Lucor, Inc. Reports Fourth Quarter 1998 Results
24 March 1999
Lucor, Inc. Reports Fourth Quarter 1998 Results
Store Level Operating Income More Than Doubles
RALEIGH, N.C., March 23 -- Lucor, Inc. , the
largest Jiffy Lube franchise in the United States, today announced net sales
of $15.0 million in the fourth quarter of 1998, an increase of 37.5 percent
over $10.9 million a year earlier.
Before a non-recurring non-cash write-off of $1.4 million, the company had
a fourth quarter net loss of $0.2 million, or $0.08 per share. This compares
with a net loss of $1.1 million (before an extraordinary item), or $0.40 per
share, a year earlier. With the non-recurring write-off taken into account,
the fourth quarter 1998 net loss was $1.6 million or $0.57 per share.
The write-off involved assets of 12 of Lucor's 16 franchises at Sears Auto
Center locations. As the company previously stated, the performance of these
operations has fallen short of expectations.
Lucor had a total of 128 Jiffy Lube stores in operation at the end of
1998, compared with 100 stores at the end of 1997. Currently, after the
closing of four of the Sears Auto Center units, the company has 124 stores in
operation.
Store-level operating income (results before interest, taxes, non-
recurring, extraordinary items, depreciation, marketing and general and
administrative expenses) was $3.2 million in the fourth quarter of 1998,
compared with $1.4 million a year earlier. Fourth quarter store-level
operating margin was 22 percent, compared with 13 percent in the year-earlier
period.
In 1998 as a whole, Lucor's net sales totaled $55.3 million, a
29.6 percent increase over $42.7 million in 1997. Before the fourth quarter
non-recurring write-off, the net loss for the year was $0.9 million, or
$0.31 per share, compared to a net loss of $1.5 million (before an
extraordinary item), or $0.51 per share, in 1997. After the write-off, the
net loss was $2.3 million, or $0.80 per share, compared to a net loss of
$1.7 million, or $0.61 per share, in 1997.
Stephen P. Conway, chairman and chief executive officer of Lucor, said the
revenue increase and improved bottom-line results of 1998 demonstrate that the
company is successfully executing its long-term strategy, which is aimed at
substantial sales increases and solid profitability.
Store-level operating income increased to $11.2 million in 1998 from
$7.3 million in 1997. Selling, general and administrative expenses increased
to $7.4 million in 1998 from $5.9 million in 1997. As a percent of net sales,
SG&A costs decreased from 13.9 percent in 1997 to 13.4 percent in 1998.
Interest expense increased from $1.5 million in 1997 to $2.7 million in 1998.
Same store sales were $44.0 million in 1998, an increase of three percent
over $42.7 million in 1997.
LUCOR, INC.
Consolidated Statements of Income
(Unaudited)
Three Months Ended Twelve Months Ended
December 31,December 31, December 31,December 31,
1998 1997 1998 1997
Net sales $14,961,750 $10,877,529 $55,307,205 $42,678,313
Cost of sales 3,367,096 2,573,838 12,715,861 9,979,363
Gross profit 11,594,654 8,303,691 42,591,344 32,698,950
Costs and expenses:
Direct 5,458,038 4,320,971 20,449,480 16,494,374
Operating 2,915,993 2,594,788 10,981,272 8,923,880
Depreciation 580,472 422,645 2,217,367 2,056,059
Selling, general
and administrative 2,066,121 1,569,279 7,388,269 5,928,152
Impairment loss
(year's closing) 1,383,476 0 1,383,476 0
12,404,100 8,907,683 42,419,864 33,402,465
Income (loss) from
operations (809,446) (603,992) 171,480 (703,515)
Other income 30,482 14,669 205,958 62,156
Interest expense (729,379) (387,504) (2,664,937) (1,480,679)
Loss before
provision of
income taxes
and extraordinanry
item (1,508,343) (976,827) (2,287,499) (2,122,038)
Income tax expense
(benefit) 76,405 (124,719) (173,017) (540,595)
Loss before
extraordinary
item (1,584,748) (852,108) (2,114,482) (1,581,443)
Extraordinary item
(net of tax) 0 (258,625) 0 (258,625)
Net loss (1,584,748) 1,110,733 (2,114,482) (1,840,068)
Loss before
extraordinary
item (1,584,748) (852,108) (2,114,482) (1,581,443)
Preferred dividend (35,000) (35,000) (140,000) (140,000)
Loss available to
common
shareholders ($1,619,748) ($887,108)($2,254,482) ($1,721,443)
Avg number of
common shares
outstanding 2,818,027 2,847,051 2,824,868 2,842,367
Basic loss per
commmon share ($0.57) ($0.31) ($0.80) ($0.61)