expectations for the third quarter, today at 5:00 P.M. Eastern Standard Time. To participate in the call, dial 1-800-843-7949 five minutes before the call or access the Internet at www.factory2-u.com. All shareholders and other interested parties are encouraged to participate. A replay of the call will remain available for 48 hours by telephone or on the Internet for two weeks. You may also obtain a transcript of the call by contacting Kehoe, White & Co., Inc. at 1-562-437-0655. We will provide a mid-month sales update for August on August 18, 2003 at 5:00 P.M. Eastern Standard Time. Those interested can access this update message at 1-888-201-9603. This message will remain available until September 22, 2003. We will release our August sales results on September 3, 2003 after the market closes, or approximately 4:00 P.M. Eastern Standard Time. FACTORY 2-U STORES, INC. operates 243 "Factory 2-U" off-price retail stores which sell branded casual apparel for the family, as well as selected domestics and household merchandise at prices which generally are significantly lower than the prices offered by its discount competitors. The Company operates 32 stores in Arizona, 2 stores in Arkansas, 65 stores in southern California, 63 stores in northern California, 1 store in Idaho, 8 stores in Nevada, 9 stores in New Mexico, 1 store in Oklahoma, 14 stores in Oregon, 34 stores in Texas, and 14 stores in Washington. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, and actual results could differ materially from the Company's present expectations. Among the important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are: customer demand and trends in the off-price apparel industry, the effect of economic conditions, the impact of competitive openings and pricing, supply constraints or difficulties, and other risks detailed in the Company's Securities and Exchange Commission filings. (tables follow)
FACTORY 2-U STORES, INC. Statements of Operations (in thousands, except per share data) (Unaudited) 13 Weeks Ended 26 Weeks Ended -------------- -------------- August 2, August 3, August 2, August 3, 2003 2002 2003 2002 --------- --------- --------- --------- Net sales $ 123,659 $ 128,088 $ 228,006 $ 245,039 Cost of sales 85,090 87,059 151,802 162,852 ---------- ---------- ---------- ---------- Gross profit 38,569 41,029 76,204 82,187 Selling and administrative expenses 46,248 50,181 87,503 95,879 Pre-opening and closing expenses 83 266 221 703 ---------- ---------- ---------- ---------- Operating loss (7,762) (9,418) (11,520) (14,395) Interest expense, net 935 310 1,569 568 ---------- ---------- ---------- ---------- Loss before income taxes (8,697) (9,728) (13,089) (14,963) Income tax benefit (3,307) (3,891) ( 4,978) ( 5,985) ---------- ---------- ---------- ---------- Net loss $ (5,390) $ (5,837) $ ( 8,111) $ ( 8,978) ========== ========== ========== ========== Loss per share: Basic $ (0.35) $ (0.45) $ (0.54) $ (0.69) Diluted $ (0.35) $ (0.45) $ (0.54) $ (0.69) Weighted average common shares outstanding: Basic 15,197 12,957 14,909 12,930 Diluted 15,197 12,957 14,909 12,930
FACTORY 2-U STORES, INC. BALANCE SHEETS (in thousands) (Unaudited) (Unaudited) August 2, August 3, February 1, 2003 2002 2003 ----------- ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 6,384 $ 7,446 $ 3,465 Merchandise inventory 65,692 76,824 32,171 Accounts receivable, net 350 2,476 884 Income taxes receivable - 5,913 8,200 Prepaid expenses 6,862 6,909 5,436 Deferred income taxes 9,753 3,553 9,732 ----------- ------------ ----------- Total current assets 89,041 103,121 59,888 Leasehold improvements and equipment, net 25,388 36,957 28,602 Deferred income taxes 15,813 7,182 10,750 Other assets 815 959 963 Goodwill 26,301 26,301 26,301 ----------- ------------ ----------- Total assets $ 157,358 $ 174,520 $ 126,504 =========== ============ =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debts $ 3,030 $ 2,001 $ 3,000 Junior secured term loans 7,500 - - Accounts payable 47,767 52,714 27,961 Taxes payable 2,840 3,150 5,840 Accrued expenses and other liabilities 25,223 32,875 27,831 ------------ ------------ ----------- Total current liabilities 86,360 90,740 64,632 Revolving credit facility 17,949 5,386 6,300 Long-term debts 7,023 8,906 6,445 Accrued restructuring charges 1,747 3,578 1,747 Deferred rent 2,931 3,295 3,061 ------------ ------------ ----------- Total liabilities 116,010 111,905 82,185 Stockholders' equity 41,348 62,615 44,319 ------------ ------------ ----------- Total liabilities and stockholders' equity $ 157,358 $ 174,520 $ 126,504 ============ ============ =========== ******
-----END PRIVACY-ENHANCED MESSAGE-----