BIRMINGHAM, Ala., March 19, 2003 (PRIMEZONE) -- Moore-Handley, Inc. (Nasdaq:MHCO), a Birmingham, Ala. distributor of hardware and home center products, reported a net loss of 19 cents per diluted share for the quarter ended December 31, 2002 compared to net income of 7 cents per diluted share for the same quarter last year. Annual results showed an income of 18 cents per diluted share for 2002 versus net income of 44 cents per diluted share for the previous year.
Sales for the fourth quarter of 2002 were down 4.5% to $32.2 million from $33.7 million in 2001. For the twelve months ended December 31, 2002, sales were down 1.4% from $152.8 million to $150.6 million in 2001. However, unaudited sales for the first two months of 2003 were up compared to the same period last year.
Moore-Handley, Inc.
Summary Statements of Operations
(UNAUDITED)
Quarter Ended Twelve Months Ended
December 31 December 31
------------------------ --------------------------
2002 2001 2002 2001
----------- ----------- ------------ ------------
Sales $32,153,000 $33,700,000 $150,621,000 $152,790,000
Cost of
merchandise
sold 26,802,000 28,004,000 126,555,000 128,184,000
Warehouse and
delivery
expense 2,410,000 2,365,000 9,419,000 9,230,000
----------- ----------- ------------ ------------
Cost of sales 29,212,000 30,369,000 135,974,000 137,414,000
----------- ----------- ------------ ------------
Gross profit 2,941,000 3,331,000 14,647,000 15,376,000
Selling and
administrative
expense 3,244,000 2,921,000 13,256,000 12,869,000
----------- ----------- ------------ ------------
Operating income (303,000) 410,000 1,391,000 2,507,000
Interest expense,
net 226,000 208,000 853,000 1,276,000
----------- ----------- ------------ ------------
Income before
income tax (529,000) 202,000 538,000 1,231,000
Income tax (194,000) 74,000 198,000 443,000
----------- ----------- ------------ ------------
Net income $ (335,000) $ 128,000 $ 340,000 $ 788,000
=========== =========== ============ ============
Net income per
share
- diluted $ (0.19) $ 0.07 $ 0.18 $ 0.44
=========== =========== ============ ============
Weighted average
diluted common
shares
outstanding 1,766,000 1,799,000 1,890,000 1,795,000
=========== =========== ============ ============
Information Concerning Forward-Looking Statements
Certain of the statements contained in this report (other than the financial statements and other statements of historical fact) are forward-looking statements. Use of words such as "expects" and "believes" indicates the presence of forward-looking statements. There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on us will be those anticipated by management. Among the factors that could cause actual results to differ materially from estimates reflected in such forward-looking statements are the following:
-- competitive pressures on sales and pricing, including those from other wholesale distributors and those from retailers in competition with our customers;
-- our ability to achieve projected cost savings from our warehouse modernization program and ongoing cost reduction efforts;
-- changes in cost of goods and the effect of differential terms and conditions available to our larger competitors;
-- uncertainties associated with our national sales initiative or any acquisition we may seek to implement; and
-- changes in general economic conditions, including increases in interest rates.