Qkl Stores (NASDAQ:QKLS)

First Quarter 2013 Financial Results

• Revenue in the first quarter of 2013 decreased by 13.4% to $97.1 million from $112.0 million in the first quarter of 2012.
• Gross profit decreased by 12.7% year over year to $16.6 million, compared to $19.1 million in the prior year period. Gross margin for the first quarter of 2013 was 17.1%, compared to 17.0% for the first quarter of 2012.
• Net income was approximately $0.4 million, or $0.27 per diluted share, compared with $0.8 million, or $0.54 per diluted share, for the same period in 2012.

Mr. Zhuangyi Wang, Chairman and CEO, said, "We finished the first quarter operating a total of 46 stores, comprised of 28 supermarkets, 14 hypermarkets and 4 department stores. As our new store opening plan slows for 2013, the new stores are going to open particularly in the second half of the year, we expect our profitability to improve as we benefit from our improving new store sales, increased same store sales at existing stores and reduced store opening and promotional expenses."

"We were also pleased with the improvement of our operating cash flows in the first quarter due to a reduction in inventory after the peak Chinese New Year season and a decrease in other receivables attributable to cash recovery from our vendors after the busy holiday season. We are pleased with our execution in the first quarter and are setting the stage for increased top and bottom line growth in the coming quarters."

Last updated May 14, 2013