ALCO Stores, Inc. Reports Operating Results for Fourth Quarter and Fiscal Year Ended February 3, 2013

ALCO Stores, Inc. Reports Operating Results for Fourth Quarter and Fiscal Year
Ended February 3, 2013

ABILENE, Kan., April 18, 2013 (GLOBE NEWSWIRE) -- ALCO Stores, Inc.
(Nasdaq:ALCS), which specializes in providing a superior selection of
essential products for everyday life in small-town America, today announced
operating results for its fourth quarter and fiscal year ended February 3,
2013.

Net sales from continuing operations during the fourth quarter of fiscal 2013
(14 weeks) increased 8.5% to $146.8 million, compared to $135.3 million in the
fourth quarter of fiscal 2012 (13 weeks). Excluding the 14th week of the
fiscal 2013 quarter, net sales from continuing operations increased 3.6% to
$140.2 million. Same-store sales, excluding fuel centers, increased 4.2% to
$138.7 million during the fourth quarter of fiscal 2013. Excluding the 14th
week of the fiscal 2013 quarter, same-store sales, excluding fuel centers,
decreased 0.5% to $132.5 million.

Net earnings for the fourth quarter of fiscal 2013 were $2.0 million, or $0.61
per diluted share, compared to $0.8 million, or $0.21 per diluted share, for
the fourth quarter of fiscal 2012. Earnings from continuing operations, net of
tax, for the fourth quarter of fiscal 2013 were $2.0 million, or $0.61 per
diluted share, compared to $0.9 million, or $0.23 per diluted share, for the
fourth quarter of fiscal 2012.

Net sales from continuing operations during the 53 weeks of fiscal year 2013
increased 3.5% to $492.6 million, compared to net sales during the 52 weeks of
fiscal year 2012 of $476.0 million. Excluding the 53rd week of fiscal year
2013, net sales from continuing operations increased 2.1% to $486.1 million.
Same-store sales, excluding fuel centers, during the 53 weeks of fiscal year
2013 increased 0.3% to $469.4 million. Excluding the 53rd week of fiscal year
2013, same-store sales, excluding fuel centers, decreased 1.0% to $463.2
million.

Net earnings for fiscal 2013 were $1.3 million, or $0.36 per diluted share,
compared to net earnings of $1.7 million, or $0.43 per diluted share, for
fiscal 2012. Included within the fiscal 2012 results are the following two
events: 1) $1.4 million benefit (net of tax), or $0.37 per diluted share,
related to an insurance settlement received, and 2) $0.3 million of expense
(net of tax), or $0.09 per diluted share, related to the accelerated
amortization of financing fees on the Company's previous credit facility. The
impact of these two events on prior year earnings is a net benefit of $1.1
million, or $0.28 cents per diluted share. Excluding these two events, net
earnings for fiscal 2013 were $1.3 million, or $0.36 per diluted share,
compared to adjusted net earnings of $0.6 million, or $0.15 cents per diluted
share, for fiscal 2012. Earnings from continuing operations, net of tax, for
fiscal 2013 were $1.7 million, or $0.48 per diluted share, compared to
adjusted net earnings from continuing operations of $0.8 million, or $0.21 per
diluted share, for fiscal 2012.

Richard Wilson, President and CEO, commented, "In spite of a difficult
economic landscape and lingering weather issues in late fiscal 2013, ALCO
achieved respectable net earnings of 61 cents per share in the fourth quarter
as a result of several company-wide initiatives. These actions include
expanding product offerings in food and frozen categories, improving
merchandise assortments in apparel and sporting goods, implementing buying
efficiencies and competitive price opportunities, and delivering better
customer service and a clean, easy-to-shop store environment. In addition, new
stores opened in the past year are performing very well. We are encouraged by
the positive impact these actions had on earnings and are equally excited
about the potential benefit of price optimization initiatives we are rolling
out in fiscal 2014."

Investor Conference Call

The Company will host an investor conference call at 10:00 a.m. Central Time
on Friday, April 19, 2013, to discuss operating results for the fourth quarter
and fiscal year ended February 3, 2013. The dial-in number for the conference
call is 888-240-9373 (international/local participants dial 913-312-0376), and
the Conference Code is 8688745. Parties interested in participating in the
conference call should dial in approximately five minutes prior to 10:00 a.m.
Central Time. A replay of the call will be available after 1:00 p.m. Central
Time April 19, 2013 through April 24, 2013, by dialing 888-203-1112
(international/local participants dial 719-457-0820), and the Replay Code is
8688745. A replay of the call will also be available four hours after
completion of the call by visiting the Investors page on the Company's
website, www.ALCOstores.com.

Supplemental Data

The Company has included certain tables in this press release that are set
forth fully in the Company's 10-K.

Certain Non-GAAP Financial Measures

The Company has included Adjusted EBITDA, non-GAAP performance measures, as
part of its disclosure as a means to enhance its communications with
stockholders. Certain stockholders have specifically requested this
information to assist them in comparing the Company to other retailers that
disclose similar non-GAAP performance measures. Further, management utilizes
these measures in internal evaluation; review of performance and in comparing
the Company's financial measures to those of its peers. Adjusted EBITDA
differs from the most comparable GAAP financial measure (earnings [loss] from
continuing operations) in that it does not include certain items. These items
are excluded by management to better evaluate normalized operational cash flow
and expenses excluding unusual, inconsistent and non-cash charges. To
compensate for the limitations of evaluating the Company's performance using
Adjusted EBITDA, management also utilizes GAAP performance measures such as
gross margin return on investment, return on equity and cash flow from
operating activities. As a result, Adjusted EBITDA may not reflect important
aspects of the results of the Company's operations.

ALCO Stores, Inc.

ALCO Stores, Inc. is a broad-line retailer, primarily located in small
underserved communities across 23 states. The Company has 217 ALCO stores that
offer both name brand and private label products of exceptional quality at
reasonable prices. We are proud to have continually provided friendly,
personal service to our customers for the past 112 years. To learn more about
the Company visit www.ALCOstores.com.

Forward-looking statements

This press release contains forward-looking statements, as referenced in the
Private Securities Litigation Reform Act of 1995 ("the Act"). Forward-looking
statements can be identified by the inclusion of "will," "believe," "intend,"
"expect," "plan," "project" and similar future-looking terms. You should not
rely unduly on these forward-looking statements. These forward-looking
statements reflect management's current views and projections regarding
economic conditions, retail industry environments, and Company performance.
Forward-looking statements inherently involve risks and uncertainties, and,
accordingly, actual results may vary materially. Factors which could
significantly change results include but are not limited to: sales
performance, expense levels, competitive activity, interest rates, changes in
the Company's financial condition, and factors affecting the retail category
in general. Additional information regarding these and other factors may be
included in the Company's 10-Q filings and other public documents, copies of
which are available from the Company on request and are available from the
United States Securities and Exchange Commission.

                             - Tables to follow -

                                      

ALCO Stores, Inc.
Statements of Operations
Fiscal Years Ended February 3, 2013 and January 29, 2012
(dollars in thousands, except share and per share amounts)
                          (unaudited)               (unaudited)  
                          Fourteen Week Thirteen     Fifty-Three  Fifty-Two
                                         Week         Week         Week
                          Period Ended  Period Ended Period Ended Period
                                                                   Ended
                          February 3,   January 29,  February 3,  January 29,
                           2013          2012         2013         2012
Net sales                  $146,783    135,344     492,595     476,032
Cost of sales              105,176       96,621       343,232      331,984
Gross margin               41,607        38,723       149,363      144,048
                                                               
Selling, general and       35,390        34,684       134,746      130,951
administrative
Depreciation and           2,411         2,201        8,847        8,569
amortization
Total operating expenses   37,801        36,885       143,593      139,520
                                                               
Other operating income     --          --         --         2,270
                                                               
Operating income from      3,806         1,838        5,770        6,798
continuing operations
                                                               
Interest expense           1,083         871          3,477        4,207
                                                               
Earnings from continuing
operations before income   2,723         967          2,293        2,591
taxes
Income tax expense         748           70           565          702
                                                               
Earnings from continuing   1,975         897          1,728        1,889
operations
                                                               
Earnings (loss) from
discontinued operations,   5             (65)         (421)        (234)
net of income tax
(expense) benefit
Net earnings               $1,980      832         1,307       1,655
                                                               
Earnings (loss) per share                                       
Basic                                                           
Continuing operations      $0.61       0.23        0.48        0.49
Discontinued operations    $0.00       (0.02)      (0.12)      (0.06)
Net earnings per share     $0.61       0.21        0.36        0.43
                                                               
Earnings (loss) per share                                       
Diluted                                                         
Continuing operations      $0.61       0.23        0.48        0.49
Discontinued operations    $0.00       (0.02)      (0.12)      (0.06)
Net earnings per share     $0.61       0.21        0.36        0.43
                                                               
                                                               
Weighted-average shares                                         
outstanding:
Basic                      3,258,152     3,842,745    3,634,235    3,842,281
Diluted                    3,258,152     3,842,745    3,634,235    3,842,281




ALCO Stores, Inc.
Schedule of Adjusted EBITDA
(dollars in thousands)
(unaudited)
                                                                
                       For the          Trailing Fourteen Thirteen 
                         Thirty-Nine Week Twelve   Week     Week
              52 Weeks  Periods Ended     Period    Period   Period   53
                                           Ended     Ended    Ended    Weeks
                       October  October  October   February January  
                         28,      30,      28,       3,       29,
              Fiscal    2012     2011     2012      2013     2012     Fiscal
               2012                                                    2013
Net earnings   $1,655  (673)   823     159      1,980   832     1,307
(loss)
Plus:                                                            
Interest       4,207    2,394   3,336   3,265    1,083   871     3,477
Taxes          641      (443)   529     (331)    754     112     311
Depreciation
and            8,656    6,479   6,434   8,701    2,423   2,222   8,902
amortization
EBITDA         15,159   7,757   11,122  11,794   6,240   4,037   13,997
                                                                
Plus:                                                            
Share-based    257      327     274     310      54      (17)    381
compensation
(Gain) loss
asset          292      (4)     (126)   414      145     418     141
disposals
Insurance      (2,270)  --     (2,270) --      --     --     --
proceeds (1)
Adjusted       $13,438 8,080   9,000   12,518   6,439   4,438   14,519
EBITDA
                                                                
                                                                
Cash           $2,491  1,179   3,125   1,179    3,160   2,491   3,160
Debt           65,437   74,745  80,210  74,745   79,962  65,437  79,962
Debt, net of   $62,946 73,566  77,085  73,566   76,802  62,946  76,802
cash

(1)On September 9, 2011, the Company received a $2.3 million settlement from
Factory Mutual Insurance Company that represented an appearance allowance for
the roofs at the Company's corporate office and warehouse in Abilene, KS.




ALCO Stores, Inc.
Balance Sheets
(dollars in thousands, except share and per share amounts)
                                            (unaudited)      
                                            February 3, 2013 January 29, 2012
Assets                                                       
                                                            
Current assets:                                              
Cash                                         $ 3,160         $ 2,491
Receivables                                  13,187          10,334
Inventories                                  166,671         156,214
Prepaid expenses                             3,767           3,603
Deferred income taxes                        3,081           5,607
Property held for sale                       568             568
Total current assets                         190,434         178,817
                                                            
Property and equipment, at cost:                             
Land and land improvements                   5,648           1,508
Buildings and building improvements          10,499          10,488
Furniture, fixtures and equipment            74,066          71,518
Transportation equipment                     988             861
Leasehold improvements                       21,138          19,289
Construction work in progress                5,083           1,177
Total property and equipment                 117,422         104,841
Less accumulated depreciation and            81,794          76,563
amortization
Net property and equipment                   35,628          28,278
                                                            
Property under capital leases                26,972          24,054
Less accumulated amortization                11,476          11,498
Net property under capital leases            15,496          12,556
                                                            
Deferred income tax - non current            1,693           --
Other non-current assets                     624             754
                                                            
Total assets                                 $ 243,875       $ 220,405




ALCO Stores, Inc.
Balance Sheets
(dollars in thousands, except share and per share amounts)
                                            (unaudited)      
                                            February 3, 2013 January 29, 2012
                                                            
Liabilities and Stockholders' Equity                         
                                                            
Current liabilities:                                         
Current maturities of capital lease          $ 580           $ 570
obligations
Accounts payable                             39,220          26,695
Accrued salaries and commissions             3,111           3,984
Accrued taxes other than income              5,046           4,845
Self-insurance claim reserves                4,429           4,112
Other current liabilities                    4,429           4,327
Total current liabilities                    56,815          44,533
                                                            
Notes payable under revolving loan           63,446          52,063
Capital lease obligations - less current     15,936          12,804
maturities
Deferred gain on leases                      3,053           3,439
Deferred income taxes                        --             643
Other noncurrent liabilities                 2,462           2,483
Total liabilities                            141,712         115,965
Stockholders' equity:                                        
Common stock, $.0001 par value, authorized
20,000,000 shares; 3,258,163 and 3,842,745   1               1
shares issued and outstanding, respectively
Additional paid-in capital                   36,533          40,115
Retained earnings                            65,629          64,324
Total stockholders' equity                   102,163         104,440
                                                            
Total liabilities and stockholders' equity   $ 243,875      $ 220,405

CONTACT: Wayne S. Peterson
         Senior Vice President - Chief Financial Officer
         785-263-3350 X164
         email: wpeterson@alcostores.com
         or
         Debbie Hagen
         Hagen and Partners
         913-642-6363
         email: dhagen@hagenandpartners.com

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