Comparable Store Sales Increase 8%
ALBANY, N.Y.–(BUSINESS WIRE)–May 10, 2000–Trans World Entertainment Corporation (Nasdaq National Market: TWMC) today announced total sales of $310.1 million for its first quarter ended April 29, 2000, compared to $287.0 million for the same period last year. Net income for the quarter was $8.9 million, or $0.18 per diluted share, compared to net income of $6.6 million or $0.12 per diluted share, in the comparable 1999 quarter. Results for last year, exclude a $25.7 million one-time pre-tax charge for costs related to the Camelot merger which closed during the first quarter of 1999. Including the charge, the Company incurred a net loss of $8.6 million or ($0.17) per diluted share last year. Comparable store sales in the first quarter of 2000 increased 8%.
In the first quarter this year, gross profit as a percentage of sales decreased to 35.7% from 36.6% in 1999. Selling, general and administrative expenses decreased to 28.7% of sales from 29.7% of sales in the first quarter of 1999.
“We are pleased with the first quarter results,” commented Robert J. Higgins, Trans World’s Chairman and Chief Executive Officer. “The results highlight the continuing growth of our Company and the operating improvement in the Camelot stores acquired in April 1999. This quarter marks Trans World’s seventeenth consecutive quarter of positive sales growth, with solid growth in both our mall and free standing stores. In the first quarter, traffic on our e-commerce site increased to 2.6 million unique visitors, up from 147,000 in the first quarter of 1999. The Company also completed the 5 million share common stock repurchase program authorized by the board of directors in January 2000.”
Trans World Entertainment is a leading specialty retailer of music and video products. The Company operates retail stores in 45 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. -0-
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
INCOME STATEMENTS:
(in millions, except per share data)
Thirteen Weeks Ended
-------------------------------------------
April 29, % to May 1, % to
2000 Sales 1999 Sales
-------------------------------------------
Sales $ 310.1 $287.0
Cost of sales 199.3 64.3% 182.1 63.4%
--------------------------------------------
Gross profit 110.8 35.7% 104.9 36.6%
Selling, general and
administrative
expenses 89.0 28.7% 85.2 29.7%
Costs related to the
Camelot merger - 0.0% 25.7 9.0%
Depreciation and
amortization 8.7 2.8% 8.5 3.0%
--------------------------------------------
Income (loss) from
operations 13.1 4.2% (14.5) -5.1%
Interest expense
(income) (1.2) -0.4% 0.4 0.1%
--------------------------------------------
Income (loss) before
income taxes 14.3 4.6% (14.9) -5.2%
Income tax expense
(benefit) 5.4 1.7% (6.3) -2.2%
--------------------------------------------
NET INCOME (LOSS) $ 8.9 2.9% $ (8.6) -3.0%
============================================
Basic earnings (loss)
per common share:
Earnings (loss) per
share $ 0.18 $ (0.17)
========== ===========
Weighted average number
of common shares
outstanding - basic 49.7 52.0
========== ===========
Diluted earnings (loss)
per common share:
Earnings (loss) per share $ 0.18 $ (0.17)
========== ===========
Weighted average number
of common shares
outstanding -diluted 50.7 52.0
========== ===========
SELECTED BALANCE SHEET CAPTIONS:
(in millions, except store data)
Cash and cash equivalents $ 113.3 $ 47.0
Merchandise inventory 421.6 412.8
Fixed assets (net) 137.3 131.5
Accounts payable 215.8 180.9
Long-term debt, less
current portion 18.1 15.3
Shareholders' equity 463.8 424.4
Stores in operation 941 974
CONTACT:
Trans World Entertainment Corporation
John Sullivan
Chief Financial Officer
(518) 452-1242 ext. 7400
or
The MWW Group
Investor Relations
(212) 704-9727
Rich Schineller
()
Jen Valz
()