Investor Contact:
Joe Carter, Venture Stores, Inc.
For Immediate Release 314/281-7800
Media Contact:
Randy Myers or Tom Goyda, Shandwick
314/436-6565
O'Fallon, MO, May 9, 1997 -- Venture Stores, Inc. today reported a net loss applicable to common shareholders, before extraordinary items, of $16.1 million, or $0.88 per share, for the first quarter of 1997. The loss for the 13 weeks ended April 26, 1997 compares with net earnings available to common shareholders of $1.1 million, or $0.06 per share, in the first quarter of 1996.
In the first three months of 1997, Venture recorded an extraordinary pre-tax charge of $3.9 million, or $0.13 per share, primarily for the write-off of unamortized deferred financing costs and prepayment penalties related to the termination of the company's old credit facility. With this extraordinary charge included, the company reported a net loss applicable to common shareholders of $18.5 million, or $1.01 per share. As previously reported, Venture has obtained a new, three-year $250.0 million revoÔlving line of credit from BT Commercial Corporation, an affiliate of Bankers Trust Company.
April 1997 and First Quarter Sales Results
Total sales for the four weeks ended April 26, 1997 were $96.9 million, an 11.0 percent decrease from sales of $108.9 million for the April 1996 period. Comparable store sales for the month declined 14.8 percent.
First quarter total sales were down 10.5 percent to $314.4 million for the 13 weeks ended April 26, 1997 compared with $351.2 million for the first three months of 1996. Comparable store sales were down 11.1 percent.
Sales were adversely affected by disruptions in merchandise flow in March and April, many of which have been corrected. The Company's new credit facility had a positive impact on the flow of merchandise.
Repositioning Phase III Moves Ahead
Venture began the implementation of the third phase of its strategic repositioning with the introduction or expansion of several departments during March and April. These departments -- designed to round out the convenience of the total shopping experience -- include:
Home textiles, housewares, gifts, luggage, ladies' uniforms and the marketplace, all of which were introduced during the first two phases of the repositioning, demonstrated strong performances during the first quarter of 1997.
Venture currently operates 113 family value stores in nine states. Venture's common stock is traded on the New York Stock Exchange under the symbol VEN.
NOTES TO CONDENSED FINANCIAL STATEMENTS
INTERIM PRESENTATION
The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements for the fiscal year ended January 25, 1997, and the accompanying notes thereto, included in the company's 1996 Annual Report to Shareowners. In the opinion of management, this interim financial information is fairly presented and all adjustments, of a normal, recurring nature, which are necessary for a fair statement of the results for the interim periods have been includÔed; however, certain items are included in these statements based on estimates for the entire year. The interim operating results exclude the Christmas season and therefore may not be indicative of the operating results that may be expected for the full fiscal year. Certain prior year items have been reclassified to conform to the current year presentation.
EXTRAORDINARY ITEM
In connection with the termination of its previous credit facility, the company recorded an extraordinary pretax charge of $x.x million ($x.x after tax, or $x.x per share) in the first quarter of 1997. The charge is primarily for the write-off of unamortized deferred financing costs and the prepayment penalties.