Earl Scheib Announces Second Quarter Fiscal 2000 Results
13 December 1999
Earl Scheib Announces Second Quarter Fiscal 2000 Results
BEVERLY HILLS, Calif.--Dec. 13, 1999--Earl Scheib Inc. (AMEX:ESH) reported results for its second quarter ended Oct. 31, 1999.Net sales for the second quarter of fiscal 2000 were $15,628,000, an increase of 5.8% from the second quarter of fiscal 1999 net sales of $14,765,000. Same-shop sales decreased 1.3% from the prior year. For the six months ended Oct. 31, 1999, net sales were $31,387,000, compared with $30,668,000 for the comparable period in the prior fiscal year, an increase of 2.3%.
Operating income for the second quarter and six months of fiscal 2000 was $863,000 and $1,539,000, a decrease from $977,000 and $2,593,000, respectively, for the same periods of fiscal 1999, primarily due to the adverse effect of the same-shop sales decreases, particularly in the first quarter, and increased production costs and administrative expenses associated with the fleet department and new-shop expansion activities.
Net income for the second quarter and six months of fiscal 2000 was $460,000 and $805,000, or $0.11 and $0.18 per diluted share, respectively, compared with $587,000 and $1,593,000, or $0.13 and $0.35 per diluted share, for the second quarter and six months of fiscal 1999, respectively.
Chris Bement, chief executive officer and president, stated, "While we anticipated that the second quarter would result in improved profitability over the first quarter, we were not pleased with the decrease in same-shop sales. We intend to continue to evaluate the performance of our existing retail shops and to open new shops in selected geographic areas, but we will also focus on growing the other areas of our business, such as fleet and commercial coatings."
Earl Scheib Inc., founded in 1937, is a nationwide operator of 169 auto paint and body shops located in approximately 140 cities throughout the United States.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in this earnings release are forward-looking statements that involve risks and uncertainties, including, but not limited to, the effect of weather, the effect of economic conditions, the impact of competitive products, services and pricing, capacity and supply constraints or difficulties, changes in laws and regulations applicable to the company, the impact of Year 2000 hardships, the impact of the company's new Euro-Paint(R), the impact of advertising and promotional activities, the impact of the company's expansion or closing of shops, new product roll-out and fleet operations, the potential adverse effects of certain litigation, and the impact of various tax positions taken by the company.
Earl Scheib Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
For the Quarter For the Six Months
Ended Oct. 31, Ended Oct. 31,
1999 1998 1999 1998
Net Sales $15,628,000 $14,765,000 $31,387,000 $30,668,000
Operating Income 863,000 977,000 1,539,000 2,593,000
Income Before
Income Tax 740,000 957,000 1,297,000 2,578,000
Income Tax Expense 280,000 370,000 492,000 985,000
Net Income $ 460,000 $ 587,000 $ 805,000 $ 1,593,000
Basic Earnings
Per Share $ 0.11 $ 0.13 $ 0.18 $ 0.35
Diluted Earnings
Per Share $ 0.11 $ 0.13 $ 0.18 $ 0.35
Weighted Average
Shares Outstanding
-- Basic 4,359,000 4,430,000 4,359,000 4,545,000
Weighted Average
Shares Outstanding
-- Diluted 4,359,000 4,440,000 4,359,000 4,589,000