ALCO STORES INC 
By Net sales from continuing operations, excluding fuel, increased 1.0% to $105.4 million during the third quarter of fiscal 2014, compared to $104.3 million in the third quarter of fiscal 2013. Same-store sales, excluding fuel, decreased 2.9% to $101.1 million during the third quarter of fiscal 2014. For the 39 weeks ended November 3, 2013, net sales from continuing operations, excluding fuel, increased 1.7% compared to the same period of the prior year to $338.7 million. Same-store sales, excluding fuel, decreased
1.5% to $327.6 million during the 39 weeks ended November 3, 2013.
Net loss for the third quarter of fiscal 2014 was $16.6 million, or $5.11 per diluted share, compared to a net loss of $1.4 million, or $0.37 per diluted share, for the third quarter of fiscal 2013. Results in the third quarter of fiscal 2014 included a non-cash charge of
$9.8 million related to a valuation allowance on the Company's cumulative deferred tax
asset, and $1.1 million of non-recurring expenses attributable to merger activity.
Net loss for the 39 weeks ended November 3, 2013, was $17.8 million, or $5.47 per diluted share, compared to net loss of $0.7 million, or $0.17 per diluted share, for the 39 weeks ended October 28, 2012. Results in the 39 weeks included the non-cash charge of $9.8 million related to a valuation allowance on the Company's cumulative deferred tax asset, and a total of $2.9 million of non-recurring expenses attributable to the relocation of the corporate office and merger activity.
Richard Wilson, President and CEO, commented, "Operating results in the third quarter were impacted by several significant one-time events, as we dealt with a proposed merger and also took steps to fix long-term problems that have hurt ALCO's profitability. We recorded approximately $1.1 million in merger-related costs. We experienced a net reduction in gross margin dollars of approximately $5 million, primarily due to increased promotional activity in an attempt to reduce inventory and debt levels. In addition, ALCO has closed eight underperforming stores in the first three quarters of fiscal 2014 and
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decided in October to close 10 more locations by year-end. Store-closing costs in the quarter were approximately $934,000. Finally, we recognized a large non-cash charge relating to the accounting for deferred tax assets on the Company's balance sheet."
Mr. Wilson added, "Moving forward, ALCO is focused on executing five major initiatives to improve profitability and deliver value for shareholders. These actions include:
