Here is the earnings report. Tried to post it earlier. Must have gotten "e"vaporized.
Friday May 15, 4:40 pm Eastern Time
Company Press Release
SOURCE: CD Warehouse, Inc.
CD Warehouse, Inc. Records a 300+% Increase in Net
Income on 59% Increase in System-Wide Sales
Same Store Sales Up 21%
OKLAHOMA CITY, May 15 /PRNewswire/ -- CD Warehouse, Inc. (Nasdaq SmallCap: CDWI - news) announced the Company's net income for the first quarter ended March 31, 1998, was $160,800 or $0.09 per share of common stock on a basic computation basis, an increase of 333% above the $37,100 or $0.03 per share for the same period in 1997. System-wide sales, which include sales from the franchised stores, for the first quarter of 1998 were $11,881,300 compared to $7,457,100 for the first quarter of 1997, a 59% increase.
Total revenues for the Company was $3,264,100 for first quarter 1998, compared to $1,544,700 for 1997, an increase of 111%. Royalty revenue for the first quarter was $478,500 compared to $236,600 for the same period in 1997, an increase of 102%. The increase in the Company's royalty revenue is attributable to the addition of the new franchise stores and the increase in same store sales.
The increase in the Company's system-wide sales is attributable to the development of new stores and the same store sales increases for those stores opened during the same period in 1997. The Company opened 6 stores in the first quarter of 1998 ending the quarter with 156 stores in operation compared to 114 at the end of the first quarter of 1997. Same store sales for the first quarter of 1998 increased 21% over the same period in 1997.
Jerry W. Grizzle, the Company's Chairman and CEO, stated, ''We are pleased with the results of the first quarter of 1998. The continued performance of our system validates the existence of the pre-owned market for Compact Discs. Our system-wide and same store sales numbers indicate that we are providing the price value relationship that the retail music customer is seeking.''
During the first quarter of 1998, the Company was selected as a Blue Chip Enterprise Initiative Company by MassMutual, The U.S. Chamber of Commerce, Nation's Business magazine and First Business, a television news program.
The Company franchises and operates retail music stores in 29 states, England, France and Venezuela under the name ''CD Warehouse''. CD Warehouse stores buy, sell and trade pre-owned CD's with their customers. CD Warehouse stores sell a full complement of new release
CD's.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking
statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors.
CD Warehouse, Inc.
Operating Results
1998 1997 $ change % change
First Quarter Ended, March 31:
System-wide Sales $11,881,300 $ 7,457,100 $ 4,424,200 59%
Total Revenue 3,264,100 1,544,700 1,719,400 111%
Royalty Revenue 478,500 236,600 241,900 102%
Net Income 160,800 37,100 123,700 333%
Net Income per share-diluted $0.08 $0.03 $0.05 167%
Net Income per share-basic $0.09 $0.03 $0.06 200%
Shares Outstanding - diluted 1,917,448 378,445
Shares Outstanding - basic 1,887,778 1,378,445
SOURCE: CD Warehouse, Inc. |
