Corporation
quarter ended
recorded a net loss of
loss of
year’s results include a
distribution center facility in
For the first quarter, total sales decreased 18% to
compared to
decreased 9%. During the quarter, the Company operated an average of 709
stores compared to 806 stores last year, a 12% decline.
Gross profit for the quarter was
compared to
The reduction in gross profit as a percentage of sales was due to lower vendor
allowances this year versus last year.
Selling, general and administrative expenses for the quarter were
million
year. SG&A expenses were 39.5% of sales versus 39.3% of sales for the same
period last year, excluding the gain on the sale of the distribution facility.
The gain on the sale of the distribution facility last year had a favorable
impact on SG&A as a percentage of sales of 130 basis points.
The Company had
facility at the end of the quarter as compared to
Inventory was
quarter versus
at
to the simultaneous webcast on the Company’s corporate website, www.twec.com.
software, including music, video and video games and related products. The
Company operates retail stores in the
the
your entertainment and Suncoast and on the web at www.fye.com,
www.wherehouse.com, www.secondspin.com, www.samgoody.com and www.suncoast.com.
Certain statements in this release 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
- table to follow --
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
STATEMENTS OF OPERATIONS:
(in millions, except per share data)
Thirteen Weeks Ended Thirteen Weeks Ended
-------------------- --------------------
May 2, % to May 3, % to
2009 Sales 2008 Sales
---- ----- ---- -----
Net sales $191.4 $232.6
Cost of sales 125.6 65.7% 149.6 64.3%
----- ---- ----- ----
Gross profit 65.8 34.3% 83.0 35.7%
Selling, general and
administrative expenses 75.7 39.5% 88.3 38.0%
Depreciation and amortization 3.7 1.9% 5.5 2.4%
--- --- --- ---
Loss from operations (13.6) -7.1% (10.8) -4.7%
Interest expense, net 0.7 0.4% 0.9 0.3%
--- --- --- ---
Loss before income taxes (14.3) -7.5% (11.7) -5.0%
Income tax (benefit) expense (0.6) -0.3% 0.1 0.1%
---- ---- --- ---
NET LOSS $(13.7) -7.2% $(11.8) -5.1%
====== ==== ====== ====
Basic and diluted loss per share:
Basic and diluted loss per share $(0.44) $(0.38)
====== ======
Weighted average number of
common shares outstanding - basic
and diluted 31.3 31.2
==== ====
SELECTED BALANCE SHEET CAPTIONS:
(in millions, except store data)
May 2, 2009 May 3, 2008
----------- -----------
Cash and cash equivalents $8.2 $13.1
Merchandise inventory 332.7 417.0
Fixed assets (net) 47.6 75.3
Accounts payable 89.3 128.1
Borrowings under line of credit 29.0 22.7
Long-term debt, less current portion 7.9 11.7
Stores in operation 704 799
SOURCETrans World Entertainment Corporation -0-05/21/2009 /CONTACT:John J. Sullivan , EVP, Chief Financial Officer,Trans World Entertainment , +1-518-452-1242;Marilynn Meek , Financial Relations Board, +1-212-827-3773, / /Web Site: http://www.twec.com / (TWMC) CO:Trans World Entertainment Corporation ST:New York IN: REA MUS GAM CPR ENT SU: ERN CCA PR -- NY20723 -- 072305/21/2009 07:00 EDT http://www.prnewswire.com