EXHIBIT 99
FOR IMMEDIATE RELEASE: DECEMBER 16, 1998
Richmond, VA: Heilig-Meyers Company (NYSE:HMY) today reported
consolidated results for the third quarter ended November 30, 1998. Net earnings
were $6.3 million or $0.10 per share, compared to a net loss of $49.1 million or
$0.87 per share in the prior year quarter. Total revenues for the quarter
increased 7.3% to $728.2 million compared to $678.5 million for the quarter
ended November 30, 1997. For the three-month period, comparable store sales
increased 2.4%.
For the nine months ended November 30, 1998, net earnings were $25.2
million compared to a net loss of $26.1 million in the prior year. Earnings per
share were $0.42 compared to a net loss of $0.47 per share for the nine months
ended November 30, 1997. Total revenues for the nine months rose to $2.1 billion
from $1.8 billion in the prior year while comparable store sales increased 2.7%.
William C. DeRusha, Chairman and Chief Executive Officer commented that
financial results for the third quarter were impacted by lower than expected
sales and the underperformance in the Company's Rhodes division. Mr. DeRusha
added that in conjunction with evaluating strategic alternatives, management
expects to amend Rhodes' merchandising and advertising strategy while
aggressively lowering operating expenses during the fourth quarter. The Company
also announced that George A. "Buck" Thornton III, Executive Vice President,
Rhodes, will be retiring and that Pat Stern, Executive Vice President, will
assume management responsibilities of the Rhodes division. "Pat has extensive
experience in major market furniture retailing and has demonstrated his ability
in other divisions of the Company to rapidly improve operating performance,"
said Mr. DeRusha.
The Company also announced that Joseph R. Jenkins, Executive Vice
President has decided to retire effective December 31, 1998. Mr. Jenkins joined
the Company in 1988 as Chief Financial Officer, a position he held until July
1997. During his tenure with the Company, Mr. Jenkins had also been responsible
for the Company's support operations, the oversight of the Berrios stores in
Puerto Rico and most recently the oversight of the Mattress Discounters
division.
Also announced was the promotion of Roy B. Goodman from Senior Vice
President and Chief Financial Officer to Executive Vice President and Chief
Financial Officer. Mr. Goodman will assume certain responsibilities associated
with the Company's support operations, which were formerly reporting to Mr.
Jenkins.
The Company reported that today its Board of Directors declared a
quarterly dividend of seven cents per share. This dividend is payable February
13, 1999 to shareholders of record January 13, 1999.
Heilig-Meyers Company is the Nation's largest retailer of furniture,
bedding and related items. As of November 30, 1998, the Company operated 1,242
stores: 814 as Heilig-Meyers, 230 as Mattress Discounters, 95 as Rhodes, 71 as
The RoomStore and 32 in Puerto Rico as Berrios.
HEILIG-MEYERS COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands except per share data )
Three Months Ended Nine Months Ended
November 30, November 30,
--------------------------------- ----------------------------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues:
Sales $ 654,694 $ 602,004 $ 1,844,849 $ 1,606,205
Other income 73,515 76,464 227,306 228,799
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Total revenues 728,209 678,468 2,072,155 1,835,004
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Costs and expenses:
Costs of sales 434,997 399,208 1,234,260 1,063,151
Selling, general and administrative 233,550 233,566 664,781 613,367
Interest 19,121 16,494 57,247 48,023
Provision for doubtful accounts 30,645 104,667 76,338 149,528
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Total costs and expenses 718,313 753,935 2,032,626 1,874,069
-------------- -------------- -------------- --------------
Earnings before provision for income taxes 9,896 (75,467) 39,529 (39,065)
Provision for income taxes 3,622 (26,345) 14,303 (12,983)
-------------- -------------- -------------- --------------
Net earnings $ 6,274 $ (49,122) $ 25,226 $ (26,082)
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Net earnings per share of common stock:
Basic $ 0.11 $ (0.87) $ 0.43 $ (0.47)
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Diluted $ 0.10 $ (0.87) $ 0.42 $ (0.47)
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Weighted average shares:
Basic 59,641 56,786 59,175 55,730
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Diluted 60,453 56,786 59,897 55,730
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Cash dividends per share of common stock $ 0.07 $ 0.07 $ 0.21 $ 0.21
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