Exhibit 99.1
Contact: N. Gregory Petrick
Executive Vice Presidet and
Chief Financial Officer
(814) 234-6000
Press Release
FOR IMMEDIATE RELEASE
UNI-MARTS, INC.
ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2003
FINANCIAL RESULTS
STATE COLLEGE, PENNSYLVANIA, November 5, 2003 - Uni-Marts, Inc. (AMEX:
UNI), a convenience store operator in the mid-Atlantic region, today announced
financial results for its fourth fiscal quarter and fiscal year ended September
30, 2003.
In accordance with the Company's previously announced plans to divest 130
store locations, at September 30, 2003, the Company had 128 remaining stores
classified as discontinued operations on its balance sheet totaling $40.7
million. The income and expense relating to these stores is classified as
discontinued operations. The Company intends to continue to operate these stores
pending successful negotiation of their sale or sub-lease.
For the fourth quarter of fiscal 2003, revenues from continuing operations
of 164 stores were $81.4 million, a 13.0% increase, compared to revenues of
$72.0 million for the fourth quarter of fiscal 2002. Contributing to the growth
in revenues was a 38.7% increase in gasoline sales, principally due to a 41.0
cent per gallon increase in the average reported retail price per gallon of
petroleum sold at the Company's locations when compared to the fourth quarter of
fiscal 2002. This increase includes a 25.9 cent per gallon gasoline tax for the
Company's Pennsylvania stores, which was not included in the average reported
retail price per gallon in the fourth quarter of fiscal 2002, representing
approximately $7.1 million of the gasoline sales increase for the fourth quarter
of fiscal 2003. In June 2003, as noted in the Company's Form 10-Q filed for the
period ended July 3, 2003, the Company changed its payment method for gasoline
taxes for its Pennsylvania stores and now includes the gasoline tax in its
average reported retail price per gallon. This change in payment method has no
effect on gross profits. At comparable stores, merchandise sales from continuing
operations declined by 2.0%, while gasoline gallons sold from continuing
operations increased by 1.0% compared to the fourth quarter of fiscal 2002. The
Company reported net earnings from continuing operations of $369,000, or $0.05
per share, compared to net earnings of $90,000, or $0.01 per share, for the
prior year's fourth fiscal quarter. Net earnings from
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discontinued operations were $524,000, or $0.07 per share, in the fourth quarter
of fiscal 2003, compared to a net loss of $233,000, or $0.03 per share, in the
fourth quarter of fiscal 2002. Net earnings from discontinued operations in the
fourth quarter of fiscal 2003 improved primarily as a result of the
discontinuance of $800,000 of depreciation on assets held for sale. For the
fourth quarter of fiscal 2003, the Company reported combined net earnings of
$893,000, or $0.12 per share, compared to a combined net loss of $143,000, or
$0.02 per share, for the fourth quarter of fiscal 2002.
Henry D. Sahakian, Chairman and Chief Executive Officer, commented on the
Company's fourth quarter results, "The Company's financial performance during
the quarter improved primarily due to higher gasoline gross margins and the
discontinuation of depreciation at discontinued operations. Higher margins per
gallon sold combined with increased gasoline gallons sold, resulted in a 16.7%
increase in gasoline gross margins."
For the fiscal year ended September 30, 2003, revenues from continuing
operations of 164 stores were $296.0 million, a 13.0% increase, compared to
revenues of $262.0 million for the fiscal year ended September 30, 2002.
Revenues increased principally due to a 31.7%, or a 31.9 cent per gallon,
increase in gasoline sales as a result of an increase in the average reported
retail price per gallon of petroleum sold in the current fiscal year. The 31.9
cent per gallon increase includes the effect of the Company's change in its
payment method for Pennsylvania gasoline taxes that became effective in June
2003. At comparable stores, merchandise sales from continuing operations were
relatively flat, while gasoline gallons sold from continuing operations
increased by 1.0% from fiscal 2002 levels. The Company reported net earnings
from continuing operations of $211,000, or $0.03 per share, for fiscal 2003,
compared to net earnings of $245,000, or $0.03 per share, for fiscal 2002. The
loss from discontinued operations for fiscal 2003 was $2.9 million, or $0.41 per
share, compared to a net loss of $1.6 million, or $0.22 per share, in fiscal
2002. The loss from change in accounting principle in fiscal 2003, relating to
the adoption of Statement of Financial Accounting Standard No. 142, was a
one-time, non-cash charge of $5.5 million, or $0.78 per share. For the 2003
fiscal year, the Company reported a combined net loss of $8.3 million, or $1.16
per share, compared to a net loss of $1.3 million, or $0.19 per share, in fiscal
2002.
Henry D. Sahakian commented on fiscal year 2003, "Net earnings from
continuing operations declined slightly in fiscal 2003 as contributions from
higher gasoline gross margins were offset by lower merchandise sales and gross
profit rates. Higher margins per gallon sold, as well as additional gallons sold
contributed to a 6.2% increase in gasoline gross margins. Lower
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merchandise sales, due primarily to seven fewer stores in operation, contributed
to a 2.2% decline in merchandise gross margins in fiscal 2003 compared to fiscal
2002."
Mr. Sahakian further commented, "During fiscal 2003, the Company has
evaluated various transactions in line with its strategy to divest certain
non-core operating stores and non-operating assets. In fiscal 2003 and through
the date of this release, the Company has sold or closed 12 locations.
Throughout fiscal 2003, the Company has remained focused on improving its
existing operations by implementing an advanced technological financial
reporting system and by efficiently managing its store operations. As we proceed
with our divestiture and restructuring plans in fiscal 2004, we plan to improve
operating efficiencies by completing our internal financial reporting system
upgrades, as well as by capitalizing on opportunities for improved sales and
margins."
At September 30, 2003, Uni-Marts operated 292 convenience stores and Choice
Cigarette Discount Outlets in Pennsylvania, New York, Delaware, Maryland and
Virginia. Self-service gasoline was sold at 237 of these locations. As of the
date of this release, the Company operated 288 stores.
Certain statements contained in this release are forward looking. Although
Uni-Marts, Inc. believes that its expectations are based on reasonable
assumptions within the bounds of its knowledge of its business and operations,
there can be no assurance that actual results will not differ materially from
its expectations. The forward-looking statements include, but are not limited
to, statements related to the possibility of successful completion of any
strategic transaction or enhancement of stockholder value. Factors that could
cause actual results to differ from expectations include general economic,
business and market conditions, volatility of gasoline prices, merchandise
margins, customer traffic, weather conditions, labor costs and the level of
capital expenditures. For other important factors that may cause actual results
to differ materially from expectations and underlying assumptions, see reports
by Uni-Marts, Inc. filed with the Securities and Exchange Commission.
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UNI-MARTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Fourth Quarter Ended Fiscal Year Ended
September 30, September 30,
2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------------
Revenues:
Merchandise sales $ 36,218 $ 39,243 $140,471 $143,315
Gasoline sales 44,843 32,336 154,076 117,007
Other income 351 446 1,445 1,658
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Total 81,412 72,025 295,992 261,980
COSTS AND EXPENSES:
Cost of sales 66,968 57,887 239,767 205,300
Selling 10,146 9,981 40,363 39,811
General and administrative 1,948 1,861 7,621 8,026
Depreciation and amortization 1,067 1,175 4,435 4,709
Interest 949 932 3,589 3,710
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Total 81,078 71,836 295,775 261,556
Earnings from continuing operations before
income taxes and change in accounting principle 334 189 217 424
Income tax provision (benefit) (35) 99 6 179
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Earnings from continuing operations before
change in accounting principle 369 90 211 245
DISCONTINUED OPERATIONS:
Earnings (loss) from discontinued operations 546 (690) (2,311) (2,703)
Loss on disposal of discontinued operations 0 0 (720) 0
Income tax provision (benefit) 22 (457) (88) (1,141)
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Earnings (loss) on discontinued operations 524 (233) (2,943) (1,562)
Cumulative effect of change in accounting principle,
net of income tax benefit of $310 0 0 (5,547) 0
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Net earnings (loss) $ 893 $ (143) $ (8,279) $ (1,317)
=========================================================
EARNINGS (LOSS) PER SHARE:
Earnings per share from continuing operations
before change in accounting principle $ 0.05 $ 0.01 $ 0.03 $ 0.03
Earnings (loss) per share from discontinued operations 0.07 (0.03) (0.41) (0.22)
Loss per share from change in accounting principle 0.00 0.00 (0.78) 0.00
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Net earnings (loss) per share $ 0.12 $ (0.02) $ (1.16) $ (0.19)
=========================================================
Diluted earnings (loss) per share $ 0.12 $ (0.02) $ (1.16) $ (0.19)
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Weighted average number of common shares outstanding 7,190 7,119 7,165 7,099
=========================================================
Weighted average number of common shares outstanding
assuming dilution 7,231 7,119 7,165 7,099
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share data)
September 30, September 30,
2003 2002
- --------------------------------------------------------------------------------------------------------------------
Current assets $ 75,370 $ 39,413
Net property, equipment and improvements 51,083 98,037
Net intangible and other assets 1,508 7,695
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Total 127,961 145,145
Current liabilities 35,815 37,670
Long-term debt 67,922 72,126
Deferred taxes and other liabilities 4,101 7,032
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Total 107,838 116,828
Stockholders' equity 20,123 28,317
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Total liabilities and stockholders' equity $127,961 $145,145
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Book value per share $ 2.80 $ 3.97
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