Anyone still there -- GOOD NUMERS ANNOUNCED
CD Warehouse, Inc. More Than Doubles Profit on 50% Increase in System-Wide Sales
Same Store Sales Up 16%
OKLAHOMA CITY, Feb. 23 /PRNewswire/ -- CD Warehouse, Inc. (Nasdaq: CDWI) announced the Company's net income for the year ended December 31, 1998, was $775,000, an increase of 101% above the $386,000 in 1997. For the three months ended December 31, 1998, the Company's net income was $308,000, an increase of 89% above the $163,000 for the same period in 1997. System-wide sales for 1998 were $54,845,000 compared to $36,495,000 for 1997, a 50% increase. System-wide sales for the fourth quarter of 1998 were $16,906,000, a 48% increase over the fourth quarter of 1997. In June of 1998, the Company acquired the Disc Go Round concept from Grow Biz International. All reported same store and system-wide sales figures relate strictly to the CD Warehouse branded stores. Earnings per share for 1998 were $0.27 compared to $0.23 in 1997. This is most significant in that there were 2.9 average million shares outstanding in 1998 vs. 1.7 average million shares in 1997.
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 ended 1998 with 314 stores in operation compared to 150 at the end of 1997. Of the 314 stores operating at December 31, 1998, 128 stores were operating under the Disc Go Round trademark. Same store sales for the fourth quarter of 1998 increased 20% and year-to-date same store sales increased 16%.
The increase in the Company's royalty revenue is attributable to the addition of the new franchise stores, the increase in same store sales and the addition of the Disc Go Round concept stores. Royalty revenue for 1998 was $2,827,000 an increase of 103%, compared to $1,394,000, for the same period in 1997. Royalty revenue for the fourth quarter of 1998 was $987,000, a 112% increase over the $465,000 for the fourth quarter of 1997. Total revenues for the Company were $15,262,000 for 1998, compared to $9,089,000 for 1997, a 68% increase. Total revenues for the fourth quarter of 1998 were $5,341,000, an increase of 93% over the $2,771,000 for 1997
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