Exhibit 99.1
A.C. Moore [GRAPHIC OMITTED] General Office o Distribution Center
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130 A.C. Moore Drive o Berlin, NJ 08009
PHONE: (856) 768-4930 o FAX: (856) 753-4723
FOR: FROM:
A.C. Moore Arts & Crafts, Inc. Gregory FCA Communications, Inc.
Leslie Gordon For More Information Contact:
Chief Financial Officer Joe Crivelli
(856) 768-4930 (610) 642-8253
FOR IMMEDIATE RELEASE
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A.C. MOORE REPORTS FIRST QUARTER EARNINGS OF $0.01 PER SHARE
BERLIN, NEW JERSEY, APRIL 20, 2006- A.C. Moore Arts & Crafts, Inc. (Nasdaq:
ACMR) today announced results for the first quarter ended March 31, 2006.
Sales for the first quarter of 2006 grew to $132.9 million, an increase of 8.2%
over sales of $122.9 million during the first quarter of 2005. Same store sales
decreased by 1.8%. Net income for the quarter was $136,000 or $0.01 per diluted
share, in line with the analysts' consensus earnings estimate for the quarter.
First quarter 2006 net income includes a net of tax expense of $555,000, or
$0.03 per diluted share, for stock based compensation. Net income in the first
quarter of 2005 was $1,252,000 or $0.06 per diluted share.
Jack Parker, Chief Executive Officer, stated, "Our first quarter results
continued to be impacted by the significant decline in our /yarn business. We
are encouraged by the improvement in sales in the other merchandise categories
including jewelry making, seasonal, and basic crafts, which increased almost 6%
in comp stores. As that trend continues in 2006, it will help us return to
positive growth for the remainder of the year."
A. C. Moore will host a conference call today, Thursday, April 20, 2006 at 11:00
AM Eastern Daylight Time to discuss these financial results in detail. To
participate, please call 973-935-8599. If you are unable to access the live
call, please dial 973-341-3080 and enter pin number 7239788 to access the taped
digital replay. The replay will be available at approximately 1:00 PM on April
20th and will remain available until Thursday, April 27th at 11:59 PM 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 20, 2007.
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 113 stores in the Eastern United States. For
more information about the Company, visit our website at www.acmoore.com.
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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 costs associated with a
change in senior management, the impact of the adoption of FAS 123R, 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
(in thousands, except per share data)
(unaudited)
Three months ended
March 31,
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2006 2005
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Net sales $ 132,918 $ 122,879
Cost of sales 79,765 74,751
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Gross Margin 53,153 48,128
Selling, general and administrative expenses 52,060 45,844
Store pre-opening expenses 624 161
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Income from operations 469 2,123
Net interest expense 53 61
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Income before income taxes 416 2,062
Provision for income taxes 280 810
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Net income $ 136 $ 1,252
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Basic net income per share $ 0.01 $ 0.06
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Diluted net income per share $ 0.01 $ 0.06
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Weighted average shares outstanding 19,838 19,669
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Weighted average shares outstanding
plus impact of stock options 20,070 20,209
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A.C. MOORE ARTS & CRAFTS, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
March 31,
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2006 2005
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ASSETS
Current assets:
Cash and cash equivalents $ 45,853 $ 30,028
Marketable securities 1,500 17,835
Inventories 164,901 145,525
Prepaid expenses and other current assets 7,244 9,601
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219,498 202,989
Non current assets:
Property and equipment, net 89,748 81,716
Other assets 1,367 1,131
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$ 310,613 $ 285,836
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 2,571 $ 2,571
Trade accounts payable 47,998 36,822
Other current liabilities 11,625 9,581
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62,194 48,974
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Non current liabilities:
Long-term debt 23,572 26,143
Deferred tax liability 7,925 8,311
Accrued lease liability 17,265 14,446
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48,762 48,900
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110,956 97,874
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Shareholders' Equity 199,657 187,962
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$ 310,613 $ 285,836
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