Lucor, Inc. Announces Record Second Quarter Financial Performance
16 August 1999
Lucor, Inc. Announces Record Second Quarter Financial Performance
RALEIGH, N.C.--Aug. 16, 1999--Franchisee Increases Revenue 42% and Achieves Profitability
Despite Heavy One-Time Acquisition Costs, Income From Operations
Jumps 220%
Lucor, Inc. , the largest Jiffy Lube franchisee in the United States, today announced that revenue for the six months ended June 30, 1999 increased 42% to $36,380,126 over revenue of $25,694,976 reported for the six months ended June 30, 1998. Net income for the first six months of 1999 totalled $200,893, or $0.071 earnings per share, compared to net losses of $409,704, or $0.145 loss per share, for the comparable period in 1998. Also noteworthy, the Company posted $1,737,654 in income from operations for the current six month period, a 220% improvement over income from operations of $543,436 posted for the first six months in 1998.
For the three months ended June 30, 1999, the Company reported a 44% increase in revenue, or $21,585,426, compared to revenue of $14,966,493 posted for the three months ended June 30, 1998. Net income during the current reporting quarter totalled $443,834, or $0.157 earnings per share, a 15.5% improvement over net income of $384,419, or $0.135 earnings per share, reported for the comparable quarter in the prior year. Despite numerous one-time charges associated with the acquisition of 71 stores in the second quarter, the Company successfully increased income from operations 34% to $1,267,163, compared to income from operations of $946,440 posted in the same quarter in the previous year.
According to Stephen P. Conway, Chief Executive Officer of Lucor, "Although our management team anticipated reporting a profitable quarter, we were nonetheless pleasantly surprised with our overall results. In light of the fact that we suffered substantial acquisition costs related to the purchase of 71 new stores -- the majority of which are located in Atlanta, Georgia, we believed that strong gains in net profitability would not be achieved until the third or fourth quarters."
Continuing, Conway added, "Thanks largely in part to year over year increases in same-store sales - particularly in the new Atlanta stores, where we're up 20% since implementing the Lucor marketing and management strategies, we are beating even our most aggressive financial expectations ahead of Plan. However, with a long range goal of owning and operating 300 outlets - 192 stores of which are now on board, we still have plenty of hard work ahead of us." - FINANCIAL CHARTS TO FOLLOW -
LUCOR, INC.
STATEMENT OF OPERATIONS
(Amounts in thousands except for per share amounts)
(Unaudited)
For Three Months For Six Months
Ended June 30 Ended June 30
1999 1998 1999 1998
----------- ----------- ----------- -----------
Net Sales $21,585,426 $14,966,493 $36,380,126 $25,694,976
Cost of Sales 4,739,995 3,384,144 8,002,575 5,905,950
Gross Profit 16,845,431 11,582,349 28,377,551 19,789,026
Costs and Expenses
Direct 8,161,223 5,390,603 13,554,005 9,645,819
Operating 4,070,605 2,817,039 7,087,479 5,169,987
Depreciation 612,724 618,754 1,211,454 1,017,317
Selling, General &
Administrative 2,733,716 1,809,513 4,786,959 3,412,467
15,578,268 10,635,909 26,639,897 19,245,590
Income from
Operations 1,267,163 946,440 1,737,654 543,436
Other Income 108,755 30,845 165,347 133,417
Interest Expense (897,084) (449,158) (1,632,108) (1,190,427)
Income Before
Provision For
Income Tax 478,834 528,127 270,893 (513,574)
Provision For
Income Tax 0 108,708 0 (173,870)
Net Income 478,834 419,419 270,893 (339,704)
Preferred Dividend
Paid (35,000) (35,000) (70,000) (70,000)
Net Income Available
For Common
Shareholders 443,834 384,419 200,893 (409,704)
Average Number of
Common Shares
Outstanding 2,823,788 2,847,888 2,823,788 2,834,388
Net Income Per
Common Share
Outstanding $0.157 $0.135 $0.071 $(0.145)
About Lucor, Inc.
Headquartered in Raleigh, North Carolina, Lucor, Inc. is the largest and only publicly traded franchisee of Jiffy Lube International. Through its subsidiaries, Lucor is engaged in the automotive fast oil change, fluid maintenance lubrication, and general preventive maintenance service business at 192 service centers located in eight states - 27 service centers are located in the Raleigh-Durham area of North Carolina; 29 in the Cincinnati, Ohio area (which includes northern Kentucky); 15 in the Pittsburg, Pennsylvania area; 16 in the Dayton, Ohio area; 5 in the Toledo, Ohio area; 18 in the Nashville, Tennessee area; 8 in the Lansing, Michigan area; 21 in the Richmond-Tidewater, Virginia area; and 53 in the Greater Atlanta, Georgia area.
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.