6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Revenues for the 2003 first quarter were $40.7 million, compared to $72.4 million in the same quarter of the prior year. The decline in revenues reflects the termination of certain services agreements, including the previously announced termination of the Kraft Foods North America, Inc. (Kraft) industrial supply services agreement, as well as general economic weakness within the manufacturing and energy sectors. These factors were partially offset by revenues from new In-Plant Store(r) facilities added during the past twelve months and a $2.5 million final inventory sale related to a first quarter store closing. In the 2003 first quarter, there were no revenues from Kraft, compared to $23.2 million in the same quarter of the prior year. The weakened U.S. economy reduced same store revenues by approximately $5.5 million in the 2003 first quarter compared to the same period of the prior year, for stores open at least a year. The Company expects this weakness to remain at least through the second quarter of 2003 and is continuing to closely monitor the financial condition and credit risk of customers in industries unfavorably impacted by current economic conditions.
The company reported net income of $55,000 in the 2003 first quarter, compared to a net loss of $1.7 million in the same quarter of 2002. Included in the 2003 first quarter net income is $0.3 million of profit on a $2.5 million final inventory sale related to a store closing. Included in the 2002 first quarter net loss is a $1.9 million non-cash charge related to the first quarter adoption of a new accounting standard for goodwill. At Mar. 31, 2003, the company had $46.4 million of cash on hand.
Strategic Distribution's CEO, Don Woodring, commented stating, ``We will continue to build upon progress we have made focusing on profitable new business and improving our base business.''