ALBANY, N.Y.–(BUSINESS WIRE)–Dec. 6, 1999–Trans World Entertainment Corporation (Nasdaq National Market: TWMC) today announced that it will adjust its third quarter net income results of $8.0 million, or $0.15 per diluted share, as was previously reported on November 10, 1999, to $3.8 million, or $0.07 per diluted share. For the third quarter of 1998, the Company reported net income of $3.7 million, or $0.07 per share.
The adjustment is the result of an inventory shrinkage that existed at the end of the third quarter that was in excess of amounts provided in the recently acquired Camelot stores. The excess shrinkage was discovered upon the final reconciliation of Camelot store inventory results, which was completed subsequent to the Company’s previously released earnings results. The Company will file its third quarter Form 10-Q with the Securities and Exchange Commission on December 14, 1999 as planned.
For the 39-week period ending October 30, 1999, net income was $0.8 million, or $0.02 per diluted share, versus $9.4 million, or $0.18 per diluted share, for the comparable period of 1998. Results in 1999 reflect a pre-tax charge of $25.7 million related to the Camelot merger. Excluding the one time charge, earnings would have been $15.7 million, or $0.29 per diluted share.
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, Puerto Rico and an e-commerce site, www.twec.com. Mall locations include Record Town, Camelot, 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.
CONTACT: Trans World Entertainment Corporation John Sullivan Chief Financial Officer (518) 452-1242 ext. 7400 or The MWW Group (212) 704-9727 Investor Relations: Leon Berman -