Trak Auto Announces Earnings
15 December 1997
Trak Auto Announces Earnings
LANDOVER, Md., Dec. 15 -- Trak Auto Corporation ("Trak Auto")
, announced a net loss for the 39 weeks ended November 1, 1997
of $(8,101,000) or $(1.37) per share compared to net income of $2,009,000 or
$.34 per share for the same period one year ago and a net loss for the 13
weeks ended November 1, 1997 of (6,460,000) or $(1.09) per share compared to
net income of $155,000 or $.03 per share for the same period one year ago.
Loss for both the 39 and 13 weeks ended November 1, 1997 was primarily due
to Trak Auto recording a pre-tax loss of approximately $10.5 million from the
sale of its California operations to CSK Auto, Inc. ("CSK"). Trak Auto and
CSK closed the transaction on December 8, 1997, subject to subsequent
adjustment, for an aggregate purchase price of approximately $33.6 million.
Ninety percent (90%) of the aggregate purchase price, or $30.2 million, was
paid in cash at closing. The remaining ten percent (10%) will be paid pending
finalization of any purchase price adjustments and audits.
On October 6, 1997, Keith Green, President of Trak Auto remarked "the sale
of the California operations will allow Trak to focus its efforts on marketing
and growth in its remaining markets, and the development of new businesses
within the aftermarket. It is anticipated that this transaction will enhance
Trak Auto's future earnings and cash flow potential."
Sales for the 39 weeks ended November 1, 1997 decreased 2.9% to
$257,800,000 compared to the same period one year ago. Sales for the 13 weeks
ended November 1, 1997 decreased 2.6% to $85,672,000 when compared to the same
period one year ago. The sales decrease during the 39 weeks ended November 1,
1997 was primarily due to the mild winter conditions in the Midwest and East
coast markets during the first quarter, as well as the weak performance of the
stores in the highly competitive Los Angeles market. Comparable sales (stores
open more than one year) decreased 8.O% and 7.5% for the 39 and 13 weeks ended
November 1, 1997. Sales for comparable Super Trak and Super Trak Warehouse
stores decreased 8.0% and 7.6% for the 39 and 13 weeks ended November 1, 1997.
Sales for comparable classic Trak stores decreased, 7.8% and 7.1% for the 39
and 13 weeks ended November 1, 1997, respectively.
Trak Auto Corporation currently operates 196 stores, including 97 Super
Trak stores and 31 Super Trak Warehouse stores in the Washington, D.C.;
Richmond, Virginia; Pittsburgh, Pennsylvania; Milwaukee, Wisconsin; and
Chicago, Illinois metropolitan areas compared with 278 stores including 118
Super Trak stores and 37 Super Trak Warehouse stores in operation one year
ago.
TRAK AUTO CORPORATION
(in Thousands)
(except Earnings per Share)
Thirteen Weeks Thirty-Nine Weeks
Ended Ended
Nov. 1, Nov. 2, Nov. 1, Nov. 2,
1997 1996 1997 1996
Sales $85,672 $87,953 $257,800 $265,397
Income (Loss) before
income taxes $(8,952) $113 $(11,925) $2,924
Net Income (Loss) $(6,460) $155 $(8,101) $2,009
Earnings (Loss) per
share $(1.09) $.03 $(1.37) $.34
Weighted average
shares outstanding 5,909 5,955 5,909 5,944
SOURCE Trak Auto Corporation