ABILENE, Kan., April 14, 2011 (GLOBE NEWSWIRE) -- Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK), which specializes in providing a superior selection of essential products for everyday life in small-town America, today announced operating results for its fourth quarter and fiscal year ended January 30, 2011.
Net sales from continuing operations for the fourth quarter of fiscal 2011 increased 4.4% to $136.9 million and same-store sales, excluding fuel center sales, increased 1.8%, compared to the same period in the prior fiscal year. Net sales from continuing operations for the fiscal year decreased 0.6% to $465.2 million and same-store sales decreased 2.4%, compared to the same period in the prior fiscal year.
Net earnings for the fourth quarter were $0.7 million, or $0.19 per diluted share, compared to $1.4 million, or $0.35 per diluted share, for the fourth quarter of fiscal 2010. Earnings from continuing operations for the fourth quarter were $1.8 million, or $0.48 per diluted share compared to $1.8 million, or $0.46 per diluted share, for the fourth quarter of fiscal 2010. During the fourth quarter, the Company recorded a charge for discontinued operations of approximately $1.1 million, net of tax benefit, or $0.29 per diluted share, primarily related to the closing of the Duckwall stores.
The fiscal year net loss was $4.6 million, or $1.20 per diluted share, compared to net earnings of $2.8 million, or $0.72 per diluted share, for the prior fiscal year. The fiscal year net loss from continuing operations was $3.6 million, or $0.93 per diluted share, compared to earnings from continuing operations of $2.2 million, or $0.56 per diluted share, for the prior fiscal year.
Richard Wilson, President and CEO, commented, "As evidenced by the year-over-year earnings improvement from continuing operations in the fourth quarter, we believe this quarter was one of those stepping-off points where we have the sense of accomplishing many things, are starting to see the results of our efforts, and are well positioned for the future. While we recognize there is still much work to do, we look forward to building upon these accomplishments in order to deliver the sales and profitability results our shareholders deserve. We are particularly encouraged by the continued growth of our same store sales into the first two months of the 2012 fiscal year."
Mr. Wilson continued, "The charge in the fourth quarter related to a strategic action to improve results going forward. As previously announced, the Company concluded that the small, limited-selection Duckwall stores no longer met the needs of most shoppers and we made the difficult decision to close these stores. Our store operations teams accomplished much under the challenging circumstances of closing these stores and I thank them for all of their efforts and hard work."
Investor Conference Call
The Company will host an investor conference call at 10:00 a.m. Central Time on April 15, 2011,to discuss operating results for the fourth quarter ended January 30, 2011. The dial-in number for the conference call is 888-271-8608 (international/local participants dial 913-312-1482), and the Confirmation Code is 4384694. Parties interested in participating in the conference call should dial in approximately five minutes prior to 10:00 a.m. Central Time. A replay of the call will be available after 1:30 p.m. Central Time April 15, 2011 through April 20, 2011 by dialing 888-203-1112 or for international/local callers by dialing 719-457-0820. The Replay Passcode is 4384694. A replay of the call will also be available four hours after completion of the call by visiting the Investors page on the Company's website, .
Supplemental Data
The Company has included certain tables in this press release that are set forth fully in the Company's 10-K.
Certain Non-GAAP Financial Measures
The Company has included Adjusted Gross Margin and Adjusted EBITDA, non-GAAP performance measures, as part of its disclosure as a means to enhance its communications with stockholders. Certain stockholders have specifically requested this information to assist them in comparing the Company to other retailers that disclose similar non-GAAP performance measures. Further, management utilizes these measures in internal evaluation, review of performance and in comparing the Company's financial measures to those of its peers. Adjusted EBITDA differs from the most comparable GAAP financial measure (earnings [loss] from continuing operations) in that it does not include certain items, as does Adjusted Gross Margin. These items are excluded by management to better evaluate normalized operational cash flow and expenses excluding unusual, inconsistent and non-cash charges. To compensate for the limitations of evaluating the Company's performance using Adjusted Gross Margin and Adjusted EBITDA, management also utilizes GAAP performance measures such as gross margin return on investment, return on equity and cash flow from operating activities. As a result, Adjusted Gross Margin and Adjusted EBITDA may not reflect important aspects of the results of the Company's operations.
About Duckwall-ALCO Stores, Inc.
Duckwall-ALCO Stores, Inc. is a regional broad line retailer that specializes in meeting the needs of smaller, underserved communities across 23 states, primarily in the central United States. The Company offers an exceptional selection of quality products and recognized brand names at reasonable prices. Its specialty is delivering those products with the friendly, personal service its customers have come to expect. With 214 ALCO stores, the Company is proud to have continually provided excellent products at good value prices to its customers for 110 years. To learn more about the Company visit .
Forward-looking statements
This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 ("the Act"). Forward-looking statements can be identified by the inclusion of "will," "believe," "intend," "expect," "plan," "project" and similar future-looking terms. You should not rely unduly on these forward-looking statements. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments, and Company performance. Forward-looking statements inherently involve risks and uncertainties, and, accordingly, actual results may vary materially. Factors which could significantly change results include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition, and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's 10-Q filings and other public documents, copies of which are available from the Company on request and are available from the United States Securities and Exchange Commission.
CONTACT: Wayne S. Peterson Senior Vice President - Chief Financial Officer 785-263-3350 X164 wpeterson@alcostores.com Debbie Hagen Hagen and Partners 913-652-6547 dhagen@hagenandpartners.com
