Trans World Entertainment Announces First Quarter Results

23 May, 2013, 07:30 ET from Trans World Entertainment Corporation

ALBANY, N.Y., May 23, 2013 /PRNewswire/ -- Trans World Entertainment Corporation (Nasdaq: TWMC) today reported financial results for its first quarter ended May 4, 2013.  For the first quarter of 2013, the Company reported net income of $1.6 million, or $0.05 per diluted share, compared to net income of $2.8 million, or $0.09 per diluted share, for the same period last year.    

Comparable store sales for the quarter decreased 6.6% compared to the same quarter last year.  Total sales for the quarter decreased 16.3% to $93.9 million compared to $112.3 million for the same period last year.  The Company ended the quarter with 353 stores in operation as compared to 379 stores last year, a 6.9% decline.  During the quarter the Company opened 2 stores and closed 7 stores. 

Gross profit for the quarter was $35.8 million, or 38.1% of sales, as compared to $41.8 million, or 37.2%, of sales for the same period last year.  The increase in gross profit as a percentage of sales was due to higher margin rates across a majority of product categories. 

Selling, general and administrative ("SG&A") expenses decreased 11.9% for the quarter to $32.8 million compared to $37.3 million in the comparable period last year.  The reduction in SG&A expenses was due to fewer stores in operation.  As a percentage of sales, SG&A expenses were 34.9% in the quarter as compared to 33.2% for the same period last year.

Cash on hand at the end of the quarter was $111.3 million, compared to $62.3 million at the end of the first quarter last year.  Inventory was $153.5 million at the end of the quarter, versus $176.2 million at the end of the first quarter last year, a decline of 12.9%. 

Trans World will host a teleconference call today, Thursday, May 23, 2013, at 10:00 AM ET to discuss its financial results. Interested parties can listen to the simultaneous webcast on the Company's corporate website, www.twec.com.

Trans World Entertainment is a leading specialty retailer of entertainment products, including video, music, trend, electronics, video games and related products.  The Company operates retail stores in the United States, the District of Columbia, 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, and www.secondspin.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.

-- table to follow --

 

TRANS WORLD ENTERTAINMENT CORPORATION

Financial Results

STATEMENTS OF OPERATIONS:

(in thousands, except per share data)

Fiscal Quarter Ended

May 4,

% to

April 28,

% to

2013

Sales

2012

Sales

Net sales

$      93,934

$     112,287

Cost of sales

58,145

61.9%

70,472

62.8%

Gross profit

35,789

38.1%

41,815

37.2%

Selling, general and

   administrative expenses

32,835

34.9%

37,260

33.2%

Depreciation and amortization

824

0.9%

941

0.8%

Income from operations

2,130

2.3%

3,614

3.2%

Interest expense, net

484

0.5%

770

0.7%

Income before income taxes

1,646

1.8%

2,844

2.5%

Income tax expense

48

0.1%

47

0.0%

Net Income

$        1,598

1.7%

$          2,797

2.5%

Basic income per common share:

Basic income per share

$          0.05

$            0.09

Weighted average number of

   common shares outstanding - basic

32,286

31,535

Diluted income per common share:

Diluted income per share

$          0.05

$            0.09

Weighted average number of

   common shares outstanding - diluted

32,571

31,548

SELECTED BALANCE SHEET CAPTIONS:

May 4,

April 28,

(in thousands, except store data)

2013

2012

Cash and cash equivalents

$    111,276

$       62,343

Merchandise inventory

153,519

176,227

Fixed assets, net

8,961

15,681

Accounts payable

51,608

52,163

Borrowings under line of credit

-

-

Long-term debt, less current portion

-

-

Stores in operation

353

379

 

SOURCE Trans World Entertainment Corporation



RELATED LINKS

http://www.twec.com