Lucor Reports First Quarter 1999 Results
18 May 1999
Lucor Reports First Quarter 1999 Results
-- Store operating profit up 95%
-- Sales increased 38%
RALEIGH, N.C., May 17 -- Lucor, Inc. , the
largest Jiffy Lube franchisee in the United States, today announced first
quarter 1999 net sales of $14.8 million, a gain of 38 percent over
$10.7 million a year earlier.
Stephen P. Conway, Chairman and Chief Executive Officer, attributed
the increase to gains in same-store sales, and the integration of acquisitions
made during 1998. Additionally, considerable progress had been achieved in
improving operating margins.
For the quarter, Lucor reported a loss available to common shareholders of
$242,941, or $0.09 per share, compared with a loss available to common
shareholders of $573,739 or $0.20 per share in the first quarter of 1998.
However, at an operating level Lucor achieved a $470,491 profit, in contrast
to an operating loss of $403,004 in the previous comparable period.
Store operating income (results before interest, taxes, extraordinary
items, depreciation, marketing, and general and administrative expense)
increased 95 percent to $3.1 million in this year's first quarter, compared
with $1.6 million a year earlier. This is a margin of 21 percent, compared
with 15 percent achieved in the first quarter last year.
Mr. Conway said he was pleased with the sales momentum during the quarter
and is encouraged about the company's outlook for the year. He reiterated
that Lucor had completed the acquisition of 73 additional Jiffy Lube units,
including 46 Q Lube and 27 Jiffy Lube stores, during March and April. "These
acquisitions presented a unique opportunity to expand the size of our company.
Their location fits in very well with our existing operations," commented
Mr. Conway.
Lucor now has 190 Jiffy Lube outlets, up from 100 at the end of the first
quarter 1998, and 128 at the end of the last financial year. The company has
a long-range objective of operating 300 outlets.
Mr. Conway commented that, "our freestanding stores continue to grow in
same-store revenue and cash flow, and we remain confident of returning to
profitability in 1999. We will continue to pursue our strategic plan,
which involves both acquisitions and opening new stores in our current
markets, and we expect to make substantial acquisitions in other markets."
Except for the historical information contained in this news release, the
matters discussed in this news release are "forward-looking statements" within
the meaning of the federal securities law and are not guarantees of future
performance. For a variety of reasons, the company's actual results could
differ materially from any forward-looking statements made in this news
release. Among the factors that could cause actual results to differ from
predicted or expected results are the following: the company's ability to
effectively integrate acquired companies and the effects of increased
indebtedness as a result of the company's acquisitions; a decline in the
demand for lube service, which could materially adversely affect the company's
revenues; the possibility that regulatory changes and unforeseen events could
impact the company's ability to provide products and services to its
customers; existing competition from national and regional competitors and the
condition of the auto industry, which could result in pricing, supply and
demand, and other pressures on profitability and market share; and other risks
and uncertainties set forth in the company's filings with the Securities and
Exchange Commission, including but not limited to the company's annual report
on Form 10-K for the year ending December 31, 1998. Consequently, the reader
is cautioned to consider all forward-looking statements in light of the risks
to which they are subject.
LUCOR, INC.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31, March 31,
1999 1998
Net sales $14,794,700 $10,728,483
Cost of sales 3,262,580 2,521,806
Gross profit 11,532,120 8,206,677
Costs and expenses:
Direct 5,392,782 4,255,216
Operating 3,016,874 2,352,948
Depreciation 598,730 398,563
Selling, general and Administrative 2,053,243 1,602,954
11,061,629 8,609,681
Income (loss) from operations 470,491 (403,004)
Other income 56,592 30,845
Interest expense (735,024) (449,158)
Loss before income tax benefit (207,941) (821,317)
Income tax benefit 0 (282,578)
Net loss (207,941) (538,739)
Preferred dividend (35,000) (35,000)
Loss available to common shareholders ($242,941) ($573,739)
Avg number of common shares outstanding 2,823,788 2,847,888
Basic loss available to common
shareholders per common share ($0.09) ($0.20)