ALCO Stores, Inc. Reports Operating Results for First Quarter Ended May 5, 2013

ALCO Stores, Inc. Reports Operating Results for First Quarter Ended May 5,
2013

ABILENE, Kan., June 13, 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 first quarter ended May 5, 2013.

Net sales from continuing operations during the first quarter of fiscal 2014
increased 0.9% to $117.5 million, compared to $116.5 million in the first
quarter of fiscal 2013. Same-store sales, excluding fuel centers, decreased
2.2% to $112.4 million during the first quarter of fiscal 2014.

Net loss for the first quarter of fiscal 2014 was $1.7 million, or $0.51 per
diluted share, compared to a net loss of $1.3 million, or $0.34 per diluted
share, for the first quarter of fiscal 2013. Loss from continuing operations,
net of tax, for the first quarter of fiscal 2014 was $1.7 million, or $0.51
per diluted share, compared to a loss of $1.1 million, or $0.29 per diluted
share, for the first quarter of fiscal 2013.

Richard Wilson, President and CEO, commented, "Operating results for the first
quarter were negatively impacted by lingering winter weather conditions in
many of our markets. More than 80% of our same-store sales performance came
from outdoor businesses - Outdoor Living, Horticulture, Sporting Goods and
Menswear. The decrease in these outdoor businesses was partially offset by
favorable sales performance in Domestics, Housewares, and Women's Apparel
where customers have responded favorably to the introduction of our new
apparel lines."

Wilson continued, "Although consumers remain cautious due to slow economic
growth, we are encouraged by the positive impact our changes in merchandise
are starting to have, and we 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, June 14, 2013, to discuss operating results for the first quarter
ended May 5, 2013.The dial-in number for the conference call is 888-481-2844
(international/local participants dial 719-785-1753), and the Conference Code
is 2271713.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 June 14, 2013
through June 19, 2013, by dialing 888-203-1112 (international/local
participants dial 719-457-0820), and the Replay Code is 2271713.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-Q.

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 certainitems. 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 utilizesGAAP performance measures such as
gross margin return on investment, return on equity and cash flow from
operating activities. As a result, Adjusted EBITDAmay 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 had 217 ALCO stores at
the end of the first quarter ended May 5, 2013 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
First Quarter Ended May 5, 2013 and April 29, 2012
(dollars in thousands, except share and per share amounts)
                                                              
                                                 (unaudited)   
                                                 Thirteen Week Thirteen Week
                                                 Period Ended  Period Ended
                                                 May 5, 2013   April 29, 2012
Net sales                                         $117,520    116,500
Cost of sales                                     83,053        82,123
Gross margin                                      34,467        34,377
                                                              
Selling, general and administrative               33,876        33,374
Depreciation and amortization                     2,175         2,107
Total operating expenses                          36,051        35,481
                                                              
Operating loss fromcontinuing operations         (1,584)       (1,104)
                                                              
Interest expense                                  1,053         744
                                                              
Loss from continuingoperations before income     (2,637)       (1,848)
taxes
Income tax benefit                                (987)         (760)
                                                              
Loss from continuing operations                   (1,650)       (1,088)
                                                              
Loss from discontinued operations, net of income  (18)          (196)
tax benefit
Net loss                                          $(1,668)    (1,284)
                                                              
Loss per share                                                 
Basic                                                          
Continuing operations                             $(0.51)     (0.29)
Discontinued operations                           $(0.00)     (0.05)
Net loss per share                                $(0.51)     (0.34)
                                                              
Loss per share                                                 
Diluted                                                        
Continuing operations                             $(0.51)     (0.29)
Discontinued operations                           $(0.00)     (0.05)
Net loss per share                                $(0.51)     (0.34)
                                                              
Weighted-average shares outstanding:                           
Basic                                             3,258,163    3,822,006
Diluted                                           3,258,163    3,822,006



ALCO Stores, Inc.
Schedule of Adjusted EBITDA
(dollars in thousands)
(unaudited)
                                                              
                                        For the Thirteen Week Trailing 53
                                                                  Weeks
                             53 Weeks    Periods Ended           Ended
                                        May 5,      April 29,   May 5,
                             Fiscal 2013 2013        2012        2013
Net earnings (loss)          $1,307    (1,668)    (1,284)    923
Plus:                                                          
Interest                      3,477      1,053      744        3,786
Taxes                         311        (998)      (880)      193
Depreciation and amortization 8,902      2,183      2,122      8,963
EBITDA                        13,997     570        702        13,865
                                                              
Plus:                                                          
Share-based compensation      381        140        130        391
(Gain) loss asset disposals   141        --        (92)       233
Adjusted EBITDA               $14,519   710        740        14,489
                                                              
Cash                          $3,160    2,923      612        2,923
Debt                          79,962     87,978     53,208     87,978
Debt, net of cash             $76,802   85,055     52,596     85,055



ALCO Stores, Inc.
Balance Sheets
(dollars in thousands, except share and per share amounts)
                                                         
                                              (unaudited) 
                                              May 5, 2013 February 3, 2013
Assets
                                                         
Current assets:                                           
Cash                                           $2,923    $3,160
Receivables                                    12,782     12,232
Inventories                                    190,614    166,671
Prepaid expenses                               3,459      3,767
Deferred income taxes                          5,884      3,081
Property held for sale                         568        568
Total current assets                          216,230    189,479
                                                         
Long term investments                          1,293      955
                                                         
Property and equipment, at cost:                          
Land and land improvements                     5,648      5,648
Buildings and building improvements            10,499     10,499
Furniture, fixtures and equipment              74,149     74,066
Transportation equipment                       988        988
Leasehold improvements                         21,138     21,138
Construction work in progress                  6,383      5,083
Total property and equipment                   118,805    117,422
Less accumulated depreciation and amortization 83,708     81,794
Net property and equipment                     35,097     35,628
                                                         
Property under capital leases                  26,972     26,972
Less accumulated amortization                  11,743     11,476
Net property under capital leases             15,229     15,496
                                                         
Deferred income tax - non current              --        1,693
Other non-current assets                       558        624
                                                         
Total assets                                  $268,407  $243,875



ALCO Stores, Inc.
Balance Sheets
(dollars in thousands, except share and per share amounts)
                                                            
                                                 (unaudited) 
                                                 May 5, 2013 February 3, 2013
                                                            
Liabilities and Stockholders' Equity                         
                                                            
Current liabilities:                                         
Current maturities of capital lease obligations   $575      $580
Accounts payable                                  58,215     39,220
Accrued salaries and commissions                  3,134      3,111
Accrued taxes other than income                   5,409      5,046
Self-insurance claim reserves                     4,086      4,429
Other current liabilities                         3,578      4,429
Total current liabilities                         74,997     56,815
                                                            
Notes payable under revolving loan               71,627     63,446
Capital lease obligations - less current          15,777     15,936
maturities
Deferred gain on leases                           2,956      3,053
Other noncurrent liabilities                      2,415      2,462
Total liabilities                                 167,772    141,712
Stockholders' equity:                                        
Common stock, $.0001 par value, authorized                  
20,000,000 shares;
3,258,163 and 3,808,338 shares issued and         1          1
outstanding, respectively
Additional paid-in capital                        36,673     36,533
Retained earnings                                 63,961     65,629
Total stockholders' equity                        100,635    102,163
                                                            
Total liabilities and stockholders' equity        $268,407  $243,875

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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