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) N/A
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Heilig-Meyers Company
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(Exact name of registrant as specified in its charter)
Virginia 1-8484 54-0558861
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) file number) Identification No.)
12560 West Creek Parkway, Richmond, Virginia 23238
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (804) 784-7300
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On September 16, 1998, Heilig-Meyers Company (the "Company") issued a
press release reporting results for the second quarter ended August 31, 1998,
which is attached hereto as Exhibit 99 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
The following exhibit is filed as a part of this report:
Exhibit 99 - Press Release dated September 16, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HEILIG-MEYERS COMPANY
Date: September 16, 1998 By: /s/ Roy B. Goodman
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Roy B. Goodman
Principal Financial Officer
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Exhibit Index
Exhibit
No. Description
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99 Press Release dated September 16, 1998
EXHIBIT 99
HEILIG-MEYERS COMPANY REPORTS FISCAL 1999 SECOND QUARTER RESULTS
Heilig-Meyers Company (NYSE:HMY) today reported consolidated results
for the second quarter ended August 31, 1998. Net earnings were $8.8 million or
$0.15 per share, compared to $9.3 million or $0.16 per share in the prior year.
Total revenues for the quarter increased 14.4% to $675.0 million, compared to
$590.2 million for the quarter ended August 31, 1997. For the three-month period
comparable store sales increased 3.7%.
For the six months ended August 31, 1998, net earnings were $19.0
million compared to $23.0 million in the prior year. Earnings per share were
$0.32 compared to $0.41 for the six months ended August 31, 1997. Revenues for
the six months rose to $1.3 billion from $1.2 billion in the prior year while
comparable store sales increased 3.0%.
William C. DeRusha, Chairman and Chief Executive Officer, noted that
the Company's Heilig-Meyers Furniture division, which represents approximately
60% of consolidated revenues, has made sound progress towards stated goals. Same
store sales in these stores increased approximately 3.0% during the quarter,
while operating margins were in line with expectations. He also commented that
management was pleased with operating margins in the Mattress Discounters
division, as second quarter results were well ahead of expectations despite a
shift of the Labor Day weekend from the second to the third quarter. Mr. DeRusha
also noted that integration of recent acquisitions and format conversions in the
Company's RoomStore division were proceeding according to management's
expectations.
Management stated that the shortfall in consolidated earnings for the
quarter was primarily related to the Company's Rhodes division. Rhodes, in its
first quarter of operation under a new merchandising and advertising format,
recorded a same store sales increase of 2.3%. However, while sales were improved
versus the same period in the prior year, they were significantly short of plan
and accordingly had a material impact on consolidated earnings given the
investment the Company is making to reposition this division to a higher-end
retail format. Mr. DeRusha noted that stores in larger metropolitan markets had
generally responded favorably to the transition and were making progress toward
stated objectives. However, he added that in markets where customer response to
the format repositioning has been significantly slower, management has made
refinements to the fall advertising and marketing program in an effort to
improve results.
Heilig-Meyers Company is the Nation's largest retailer of furniture,
bedding and related items. As of August 31, 1998, the Company operated 1,246
stores: 815 as Heilig-Meyers, 229 as Mattress Discounters, 101 as Rhodes, 69 as
The RoomStore and 32 in Puerto Rico as Berrios.
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HEILIG-MEYERS COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands except per share data )
<CAPTION>
Three Months Ended Six Months Ended
August 31, August 31,
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1998 1997 1998 1997
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<S> <C>
Revenues:
Sales $ 596,360 $ 515,162 $ 1,190,155 $ 1,004,202
Other income 78,647 75,050 153,791 152,335
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Total revenues 675,007 590,212 1,343,946 1,156,537
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Costs and expenses:
Costs of sales 405,831 343,961 799,263 663,943
Selling, general and administrative 213,935 193,815 431,231 379,802
Interest 18,986 16,101 38,126 31,529
Provision for doubtful accounts 22,494 21,933 45,693 44,861
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Total costs and expenses 661,246 575,810 1,314,313 1,120,135
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Earnings before provision for income taxes 13,761 14,402 29,633 36,402
Provision for income taxes 5,003 5,123 10,681 13,362
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Net earnings $ 8,758 $ 9,279 $ 18,952 $ 23,040
=============== =============== ================ ================
Net earnings per share of common stock:
Basic $ 0.15 $ 0.17 $ 0.32 $ 0.42
=============== =============== ================ ================
Diluted $ 0.15 $ 0.16 $ 0.32 $ 0.41
=============== =============== ================ ================
Weighted average shares:
Basic 59,077 56,003 58,945 55,208
=============== =============== ================ ================
Diluted 59,571 56,917 59,621 56,082
=============== =============== ================ ================
Cash dividends per share of common stock $ 0.07 $ 0.07 $ 0.14 $ 0.14
=============== =============== ================ ================
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HEILIG-MEYERS COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
<CAPTION>
August 31, February 28,
1998 1998
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ASSETS
Current assets:
Cash $ 35,166 $ 48,779
Accounts receivable, net 354,742 392,765
Retained interest in securitized
receivables 174,592 182,158
Inventories 539,648 542,868
Other current assets 168,472 126,978
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Total current assets 1,272,620 1,293,548
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Property and equipment, net 389,176 398,151
Other assets 62,986 55,321
Excess costs over net assets acquired, net 345,274 350,493
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$ 2,070,056 $ 2,097,513
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 248,500 $ 260,000
Long-term debt due within one year 151,159 22,365
Accounts payable 201,868 203,048
Accrued expenses 193,312 216,738
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Total current liabilities 794,839 702,151
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Long-term debt 583,926 715,271
Deferred income taxes 70,059 70,937
Total stockholders' equity 621,232 609,154
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$ 2,070,056 $ 2,097,513
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