EXHIBIT 99.1
Contact: N. Gregory Petrick
Executive Vice President and
Chief Financial Officer
(814) 234-6000
Press Release
FOR IMMEDIATE RELEASE
UNI-MARTS, INC.
ANNOUNCES FISCAL 2004 SECOND QUARTER FINANCIAL RESULTS
STATE COLLEGE, PENNSYLVANIA, April 28, 2004 - Uni-Marts, Inc. (AMEX: UNI),
a convenience store operator in the mid-Atlantic region, today reported
financial results for the second fiscal quarter ended April 1, 2004.
For the second quarter of fiscal 2004, revenues from continuing operations
of 163 stores were $79.7 million, a 16.9% increase, compared to revenues of
$68.2 million for the second quarter of fiscal 2003. The increase in revenues is
principally due to a 29.4% increase in gasoline sales as a result of a 34.5 cent
per gallon increase in the average reported retail price per gallon of petroleum
sold at the Company's locations in the second quarter of fiscal 2004 when
compared to the second quarter of fiscal 2003. The 34.5 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 $6.1 million of the gasoline sales
reported in the second quarter of fiscal 2004. At comparable stores, merchandise
sales from continuing operations increased by 5.9% and gasoline gallons sold
from continuing operations increased by 4.2% compared to the second quarter of
fiscal 2003.
The Company reported a loss from continuing operations of $896,000, or
$0.13 per share, compared to a loss of $733,000, or $0.10 per share, for the
second quarter of fiscal 2003. Losses from discontinued operations were
$456,000, or $0.06 per share, compared to losses from discontinued operations of
$1.5 million, or $0.22 per share, in the prior year's second fiscal quarter. In
the second quarter of fiscal 2004, the loss from discontinued operations
lessened primarily as a result of the discontinuance of $778,000 of depreciation
on assets held for sale in the current fiscal quarter, in addition to a $248,000
loss on disposal of discontinued operations reported in the second quarter of
fiscal 2003. Total net losses for continued and discontinued operations for the
second quarter of fiscal 2004 were $1.4 million, or $0.19 per share, compared to
total net losses of $2.3 million, or $0.32 per share, for the second quarter of
fiscal 2003.
Henry D. Sahakian, Chairman and Chief Executive Officer, commented, "In
the second quarter of fiscal 2004, revenues improved due to increases in
gasoline retail prices and comparable store merchandise sales when compared to
the second quarter of fiscal 2003. Merchandise gross margins
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increased by 3.1%, while gasoline gross margins declined by 9.1% when compared
to the same quarter of the prior fiscal year."
For the first six months of fiscal 2004, revenues from continuing
operations of 163 stores were $161.1 million, a 15.6% increase, compared to
revenues of $139.3 million for the first six months of fiscal 2003. Revenues
increased principally due to a 28.9%, or a 35.0 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 35.0 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 increased 4.5%,
while gasoline gallons sold from continuing operations increased by 2.6% when
compared to the first six months of fiscal 2003.
The Company reported a loss from continuing operations of $524,000, or
$0.07 per share, for the first six months of fiscal 2004, compared to a loss of
$392,000, or $0.05 per share, for the first six months of fiscal 2003. The loss
from discontinued operations was $118,000, or $0.02 per share, compared to a
loss of $2.3 million, or $0.32 per share, in the first six months of fiscal
2003. The Company reported a one-time, non-cash charge of $5.5 million, or a
loss of $0.78 per share, in the first six months of fiscal 2003 due to a change
in accounting principle relating to the adoption of Statement of Financial
Accounting Standard No. 142. Total net losses for continued and discontinued
operations for the first six months of fiscal 2004 were $642,000, or $0.09 per
share, compared to total net losses of $8.2 million, or $1.15 per share, for the
comparable period of the prior fiscal year.
Mr. Sahakian added, "For the first six months of fiscal 2004 higher
merchandise sales contributed to a 1.6% increase in merchandise margins.
Additional gasoline gallons sold were offset by a slight decline in the gross
profit per gallon sold, resulting in a 2.9% decline in gasoline gross margins."
In accordance with the Company's previously announced plans to divest 130
store locations, at April 1, 2004, the Company had 122 remaining stores
classified as discontinued operations on its balance sheet totaling $40.8
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 April 1, 2004, Uni-Marts operated 285 convenience stores and Choice
Cigarette Discount Outlets in Pennsylvania, New York, Delaware, and Maryland.
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)
Second Quarter Ended Two Quarters Ended
April 1, April 3, April 1, April 3,
2004 2003 2004 2003
---------- ---------- ---------- ----------
REVENUES:
Merchandise sales $ 34,202 $ 33,091 $ 70,464 $ 68,890
Gasoline sales 45,008 34,772 89,749 69,631
Other income 540 336 851 754
---------- ---------- ---------- ----------
Total 79,750 68,199 161,064 139,275
COSTS AND EXPENSES:
Cost of sales 66,335 55,000 133,085 111,555
Selling 10,131 9,981 20,153 20,207
General and administrative 2,231 1,985 4,428 3,886
Depreciation and amortization 1,079 1,113 2,161 2,226
Interest 869 895 1,759 1,816
---------- ---------- ---------- ----------
Total 80,645 68,974 161,586 139,690
Loss from continuing operations before
income taxes and change in accounting principle (895) (775) (522) (415)
Income tax provision (benefit) 1 (42) 2 (23)
---------- ---------- ---------- ----------
Loss from continuing operations before
change in accounting principle (896) (733) (524) (392)
DISCONTINUED OPERATIONS:
Loss from discontinued operations (456) (1,378) (118) (2,185)
Loss on disposal of discontinued operations 0 (248) 0 (248)
Income tax benefit 0 (84) 0 (128)
---------- ---------- ---------- ----------
Loss on discontinued operations (456) (1,542) (118) (2,305)
Cumulative effect of change in accounting principle,
net of income tax benefit of $310 0 0 0 (5,547)
---------- ---------- ---------- ----------
Net loss $ (1,352) $ (2,275) $ (642) $ (8,244)
========== ========== ========== ==========
(LOSS) EARNINGS PER SHARE:
Loss per share from continuing operations
before change in accounting principle $ (0.13) $ (0.10) $ (0.07) $ (0.05)
Loss per share from discontinued operations (0.06) (0.22) (0.02) (0.32)
Loss per share from change in accounting principle 0.00 0.00 0.00 (0.78)
---------- ---------- ---------- ----------
Net loss per share $ (0.19) $ (0.32) $ (0.09) $ (1.15)
========== ========== ========== ==========
Weighted average number of common shares outstanding 7,204 7,155 7,200 7,143
========== ========== ========== ==========
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share data)
April 1, September 30,
2004 2003
---------- ----------
Current assets $ 67,514 $ 75,370
Net property, equipment and improvements 49,463 51,083
Net intangible and other assets 1,311 1,508
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Total 118,288 127,961
Current liabilities 61,491 69,287
Long-term debt 33,896 34,450
Deferred taxes and other liabilities 3,397 4,101
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Total 98,784 107,838
Stockholders' equity 19,504 20,123
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Total liabilities and stockholders' equity $ 118,288 $ 127,961
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Book value per share $ 2.71 $ 2.80
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