HRVE Nasdaq due to release 3rd qtr this week...here is 6mo and prelim.....4m shares out, 14 cents for the 6mo:
B: Harvey Electronics, Inc. Reports Strong Sales Increases for
B: Harvey Electronics, Inc. Reports Strong Sales Increases for Third Quarter
and Nine Months Ended July 27, 2002
LYNDHURST, N.J., Aug 9, 2002 (BUSINESS WIRE) -- Harvey Electronics, Inc.
8.5% Increase in Third Quarter Sales and 9.6% Increase in
Nine-Month Sales
Harvey Electronics, Inc. ("Harvey Electronics", "Harvey" or the "Company".
NASDAQ SmallCap Market symbols: "HRVE" and "HRVEW") announced strong sales
increases for the third quarter and nine months ended July 27, 2002, as compared
to the same periods last year.
For the nine months ended July 27, 2002, net sales aggregated almost $32.4
million, an increase of over $2.8 million or approximately 9.6% from the same
period last year. For the third quarter of fiscal 2002, net sales aggregated
almost $9.6 million, an increase of over $745,000 or approximately 8.5% from the
same quarter last year.
Comparable store sales results for the third quarter of fiscal 2002 increased
over $750,000 or approximately 8.5% from the same quarter last year. Comparable
store sales for the nine months ended July 27, 2002 increased over $970,000 or
approximately 3.3% from the same period last year.
Mr. Franklin Karp, President of Harvey Electronics stated, "We are very pleased
with the strong overall and comparable store sales increases in the third
quarter and for the nine months ended July 27, 2002. Most of our retail stores
produced double-digit percentage sales increases in the third quarter. These
impressive sales results were materially impacted by the continuing success of
our newest Harvey showroom in Eatontown, New Jersey. Eatontown opened in April
2001, approximately 16 months ago, and is maturing faster than expected. Our Mt.
Kisco, New York and our Greenwich, Connecticut stores, which have experienced
declines in sales in the first six months in fiscal 2002, have rebounded in
sales in the third quarter, as compared to the same quarter last year."
Mr. Karp continued, "To date, our comparable store sales are favorable when
compared to certain other consumer electronics retailers, despite the sluggish
retail environment. This is the result of our strong marketing efforts, new
digital technologies which are in strong demand by our customers and
additionally due to our custom installation capabilities."
"Our custom installation sales of equipment and labor accounted for
approximately 50% of our net sales (approximately $16.2 million) for the nine
months ended July 27, 2002, an increase of $4.8 million or 42% from the same
period last year. We believe these custom installation services differentiate
Harvey from our competitors with services they are unable to provide, and
additionally strengthens our overall gross margin. We expect gross margins for
the three and nine months ended July 27, 2002 to improve from the same periods
last year. This is despite a significant increase in video sales, which
typically carry lower margins. The expected improvement in the gross margin is
due primarily from a significant increase in higher-margin custom installation
labor income."
Mr. Karp concluded, "For the remainder of fiscal 2002 and beyond, we plan to
continue to focus our efforts on improving the overall store profitability for
our nine retail showrooms. To accomplish this, we plan to continue maintaining
strict control of selling and other expenses, expand our custom installation
services and digital video and home theater presentations, and continuously
refine our marketing efforts."
Harvey Electronics, Inc. Reports -- Pre-tax Income Soars for th
Harvey Electronics, Inc. Reports -- Pre-tax Income Soars for the Six Months and
Second Quarter Ended April 27, 2002
Business Editors
LYNDHURST, N.J.--(BUSINESS WIRE)--June 12, 2002--
176% Increase in Pre-tax Income and 68% Increase In EBITDA For the
First Six Months of Fiscal 2002
Harvey Electronics, Inc. ("Harvey Electronics", "Harvey" or the
"Company". NASDAQ SmallCap Market symbols: "HRVE" and "HRVEW")
announced profitable results for the six months and second quarter
ended April 27, 2002.
Pre-tax income for the six months ended April 27, 2002 increased
176% to $801,000 as compared with $290,000 for the same period last
year. EBITDA for the first six months increased 68% to $1,437,000
compared with EBITDA of $855,000 for the same period last year. Net
income for the first six months rose 176% to $481,000 from $175,000
for the same period last year.
Pre-tax income for the second quarter of fiscal 2002 increased
165% to $161,000, as compared to a pre-tax loss of $246,000 for the
same quarter last year. EBITDA for the second quarter substantially
increased to $477,000, as compared to EBITDA of $67,000 for the same
quarter last year. Net income for the second quarter increased to
$91,000 as compared to a net loss of $147,000 for the same quarter
last year.
As previously announced, net sales for the six months ended April
27, 2002 aggregated approximately $22.8 million, an increase of $2.1
million or approximately 10.1% from the same period last year. For the
second quarter of fiscal 2002, net sales aggregated approximately
$10.4 million, an increase of more than $1.2 million or approximately
13.5% from the same quarter last year.
Comparable store sales for the six months ended April 27, 2002
increased over $220,000 or approximately 1.1% from the same period
last year. Comparable store sales for the second quarter of fiscal
2002 increased over $520,000 or approximately 5.7% from the same
quarter last year.
Mr. Franklin Karp, President of Harvey Electronics stated, "We are
extremely pleased with the increase in our overall and comparable
store sales and with our significant increases in pre-tax income,
EBITDA and net income for the first six months and second quarter of
fiscal 2002."
Mr. Karp continued, "Our pre-tax income and EBITDA benefited from
reduced operating losses associated with the opening of two new stores
and the Company's website. For the first six months and second quarter
of fiscal 2002, net income was reduced by operating losses of $150,000
and $80,000, respectively, relating to the Company's newest Bang &
Olufsen store opened in Greenwich, Connecticut and from our website.
For the same periods in fiscal 2001, net income was reduced by
$420,000 and $250,000, respectively, relating to both operating losses
and pre-opening expenses from Bang & Olufsen, Connecticut, Eatontown,
New Jersey and our website. Our net income should continue to benefit
as these new stores further mature."
Mr. Karp continued, "Our business has been driven by strong demand
for our custom installation services and for the desirable flat-panel
plasma and LCD televisions, DVD and home theater products."
Mr. Joseph Calabrese, the Company's Chief Financial Officer
stated, "Our profitable custom installation services have increased to
almost $11 million or almost 48% of net sales for the first six months
of fiscal 2002 as compared to approximately $7.6 million and 37% of
net sales for the same period last year. The increase in higher margin
custom installation sales of equipment and labor income has driven
Harvey's overall gross profit margin up to 39.5% for the first six
months of fiscal 2002 as compared to 39% for the same period last
year. Our second quarter gross profit also increased to 39.7% as
compared to 39.1% for the same quarter last year. This trend towards
custom installation is very positive for our Company, despite the
higher volume of video sales, which carry lower margins than audio
sales."
Mr. Calabrese continued, "In addition to our increased sales and
gross profit margin, we have also effectively reduced our comparable
selling, general and administrative expenses for both the six months
and second quarter ended April 27, 2002. The decrease in these
expenses was primarily due to a reduction in payroll and payroll
related costs and reduced net advertising expenditures."
Mr. Calabrese concluded, "It is important to note that while the
Company has recorded income tax equivalent provisions for the first
six months and second quarter of fiscal 2002 of $320,000 (40% tax
rate) and $70,000 (44% tax rate), respectively, we will not pay any
income taxes as the Company is utilizing existing operating loss
carryforwards."
Mr. Karp concluded, "Our strong six month and second quarter
results of operation have been very gratifying to all of us at Harvey
Electronics. For the remainder of the year, we will focus on improving
our overall store profitability and custom installation services while
expanding the scope of these installation services for the home, by
converging home entertainment and computer technology. We believe we
are well positioned to further our sales growth and build on our
success to date. We remain optimistic in our expectations and outlook
for the remainder of fiscal 2002." |
