Duckwall-ALCO falls short of FY goals

ABILENE, Kan. Duckwall-ALCO today reported that it has adjusted its fiscal 2008 EBITDA estimate because it did not meet its sales and earnings goals for the year. The company said it now expects EBITDA of about $13 million in fiscal 2008, compared with $19 million in fiscal 2007. In December 2007, the company gave an EBITDA target range of $25 million to $27 million.

Donny Johnson, interim president and ceo, stated, "The company failed to achieve previously announced fiscal 2008 targets for sales and earnings. We believe the financial shortfalls stemmed from a lack of effective execution on specific operational goals. We are urgently addressing our operational inefficiencies, with the objective of maximizing performance in Fiscal 2009. The Company remains well capitalized as it enters fiscal 2009.''

Duckwall-ALCO reported that the EBITDA estimate is based on preliminary sales of $499 million, gross margin of 32.3% and selling, general and adminstrative expenses of $141 million for fiscal 2008.