Lucor Reports Continued Strong Sales Growth in Second Quarter of 1997
21 August 1997Lucor Reports Continued Strong Sales Growth in Second Quarter of 1997
RALEIGH, N.C., Aug. 21 -- Lucor, Inc. , the largest Jiffy Lube franchisee in the Unites States, today announced net sales of $10.8 million in the second quarter of 1997. This was a 14 percent increase over net sales of $9.5 million in last year's second quarter. Stephen P. Conway, chairman and chief executive officer, said the increase resulted from Lucor's expansion program. The company had 99 Jiffy Lube service centers in operation on June 30, 1997, compared with 76 a year earlier, and it expects to have 125 by the end of next year. The company provided its signature service to 300,234 cars in this year's second quarter, compared with 255,504 a year earlier. Lucor's gross profit was $8.2 million in this year's second quarter, compared with $7.2 million a year earlier. Mr. Conway said the company's cost of sales declined from 23.7 percent of sales in last year's second quarter to 23.5 percent in the second quarter of this year despite increased discounting in new stores. This happened in large part, he said, because the company has been able to reduce the prices of major inventory items through quantity purchasing and other means. Income from operations was $88,000 in this year's second quarter, a 385 per cent increase over $18,000 a year earlier. Marketing costs were $304,000 higher in the 1997 period than a year earlier, a reflection of actions taken to attract customers to the company's new service centers. Interest expense rose to $368,000 from $265,000 in last year's second quarter, a reflection of borrowing for capital expenditures connected with the expansion program. The company's net loss in this year's second quarter was $170,000, or $0.07 per share of common stock, compared with $176,000, or $0.08 per share, a year earlier. Mr. Conway said the losses in both periods are a planned result due to the company's expansion. Net revenue per car serviced was lower in this year's first half than a year earlier for a number of reasons including increased use of coupons to build market share, increased discounts associated with fleet sales, and a price decrease in one of the company's markets. In the first half of 1997, Lucor had a net loss of $530,000, or $0.21 per share, on net sales of $20.8 million, compared with a net loss of $348,000, or $0.19 per share, on net sales of $17.3 million a year earlier. Gross profit was $16.0 million and the loss from operations was $128,000 in the first six months of this year, compared with gross profit of $13.2 million and a loss from operations of $125,000 in the first half of 1996. "The rapid and continuing increase in our total number of retail outlets is causing our sales to increase as planned," Mr. Conway said. "The next step is to increase per-store sales at our newer service centers, and the process of doing that is now well under way. I'm confident that, as this process moves forward, Lucor's bottom-line performance will improve rapidly and significantly." Lucor is the first franchisee of Jiffy Lube International to become a public company. The company's automotive fast oil change, preventative fluid maintenance and lubrication service centers are situated in North Carolina, Kentucky, Ohio, Pennsylvania, Tennessee and Michigan. To receive additional information on Lucor, Inc., via fax, at no charge, dial 1-800-PRO-INFO and enter code LUCR. SOURCE Lucor, Inc.