Lucor, Inc. Announces Financial Performance for Third Quarter, 1999
9 December 1999
Lucor, Inc. Announces Financial Performance for Third Quarter, 1999
RALEIGH, N.C.--Dec. 9, 1999--Income From Operations Jumps 74% For Nine Month Period
Lucor, Inc. , the largest Jiffy Lube franchisee in the United States, today announced that revenue for the nine months ended Sept. 30, 1999 increased 49% to $59,942,632 over revenue of $40,345,455 reported for the nine months ended Sept. 30, 1998. Net loss for the first nine months of 1999 totaled $848,107, or $.30 per share, compared to a net loss of $634,734, or $.22 per share, for the comparable period in 1998. Income from operations rose by 74% to $1,709,061 for the nine months ended Sept. 30, 1999 from $980,926 reported for the nine months ended Sept. 30, 1998.
For the three months ended Sept. 30, 1999, the Company reported a 61% increase in revenues, or $23,562,506, compared to revenues of $14,650,479 posted for the three months ended Sept. 30, 1998. Net loss during the current reporting quarter totaled $1,049,000, or $0.37 per share, compared to a net loss of $250,363, or $0.09 per share, for the comparable quarter in the prior year. The Company attributed $771,000, or $0.27 per share, of the loss for the current quarter to the seventy-three service centers acquired in the second quarter. Management anticipates that it will take at least one more quarter to stablize the operations and to complete the introduction of all of the services provided by other regions to its customers including the introduction of inspection services in Georgia. It is anticipated that the operations will return to profitability in the year 2000.
Stephen P. Conway, Chairman and CEO of Lucor, stated, "Based on our dynamic revenue growth, our management team couldn't be more positive about Lucor's future outlook. Following our anticipated increase in losses due to our aggressive acquisition strategy and the one time, nonrecurring costs associated with the integration process, we are quite confident that the Company is positioned for dynamic growth in revenue and earnings potential in the upcoming year."
About Lucor, Inc.
Headquartered in Raleigh, N.C., 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 Pittsburgh, Pa. area; 16 in the Dayton, Ohio area; 5 in the Toledo, Ohio area; 18 in the Nashville, Tenn. area; 8 in the Lansing, Mich. area; 21 in the Richmond-Tidewater, Va. area; and 53 in the Greater Atlanta, Ga. 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.
FINANCIAL CHART TO FOLLOW
LUCOR, INC
Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
-------------------------------------------------------
Net Sales $23,562,506 $14,650,479 $59,942,632 $40,345,455
Cost of Sales 5,454,625 3,442,815 13,457,200 9,348,765
------------ ------------ ------------ ------------
Gross Profit 18,107,881 11,207,664 46,485,432 30,996,690
------------ ------------ ------------ ------------
Costs and expenses:
Direct 9,718,276 5,345,623 23,272,281 14,991,442
Operating 4,406,981 2,896,292 11,494,460 8,065,279
Depreciation 789,018 656,833 2,000,472 1,636,895
Selling, general
and
administrative 3,222,199 1,909,681 8,009,158 5,322,148
------------ ------------ ------------ -----------
18,136,474 10,807,429 44,776,371 30,015,764
------------ ------------ ------------ -----------
Income (loss)
from operations (28,593) 400,235 1,709,061 980,926
------------ ------------ ------------ -----------
Other income 51,691 42,059 217,038 175,476
Interest expense (1,012,098) (745,131) (2,644,206) (1,935,558)
------------ ------------ ------------ -----------
Income (loss)
before provision
of income taxes (989,000) (302,837) (718,107) (779,156)
Provision for
income taxes 25,000 (87,474) 25,000 (249,422)
------------ ------------ ------------ -----------
Net income
(loss) (1,014,000) (215,363) (743,107) (529,734)
Preferred
dividend (35,000) (35,000) (105,000) (105,000)
------------ ------------ ------------ -----------
Net income
(loss)
available to
common
shareholder ($1,049,000) ($250,363) ($848,107) ($634,734)
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Average number
of common shares
outstanding 2,833,788 2,812,388 2,826,899 2,827,055
============ ============ ============ ===========
Basic income
(loss) per
common share
outstanding ($0.37) ($0.09) ($0.30) ($0.22)
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