Exhibit 99.1
Contact: N. Gregory Petrick
Executive Vice President and
Chief Financial Officer
(814) 234-6000
Press Release
FOR IMMEDIATE RELEASE
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UNI-MARTS, INC.
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ANNOUNCES FISCAL 2004 FIRST QUARTER FINANCIAL RESULTS
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STATE COLLEGE, PENNSYLVANIA, January 22, 2004 - Uni-Marts, Inc. (AMEX:
UNI), a convenience store operator in the mid-Atlantic region, today announced
financial results for its first fiscal quarter ended January 1, 2004.
For the first quarter of fiscal 2004, revenues from continuing
operations of 164 stores were $81.3 million, a 14.4% increase, compared to
revenues of $71.1 million for the first quarter of fiscal 2003. The increase in
revenues is principally due to a 28.4% increase in gasoline sales as a result of
a 35.3 cent per gallon increase in the average reported retail price per gallon
of petroleum sold at the Company's locations in the first quarter of fiscal 2004
when compared to the first quarter of fiscal 2003. The 35.3 cent per gallon
price increase includes the effect of the Company's change in payment method for
Pennsylvania gasoline taxes of 25.9 cents per gallon that became effective in
June 2003, representing approximately $6.5 million of the gasoline sales
reported in the first quarter of fiscal 2004. At comparable stores, merchandise
sales from continuing operations increased by 2.6% and gasoline gallons sold
from continuing operations increased by 0.6% compared to the first quarter of
fiscal 2003.
The Company reported net earnings from continuing operations of
$372,000, or $0.05 per share, compared to net earnings of $341,000, or $0.05 per
share, for the prior year's first fiscal quarter. Net earnings from discontinued
operations were $337,000, or $0.05 per share, compared to a net loss from
discontinued operations of $763,000, or $0.11 per share, in the first quarter of
fiscal 2003. Net earnings from discontinued operations in the first quarter of
fiscal 2004 improved primarily as a result of the discontinuance of $795,000 of
depreciation on assets held for sale. The Company reported a one-time, non-cash
charge of $5.5 million, or a net loss of $0.78 per share, in the first quarter
of fiscal 2003 due to a change in accounting principle relating to the adoption
of Statement of Financial Accounting Standard No. 142. Total net earnings for
continued and
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discontinued operations for the first quarter of fiscal 2004 were $709,000, or
$0.10 per share, compared to total net losses of $5.9 million, or $0.84 per
share, for the first quarter of fiscal 2003.
Henry D. Sahakian, Chairman and Chief Executive Officer, commented on
the Company's first quarter results, "The Company's financial performance in the
quarter improved due to contributions from higher gasoline and merchandise gross
margin dollars and the discontinuation of depreciation at discontinued
operations. An increase in gasoline margin per gallon sold, offset by a slight
decline in gallons sold, contributed to a 3.5% increase in gasoline gross
margins when compared to the first quarter of fiscal 2003. Merchandise gross
margins increased by 0.4% for the current fiscal quarter as higher sales levels
were offset by a decline in the merchandise gross profit rate. Revenues improved
in the current fiscal quarter due to higher retail petroleum prices and
increased comparable store merchandise sales."
Mr. Sahakian added, "In the first quarter of fiscal 2004, six
additional locations were sold or closed as part of the Company's divestiture
strategy and we plan to proceed with our evaluation of strategic opportunities
in line with this strategy."
In accordance with the Company's previously announced plans to divest
130 store locations, at January 1, 2004, the Company had 122 remaining stores
classified as discontinued operations on its balance sheet totaling $40.5
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.
At January 1, 2004, Uni-Marts operated 286 convenience stores and
Choice Cigarette Discount Outlets in Pennsylvania, New York, Delaware, Maryland
and Virginia. Self-service gasoline was sold at 235 of these locations.
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)
First Quarter Ended
January 1, January 2,
2004 2003
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REVENUES:
Merchandise sales $ 36,262 $ 35,799
Gasoline sales 44,741 34,858
Other income 310 418
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Total 81,313 71,075
COSTS AND EXPENSES:
Cost of sales 66,750 56,555
Selling 10,022 10,225
General and administrative 2,197 1,901
Depreciation and amortization 1,082 1,113
Interest 889 921
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Total 80,940 70,715
Earnings from continuing operations before
income taxes and change in accounting principle 373 360
Income tax provision 1 19
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Earnings from continuing operations before
change in accounting principle 372 341
DISCONTINUED OPERATIONS:
Earnings (loss) from discontinued operations 337 (806)
Earnings (loss) on disposal of discontinued operations 0 0
Income tax provision (benefit) 0 (43)
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Earnings (loss) on discontinued operations 337 (763)
Cumulative effect of change in accounting principle,
net of income tax benefit of $310 0 (5,547)
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Net earnings (loss) $ 709 $ (5,969)
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EARNINGS (LOSS) PER SHARE:
Earnings per share from continuing operations
before change in accounting principle $ 0.05 $ 0.05
Earnings (loss) per share from discontinued operations 0.05 (0.11)
Earnings (loss) per share from change in accounting principle 0.00 (0.78)
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Net earnings (loss) per share $ 0.10 $ (0.84)
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Diluted earnings (loss) per share $ 0.10 $ (0.84)
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Weighted average number of common shares outstanding 7,197 7,131
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Weighted average number of common shares outstanding
assuming dilution 7,249 7,131
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share data)
January 1, September 30,
2004 2003
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Current assets $ 71,610 $ 75,370
Net property, equipment and improvements 50,386 51,083
Net intangible and other assets 1,398 1,508
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Total 123,394 127,961
Current liabilities 64,284 69,287
Long-term debt 34,486 34,450
Deferred taxes and other liabilities 3,780 4,101
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Total 102,550 107,838
Stockholders' equity 20,844 20,123
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Total liabilities and stockholders' equity $123,394 $127,961
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Book value per share $ 2.89 $ 2.80
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