Alco net loss widens on taxes; CFO departs

Coppell, Texas – Alco Stores Inc. reported a net loss of $8.1 million in the first quarter of its fiscal year, up from a loss of $1.7 million in the year-ago period, amid an elimination of a tax benefit. The company also announced its CFO has left the company.

Net sales decreased 4.1% to $104.7 million, compared to $109.2 million in the first quarter of fiscal 2014. Same-store sales, excluding fuel centers, decreased 7.1%. Alco president and CEO Richard Wilson cited several ongoing initiatives as providing promise for future performance.

"While the first-quarter business environment and Alco's performance were disappointing, we have made significant progress on several of the company's operating initiatives,” said Wilson. “Working capital improved as a result of a $25 million reduction in first quarter inventory compared to the first quarter of last fiscal year. We increased Alco’s overall credit facility by $17.5 million and extended the term through 2019 by amending an existing credit facility with Wells Fargo. We have opened three new stores during the past nine months, whose results thus far remain very encouraging.”

Separately, Alco announced that Wayne Peterson, senior VP and CFO, has left the company. Alco has begun a search for a new CFO.

Mike Juniper, senior VP, Deloitte Transaction and Business Analytics LLP, will serve as interim CFO until a permanent replacement is named, and Brian Assmus, VP and controller of Alco, is serving as principal accounting officer.

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