Aid Auto Stores, Inc. Announces Third Quarter Results
14 November 1997
Aid Auto Stores, Inc. Announces Third Quarter Results
WESTBURY, N.Y., Nov. 14 -- Aid Auto Stores, Inc.
(Nasdaq: AIDA, AIDAW), today announced results for the three and nine month
period ended September 30, 1997.
Revenues were $6,763,659 for the quarter ended September 30, 1997 as
compared to $6,935,611 for the quarter ended September 30, 1996. Net income
for the quarter was $41,027, or $0.01 per share, compared to net income of
$7,121, or $0.0 per share, for the comparable period in 1996.
Revenues for the nine months ended September 30, 1997 were $19,060,624 as
compared to $20,545,292 for the comparable period in 1996. Net income for the
period was $51,356, or $0.01 per share, as compared to $99,708, or $.03 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 third quarter of 1996 from 42 to 27. 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 $13.3 million for the nine month
period ended September 30, 1997 as compared to $12.1 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 operation and unseasonable weather results 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 43.2% for
the nine months ended September 30, 1996 and 1997, respectively and our
attention to cost was successful as selling, shipping, general and
administrative expenses remained relatively flat despite increase in
Company-owned store count. As a result of the foregoing, income from
operations increased to $332,614 and $880,832 for the three and nine month
periods ended September 30, 1997, respectively, from $194,514 and $539,629 for
the three and nine month periods ended September 30, 1996, respectively. We
expect that our continued focus on retail operations will result in an
improvement in financial results in upcoming periods. The Company also
continues to evaluate potential acquisitions as well as innovative retailing
strategies."
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 it 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.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements which are not historical facts contained in this press
release are forward-looking statements that involve risks and uncertainties,
including, but not limited to, risks associated with the Company's future
growth and profitability, the ability of the Company to successfully open new
retail stores and integrate acquisitions and the effects of general economic
conditions and other risks detailed in the Company's Securities and Exchange
Commission filings.
AID AUTO STORES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements Of Earnings
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues $ 6,763,659 $ 6,935,611 $ 19,060,624 $ 20,545,292
Cost of sales 3,969,682 4,139,947 10,824,117 12,233,099
Selling, general and
administrative 2,461,363 2,601,150 7,355,675 7,772,564
Total costs and
expenses 6,431,045 6,741,097 18,179,792 20,005,663
Income from operations 332,614 194,514 880,832 539,629
Income before income
taxes 41,027 8,585 51,356 132,787
Provision for income
taxes -- l,464 -- 33,O79
Net income $ 41,027 $ 7,121 $ 51,356 $ 99,708
Income per common share
Income before income
taxes $.01 $ -- $.01 $.03
Net income per common
share $.01 $ -- $.01 $.03
Weighted average common
shares, outstanding 3,957,596 3,957,596 3,957,596 3,597,596
SOURCE Aid Auto Stores, Inc.