EXHIBIT 99.1
[GRAPHIC OMITTED]
For: From:
A.C. Moore Arts & Crafts, Inc. Gregory FCA Communications, Inc.
Leslie Gordon For More Information Contact:
Chief Financial Officer Joe Crivelli
(856) 228-6700 (610) 642-8253
For Immediate Release
A.C. Moore Third Quarter Profit Increases 47%
Blackwood, NJ, October 15, 2003. A.C. Moore Arts & Crafts, Inc. (Nasdaq: ACMR)
sales for the third quarter ended September 30, 2003, grew to a record $98.6
million, an increase of 10% over sales of $89.7 million for the third quarter of
2002. Comparable store sales increased 2%. Net income for the third quarter was
$1.26 million, up 47% over income of $857,000 for the third quarter of 2002.
Income per fully-diluted share was $0.06 versus a profit of $0.04 per
fully-diluted share in the prior comparable period.
Sales for the nine months ended September 30, 2003, were $284.2 million, an
increase of 10% over 2002 nine month sales of $258.4 million. Comparable store
sales growth for the nine months ended September 30, 2003, was 1% on top of a
same store sales increase of 9% in the first nine months of 2002. Net income for
the nine months ended September 30, 2003 was $2.73 million or $0.14 per
fully-diluted share versus a profit of $2.32 million or $0.12 per fully-diluted
share in the prior comparable period. The Company re-confirmed its forecast for
the full year to be at the high end of the $0.84 to $0.88 per share range.
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.
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 79 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)
September 30,
--------------------------
2003 2002
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 24,989 $ 39,500
Inventories 125,084 107,911
Prepaid expenses and other current assets 5,654 2,349
-------- --------
155,727 149,760
Marketable securities 14,161 -
Property and equipment, net 36,524 28,228
Other assets 1,873 1,844
-------- --------
$208,285 $179,832
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of capital leases $ 815 $ 1,329
Accounts payable to trade and others 34,042 28,445
Other current liabilities 11,316 12,498
-------- --------
46,173 42,272
-------- --------
Long-term liabilities:
Deferred taxes 6,019 3,425
Other long-term liabilities 4,496 4,634
-------- --------
10,515 8,059
-------- --------
56,688 50,331
-------- --------
Shareholders' Equity 151,597 129,501
-------- --------
$208,285 $179,832
======== ========
A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands, except per share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------------- -------------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net sales $ 98,600 $ 89,726 $ 284,238 $ 258,445
Cost of sales 61,987 56,423 179,297 162,756
----------- ----------- ----------- -----------
Gross margin 36,613 33,303 104,941 95,689
Selling, general and administrative expenses 33,842 31,180 99,266 90,278
Pre-opening expenses 821 850 1,571 1,888
----------- ----------- ----------- -----------
Income from operations 1,950 1,273 4,104 3,523
Net interest (income) (92) (150) (319) (326)
----------- ----------- ----------- -----------
Income before income taxes 2,042 1,423 4,423 3,849
Income tax expense 780 566 1,690 1,532
----------- ----------- ----------- -----------
Net income $ 1,262 $ 857 $ 2,733 $ 2,317
=========== =========== =========== ===========
Basic net income per share $ 0.07 $ 0.05 $ 0.14 $ 0.13
=========== =========== =========== ===========
Diluted net income per share $ 0.06 $ 0.04 $ 0.14 $ 0.12
=========== =========== =========== ===========
Weighted average shares outstanding 19,247,590 18,741,640 19,042,513 17,582,762
=========== =========== =========== ===========
Weighted average shares outstanding
plus impact of stock options 19,980,409 19,807,463 19,655,988 18,605,664
=========== =========== =========== ===========