ALBANY, N.Y., Feb. 28 /PRNewswire/ — Trans World Entertainment
Corporation (Nasdaq: TWMC) today reported net income of $40.1 million, or
$0.89 per share, on sales of $553.4 million for the fourth quarter ended
February 3, 2001. As previously announced, the Company expected earnings per
share between $0.85 and $0.90. For the fourth quarter of fiscal 1999, net
income was $60.6 million, or $1.12 per share, on sales of $517.9 million.
Comparable store sales decreased 3% in the fourth quarter of fiscal 2000.
Total sales increased 7% for the quarter.
For fiscal 2000, the Company’s net income was $40.1 million, or $0.83 per
share, on sales of $1.4 billion, compared to net income of $61.4 million, or
$1.15 per share, on sales of $1.4 billion in fiscal 1999. Comparable store
sales in fiscal 2000 were flat.
Robert J. Higgins, Chairman and Chief Executive Officer of Trans World,
commented, “As expected, our fourth quarter results were impacted by a
difficult retail environment and lower than expected results from new
releases, however, we saw an improvement in comparable store sales during the
month of January.”
Gross profit as a percentage of sales decreased to 35.2% in fiscal 2000
from 36.8% in fiscal 1999. Selling, general and administrative expenses, as a
percentage of sales, increased to 26.9% in fiscal 2000 from 24.7% in fiscal
1999. Net interest income was $3.4 million compared to $0.6 million in fiscal
1999.
Trans World Entertainment is a leading specialty retailer of music and
video products. The Company operates retail stores in 46 states, the District
of Columbia, the U.S. Virgin Islands, Puerto Rico and an e-commerce site,
http://www.twec.com. Mall locations include Camelot, Record Town, The Wall,
F.Y.E, Disc Jockey and Saturday Matinee. Freestanding locations include
Coconuts Music and Movies, Strawberries Music, Spec’s and Planet Music.
Certain statements in this quarterly 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.
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
INCOME STATEMENTS:
Fourteen and Thirteen
(in millions, except per share data) Weeks Ended (1)
February January
3, % to 29, % to
2001 Sales 2000 Sales
Sales $553.4 $517.9
Cost of sales 362.7 65.5% 322.8 62.3%
Gross profit 190.7 34.5% 195.1 37.7%
Selling, general and
administrative expenses 116.0 21.0% 86.0 16.6%
Camelot merger costs (0.2) 0.0%
Depreciation and amortization 9.9 1.8% 9.4 1.8%
Income from operations 64.8 11.7% 99.9 19.3%
Interest expense (income) (0.9) -0.1% (1.4) -0.3%
Income before income taxes 65.7 11.8% 101.3 19.6%
Income tax expense 25.6 4.6% 40.7 7.9%
NET INCOME $40.1 7.2% $60.6 11.7%
Basic earnings per common share:
Earnings per share $0.91 $1.15
Weighted average number of
common shares outstanding 44.2 52.9
Diluted earnings per common share:
Earnings per share $0.89 $1.12
Weighted average number of
common shares outstanding 44.9 53.9
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
INCOME STATEMENTS:
(in millions, except per share data) Fiscal Year Ended (2)
February January
3, % to 29, % to
2001 Sales 2000 Sales
Sales $1,414.6 $1,358.1
Cost of sales 917.4 64.8% 858.6 63.2%
Gross profit 497.2 35.2% 499.5 36.8%
Selling, general and
administrative expenses 380.8 26.9% 335.9 24.7%
Camelot merger costs 25.5 1.9%
Depreciation and amortization 36.2 2.6% 36.0 2.7%
Income from operations 80.2 5.7% 102.1 7.5%
Interest expense (income) (3.4) -0.2% (0.6) 0.0%
Income before income taxes 83.6 5.9% 102.7 7.5%
Income tax expense 43.5 3.1% 41.3 3.0%
NET INCOME $40.1 2.8% $61.4 4.5%
Basic earnings per common share:
Earnings per share $0.84 $1.17
Weighted average number of
common shares outstanding 47.6 52.5
Diluted earnings per common share:
Earnings per share $0.83 $1.15
Weighted average number of
common shares outstanding 48.3 53.4
SELECTED BALANCE SHEET CAPTIONS:
(in millions, except store data)
Cash and cash equivalents $265.1 $280.0
Merchandise inventory 475.7 437.4
Fixed assets (net) 152.7 144.7
Accounts payable 430.2 353.3
Long-term debt and capital lease
obligations, less current portion 13.8 19.5
Stores in operation 984 967
(1) – The fourth fiscal quarter ended February 3, 2001 contains 14 weeks.
The fourth fiscal quarter ended January 29, 2000 contains 13 weeks.
(2) – The fiscal year ended February 3, 2001 contains 53 weeks.
The fiscal year ended January 29, 2000 contains 52 weeks.
SOURCE Trans World Entertainment Corporation
CONTACT: John Sullivan, Chief Financial Officer of Trans World
Entertainment Corporation, 518-452-1242, ext. 7400; or Michael Lendener of
The MWW Group Investor Relations, 212-704-9727, , for Trans
World Entertainment Corporation