QKL Stores Q4 Loss Narrows - Quick Facts

(RTTNews) - QKL Stores Inc. (QKLS), a regional supermarket chain in Northeastern China and Inner Mongolia, said that its fourth quarter of 2013 net loss narrowed to $11.6 million from $30.8 million in the fourth quarter of 2012.

Excluding the impairment of goodwill, the company had a net loss of $11.6 million in the fourth quarter of 2013 compared with net income of $4.1 million in the fourth quarter of 2012.

Operating expenses decreased by 17.2% to $17.3 million compared to $20.9 million in the prior year period. This was primarily a result of its decrease in net sales in the fourth quarter of 2013.

Quarterly revenue decreased by 21.5% to $67.5 million from $86.0 million last year. Comparable stores are stores that were opened for at least one year before the beginning of the comparison period, or by January 1, 2012. Those 45 stores generated approximately $67.5 million in sales in the fourth quarter of 2013, representing a decrease of $5.2 million, or 7.2% compared with $72.7 million in sales in fiscal 2012.

Zhuangyi Wang, Chairman and CEO, said, "As we advance into 2014, we expect to open three new supermarket or hypermarket stores this year. We maintain confidence in our strategy of strengthening our store presence in Tier 4 and 5 cities in northeastern China as well as in our core region of operation around Daqing where the majority of our older stores are based."