FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to ____________.
Commission file number 1-7441
_____________________Sunshine-Jr. Stores, Inc._______________
(Exact name of registrant as specified in its charter)
_____________Florida_____________ ______59-0669576_______
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
_____109 West Fifth Street, Panama City, FL 32402__________
(Address of principal offices) (Zip Code)
(Registrant's telephone number, including area code)
_____________(904) 769-1661_________________________
______________________(Not Applicable)_______________________
(Former name, former address and former fiscal year, if
changed since last report)
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15
(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period for that the
registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90
days. Yes X No __
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of May 2, 1995.
Common Stock $.10 Par Value 1,701,650 shares
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
BALANCE SHEETS
Sunshine-Jr. Stores, Inc.
<CAPTION>
March 30, December 29,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Unrestricted cash and cash equivalents............. $11,078,540 $11,301,810
Restricted cash.................................... 495,676 923,698
Accounts receivable, less allowances for
doubtful accounts of $16,000 and $18,000
in 1995 and 1994, respectively.................... 1,878,198 2,154,351
Inventories:
Inventories--FIFO basis.......................... 8,769,076 8,631,523
Less LIFO reserve................................ (2,601,273) (2,494,773)
Total inventories................................ 6,167,803 6,136,750
Properties held for sale........................... 85,593 234,783
Environmental receivable (Note F).................. 2,516,000 2,516,000
Prepaid expenses and other assets.................. 1,093,192 1,601,694
TOTAL CURRENT ASSETS.............................. 23,315,002 24,869,086
PROPERTY AND EQUIPMENT, at cost:
Land............................................... 7,072,445 7,067,444
Buildings.......................................... 12,530,713 12,412,979
Fixtures and equipment............................. 22,986,400 22,879,237
Leaseholds and improvements........................ 4,868,599 4,699,384
47,458,157 47,059,044
Less allowances for depreciation and
amortization...................................... (26,042,010) (25,459,365)
21,416,147 21,599,679
OTHER ASSETS:
Properties held for sale, net...................... 3,403,581 3,425,655
Environmental receivable (Note F).................. 11,294,000 11,294,000
Other.............................................. 733,214 668,013
$60,161,944 $61,856,433
</TABLE>
*See notes to condensed financial statements.
<PAGE>
<TABLE>
BALANCE SHEETS
Sunshine-Jr. Stores, Inc.
<CAPTION>
March 30, December 29,
1995 1994
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses (certain
of which may be subject to compromise)............ $13,164,180 $13,961,116
Environmental reserves (Note F):
Sites considered eligible for reimbursement ..... 2,516,000 2,516,000
Sites not considered eligible for reimbursement.. 474,779 426,825
2,990,779 2,942,825
Current portion of long-term debt.................. 1,151,596 1,357,328
Total current liabilities........................ 17,306,555 18,261,269
Environmental reserves (Note F):
Sites considered eligible for reimbursement....... 11,294,000 11,294,000
Sites not considered eligible for reimbursement... 664,688 731,000
11,958,688 12,025,000
Long-term debt, less current portion................ 18,988,194 19,400,162
COMMITMENTS AND CONTINGENCIES (Note E & F)
STOCKHOLDERS' EQUITY
Common stock, $.10 par value; 3,000,000 shares
authorized, 1,701,650 shares issued and
outstanding....................................... 170,165 170,165
Additional paid-in capital......................... 5,124,245 5,124,245
Retained earnings.................................. 6,614,097 6,875,592
Total stockholders' equity....................... 11,908,507 12,170,002
$60,161,944 $61,856,433
</TABLE>
*See notes to condensed financial statements.
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
Sunshine-Jr. Stores, Inc.
(Unaudited)
<CAPTION>
Thirteen Weeks Ended
March 30, March 31,
1995 1994
<S> <C> <C>
Net Revenue......................................... $37,122,497 $41,059,151
Costs and Expenses:
Costs of goods sold................................ 28,657,283 31,658,392
Selling, general, and administrative............... 8,265,702 9,139,432
Interest expense................................... 455,921 443,438
37,378,906 41,241,262
Interest Income..................................... 113,694 90,652
Loss Before Reorganization Items and
Provision for Income Taxes......................... (142,715) (91,459)
(Income) Expense from Reorganization Items:
Net loss (gain) from sale of property & equipment.. 44,494 (1,071,065)
Professional fees.................................. 34,549 290,429
Restructuring (recoveries) charges................. 39,737 41,322
118,780 (739,314)
Income (Loss) Before Income Taxes................... (261,495) 647,855
Provision for Income Taxes:
Current............................................ 0 103,571
Deferred........................................... 0 0
0 103,571
NET INCOME (LOSS)................................... ($261,495) $544,284
Net income (loss) per common share.................. ($0.15) $0.32
</TABLE>
*See notes to condensed financial statements.
<PAGE>
<TABLE>
STATEMENT OF CASH FLOWS
Sunshine-Jr. Stores, Inc.
(Unaudited)
<CAPTION>
Thirteen Weeks Ended
March 30, March 31,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss).................................. ($261,495) $544,284
Adjustments to reconcile net income (loss) to net
cash provided by operating activities before
reorganization and restructuring items:
Depreciation and amortization...................... 640,962 713,683
Changes in assets and liabilities:
Decrease in accounts receivable, net............... 276,153 232,625
Increase in inventories, net....................... (31,053) (255,911)
Decrease in prepaid expenses and other assets..... 440,929 328,634
Increase (decrease) in accounts payable and
accrued expenses.................................. 221,995 (1,547,070)
Decrease in noncurrent liabilities................. (66,312) 0
Total adjustments before reorganization and
restructuring items.............................. 1,482,674 (528,039)
Adjustments due to reorganization and
restructuring items:
Loss (gain) on sale of property and equipment...... 44,494 (1,071,065)
Restructuring charges ............................. 39,737 41,322
Payment of restructuring charges................... (1,045,263) (256,136)
Increase in professional fees payable related to
reorganization items.............................. 34,549 290,429
Total adjustments due to reorganization and
restructuring items............................... (926,483) (995,450)
Total adjustments................................... 556,191 (1,523,489)
Net cash provided by (used in) operating activities 294,696 (979,205)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment................. (495,146) (234,589)
Proceeds from sale of property and equipment
related to reorganization items................... 164,486 5,147,489
Collections of notes and loans receivable, net..... 2,372 28,764
Net cash provided by (used in) investing activities (328,288) 4,941,664
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt........... 0 0
Payments on long-term debt and capital lease
obligations....................................... (617,700) (28,450)
Net cash used in financing activities............. (617,700) (28,450)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS........................................ (651,292) 3,934,009
UNRESTRICTED AND RESTRICTED CASH AND
CASH EQUIVALENTS, beginning of period.............. 12,225,508 13,740,973
UNRESTRICTED AND RESTRICTED CASH AND
CASH EQUIVALENTS, end of period.................... $11,574,216 $17,674,982
</TABLE>
*See notes to condensed financial statements.
<PAGE>
SUNSHINE-JR. STORES, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
March 30, 1995
Note A: Basis of Presentation
The accompanying unaudited financial statements of Sunshine-
Jr. Stores, Inc. (the "Company") have been prepared in
accordance with generally accepted accounting principles for
interim financial information and with the instructions to
Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion
of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the
thirteen week period ended March 30, 1995 are not necessarily
indicative of the results that may be expected for the year
ending December 28, 1995. Certain reclassifications have
been made in the 1994 financial statements to conform to the
1995 presentation. For further information, refer to the
audited financial statements and footnotes attached thereto
included in the Company's annual report on Form 10-K for the
year ended December 29, 1994.
<PAGE>
Note B: Inventories
Inventories consist of the following:
<TABLE>
<CAPTION>
Mar 30, 1995 Dec 29, 1994
<S> <C> <C>
Merchandise $6,775,864 $6,693,036
Gasoline 1,993,212 1,938,487
Total Inventories FIFO Basis 8,769,076 8,631,523
Excess of FIFO cost over LIFO
values (2,601,273) (2,494,773)
Total Inventories LIFO Basis $6,167,803 $6,136,750
</TABLE>
Note C: Long-Term Debt:
Long-term debt consists of the following:
<TABLE>
<CAPTION>
Mar 30, 1995 Dec 29, 1994
<S> <C> <C>
Secured notes payable to holders of Class 7
General Unsecured Claims as defined in the
Company's Plan of Reorganization. $14,778,843 $15,211,145
Amounts due on capital leases 0 7,729
Notes payable to holders of Class 2 Priority
Tax Claims as defined in the Company's Plan
of Reorganization with quarterly principal
payments through December 1998, interest at
7.0%. 2,940,895 3,111,851
Secured notes payable with monthly principal
payments and interest at 7.0% for the
purchase of 10 stores previously leased
under capitalized leases. 2,420,052 2,426,765
20,139,790 20,757,490
Less Current Portion (1,151,596) (1,357,328)
Total $18,988,194 $19,400,162
</TABLE>
Note D: Accounts Payable and Accrued Expenses
As of March 30, 1995, accounts payable and accrued expenses
include Chapter 11 administrative professional fees totaling
$2,108,000 which will be required to be paid within ten days
after the entry of a final order allowing such administrative
claim.
Note E: Litigation
One of the Company's former officers has filed a bankruptcy
administrative claim for approximately $850,000 against the
Company resulting from the alleged breach of an employment
contract. The Company has filed an objection to this claim
and this matter is still pending before the Bankruptcy Court.
In the event the Bankruptcy Court determines that this claim
is administrative in nature, then the claim will have to be
paid within ten days of the entry of a final order granting
such administrative claim. In the event the Bankruptcy Court
finds that the claim is not entitled to administrative
priority status, then the claim will be treated as a general
unsecured claim and may be subject to certain reductions by
virtue of the limitations imposed by the Bankruptcy Code or
other applicable law. Additionally, certain creditors have
filed various other claims in connection with the bankruptcy
to which the Company has objected. In the opinion of
management, the resolution of the pending claims will not
have a material adverse effect on the financial position,
liquidity or results of operations of the Company.
In the normal course of conducting its business, the Company
is involved in various other litigation arising from general
liability, workers' compensation, equal employment and other
claims. In the opinion of management, the resolution of the
outstanding cases will not have a material adverse effect on
the financial position, liquidity or results of operations
of the Company.
Note F: Commitments and Contingencies
Contingent Note
In connection with the Company's Chapter 11 Plan of
Reorganization, the Company issued the holder of its 7%
secured notes an additional $667,643 contingent note, which
would only become due and payable (with interest at the rate
of 7%) upon default under the 7% secured notes, see Note C.
Contingent Creditors
For a description of certain claims filed in the Company's
Chapter 11 bankruptcy proceeding to which the Company has
objected, see Note E.
Environmental Compliance
The ownership and/or operation of underground storage tanks
("UST's") is subject to federal, state and local laws and
regulations. The Company owns and/or operates UST's
containing petroleum products at most of its sites which
offer gasoline or diesel. Federal regulations include
requirements for (a) maintaining a release detection system,
(b) upgrading tank systems, (c) taking corrective action in
response to a release, (d) closing out of service tanks to
prevent future releases, (e) keeping appropriate records and
(f) maintaining evidence of financial responsibility for
taking corrective action and compensating third parties for
bodily injury and property damage resulting from a release of
petroleum products.
The Company is required under EPA regulations to maintain
evidence of financial responsibility for taking corrective
action and compensating third parties for bodily injury and
property damage resulting from releases in the amount of
$1,000,000 per occurrence, with an annual aggregate coverage
limit of $2,000,000. The Company has third-party
environmental insurance coverage in the State of Florida.
Third party liability coverage is provided by the individual
state trust funds in the other states in which the Company
operates.
The Company estimates that it will cost approximately
$2,500,000 in capital expenditures related to tank
replacements, overfill/spill protection, release detectors
and cathodic protection retrofits, during the next four years
to comply with UST detection and prevention requirements at
all of the Company's stores in operation in 1998. The
Company's estimated cost to comply with the UST requirements
may increase if certain prevention efforts at particular
sites fail, thus requiring the subsequent replacement of
UST's at these sites. For fiscal 1995, the Company estimates
that it will cost approximately $500,000 for upgrades to
remain in compliance with UST requirements.
During 1992, the Company engaged an environmental engineering
firm to perform environmental assessments and remediation
activities at its sites. The Company has an accrual of
approximately $1,139,000 at March 30, 1995 to be incurred for
work that is not eligible for reimbursement under the state
trust funds. The Company's accrual is based on estimates
made by the independent environmental engineering firm and
internal environmental staff with regard to the cost of
assessment and remediation required at particular sites.
In addition, the Company's environmental engineering and
consulting firm and internal environmental staff have
estimated that costs for assessment and remediation services
at open and closed sites which are considered eligible for
reimbursement under the state trust funds will total
$13,810,000. Of this amount, it is estimated that $2,516,000
will be incurred during the next year. As discussed below,
the Company has agreements with contractors who will be
compensated directly by the state trust funds. Accordingly,
the Company has recorded both accrued liabilities and
receivables for the current and non-current portion of this
amount. In prior years, the Company recorded its
environmental reserve net of anticipated reimbursements.
The Company has executed agreements with third party financed
assessment and remediation contractors ("the Contractors")
who will be responsible for assessment and remediation of
contaminated sites as well as preparing and filing the
appropriate applications for state trust fund reimbursements.
Under the terms of the agreements, the Contractors will be
compensated for services by state trust fund reimbursements
and the Company will only be responsible for the payment of
certain deductibles and interest on costs the Contractors
have invested if certain contingencies occur under a state
trust fund which precludes the payment of interest by the
fund, and for assessment and remediation costs for sites
determined to be ineligible for trust fund reimbursement.
The state of Florida is currently reviewing its tank trust
fund program and has recently implemented certain changes to
this program. The Company does not presently believe that
this review or these changes will have a material adverse
effect on the Company.
Note G: Gain/Loss on Sale of Property and Equipment
The first quarter 1995 loss on sale of property and equipment
of approximately $44,000 is primarily a result of the
Company's sale of assets of excess properties. A gain of
approximately $1,071,000 was recognized by the Company in
first quarter 1994 when the Company sold the assets at 25
locations located primarily in the central Florida area.
Note H: Reorganization Items
In connection with its Chapter 11 filing, the Company
recorded first quarter reorganization items which included a
loss on sale of property and equipment (See Note G),
approximately $35,000 in professional fees related to the
Company's reorganization efforts, and other restructuring
charges of approximately $40,000 resulting from resolution of
certain disputed claims approved by the Bankruptcy Court.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
The Company's Plan of Reorganization calls for a smaller
reorganized entity, operating at lower relative overhead
levels. The Plan of Reorganization calls for the sale of all
of the Company's non-operating real property, the sale,
sublease or closure of approximately 28 more stores beginning
with the store count of 205 at March 30, 1995, and full
payment of all pre-petition creditors over time. Payments to
these creditors are to be made from the proceeds of future
asset sales, after deduction of certain items described in
the Plan of Reorganization, and from future cash flow from
operations. During the first quarter of 1995, the Company
sold excess property for aggregate consideration of
approximately $164,000. The Company believes that its
current cash on hand and funds to be generated from
operations and asset sales will be adequate to cover its
operations and required Plan of Reorganization payments.
Remaining Plan of Reorganization payments include estimated
Chapter 11 administrative items of approximately $2,108,000,
which the Company anticipates paying in 1995.
Cash flow for the first quarter of 1995 was approximately a
negative $651,000, after the use of approximately $618,000
for payment of long-term debt, approximately $328,000, net,
for investing activities, primarily the purchase of property
and equipment, offset by approximately $295,000 provided by
operating activities. Included in the $295,000 provided by
operating activities, is a use of approximately $1,045,000
for the payment of administrative claims approved by the
bankrupcty court.
Due to the nature of the convenience store business, most of
the Company's sales are for cash and inventories are rapidly
converted to cash to meet general daily working capital
requirements. The Company believes that cash on hand, cash
provided from operations and cash provided from assets sales
will be sufficient to meet short term liquidity needs.
The Company is currently negotiating with petroleum vendors
to establish a long-term supply arrangement. If one of these
agreements is executed, it will likely provide additional
capital resources for upgrading the image and gasoline
equipment at the Company's stores. The Company estimates
that it will cost approximately an additional $2,500,000 in
capital expenditures over the next four years to meet 1998
UST detection and prevention requirements at its existing
sites, of which approximately $500,000 will be required in
fiscal 1995.
The Company has executed agreements with third party financed
remediation contractors ("the Contractors") who will be
responsible for assessment and remediation of contaminated
sites as well as preparing and filing the appropriate
applications for state trust fund reimbursements. Under the
terms of the agreements, the Contractors will be compensated
for services through state trust fund reimbursements and the
Company will only be responsible for the payment of certain
deductibles and interest on costs the Contractors have
invested if certain contingencies occur under a state trust
fund which precludes the payment of interest by the fund, and
for assessment and remediation costs for sites determined to
be ineligible for trust fund reimbursement. For information
concerning environmental matters, including the $13,810,000
liability and receivable established with respect to sites
eligible for state trust fund reimbursement, these agreements
and the status of the Florida trust fund program, as well as
anticipated capital expenditures for environmental compliance
matters, see Note F to the Financial Statements.
The Company announced in August 1994 that it had retained
financial advisors to assist it in connection with a possible
sale of the Company resulting from the interest of the
Company's controlling shareholders in selling their shares.
Since that time, the Company has held and continues to hold
active discussions with potential purchasers. There can be
no assurances that a transaction will be formally proposed or
consummated, or, if consummated at what price. Any such
transaction would be subject, among other things, to the
receipt of a "fairness opinion" from the Board of Directors'
financial advisor, the approval of the Board of Directors,
the approval of the Company's majority stockholders and
the successful negotiation and execution of definitive
agreements.
RESULTS OF OPERATIONS
Revenues
The average number of stores in operation during the first
quarter of 1995 was 205 compared to 240 in the first quarter
of 1994. Data discussed below as "same store" includes data
from the same stores during the comparable periods. On March
30, 1995, the Company operated 205 convenience stores in
Florida, Alabama, Mississippi, Georgia and Louisiana.
<TABLE>
Total Revenues
(In Thousands)
<CAPTION>
Thirteen Weeks Ended
Mar 30, Mar 31, % of
1995 1994 Change
<S> <C> <C> <C>
Merchandise and Other Revenue Items $18,999 $21,743 (12.6%)
Gasoline Revenues 18,124 19,316 (6.2%)
Total Revenues $37,123 $41,059 (9.6%)
Gas Gallons 17,582 19,965 (11.9%)
</TABLE>
During the thirteen weeks ended March 30, 1995, total
revenues decreased approximately $3,936,000 compared to the
same period of the previous year due primarily to a decrease
in the number of stores. Gasoline sales decreased
approximately $1,192,000 and merchandise revenues decreased
approximately $2,744,000.
Merchandise revenues include merchandise sales as well as
revenues from amusement machines, video rentals, service
charges, money order commissions, lottery commissions,
telephone commissions and other miscellaneous items. The
$2,744,000 decrease in merchandise revenues for the thirteen
week period is comprised of a $2,598,000 decrease in
merchandise sales coupled with a decrease in other revenue
items of approximately $146,000. On a same store basis,
merchandise revenues decreased approximately $129,000 or .7%
over the comparable period of the prior year. This decrease
is comprised of a decrease in merchandise sales of
approximately $44,000 coupled with a decrease in other
revenue items of approximately $85,000.
Gasoline revenues accounted for 48.8% of total revenues in
the first quarter of 1995 compared to 47.0% in the first
quarter of 1994. The 6.2% decrease in gasoline revenues for
the thirteen week period ended March 30, 1994, is due to a
decrease in volume. The decrease in volume is a result of
fewer locations selling gasoline. The number of gallons sold
decreased by approximately 2,383,000 gallons in the first
quarter of 1995 compared to the prior year. On a same store
basis, gasoline revenues increased approximately $1,568,000
or 9.5% and gasoline gallons increased approximately 658,000
or 3.9% over the comparable period of 1994.
Gross Profit
<TABLE>
Total Gross Margin Rate
<CAPTION>
Thirteen Weeks Ended
Mar 30, Mar 31,
1995 1994
<S> <C> <C>
Merchandise and Other Revenue Items 33.3% 33.0%
Gasoline 11.8% 11.6%
Total 22.8% 22.9%
Gasoline Gross Margin/Gallon $0.122 $0.112
</TABLE>
Gross profit on merchandise and other revenue items was 33.3%
for the first quarter of 1995 compared to 33.0% for the first
quarter of 1994. During the first quarter of 1995, the
Company recorded a LIFO expense of approximately $49,500.
However, in the first quarter of 1994, the Company recorded
a net LIFO benefit of $101,000 due primarily to the sale of
25 stores. On a pre-LIFO basis, gross profit on merchandise
and other revenue items was 33.6% compared to 32.5% for the
first quarters of 1995 and 1994, respectively. The Company
is experiencing higher gross margin percentages due to
actions and programs the Company began implementing in the
second half of 1993 and the first half of 1994. These actions
include developing new product categories and expanding
and improving the product mix in existing product categories,
changing store and walk-in cooler layouts to encourage the
purchase of higher margin items and training of field and
store management on proper purchasing procedures to lower
costs. On a same store basis, the Company's gross margin
percentage was 33.3% compared to 32.4% for the first quarter
of 1994. Gross profit on merchandise sales and other revenue
items increased approximately $145,000 or 2.4%. The increase
is a result of an increase of approximately $206,000 or 3.7%
in gross profit from merchandise sales partially offset by a
decrease of approximately $61,000 or 10.7% in gross profit
from other revenue items.
Gross profit from gasoline sales decreased approximately
$96,000 in the first quarter of 1995 as compared to 1994.
This decrease is a function of a decrease in volume sold
partially offset by a $.01 increase in gross profit per
gallon. On a same store basis, gasoline gross profit
increased approximately $189,000 or 9.3%. This increase is a
function of increased volume and a $.006 increase in gross
profit per gallon. The gasoline market is significantly
influenced by external factors affecting world petroleum
markets which cause gross profit per gallon to be extremely
volatile.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were 22.3% of
total revenues in the first quarters of 1995 and 1994.
Although selling, general and administrative expenses as a
percent of revenues remained constant, selling, general and
administrative expenses for the first quarter decreased
approximately $874,000 compared to the first quarter of 1994.
The decrease is attributable to the closing of 27
convenience stores.
Interest Income
Interest income in the first quarter of 1995 increased by
approximately $23,000 from the first quarter of 1994 due to
an increase in cash from the sale of fixed assets.
Reorganization Items
The reorganization expenses relate to the various
administrative and other costs of operating under Chapter 11
and subsequent costs related to post confirmation resolution
of claims. The Company recorded an expense on reorganization
items of approximately $119,000 for the first quarter of 1995
compared to a gain on reorganization items of approximately
$739,000 for the first quarter of 1994. The increase in
expense is primarily attributable to a decrease in gain on
sale of property and equipment of approximately $1,115,000
partially offset by a decreases in restructuring charges of
approximately $257,000.
Income Taxes
The Company recorded no provision for income taxes for the
thirteen week period ended March 30, 1995. The Company
recorded a provision for income taxes of approximately
$104,000 for the thirteen week period ended March 31, 1994.
The provision is due principally to the Company's alternative
minimum tax position.
Net Earnings/Loss
The Company reported a net loss for the first quarter of 1995
of approximately $261,000 or $.15 per share compared to net
income of approximately $544,000 or $.32 per share in the
first quarter of 1994. Earnings per share is based on average
outstanding common shares of 1,701,650 for all periods.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
The following exhibits are filed as part of this
Report:
27 - Financial Data Schedule
(b) Reports on Form 8-K
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on behalf by the undersigned thereunto duly authorized
Sunshine-Jr. Stores, Inc.
Registrant
May 12, 1995 By: R.M. Shouse
-------------------------------------
R. M. Shouse
President and Chief Executive Officer
May 12, 1995 By: Michael G. Ware
-------------------------------------
Michael G. Ware
Principal Financial and Accounting
Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary information extracted from the balance sheets
and the statements of operations of Sunshine-Jr. Stores, Inc. and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1995
<PERIOD-END> MAR-30-1995
<CASH> 11,574,216
<SECURITIES> 0
<RECEIVABLES> 1,894,198
<ALLOWANCES> 16,000
<INVENTORY> 6,167,803
<CURRENT-ASSETS> 23,315,002
<PP&E> 47,458,157
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0
0
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<EPS-PRIMARY> (.15)
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</TABLE>
