ALBANY, N.Y.–(BUSINESS WIRE)–Aug. 9, 2000–Trans World Entertainment Corporation (Nasdaq National Market:TWMC) today announced total sales of $285.5 million for its second quarter ended July 29, 2000, compared to $277.3 million for the same period last year. Net income for the quarter was $6.7 million, or $0.14 per share, compared to net income of $5.7 million or $0.11 per share, in the comparable 1999 quarter. Comparable store sales in the second quarter of 2000 increased 2%.
In the second quarter gross profit as a percentage of sales decreased to 36.4% of sales compared 37.0% of sales for the second quarter of 1999. Selling, general & administrative expenses decreased to 29.9% of sales from 30.1% in the second quarter of 1999.
“Our second quarter results reflect our commitment to deliver continued growth and profitability, while we work to further enhance Trans World’s long-term competitive position,” commented Robert J. Higgins, Trans World’s Chairman and Chief Executive Officer. “The integration of our mall and freestanding stores with our e-commerce sales channel is progressing well and we expect this combination to serve all of our customers’ needs. In the second quarter, traffic on our e-commerce site increased over 70% to 1.9 million unique visitors, up from 1.1 million visitors in the second quarter of 1999.”
Sales for the twenty-six week period ended July 29, 2000 were $595.6 million, compared to $564.3 million for the same period last year. Net income for the twenty-six week period was $15.7 million, or $0.31 per share, compared to a net loss of $2.9 million, or ($0.06) per share, in the comparable 1999 period. Results for last year’s twenty-six week period include a $25.7 million one-time pre-tax charge for costs related to the Camelot merger.
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 Camelot, Record Town, 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
--------------------------------------------
July 29, % to July 31, % to
2000 Sales 1999 Sales
--------------------------------------------
Sales $285.5 $277.3
Cost of sales 181.5 63.6% 174.7 63.0%
--------------------------------------------
Gross profit 104.0 36.4% 102.6 37.0%
Selling, general and
administrative expenses 85.5 29.9% 83.3 30.1%
Camelot merger costs 0.0%
Depreciation and
amortization 8.5 3.0% 9.0 3.2%
--------------------------------------------
Income (loss) from
operations 10.0 3.5% 10.3 3.7%
Interest expense (income) (0.7) -0.3% 0.5 0.2%
--------------------------------------------
Income (loss) before
income taxes 10.7 3.8% 9.8 3.5%
Income tax expense
(benefit) 4.0 1.5% 4.1 1.4%
--------------------------------------------
NET INCOME (LOSS) $6.7 2.3% $5.7 2.1%
============================================
Basic earnings per
common share:
Earnings (loss) per share $0.14 $0.11
============= =============
Weighted average
number of common
shares outstanding 48.4 52.2
============= =============
Diluted earnings
per common share:
Earnings (loss) per share $0.14 $0.11
============= =============
Weighted average
number of common
shares outstanding 49.3 53.6
============= =============
SELECTED BALANCE SHEET CAPTIONS:
(in millions, except store data)
Cash and cash equivalents
Merchandise inventory
Fixed assets (net)
Accounts payable
Long-term debt and capital
lease obligations,
less current portion
Stores in operation
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
INCOME STATEMENTS:
(in millions, except per share data)
Twenty Six Weeks Ended
--------------------------------------------
July 29, % to July 31, % to
2000 Sales 1999 Sales
--------------------------------------------
Sales $595.6 $564.3
Cost of sales 380.8 63.9% 356.8 63.2%
--------------------------------------------
Gross profit 214.8 36.1% 207.5 36.8%
Selling, general and
administrative expenses 174.5 29.3% 168.5 29.9%
Camelot merger costs 0.0% 25.7 4.5%
Depreciation and
amortization 17.2 2.9% 17.5 3.1%
--------------------------------------------
Income (loss) from
operations 23.1 3.9% (4.2) -0.7%
Interest expense (income) (2.0) -0.3% 0.9 0.2%
--------------------------------------------
Income (loss) before
income taxes 25.1 4.2% (5.1) -0.9%
Income tax expense
(benefit) 9.4 1.6% (2.2) -0.4%
--------------------------------------------
NET INCOME (LOSS) $15.7 2.6% ($2.9) -0.5%
============================================
Basic earnings per
common share:
Earnings (loss) per share $0.32 ($0.06)
=========== ==========
Weighted average
number of common
shares outstanding 49.0 52.1
=========== ==========
Diluted earnings per
common share:
Earnings (loss) per share $0.31 ($0.06)
=========== ==========
Weighted average
number of common
shares outstanding 50.0 52.1
=========== ==========
SELECTED BALANCE
SHEET CAPTIONS:
(in millions, except
store data)
Cash and cash equivalents $106.0 $83.8
Merchandise inventory 408.9 398.7
Fixed assets (net) 134.8 136.7
Accounts payable 199.8 206.2
Long-term debt and
capital lease
obligations, less
current portion 16.8 19.4
Stores in operation 940 969
CONTACT: Trans World Entertainment Corporation
John Sullivan
Chief Financial Officer
(518) 452-1242 ext. 7400
or
The MWW Group
Investor Relations
Michael Lendener, (212) 704-9727