[PRESS RELEASE]
Exhibit 99.1
A. C. MOORE General Office o Distribution Center
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500 University Court o Blackwood, New Jersey 08012
Phone: (856) 228-6700 FAX: (856) 228-0080
For: From:
A.C. Moore Arts & Crafts, Inc. Gregory FCA Communications, Inc.
Leslie Gordon For More Information Contact:
Chief Financial Officer Joe Anthony
(856) 228-6700 (610) 642-8253
For Immediate Release
A.C. Moore Second Quarter Profit Increases 80%
Blackwood, NJ, July 16, 2003. A.C. Moore Arts & Crafts, Inc. (Nasdaq: ACMR)
sales for the second quarter ended June 30, 2003, grew to a record $93.7
million, an increase of 13% over sales of $82.9 million for the second quarter
of 2002. Comparable store sales increased 4% on top of a same store sales
increase of 10% in the second quarter of 2002. Net income for the second quarter
was $1.05 million, up 80% over income of $584,000 for the second quarter of
2002. Income per fully-diluted share was $0.05 versus a profit of $0.03 per
fully-diluted share in the prior comparable period.
Sales for the six months ended June 30, 2003, were $185.6 million, an increase
of 10% over 2002 first half sales of $168.7 million. Comparable store sales
growth for the six months ended June 30, 2003, was 1% on top of a same store
sales increase of 12% in the first half of 2002. Net income for the first half
of 2003 was $1.47 million or $0.07 per fully-diluted share versus a profit of
$1.46 million or $0.08 per fully-diluted share in the prior comparable period.
Investors will have the opportunity to listen to the earnings conference call at
5:00 p.m. EDT over the Internet at A.C. Moore's web site,
http://www.acmoore.com. On the Company's homepage, click on "About Us" and then
"Investor Relations." To listen to the live call, please go to the web site at
least fifteen minutes early to register, download, and install any necessary
audio software. For those who cannot listen to the live broadcast, a replay will
be available shortly after the call and will remain available for twelve months.
The Company also announced that on Tuesday, August 5th, they will be presenting
at the Adams, Harkness & Hill Annual Summer Seminar in Boston. A webcast of
their presentation, including slides, will be broadcast from the Investor
Relations page of the Company's website www.acmoore.com beginning at
approximately 2:30 p.m. EDT. To listen to the live presentation, please go to
the website at least fifteen minutes early to register and download any
necessary audio software. For those who cannot listen to the live broadcast, a
replay will be available approximately two hours after the presentation and will
be archived for thirty days.
A.C. Moore operates arts and crafts stores that offer a vast assortment of
traditional and contemporary arts and crafts merchandise for a wide range of
customers. The Company operates 76 stores in the eastern United States.
# # #
This press release contains statements that are forward-looking within the
meaning of applicable federal securities laws and are based on A.C. Moore's
current expectations and assumptions as of this date. The Company undertakes no
obligation to update or revise any forward-looking statement whether the result
of new developments or otherwise. These statements are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from those anticipated. Factors that could cause actual results to differ from
those anticipated include, but are not limited to, customer demand and trends in
the arts and crafts industry, related inventory risks due to shifts in customer
demand, the effect of economic conditions, the impact of adverse weather
conditions, the impact of competitors' locations or pricing, the availability of
acceptable real estate locations for new stores, difficulties with respect to
new system technologies, supply constraints or difficulties, the effectiveness
of advertising strategies, the impact of the threat of terrorist attacks and
war, and other risks detailed in the Company's Securities and Exchange
Commission filings.
(Tables to follow)
A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
June 30,
------------------------------
2003 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 36,503 $ 47,118
Inventories 108,883 94,473
Prepaid expenses and other current assets 4,589 2,300
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149,975 143,891
Marketable securities 14,189 -
Property and equipment, net 30,459 27,008
Other assets 1,821 808
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$ 196,444 $ 171,707
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of capital leases $ 1,161 $ 1,329
Trade accounts payable 26,966 22,606
Other current liabilities 9,914 11,111
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38,041 35,046
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Long-term liabilities:
Deferred tax liability 5,850 3,425
Other long-term liabilities 4,292 4,767
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10,142 8,192
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48,183 43,238
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Shareholders' Equity 148,261 128,469
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$ 196,444 $ 171,707
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A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands, except per share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
---------------------------- -----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Net sales $ 93,686 $ 82,866 $ 185,638 $ 168,719
Cost of sales 58,893 52,170 117,310 106,332
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Gross Margin 34,793 30,696 68,328 62,387
Selling, general and administrative expenses 32,838 29,514 65,424 59,099
Pre-opening expenses 372 384 750 1,038
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Income from operations 1,583 798 2,154 2,250
Net interest (income) (118) (187) (227) (176)
------------ ------------ ------------ ------------
Income before income taxes 1,701 985 2,381 2,426
Income tax expense 650 401 910 966
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Net income $ 1,051 $ 584 $ 1,471 $ 1,460
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Basic net income per share $ 0.06 $ 0.03 $ 0.08 $ 0.09
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Diluted net income per share $ 0.05 $ 0.03 $ 0.07 $ 0.08
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Weighted average shares outstanding 19,033,158 18,682,222 18,939,205 17,083,448
============ ============ ============ ============
Weighted average shares outstanding
plus impact of stock options 19,762,411 19,779,186 19,620,269 18,134,658
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