Rankin Automotive Group Reports Results
26 May 1998
Rankin Automotive Group Reports Results
ALEXANDRIA, La., May 26 -- Rankin Automotive Group, Inc.
d/b/a USA AUTO STORES reported their net sales for the fiscal
year ended February 25, 1998 at $38.7 million, versus $29.9 million for the
same period last year. This equates to a 29.1% increase in sales over the
previous year's results. The Company experienced a net loss for the year of
$789,000 ($.17 per share) as compared to $140,000 of earnings ($.04 per share)
in the prior year.
Randall B. Rankin, President and CEO commented, "This year proved to be a
year of streamlining and challenge. The decline in net earnings for the year
ended February 25, 1998 was attributable to several factors, primarily the
increase in operating, selling, general and administrative expenses. Store
personnel were added and additional corporate overhead incurred to support the
increased sales volume and conversion of store acquisitions to conform to
company policies and procedures. In addition, earnings were affected by the
inconsistent shipping from our major supplier, APS, Inc., (d/b/a Big A Auto
Parts) during the 4th quarter and the associated circumstances with the
anticipated and actual filing of APS's Chapter 11 petition. This caused a
great deal of apprehension and disruption within our customer and employee
ranks. We are continuing to purchase from this vendor, even though they are
in receivership, while currently evaluating more competitive suppliers and
alternative solutions such as acquiring an existing auto parts distribution
center. Also, unseasonable weather in the 4th quarter caused disappointing
auto parts sales nationwide."
During the fiscal year ended February 25, 1998, the Company opened four
new traditional stores, two in Louisiana and two in Texas. They also acquired
one store in Louisiana and consolidated one store in Louisiana. The Company's
intentions are to continue growth through new store acquisitions and
consolidation of operations. The line of credit with the bank has been
increased to $7.5 million to fund additional acquisitions and the Company
continues to maintain additional cash reserves in various accounts totaling
approximately $4 million. Management feels that as the Company positions
itself to purchase more competitive products and consolidate operations at
corporate headquarters that earnings will be more in line with expectations.
Some of the information in this press release constitutes forward-looking
information based on current information and expectations of the Company that
involve a number of uncertainties. Among the factors that could materially
affect the validity of the forward-looking information are the following:
changes in current industry trends, changes in competitive factors, changes in
the economic environment in which the Company has its operations, and other
factors which would generally affect the operations of the Company.
Rankin Automotive Group, Inc. d/b/a USA AUTO PARTS is a specialty supplier
and retailer of automotive replacement parts, tools, supplies, equipment and
accessories to both the professional mechanics and do-it-yourself customers.
The Company presently operates 40 stores in the States of Louisiana, Texas and
Mississippi.