-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QvqDPUuqXGsI7JG/hdvK51SSxlpFaXnDkLtypa5d1jF2CUx0oTH5YbmybFCw9jDC 7qGrwZTdQKKqtkAC0nqLFw== 0000813775-03-000007.txt : 20030515 0000813775-03-000007.hdr.sgml : 20030515 20030515151732 ACCESSION NUMBER: 0000813775-03-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030514 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FACTORY 2 U STORES INC CENTRAL INDEX KEY: 0000813775 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FAMILY CLOTHING STORES [5651] IRS NUMBER: 510299573 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10089 FILM NUMBER: 03704447 BUSINESS ADDRESS: STREET 1: 4000 RUFFIN ROAD STREET 2: 6TH FLR CITY: SAN DIEGO STATE: CA ZIP: 92123-1866 MAIL ADDRESS: STREET 1: 4000 RUFFIN ROAD STREET 2: 6TH FLOOR CITY: SAN DIEG STATE: CA ZIP: 92123-1866 FORMER COMPANY: FORMER CONFORMED NAME: FAMILY BARGAIN CORP DATE OF NAME CHANGE: 19940202 FORMER COMPANY: FORMER CONFORMED NAME: DRS INDUSTRIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: LONGWOOD GROUP LTD DATE OF NAME CHANGE: 19920527 8-K 1 a051503form8k.txt FORM 8K FURNISHED ON 051503 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 14, 2003 FACTORY 2-U STORES, INC. ------------------------ (Exact name of registrant as specified in its charter) DELAWARE -------- (State or other jurisdiction of incorporation) 0-16309 51-0299573 ------- ------------ (Commission File Number) (IRS Employer Identification No.) 4000 RUFFIN ROAD, SAN DIEGO, CALIFORNIA 92123 --------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (858) 627-1800 N/A --- (Former name or former address, if changed since last report) The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 12 and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. In addition, the information in this Current Report on Form 8-K, including the exhibits, shall not be deemed to be incorporated by reference into the filings of Factory 2-U Stores, Inc. under the Securities Act of 1933, as amended. Item 7. Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press release of Factory 2-U Stores, Inc., dated May 14, 2003. Item 12. Results of Operations and Financial Condition On May 14, 2003, we announced the operating results for the 13 weeks ended May 3, 2003. In addition, we held a web-cast presentation and live conference call discussing the operating results of our first quarter. The full text of our press release dated May 14, 2003 is attached as exhibit hereto. A replay of the conference call is available for 48 hours by telephone or on the internet for two weeks from May 14, 2003. A transcript of the conference call is available by contacting Kehoe, White & Co., Inc. at 1-562-437-0655. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FACTORY 2-U STORES, INC. May 15, 2003 By:/s/ Douglas C. Felderman ------------ ------------------------ Date Douglas C. Felderman Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Press release of Factory 2-U Stores, Inc., dated May 14, 2003. EX-99 3 exhprerel.txt PRESS RELEASE DATED 051503 Exhibit 99.1 FACTORY 2-U STORES, INC. ANNOUNCES OPERATING RESULTS FOR ITS FISCAL 2003 FIRST QUARTER SAN DIEGO, CA, May 14, 2003 - FACTORY 2-U STORES, INC. (Nasdaq: FTUS) today announced financial results for the first quarter ended May 3, 2003. Sales for the thirteen weeks ended May 3, 2003 totaled $104.3 million compared to $117.0 million for the thirteen-week period ended May 4, 2002, a decrease of 10.8%. Comparable store sales for the thirteen-week period ended May 3, 2003 decreased 7.4% versus a decrease of 11.8% for the same period last year. The Company reported a net loss of $2.7 million, or $0.19 per share for the first quarter, compared to a net loss of $3.1 million, or $0.24 per share for the same period last year. The current quarter's operating results included pre-tax reductions of approximately $1.2 million to valuation reserves established at the end of Fiscal 2002 for slow and aged inventory and certain stock subscription notes receivable secured by our common stock. These adjustments reflect a better than expected realization of liquidating slow and aged inventory during the first quarter and an increase in the market value of our common stock which served as security for certain stock subscription notes receivable which became due on April 29, 2003. Excluding these items, our net loss for the quarter ended May 3, 2003 would have been $3.5 million, or $0.24 per share. For the thirteen weeks ended May 3, 2003, the Company opened 1 new store and closed 3 stores, 1 of which was closed on a temporary basis for landlord repairs. Bill Fields, Chairman and Chief Executive Officer commented, "Operating results were lower than originally anticipated for the quarter due to our low inventory levels for most of the 13 week period and a very soft retail environment for retailers in general, particularly in apparel. Despite lower sales and a lower initial mark-up on goods, our gross profit margin improved to 36.1% as a result of lower markdown volume this year. Our spending for selling, general and administrative expenses declined approximately $4.0 million due to fewer stores in operation, lower average store sales and corporate overhead expense reductions initiated in the fourth quarter of last year." Mr. Fields concluded, "We ended the quarter in a much stronger inventory position than we began, added approximately $22.0 million in cash during the quarter to improve our liquidity and have improved in-store execution. Though we have taken positive steps towards improving our business and operating results, we face an uncertain retail environment. In the second quarter, we intend to increase our advertising efforts to be comparable with those levels of a year ago, to maintain a strong competitive position and look for a continued improvement in operating results. We expect comparable store sales performance to range from a negative 2% to a positive 2% and a net loss per share ranging from $0.19 to $0.25 for the second quarter ending August 2, 2003." The Company will host a real-time web-cast presentation and live conference call to discuss first quarter operating results for fiscal 2003 and operating results expectations for the second quarter today at 5:00 P.M. Eastern Standard Time. To participate in the call, dial 1-800-843-7949 five minutes before the call or access the Internet at www.factory2-u.com. All shareholders and other interested parties are encouraged to participate. A replay of the call will remain available for 48 hours by telephone or on the Internet for two weeks. You may also obtain a transcript of the call by contacting Kehoe, White & Co., Inc. at 1-562-437-0655. We will provide a mid-month sales update for May on May 19, 2003 at 5:00 P.M. Eastern Standard Time. Those interested can access this update message at 1-888-201-9603. This message will remain available until June 23, 2003. We will release our May sales results on June 4, 2003 after the market closes, or approximately 4:00 P.M. Eastern Standard Time. FACTORY 2-U STORES, INC. operates 242 "Factory 2-U" off-price retail stores which sell branded casual apparel for the family, as well as selected domestics and household merchandise at prices which generally are significantly lower than the prices offered by its discount competitors. The Company operates 31 stores in Arizona, 2 stores in Arkansas, 64 stores in southern California, 63 stores in northern California, 1 store in Idaho, 8 stores in Nevada, 9 stores in New Mexico, 1 store in Oklahoma, 15 stores in Oregon, 34 stores in Texas, and 14 stores in Washington. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, and actual results could differ materially from the Company's present expectations. Among the important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are: customer demand and trends in the off-price apparel industry, the effect of economic conditions, the impact of competitive openings and pricing, supply constraints or difficulties, and other risks detailed in the Company's Securities and Exchange Commission filings. (tables follow)
FACTORY 2-U STORES, INC. Statements of Operations (in thousands, except per share data) (Unaudited) 13 Weeks Ended -------------- May 3, May 4, 2003 2002 ------ ------ Net sales $ 104,347 $ 116,951 Cost of sales 66,712 75,793 ---------- ---------- Gross profit 37,635 41,158 Selling and administrative expenses 41,255 45,698 Pre-opening and closing expenses 138 437 ---------- ---------- Operating loss (3,758) (4,977) Interest expense, net 634 258 ---------- ---------- Loss before income taxes (4,392) (5,235) Income tax benefit (1,671) (2,094) ---------- ---------- Net loss $ (2,721) $ (3,141) ========== ========== Loss per share: Basic $ (0.19) $ (0.24) Diluted $ (0.19) $ (0.24) Weighted average common shares outstanding: Basic 14,620 12,903 Diluted 14,620 12,903
FACTORY 2-U STORES, INC. BALANCE SHEETS (in thousands) (Unaudited) (Unaudited) May 3, May 4, February 1, 2003 2002 2003 ----------- ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 5,414 $ 8,360 $ 3,465 Merchandise inventory 66,012 64,369 32,171 Accounts receivable, net 623 1,014 884 Income taxes receivable - - 8,200 Prepaid expenses 6,258 6,832 5,436 Deferred income taxes 9,753 3,553 9,732 ----------- ------------ ----------- Total current assets 88,060 84,128 59,888 Leasehold improvements and equipment, net 26,594 34,771 28,602 Deferred income taxes 10,750 7,182 10,750 Other assets 936 1,006 963 Excess of cost over net assets acquired, net 26,301 26,301 26,301 ----------- ------------ ----------- Total assets $ 152,641 $ 153,388 $ 126,504 =========== ============ =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 3,021 $ 2,004 $ 3,000 Junior secured term loan 7,500 - - Accounts payable 43,844 37,230 27,961 Taxes payable 992 690 5,840 Accrued expenses and other liabilities 27,693 29,729 27,831 ------------ ------------ ----------- Total current liabilities 83,050 69,653 64,632 Revolving credit facility 11,535 - 6,300 Long-term debt 6,754 8,638 6,445 Accrued restructuring charges 1,747 3,578 1,747 Deferred rent 2,822 3,263 3,061 ------------ ------------ ----------- Total liabilities 105,908 85,132 82,185 Stockholders' equity 46,733 68,256 44,319 ------------ ------------ ----------- Total liabilities and stockholders' equity $ 152,641 $ 153,388 $ 126,504 ============ ============ =========== ******
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