Quantcast

Trans World Entertainment Announces Second Quarter Results - WCAX.COM Local Vermont News, Weather and Sports-

Trans World Entertainment Announces Second Quarter Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Trans World Entertainment Corporation

ALBANY, N.Y., Aug. 21, 2014 /PRNewswire/ -- Trans World Entertainment Corporation (Nasdaq: TWMC) today reported financial results for its second quarter ended August 2, 2014.  For the second quarter of 2014, the Company reported a net loss of $5.1 million, or a loss of $0.16 per diluted share, compared to a net loss of $2.5 million, or a loss of $0.08 per diluted share, for the same period last year.    

Comparable store sales for the quarter were down 3.4% compared to the same quarter last year.  Total sales for the quarter decreased 11.0% to $71.9 million compared to $80.8 million in 2013.  During the quarter, the Company operated an average of 328 stores compared to 353 last year, a 7.1% decline in store count which resulted in an 8.8% decline in total square footage in operation. During the quarter the Company opened or relocated 4 stores and closed 10 stores. 

Gross profit for the quarter was $28.0 million, or 39.0% of sales, as compared to $32.0 million, or 39.6% of sales for the same period last year.  The decrease in gross profit as a percentage of sales was due to distribution and freight expenses.

Selling, general and administrative ("SG&A") expenses decreased 4.2% for the quarter to $31.8 million compared to $33.2 million for 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 44.2% versus 41.1% for the same period last year. The increase in SG&A as a percentage of sales is primarily due to fixed expenses on the sales decline.

For the twenty-six weeks ended August 2, 2014, total sales decreased 8.9% to $159.1 million, compared to $174.7 million for the same period in 2013.  Comparable store sales for the twenty-six weeks ended August 2, 2014 decreased 1.4% compared to the same period last year.  Net loss for the twenty-six week period was $5.5 million, or a loss of $0.17 per diluted share, compared to a net loss of $0.9 million, or $0.03 per diluted share, for the same period last year.

Gross profit for the twenty-six weeks ended August 2, 2014 was $60.8 million, or 38.2% of sales, compared to $67.8 million, or 38.8%, of sales for the same period last year.

For the twenty-six weeks ended August 2, 2014, SG&A expenses decreased 3.6% to $63.6 million compared to $66.0 million in the comparable period last year.  As a percentage of sales, SG&A expenses were 40.0% versus 37.8% for the same period last year.

Cash on hand at the end of the quarter was $82.4 million, compared to $95.3 million at the end of the second quarter last year.  Inventory was $134.6 million at the end of the quarter versus $151.5 million at the end of the second quarter last year, a decline of 11.1%. 

"Despite the challenging results for the quarter, we are approaching the second half optimistically as we completed many of our merchandising initiatives which resulted in improved results in July.  The Company continues to improve its cash flow from operations through disciplined inventory management and the Company has returned over $20 million to our shareholders over the last 12 months, including the payment of a $16 million special dividend in the first half this year," said Robert J. Higgins, Chairman and Chief Executive Officer.

"I'm also pleased to announce that last week we opened our new entertainment concept store in Woodbridge, New Jersey.  We are excited by the concept which offers a much broader assortment of non-media product in a visually exciting layout and continues our transformation to a complete entertainment destination," Mr. Higgins concluded.

During the second quarter the Company repurchased approximately 318,000 shares of common stock at an average price of $3.42 per share, for an aggregate purchase price of approximately $1.1 million.   Since the inception of the program, the Company has repurchased approximately 1.1 million shares of common stock at an average price of $4.03 per share, for an aggregate purchase price of approximately $4.5 million. The Company has approximately $17.5 million available for purchase under its repurchase program.     

Trans World will host a teleconference call today, Thursday, August 21, 2014, 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 music, video, trend, electronics, video games and related products. The Company operates retail stores in the United States 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)









Thirteen Weeks Ended


Twenty-six Weeks Ended


August 2

% to

August 3

% to


August 2

% to

August 3

% to


2014

Sales

2013

Sales


2014

Sales

2013

Sales











Net sales

$    71,908


$    80,768



$  159,124


$   174,702












Cost of sales

43,861

61.0%

48,754

60.4%


98,300

61.8%

106,899

61.2%

Gross profit

28,047

39.0%

32,014

39.6%


60,824

38.2%

67,803

38.8%











Selling, general and










   administrative expenses

31,762

44.2%

33,157

41.1%


63,612

40.0%

65,992

37.8%











Depreciation and amortization

858

1.1%

861

1.0%


1,640

1.0%

1,685

1.0%

Income (loss) from operations

(4,573)

-6.3%

(2,004)

-2.5%


(4,428)

-2.8%

126

0.1%











Interest expense, net

476

0.7%

487

0.6%


960

0.6%

970

0.6%











Income (loss) before income taxes

(5,049)

-7.0%

(2,491)

-3.1%


(5,388)

-3.4%

(844)

-0.5%

Income tax expense

47

0.1%

48

0.0%


94

0.1%

96

0.1%





















Net income (loss)

$     (5,096)

-7.1%

$     (2,539)

-3.1%


$     (5,482)

-3.5%

$         (940)

-0.6%











Basic income (loss) per common share:




















Basic income (loss) per share

$       (0.16)


$       (0.08)



$       (0.17)


$        (0.03)












Weighted average number of










   common shares outstanding - basic

31,831


33,147



31,961


32,717












Diluted income (loss) per common share:




















Diluted income (loss) per share

$       (0.16)


$       (0.08)



$       (0.17)


$        (0.03)












Weighted average number of










   common shares outstanding - diluted

31,831


33,147



31,961


32,717






















SELECTED BALANCE SHEET CAPTIONS:






August 2


August 3


(in thousands, except store data)






2014


2013












Cash and cash equivalents






$    82,401


$     95,252


Merchandise inventory






134,600


151,451


Fixed assets (net)






15,821


11,654


Accounts payable






42,382


50,309


Borrowings under line of credit






-


-


Long-term capital lease, less current portion






351


1,488












Stores in operation, end of period






327


355


Stores in operation, average during the period






328


353


 

 

 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WCAX. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.