Lucor, Inc. Reports Q4 and Full-Year Results
15 April 1998
Lucor, Inc. Reports Fourth Quarter and Full-Year Results
RALEIGH, N.C., April 15 -- Lucor, Inc. , the
largest Jiffy Lube franchise in the United States, today announced net sales
of $10.9 million in the fourth quarter of 1997, an increase of 4.5 percent
over $10.4 million a year earlier.
Before an extraordinary non-cash write-off of $258,625 relating to
capitalized financing, the company had a fourth quarter 1997 net loss of
$514,107 or $0.18 per share. With the extraordinary item taken into account,
the net loss was $772,732, or $0.19 per share, compared with a net loss of
$663,394, or $0.25 per share, in the last quarter of 1996.
Lucor had a total of 100 Jiffy Lube stores in operation at the end of
1997, compared with 94 stores at the end of 1996. It now has 125 stores
operating.
Store-level operating income (results before interest, taxes,
extraordinary items, depreciation, marketing and general and administrative
expenses) was $1.7 million in the fourth quarter of 1997, compared with
$1.9 million a year earlier. Fourth quarter 1997 store-level operating margin
was 16 percent, compared with 18 percent in the year-earlier period.
Full Year Results:
Lucor net sales totaled $42.7 million in 1997, a 13 percent increase over
$37.8 million in 1996. Before the fourth quarter write-off, the company's
1997 net loss was $1.6 million, or $0.60 per share. After the write-off, the
net loss was $1.8 million, compared with a net loss of $1.2 million, or $0.55
per share in 1996.
Store-level operating income increased to $7.3 million in 1997 from
$7.0 million in 1996. Selling, general and administrative expenses increased
from $5.5 million in 1996 to $5.9 million in 1997. Borrowing to fund the
company's growth caused interest expense to increase to $1.5 million from
$1.2 million in 1996.
Same-store sales increased by 10 percent, from $37.8 million in 1996 to
$41.4 million in 1997.
Stephen P. Conway, Lucor's Chairman and Chief Executive Officer, said he
is satisfied with the company's revenue growth, and that the lack of
profitability is the result of large numbers of newly developed stores and
disappointing results in newly opened units that are operated in conjunction
with Sears auto service centers.
"We have modified our growth strategy to concentrate on increasing cash
flow and to keep new development to no more than 20 percent of total growth,"
Mr. Conway said. "The company ended 1997 with too many developing stores in
proportion to longer-established, more stabilized stores. We are glad to get
1997 behind us, and we look forward to a more profitable 1998."
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this release which are not historical
facts, such as those containing future financial performance and growth, are
forward looking statements that are subject to change based on various factors
which may be beyond the company's control. Accordingly, the future
performance and financial results of the company may differ materially from
those expressed or implied in any such forward looking statements. Such
factors include, but are not limited to, those described in the company's
fillings with the Securities and Exchange Commission, as well as various
factors related to the subjects described in this release.
LUCOR, INC.
Consolidated Statements of Income
(Unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
Net sales $10,877,529 $10,407,764 $42,678,313 $37,772,799
Cost of sales 2,573,838 2,482,075 9,979,363 8,951,465
Gross profit 8,303,691 7,925,689 32,698,950 28,821,334
Costs and expenses:
Direct 4,320,971 3,990,715 16,494,374 14,059,886
Operating 2,256,788 2,030,874 8,923,880 7,786,260
Depreciation 422,645 815,471 2,056,059 2,001,300
Selling, general and
administrative 1,569,279 1,485,746 5,928,152 5,455,291
8,569,683 8,322,806 33,402,465 29,302,737
Income from operations (265,992) (397,117) (703,515) (481,403)
Other income 14,669 68,191 62,156 192,558
Interest expense (387,504) (355,638) (1,480,679) (1,176,149)
Income before provision
for income taxes (638,827) (684,564) (2,122,038) (1,464,994)
Provision for income
taxes (124,720) (21,170) (540,595) (263,006)
Net income before
extraordinary item (514,107) (663,394) (1,581,443) (1,201,988)
Extraordinary item
(net of tax) (258,625) 0 (258,625) 0
Net income (772,732) (663,394) (1,840,068) (1,201,988)
Preferred dividend
paid (35,000) (35,000) (140,000) (133,287)
Net income available for
common shareholders ($549,107) ($698,394) ($1,721,443)($1,335,275)
Average number of common
shares outstanding 2,847,221 2,801,888 2,843,221 2,430,676
Net income (loss) per common
share outstanding ($0.193) ($0.249) ($0.605) ($0.549)
SOURCE Lucor, Inc.