ALBANY, N.Y., Nov. 21 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC) today announced that total sales decreased 12% to
$260.6 million for the third quarter ended November 3, 2007, compared to
$297.7 million in the third quarter of 2006. The Company operated, on
average, 13% fewer stores during the third quarter of 2007, compared to the
same period last year. Comparable store sales in the third quarter of 2007
decreased 4%. For the third quarter of 2007, the net loss was $14.3 million,
or $0.46 per share. For the third quarter of 2006, the loss before
extraordinary gain was $13.3 million, or $0.43 per share. After the
extraordinary gain in the third quarter of 2006, the net loss was $11.4
million or $0.37 per share.
“We continued to achieve positive comparable store sales in home video,
video games, electronics and boutique during the third quarter, however, these
results did not offset the decline in music,” said Robert J. Higgins, Chairman
and Chief Executive Officer of Trans World Entertainment. “Our third quarter
comparable store sales results did, however, show improvement over the first
two quarters of 2007.”
Gross profit as a percentage of sales for the third quarter of 2007 was
35.1% versus 36.6% in the third quarter of 2006. SG&A as a percentage of
sales was 40.8% compared to 40.4% last year.
Sales for the thirty-nine week period ended November 3, 2007 decreased 8%
to $814.2 million, compared to $884.5 million in 2006. Comparable store sales
for the thirty-nine week period decreased 7%. Net loss for the thirty-nine
week period was $33.4 million or $1.08 per share. Loss before extraordinary
gain in 2006 was $31.5 million or $1.02 per share. The net loss after the
extraordinary gain was $26.2 million, or $0.85 per share, in 2006.
Trans World Entertainment is a leading specialty retailer of entertainment
software, including music, home video and video games and related products.
The Company operates over 950 retail stores in the United States, the District
of Columbia, the U.S. Virgin Islands, and Puerto Rico, primarily under the
names f.y.e. for 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 Securities and Exchange Commission.
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
INCOME STATEMENTS:
(in millions, except per share data)
Thirteen Weeks Ended
November 3, % to October 28, % to
2007 Sales 2006 Sales
Sales $260.6 $297.7
Cost of sales 169.3 64.9% 188.9 63.4%
Gross profit 91.3 35.1% 108.8 36.6%
Selling, general and
administrative expenses 106.3 40.8% 120.2 40.4%
Depreciation and amortization 8.9 3.5% 9.8 3.3%
Loss from operations (23.9) -9.2% (21.2) -7.1%
Other income - - (0.1) -
Interest expense 1.9 0.7% 1.7 0.6%
Loss before income taxes and
extraordinary gain - unallocated
negative goodwill (25.8) -9.9% (22.8) -7.7%
Income tax benefit (11.5) -4.4% (9.5) -3.2%
Loss before extraordinary gain -
unallocated negative goodwill (14.3) -5.5% (13.3) -4.5%
Extraordinary gain - unallocated
negative goodwill, net of
income taxes - - 1.9 0.6%
NET LOSS $(14.3) -5.5% $(11.4) -3.9%
Basic and diluted loss per
common share:
Loss per share before extraordinary
gain - unallocated negative goodwill $(0.46) $(0.43)
Extraordinary gain - unallocated
negative goodwill, net of
income taxes - 0.06
Basic and diluted loss per
common share $(0.46) $(0.37)
Weighted average number of
common shares outstanding -
basic and diluted 31.1 30.8
SELECTED BALANCE SHEET CAPTIONS:
(in millions, except store data)
Cash and cash equivalents
Merchandise inventory
Fixed assets (net)
Accounts payable
Borrowings under line of credit
Long-term debt, less current portion
Stores in operation
INCOME STATEMENTS:
(in millions, except per share data)
Thirty-nine Weeks Ended
November 3, % to October 28, % to
2007 Sales 2006 Sales
Sales $814.2 $884.5
Cost of sales 520.5 63.9% 569.0 64.3%
Gross profit 293.7 36.1% 315.5 35.7%
Selling, general and
administrative expenses 321.5 39.5% 345.5 39.1%
Depreciation and amortization 27.3 3.4% 27.5 3.1%
Loss from operations (55.1) -6.8% (57.5) -6.5%
Other income (0.1) - (4.0) -0.5%
Interest expense 5.2 0.6% 4.1 0.5%
Loss before income taxes and
extraordinary gain -
unallocated negative goodwill (60.2) -7.4% (57.6) -6.5%
Income tax benefit (26.8) -3.3% (26.1) -3.0%
Loss before extraordinary gain -
unallocated negative goodwill (33.4) -4.1% (31.5) -3.5%
Extraordinary gain - unallocated
negative goodwill, net of
income taxes - - 5.3 0.6%
NET LOSS $(33.4) -4.1% $(26.2) -2.9%
Basic and diluted loss per
common share:
Loss per share before extraordinary
gain - unallocated negative goodwill $(1.08) $(1.02)
Extraordinary gain - unallocated
negative goodwill, net of
income taxes - 0.17
Basic and diluted loss per
common share $(1.08) $(0.85)
Weighted average number of
common shares outstanding -
basic and diluted 31.0 30.8
SELECTED BALANCE SHEET CAPTIONS: November 3, October 28,
(in millions, except store data) 2007 2006
Cash and cash equivalents $15.5 $13.5
Merchandise inventory 569.1 656.2
Fixed assets (net) 119.9 134.7
Accounts payable 264.6 333.7
Borrowings under line of credit 81.8 71.6
Long-term debt, less current portion 13.5 16.9
Stores in operation 962 1,121
SOURCE Trans World Entertainment Corporation
CONTACT:
John J. Sullivan,
EVP,
Chief Financial Officer,
Trans World
Entertainment,
+1-518-452-1242;
or
Peter Gau,
MWW Group,
+1-201-964-2377,