Exhibit 99.1
[A.C. MOORE GRAPHIC OMITTED] 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 Crivelli
(856) 228-6700 (610) 642-8253
For Immediate Release
A.C. Moore Reports Record First Quarter Net Income
Raises Full Year Earnings Guidance
Blackwood, New Jersey, April 21, 2004 - A.C. Moore Arts & Crafts, Inc. (Nasdaq:
ACMR) sales for the first quarter ended March 31, 2004, grew to $111.5 million,
an increase of 21% over sales of $92.0 million during the first quarter of 2003.
Same store sales increased by 9.4%. Net income for the quarter was $1,204,000 or
$0.06 per fully diluted share versus last year's net income of $420,000 or $0.02
per share.
Jack Parker, Chief Executive Officer, stated, "We were very pleased with the
first quarter's results as our merchandising performance was strong and our cost
controls continued to be effective. These results include a cost of $0.05 per
share as the result of the impact of our change in accounting for cooperative
advertising pursuant to Emerging Issues Task Force Issue No. 02-16, "Accounting
by a Customer (Including a Reseller) for Certain Consideration received by a
Vendor." This was $0.01 less than we had projected. For the year, we still
estimate that the impact will be $0.12 per share. Excluding that cost, our
earnings would have been $0.11 per share. With these results we are now raising
our earnings projection for the full-year 2004 from a range of $0.92-$0.95 to a
range of $0.94- $0.97 per share."
A.C. Moore will host a conference call today, Wednesday, April 21 at 5:00 p.m.
Eastern Daylight Time to discuss these financial results in detail. To
participate, please call 1-973-317-5319 for domestic and international callers.
If you are unable to access the Conference Call at 5:00 p.m., please call
1-800-428-6051 and enter pin number 349429 to access the taped digital replay.
Callers from outside North America please call 1-973-709-2089 and enter the same
reservation number. The replay will be available at approximately 7:00 p.m. on
April 21st and will remain available until Wednesday, April 28th at 11:59 p.m.
Eastern Daylight Time.
A simultaneous webcast of the conference call may be accessed at
http://www.acmoore.com. Go to "Investor Relations" and click on "Corporate
Profile." 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. An
archive of the conference call will be available approximately two hours after
the conference call ends and will remain available on the company's website
until April 21, 2005.
The company plans to release its second quarter 2004 sales results on Thursday,
July 8, 2004. The company also plans to release its second quarter 2004 earnings
on Wednesday, July 21, 2004, and will host a conference call at 5:00 PM EDT on
that date to discuss the results.
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 84 stores on the eastern United States. For more
information about the Company, visit our website at www.acmoore.com.
# # #
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, the impact of the adoption of
EITF issue 02-16, 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 STATEMENT OF INCOME
(dollars in thousands, except per share data)
(unaudited)
Three months ended
March 31
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2004 2003
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Net sales $ 111,469 $ 91,952
Cost of sales 69,539 58,417
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Gross Margin 41,930 33,535
Selling, general and administrative expenses 39,526 32,585
Store pre-opening expenses 566 379
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Income from operations 1,838 571
Net interest (income) (120) (109)
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Income before income taxes 1,958 680
Provision for income taxes 754 260
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Net income $ 1,204 $ 420
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Basic net income per share $ 0.06 $ 0.02
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Diluted net income per share $ 0.06 $ 0.02
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Weighted average shares outstanding 19,370,097 18,834,421
============ ============
Weighted average shares outstanding
plus impact of stock options 20,043,225 19,603,345
============ ============
A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
March 31,
----------------------
2004 2003
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ASSETS
Current assets:
Cash and cash equivalents $ 35,701 $ 54,449
Marketable securities 7,525 1,461
Inventories 124,624 108,997
Prepaid expenses and other current assets 3,368 3,022
-------- --------
171,218 167,929
Marketable securities 6,299 -
Property and equipment, net 59,850 28,827
Other assets 1,807 1,841
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$239,174 $198,597
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of equipment leases $ 255 $ 1,342
Trade accounts payable 35,281 32,143
Other current liabilities 15,472 10,900
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51,008 44,385
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Long-term liabilities:
Long-term debt 10,000 -
Deferred tax liability 4,950 5,150
Other long-term liabilities 4,975 4,280
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19,925 9,430
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70,933 53,815
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Shareholders' Equity 168,241 144,782
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$239,174 $198,597
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