Exhibit 99.1
Contact: N. Gregory Petrick
Executive Vice President and
Chief Financial Officer
(814) 234-6000
Press Release
FOR IMMEDIATE RELEASE
- ---------------------
UNI-MARTS, INC.
---------------
ANNOUNCES FISCAL 2003 THIRD QUARTER FINANCIAL RESULTS
-----------------------------------------------------
STATE COLLEGE, PENNSYLVANIA, July 30, 2003 - Uni-Marts, Inc. (AMEX: UNI),
a convenience store operator in the mid-Atlantic region, today reported
financial results for the third fiscal quarter ended July 3, 2003.
As previously announced, the Company continues to pursue a divestiture
strategy with regard to certain store locations and non-operating assets.
Accordingly, in the third quarter ended July 3, 2003, the Company has
reclassified on its balance sheet $40.0 million in assets relating to 130
stores that the Company plans to sell or sublet, as assets of discontinued
operations, and classified the income and expense of such stores as discontinued
operations. Although these stores are now classified as discontinued
operations, the Company intends to continue to operate these stores pending
successful negotiation of their sale or sub-lease. In addition, the Company
recognized a $600 thousand loss on future disposals relating to 23 locations
anticipated to be sold in the fourth quarter of fiscal 2003, resulting in a loss
on disposal of discontinued operations of $472 thousand, which includes the sale
of one non-operating location in the third fiscal quarter.
Revenues from continuing operations for the third quarter of 2003 were
$75.3 million, a 9.3% increase, compared to $68.9 million for the third quarter
of fiscal 2002. Revenues increased principally due to a 27.3 cent per gallon
increase in the average retail price per gallon of petroleum sold at the
Company's locations when compared to the third quarter of fiscal 2002.
Merchandise sales at comparable stores from continuing operations increased by
0.4%, while gasoline gallons sold at comparable stores from continuing
operations declined by 1.1% from fiscal 2002 third quarter levels. The Company
reported net earnings from continuing operations of $251 thousand, or $0.03 per
share, for the third quarter of fiscal 2003, compared to net earnings of $199
thousand, or $0.03 per share, for the prior year's third fiscal quarter. The
loss from discontinued operations was $1.2 million, or $0.16 per share,
compared to a net loss of $344 thousand, or $0.05 per share, in the third
quarter of fiscal 2002. For the third quarter of fiscal 2003, the Company
reported a combined net loss of $927 thousand, or $0.13 per share, compared to
a net loss of $145 thousand, or $0.02 per share, for the third quarter of fiscal
2002.
For the first nine months of fiscal 2003, revenues from continuing
operations were $214.6 million, a 13.0% increase, compared to $190.0 million in
the corresponding nine-month period of fiscal 2002. Revenues increased
principally due to a 28.8 cent per gallon increase in the average retail price
per gallon of petroleum sold in the current reporting period when compared to
the first nine months of fiscal 2002. The Company reported a 0.6% increase in
merchandise sales at comparable stores from continuing operations, and a 1.2%
increase in gasoline gallons sold at comparable stores from continuing
operations from the first nine months of fiscal 2002. The Company reported a
net loss from continuing operations of $158 thousand, or $0.02 per share, in
the first nine months of fiscal 2003, compared to net earnings of $155 thousand,
or $0.02 per share, for the first nine months of fiscal 2002. The loss from
discontinued operations was $3.5 million, or $0.48 per share, compared to a net
loss of $1.3 million, or $0.19 per share, in the first nine months of fiscal
2002. The loss from change in accounting principle for the first nine months of
fiscal 2003 was a one-time, non-cash charge of $5.5 million, or $0.78 per share.
The Company reported a combined net loss of $9.2 million, or $1.28 per share, in
the first nine months of fiscal 2003, compared to a net loss of $1.2 million, or
$0.17 per share, in the first nine months of fiscal 2002.
Henry D. Sahakian, Chairman and Chief Executive Officer, stated, "For the
first nine months of fiscal 2003, merchandise sales increased slightly, however,
a 0.9% decline in the merchandise gross margin rate resulted in a 2.7% decline
in merchandise margins. Higher retail prices, as well as higher gallons sold
contributed to a 2.8% increase in gasoline gross margins compared to the first
nine months of fiscal 2002."
Mr. Sahakian added, "We continue to move forward with our strategic plan to
divest non-core operating store locations. We are pleased to report favorable
financial performance from continuing operations for the current fiscal quarter
and look forward to the completion of our restructuring strategy as a means to
strengthen our remaining store base and improve our financial position."
At July 3, 2003, Uni-Marts operated 294 convenience stores and Choice
Cigarette Discount Outlets in Pennsylvania, New York, Delaware, Maryland and
Virginia. Self-service gasoline was sold at 238 of these locations.
Certain statements contained in this release are forward looking. Although
Uni-Marts, Inc. believes that its expectations are based on reasonable
assumptions within the bounds of its knowledge of its business and operations,
there can be no assurance that actual results will not differ materially from
its expectations. The forward-looking statements include, but are not limited
to, statements related to the possibility of successful completion of any
strategic transaction or enhancement of stockholder value. Factors that could
cause actual results to differ from expectations include general economic,
business and market conditions, volatility of gasoline prices, merchandise
margins, customer traffic, weather conditions, labor costs and the level of
capital expenditures. For other important factors that may cause actual
results to differ materially from expectations and underlying assumptions, see
reports by Uni-Marts, Inc. filed with the Securities and Exchange Commission.
UNI-MARTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Third Quarter Ended Three Quarters Ended
July 3, July 4, July 3, July 4,
2003 2002 2003 2002
- -----------------------------------------------------------------------------------------------
Revenues:
Merchandise sales $ 36,223 $ 36,074 $104,252 $104,072
Gasoline sales 38,741 32,418 109,233 84,671
Other income 341 411 1,095 1,212
--------------------------------------------
Total 75,305 68,903 214,580 189,955
Costs and Expenses:
Cost of sales 61,239 54,443 172,799 147,413
Selling 9,995 9,945 30,216 29,831
General and administrative 1,787 2,122 5,673 6,165
Depreciation and amortization 1,149 1,174 3,369 3,534
Interest 824 916 2,640 2,778
--------------------------------------------
Total 74,994 68,600 214,697 189,721
Earnings (loss) from continuing operations before
income taxes and change in accounting principle 311 303 (117) 234
Income tax provision 60 104 41 79
--------------------------------------------
Earnings (loss) from continuing operations before
change in accounting principle 251 199 (158) 155
Discontinued Operations:
Loss from discontinued operations (685) (503) (2,857) (2,012)
Loss on disposal of discontinued operations (472) 0 (720) 0
Income tax provision (benefit) 21 (159) (110) (684)
--------------------------------------------
Loss on discontinued operations (1,178) (344) (3,467) (1,328)
Cumulative effect of change in accounting principle,
net of income tax benefit of $310 0 0 (5,547) 0
--------------------------------------------
Net loss $ (927) $ (145) $( 9,172) $ (1,173)
============================================
Earnings (Loss) Per Share:
Earnings (loss) per share from continuing operations
before change in accounting principle $ 0.03 $ 0.03 $ (0.02) $ 0.02
Loss per share from discontinued operations (0.16) (0.05) (0.48) (0.19)
Loss per share from change in accounting principle 0.00 (0.00) (0.78) 0.00
--------------------------------------------
Basic and diluted net loss per share $ (0.13) $ (0.02) $ (1.28) $ (0.17)
============================================
Basic and diluted weighted average number of common
shares outstanding 7,186 7,112 7,157 7,092
============================================
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share data)
July 3, September 30,
2003 2002
- ----------------------------------------------------------------------------
Current assets $ 69,876 $ 39,413
Net property, equipment and improvements 51,759 98,037
Net intangible and other assets 1,526 7,695
----------------------
Total 123,161 145,145
Current liabilities 30,138 37,670
Long-term debt 68,823 72,126
Deferred taxes and other liabilities 4,984 7,032
----------------------
Total 103,945 116,828
Stockholders' equity 19,216 28,317
----------------------
Total liabilities and stockholders' equity $123,161 $145,145
======================
Book value per share $ 2.67 $ 3.97
======================