ALBANY, N.Y., May 22 /PRNewswire-FirstCall/ -- Trans World
Entertainment Corporation (Nasdaq: TWMC) today announced total sales for
the first quarter ended May 3, 2008 decreased 19% to $232.6 million,
compared to $286.3 million in the first quarter of 2007. Comparable store
sales in the first quarter of 2008 decreased 6%. For the first quarter of
2008, the loss before income taxes was $11.7 million compared to a loss
before income taxes of $15.8 million for the same period last year. For the
first quarter of 2008, the net loss was $11.8 million, or $0.38 per share
compared to a net loss of $9.1 million, or $0.29 per share for the same
period last year. The Company recorded income tax expense of $0.1 million
during the first quarter of 2008, compared to an income tax benefit of $6.7
million last year.
"Overall retail sales were weak in the first quarter. While comp sales
in music continued to decline, we experienced increases in video, video
games and our other category which includes electronics, accessories and
trend," said Robert J. Higgins, Chairman and Chief Executive Officer of
Trans World Entertainment.
Gross profit as a percentage of sales for the first quarter of 2008 was
35.7% compared to 36.5% in the first quarter of 2007. SG&A as a percentage
of sales decreased to 38.0%, compared to 38.3% last year.
Trans World Entertainment is a leading specialty retailer of
entertainment software, including music, video and video games and related
products. The Company operates nearly 800 retail stores in the United
States, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico,
primarily under the names f.y.e. for your entertainment and Suncoast and on
the web at http://www.fye.com, http://www.wherehouse.com, http://www.secondspin.com,
http://www.samgoody.com and http://www.suncoast.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.
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
STATEMENTS OF OPERATIONS:
(in millions, except per share data)
Thirteen Weeks Ended Thirteen Weeks Ended
May 3, % to May 5, % to
2008 Sales 2007 Sales
Net sales $232.6 $286.3
Cost of sales 149.6 64.3% 181.9 63.5%
Gross profit 83.0 35.7% 104.4 36.5%
Selling, general and
administrative expenses 88.3 38.0% 109.6 38.3%
Depreciation and amortization 5.5 2.4% 9.2 3.2%
Loss from operations (10.8) -4.7% (14.4) -5.0%
Interest expense, net 0.9 0.3% 1.4 0.5%
Loss before income taxes (11.7) -5.0% (15.8) -5.5%
Income tax expense (benefit) 0.1 0.1% (6.7) -2.3%
NET LOSS $(11.8) -5.1% $(9.1) -3.2%
Basic and diluted loss
per share:
Basic and diluted loss
per share $(0.38) $(0.29)
Weighted average number of
common shares outstanding
- basic and diluted 31.2 31.0
SELECTED BALANCE SHEET CAPTIONS:
(in millions, except store data)
May 3, 2008 May 5, 2007
Cash and cash equivalents $13.1 $13.7
Merchandise inventory 417.0 494.7
Fixed assets (net) 75.3 131.2
Accounts payable 128.1 171.1
Borrowings under line of credit 22.7 55.0
Long-term debt, less current portion 11.7 15.2
Stores in operation 799 972
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