Ok, guys, FBOFW, earning and net strategy were both out after the market close. Here is some of the hi light before the actual skinny
- 12c
- Camelot acquisition was immediate accretive to earning
- 1MM UIC, a double to the prior Q, i.e., 100% growth Q to Q!
best, Bosco
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biz.yahoo.com
[full text below]
Wednesday May 12, 4:21 pm Eastern Time
Company Press Release
Trans World Entertainment Reports Results for the First Quarter
ALBANY, N.Y.--(BUSINESS WIRE)--May 12, 1999--Trans World Entertainment Corporation (Nasdaq National Market:TWMC - news) today announced results for its first quarter ended May 1, 1999, which includes, for both years, the full quarter results of the Company's acquisition of Camelot Music Holdings completed April 22, 1999.
Net income on a diluted basis, before the impact of a one-time charge, was $6.6 million, or $0.12 per share, compared to net income of $2.2 million, or $0.04 per share, in the first quarter of 1998. In the first quarter, the Company took a pre-tax charge of $25.7 million for expenses associated with the acquisition of Camelot Music Holdings. Including the charge, the Company reported a net loss for the first quarter of $8.6 million, or $0.16 per share.
Total sales increased 14% to $287 million from $251 million in the first quarter of 1998 and comparable store sales increased 3%. Comparable store sales included results from Camelot Music stores, which were flat with last year. Excluding Camelot stores, comparable store sales increased 5%.
Gross profit, as a percentage of sales, improved to 36.6% in 1999 from 36.0% in 1998. Selling, general and administrative expenses, as a percentage of sales, decreased to 29.7% during the quarter from 31.2% a year ago.
Robert J. Higgins, Chairman, President and Chief Executive Officer of Trans World Entertainment, said, ''In the first quarter, we completed the acquisition of Camelot Music, which is immediately accretive to earnings. In the same way that we successfully integrated Strawberries into the Company in 1997, we plan to improve Camelot's comparable store sales by implementing our marketing and merchandising initiatives, improving in-stock positions and offering a broader
assortment of catalog titles.''
Mr. Higgins continued, ''By combining Camelot's 480 locations with ours, the Company now operates 730 mall-based stores and 240 freestanding locations. In addition, our Internet site, www.twec.com, has also been strengthened. On May 3, we announced an exclusive on-line/off-line marketing and merchandising initiative with Yahoo!, called ''Yahoo! Picks''. In less than two weeks since the launch of this program, we have seen a substantial increase in visits to the site. We plan to implement other strategic marketing programs aimed at increasing page views on our site.''
In the first quarter ended May 1, 1999, unique visits to its e-commerce site, www.twec.com, doubled over the prior quarter. For the month of April, the site had over 1 million page views.
''We believe that the Internet consumer is looking for more than just an e-commerce site that sells CDs and videos,'' commented James A. Litwak, Executive Vice President - Merchandising and Marketing. ''The Company's strategy toward the Internet focuses on capturing a large audience by offering viewers exclusive entertainment content. By leveraging our leadership position in the music industry and identifying early consumer preference trends from our traditional retail base of over 500 million shoppers, we have been able to create a single source destination Internet site. Internet viewers visiting www.twec.com are offered the attraction of timely entertainment content and news in addition to the ability to purchase items online. Starting in the second quarter, in association with Atlantic Records, we will co-host several webcast concerts to drive additional traffic to our e-commerce site. Looking forward, we expect to form other strategic alliances that will bring digital downloading to both our website and into our stores.''
Mr. Higgins concluded, ''The Internet represents an opportunity to expand the overall music and video retail industry. We believe that our strategy of offering customers a compelling reason to visit our site - whether it be a live concert or to take part in our Yahoo! Picks promotions - will lead to high customer loyalty and repeat business, ultimately resulting in increased sales and advertising. Customer satisfaction remains one of our top priorities, both on the Internet and throughout our retail stores.''
Trans World Entertainment is a leading specialty retailer of music and video products. The Company operates retail stores in 44 states, the District of Columbia, the U.S. Virgin Islands and an e-commerce site, www.twec.com. Mall locations include Camelot, Record Town, The Wall, Saturday Matinee and F.Y.E. Freestanding locations include Coconuts Music and Movies, Strawberries Music, Spec's and Planet Music.
Certain statements in this report set forth management's intentions, plans, beliefs, expectations or predictions of the future based on current facts and analyses. Actual results may differ materially from those indicated in such statements. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission.
Trans World Entertainment Corporation
Financial Results
INCOME STATEMENTS:
(in thousands, except
per share data)
Thirteen Weeks Ended
May 1, % to May 2, % to
1999 Sales 1998 Sales
------------------------------------------
Sales $287,019 100.0% $251,383 100.0%
Cost of sales 182,075 63.4% 160,970 64.0%
------------------------------------------
Gross profit 104,944 36.6% 90,413 36.0%
Selling, general and
administrative expenses 85,232 29.7% 78,455 31.2%
Costs related to
the Camelot merger 25,721 9.0%
Depreciation and
amortization 8,468 3.0% 6,643 2.6%
------------------------------------------
Income (loss) from
operations (14,477) -5.1% 5,315 2.1%
Interest expense 427 0.1% 377 0.1%
------------------------------------------
Income (loss) before
income taxes (14,904) -5.2% 4,938 2.0%
Income tax expense (benefit) (6,260) -2.2% 2,777 1.1%
------------------------------------------
NET INCOME (LOSS) ($8,644) -3.0% $2,161 0.9%
==========================================
Basic earnings (loss)
per common share:
Earnings per share ($0.17) $0.04
========== =========
Weighted average number
of Common shares
outstanding 51,969 48,895
========== =========
Diluted earnings (loss)
per common share:
Earnings per share ($0.16) $0.04
========== =========
Weighted average number
of Common shares
outstanding 53,444 51,549
========== =========
SELECTED BALANCE SHEET CAPTIONS:
(in thousands, except store data)
Cash and cash equivalents $43,155 $50,711
Merchandise inventory 412,754 357,127
Fixed assets (net) 131,568 111,786
Accounts payable 156,349 169,528
Long-term debt,
less current portion 15,334 6,382
Shareholders' equity 424,372 360,061
Stores in operation 974 984
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