SUNRISE, Fla.--(BUSINESS WIRE)--May 20, 1999--Jan Bell Marketing, Inc. (AMEX:JBM) announced today that net sales for the thirteen weeks ended May 1, 1999 increased 67.0% to $87.7 million, from $52.5 million for the thirteen weeks ended May 2, 1998. The increase resulted primarily from the acquisition of Mayor's Jewelers, Inc. Comparable retail sales for the period ending May 1, 1999 were up 10.7% in the Sam's Club Division and down .1% in the Mayor's Jewelers, Inc. Division. In the Sam's Club Division, revenues were $57.6 million for the thirteen weeks ended May 1, 1999, compared to $52.5 million for the thirteen weeks ended May 2, 1998. Income before interest and taxes improved by $1.8 million to a $0.5 million operating profit from the $1.3 million operating loss reported for the comparable 1998 period. In the Mayor's Jewelers Division, revenues were $30.1 million for the thirteen weeks ended May 1, 1999. The loss before interest and taxes was $2.7 million. Combined, the Company reported a net loss of $2.8 million, or ($0.10) per share, for the thirteen weeks ended May 1, 1999, compared to a net loss of $0.6 million or ($0.02) per share, for the thirteen weeks ended May 2, 1998. In discussing Jan Bell's results for the first quarter of 1999, Isaac Arguetty, Chairman and Chief Executive Officer, made the following comments: "The operating results are consistent with our internal plans for the operation of Mayor's and the licensed jewelry concessions in Sam's Club. We continue to integrate Mayor's into our operating infrastructure by applying our discipline of efficient procurement, replenishment, financial controls, merchandising and product distribution to the Mayor's Division. During the quarter, we made a significant investment in the marketing of Mayor's as well as the development of our direct response strategies, which include our recently introduced Internet auction site and a first ever spring catalog that was published and distributed at the very end of the quarter. Further, during the quarter, we began to implement a focused merchandising and real estate strategy that will serve to solidify Mayor's position as a premier luxury guild jeweler. We closed three locations in unproductive markets and replaced our Perimeter Maier & Berkele store with a spectacular new 5,100 square foot Mayor's store. We look forward to the development of the luxury jeweler platform via the opening of new stores and strategic acquisitions during the remainder of 1999 and in future years." The Company currently operates 21 luxury jewelry stores in the Mayor's Division, including 3 stores that operate in Atlanta under the name of Maier & Berkele. The Company expects to open its 22nd Mayor's store at the Shops at Sunset in South Miami, Florida later this month. For anyone interested in participating in the Company's conference call scheduled for Thursday, May 20, 1999 at 6:00 p.m. EDT, please call 1-800-351-6801, Security code number 47046, at approximately 5:55 p.m. JAN BELL MARKETING, INC. Consolidated Statements of Operations (Amounts shown in thousands except share and per share data) Thirteen Thirteen Weeks Ended Weeks Ended May 1, May 2, 1999 1998 (Unaudited) Net sales $87,660 100.00% $52,493 100.00% Cost of sales and occupancy costs 65,396 74.60% 40,333 76.84% --------- --------- Gross profit 22,264 25.40% 12,160 23.16% Store and warehouse operating and selling expenses 16,070 18.33% 8,584 16.35% General and admin. expenses 5,282 6.03% 3,128 5.96% Depreciation and amortization 2,764 3.15% 1,372 2.61% Currency exchange loss 302 0.34% 367 0.70% --------- --------- 24,418 27.86% 13,451 25.62% --------- --------- Operating loss (2,154) -2.46% (1,291) -2.46% Interest and other income 8 0.01% 776 1.48% Interest expense 561 0.64% 0 0.00% --------- --------- Loss before income taxes (2,707) -3.09% (515) -0.98% Income tax provision 138 0.16% 57 0.11% --------- --------- Net loss (2,845) -3.25% (572) -1.09% Net loss per common share (basic and diluted) ($0.10) ($0.02) Weighted average shares outstanding (basic and diluted) 28,354,986 26,219,488 JAN BELL MARKETING, INC. Consolidated Balance Sheets (Amounts shown in thousands except share and per share data) May 1, January 30, 1999 1999 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $10,281 $5,434 Accounts receivable, net of allowance for doubtful accounts of $3,241 and $3,504, respectively 25,892 31,628 Inventories 160,212 144,579 Deferred income taxes 2,769 2,769 Other current assets 2,034 2,340 ------------ ------------ Total current assets 201,188 186,750 Property, net 24,715 27,013 Goodwill 26,970 25,551 Other assets 6,422 8,406 ------------ ------------ Total assets $259,295 $247,720 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $46,744 $ 34,732 Accrued expenses 11,764 15,368 Due to former Mayor's stockholders 4,360 6,145 ------------ ------------ Total current liabilities 62,868 56,245 Long term debt 35,061 26,409 Other long term liabilities 1,042 1,380 ------------ ------------ Total long term liabilities 36,103 27,789 Stockholders' Equity: Common stock, $.0001 par value, 50,000,000 shares authorized, 28,131,474 and 28,358,475 shares issued and outstanding 3 3 Additional paid-in capital 191,566 191,538 Accumulated deficit (28,922) (26,077) Accumulated other comprehensive income (1,629) (1,778) Less: 238,500 shares of treasury stock, at cost (694) - ------------ ------------ Total stockholders' equity 160,324 163,686 ------------ ------------ Total liabilities and stockholders' equity $259,295 $247,720 ============ ============  