Aid Auto Stores, Inc. Announces Second Quarter Results
15 August 1997
Aid Auto Stores, Inc. Announces Second Quarter Results
WESTBURY, N.Y., Aug. 15 -- Aid Auto Stores, Inc.
(Nasdaq: AIDA, AIDAW), today announced results for the three and six month
period ended June 30, 1997.
Revenues were $6,221,392 for the quarter ended June 30, 1997 as compared
to $7,035,644 for the quarter ended June 30, 1996. Net income for the quarter
was $68,315 or $0.02 per share, compared to net income of $50,984 or $0.02 per
share for the comparable year ago period.
Revenues for the six months ended June 30, 1997 were $12,313,990 as
compared to $13,609,681 for the comparable period in 1996. Net income for the
period was $10,329 or $0.00 per share as compared to $92,587 or $0.02 per
share for the comparable period in 1996.
The decline in revenues was attributable in part to the Company's
continued de-emphasis of its franchise business. Through termination and
non-renewal of franchise agreements, the number of franchised stores has
decreased since the end of the second quarter of 1996 from 41 to 32. The
anticipated decline in wholesale sales was partially offset by an increase of
retail sales, which results from the Company's continued focus on its retail
store operations. Retail sales increased to $8.6 million for the six month
period ended June 30, 1997 as compared to $7.8 million for the year earlier
period. Sales on both the retail and wholesale levels were negatively
affected by unseasonably mild weather in the first quarter of 1997 and an
unseasonably cool spring in the second quarter of 1997. Mild weather results
in the reduced sale of products such as antifreeze, car batteries, windshield
washer fluid, ice scrapers and snowbrushes and the cool spring resulted in the
reduced sale of car care and car maintenance products.
Commenting on the announcement, Philip L. Stephen, Chairman and Chief
Executive Officer of Aid Auto Stores, Inc., stated, "We are extremely pleased
with the continued success of our Company's strategic redirection to a retail
operation from a primarily wholesale operation. Although our de-emphasis of
wholesale operations and unseasonable weather resulted in a decline in overall
sales, sales from our retail operations continue to grow nicely. In addition,
retail operations resulted in improved gross margins from 40.5% to 44.3% for
the six months ended June 30, 1996 and 1997, respectively, and our attention
to cost was successful as selling, shipping, general and administrative
expenses remained relatively flat despite an increase in Company owned store
count. As a result of the foregoing, income from operations increased to
$343,280 and $548,218, for the three and six month periods ended
June 30, 1997, respectively, from $150,299 and $345,115 for the three and six
month periods ended July 30, 1996, respectively. We expect that our continued
focus on retail operations will result in a significant improvement in
financial results in upcoming periods. The Company also continues to evaluate
potential acquisitions as well as innovative retailing strategies."
Mr. Stephen further stated, "The Company currently contemplates that it
will begin to open in September 1997 Aid Auto Stores within a large regional
retailer's stores. The "Aid" stores will carry fast-moving auto parts in
addition to the automotive chemicals accessories and tools found in some other
non-automotive retailers." According to Mr. Stephen, a successful launch of
this new "Aid" auto store program could result in significant increases in the
number of Aid Auto retail locations, complementing the Company's Superstore
program and enhancing brand recognition.
Aid Auto Stores, Inc. is a major New York metropolitan area retailer,
wholesaler and, franchiser of automotive parts and accessories, targeting both
the do-it-yourself and commercial markets. Through its wholly owned
subsidiary Ames Automotive Warehouse Inc., the Company supplies automotive
aftermarket products for resale to non-automotive chain stores and independent
jobbers and installers in the tri-state area.
AID AUTO STORES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
1997 1996 1997 1996
Revenues $6,221,392 $7,035,644 $12,313,990 $13,609,681
Cost of sales 3,311,616 4,082,676 6,854,435 8,093,152
Selling, general and
administrative 2,566,496 2,802,669 4,911,337 5,171,414
Total costs
and expenses 5,878,112 6,885,345 11,765,772 13,264,566
Income from operations 343,280 150,299 548,218 345,115
Income before
income taxes 68,315 73,984 10,329 124,202
Provision for
income taxes -- 23,000 -- 31,615
Net income $68,315 $50,984 $10,329 $92,587
Income per common share
Income before
income taxes $.02 $.02 -- $.03
Net income
per common share $.02 $.02 -- $.02
Weighted average common
shares outstanding 3,957,596 3,957,596 3,957,596 3,957,596
SOURCE Aid Auto Stores, Inc.