Longs 3Q income up 45% over last year

WALNUT CREEK, Calif. Longs Drug Stores today reported preliminary income from continuing operations for the third quarter ended Oct. 25 of $19.3 million, or 51 cents per diluted share, an increase of 45% compared with income from continuing operations for the third quarter ended Oct. 26, 2006 of $13.3 million, or 35 cents per diluted share.

Total revenues of $1.24 billion for the thirteen weeks ended Oct. 25 were 3.3% higher than the $1.2 billion reported in the comparable period last year. Total retail drug store sales increased 3.1%.

Commenting on the quarter, Chairman, President and Chief Executive Officer Warren Bryant said, "We are improving the profitability of our retail segment and better aligning our stores with our longer term goals while we continue to pursue new business opportunities at RxAmerica."

For the 53 weeks ending Jan. 31, 2008, Longs is estimating that total revenues from continuing operations will increase 5% to 7% and total retail drug store sales will increase 5% to 7% percent compared with the 52 weeks ended Jan. 25, 2007. The Company estimates that same-store sales will increase 1% to 3% on a comparable 52-week basis compared with last year. The company expects to achieve income from continuing operations of $2.67 to $2.73 per diluted share in fiscal 2008.

For the fourteen weeks ending Jan. 31, 2008, Longs is estimating that total revenues from continuing operations will increase 10% to 12% and total retail drug store sales will increase 9% to 11% compared with the thirteen weeks ended Jan. 25. The company estimates that same-store sales will increase 0% to 2% on a comparable thirteen-week basis compared with the fourth quarter of last year. Longs' goal is to achieve income from continuing operations in the range of 92 cents to 98 cents per diluted share.