ABILENE, Kan., June 20, 2007 (PRIME NEWSWIRE) -- Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK) announced today that it has filed a revised Fiscal 2008 Operating Plan along with its Fiscal 2008 Capital Expenditure Plan. The Company released the financial details of these plans in a Form 8-K filing.
President and CEO Bruce Dale stated, "Based on the Company's performance in the first quarter and the revision in the number of new stores we anticipate being able to open in Fiscal 2008, we felt it was prudent to update our 2008 Operating and Capital Expenditure Plans." Dale continued, "We have made considerable progress over the past two years. I am confident that the lower than expected first quarter performance is a bump in the road. I am confident about the remainder of the year and the long-term performance of the Company."
The revised 2008 Operating Plan projects net income will be $10.6 million, compared to the original projection of $14.1 million and compared to income of 5.7 million for last year. Items impacting this change include:
* lower comp store sales growth of 3.0% for the year, compared to a 5% originally planned increase and a 6% increase last year; * decrease in the number of new stores opened from 25 to 18 and an increase in the number of stores to be closed during the year from three to four; * similar store selling, general and administrative expenses (SG&A) at 21.7% of sales, compared to 22.5% for last year; * increase in corporate SG&A of 50 basis points, due to higher than expected audit fees and certain staff changes; and * increase in interest expense.
The company has reduced its planned capital expenditures in Fiscal 2008 by $5 million dollars to $8 million.
Complete details of the revised 2008 Operating and Capital Expenditures Plans are outlined in the Form 8-K filing.
About Duckwall-ALCO Stores, Inc.
Duckwall-ALCO Stores, Inc. is a regional retailer that specializes in offering an exceptional product selection at reasonable prices to smaller communities throughout the central United States. Our specialty is delivering those products with the friendly, personal service found in the stores of yesteryear, but with the modern convenience our customers have come to expect. With 255 stores across 21 states, we are proud to have continually provided high quality products at good value prices to our customers for 106 years. To learn more about Duckwall-ALCO Stores, Inc. visit our website at www.ALCOstores.com.
Forward-looking statements
This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 ("the Act"). Any forward-looking statements are made by the Company in good faith, pursuant to the safe-harbor provisions of the Act. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments and Company performance. Factors, which could significantly change results, include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's quarterly 10-Q filings and other public documents, copies of which are available from the Company on request.