West Marine, Inc. reported net income for the year ended December 28, 2002 of $18.9 million, an increase of 35.9% compared to net income of $13.9 million in 2001. Earnings per share for 2002 were $0.97, compared to earnings per share of $0.77 for 2001. Net sales for 2002 were $530.6 million, an increase of 3.5% from $512.9 million in 2001. Comparable store net sales increased 0.9% from 2001.
The Company’s net loss for the thirteen weeks ended December 28, 2002 was ($1.4 million) or ($0.07) per share, a decrease in net loss of 30.8% compared to a loss of ($2.0 million) or ($0.11) per share for the same period last year. Net sales for the thirteen weeks ended December 28, 2002 were $92.7 million, an increase of 2.0% from sales of $90.8 million for the same period a year ago. Comparable store net sales for the thirteen weeks decreased by 3.2% compared to the same period a year ago.
John Edmondson, West Marine’s chief executive officer, stated, “We are very pleased with our fourth quarter results. Our fourth quarter loss of ($0.07) per share bested the analysts consensus estimate of ($0.08) per share, as well as last year’s loss of ($0.11) per share for the period.
“The El Nino effect impacted our sales the last part of the fourth quarter and continues in the first quarter this year. We estimate comparable store sales for February to be negative, ranging from -6% to -9%. However, our gross margin continues to improve. In addition, our integration of the BoatU.S. stores is proceeding ahead of schedule. We anticipate that we will be finished with our integration process by March 15, 2003.”
West Marine, Inc.
Condensed Consolidated Statements of Operations
For the Thirteen Weeks Ended December 28, 2002 and December 29, 2001
(Unaudited, in thousands except per share amounts)
13 Weeks 13 Weeks
Dec. 28, 2002 Dec. 29, 2001
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Net sales $92,665 100.0% $90,833 100.0%
Cost of goods sold, including buying
and occupancy 65,901 71.1% 66,137 72.8%
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Gross profit 26,764 28.9% 24,696 27.2%
Selling, general and administrative
expenses 28,333 30.6% 27,105 29.9%
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Loss from operations (1,569) -1.7% (2,409) -2.7%
Interest expense 730 0.8% 941 1.0%
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Loss before income taxes (2,299) -2.5% (3,350) -3.7%
Income tax benefit (908) -1.0% (1,341) -1.5%
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Net loss $(1,391) -1.5% $(2,009) -2.2%
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West Marine, Inc.
Condensed Consolidated Statements of Income
For the Fifty-Two Weeks Ended December 28, 2002 and December 29, 2001
(Unaudited, in thousands except per share amounts)
52 Weeks Ended 52 Weeks Ended
Dec. 28, 2002 Dec. 29, 2001
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Net sales $530,588 100.0% $512,873 100.0%
Cost of goods sold, including buying
and occupancy 367,688 69.3% 363,578 70.9%
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Gross profit 162,900 30.7% 149,295 29.1%
Selling, general and administrative
expenses 128,087 24.1% 121,256 23.6%
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Income from operations 34,813 6.6% 28,039 5.5%
Interest expense 3,560 0.7% 4,846 1.0%
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Income before income taxes 31,253 5.9% 23,193 4.5%
Income taxes 12,345 2.3% 9,276 1.8%
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Net income $18,908 3.6% $13,917 2.7%
