EX-99 3 ex99-1.txt EXHIBIT 99.1 [LOGO] News Announcement For Immediate Release For further information contact: Douglas Bruggeman Joseph N. Jaffoni, Stewart A. Lewack Vice President, Finance Jaffoni & Collins Incorporated 937/276-3931 212/835-8500 or rsc@jcir.com REX STORES' FIRST QUARTER COMPARABLE STORE SALES INCREASE 5% Dayton, Ohio (June 3, 2003) -- REX Stores Corporation (NYSE:RSC), a specialty retailer of consumer electronic products and appliances, today announced financial results and comparable store merchandise sales for the Company's fiscal 2003 first quarter ended April 30, 2003. Net sales in the fiscal 2003 first quarter rose 2% to $95.4 million from $93.5 million in the fiscal 2002 first quarter, reflecting increased sales of HDTV-ready large-screen televisions. Comparable store sales for the three months ended April 30, 2003 rose 5%. The Company reports sales performance quarterly and considers a store to be comparable after it has been open six full fiscal quarters. Comparable store sales figures do not include sales of extended service contracts. Net income in the fiscal 2003 first quarter was $3.1 million, or $0.25 per diluted share, compared to net income of $4.2 million, or $0.28 per diluted share, in the first quarter of fiscal 2002. Per share results are based on 12,632,000 and 14,814,000 diluted weighted average shares outstanding for the fiscal 2003 and 2002 periods, respectively, and reflect a 3-for-2 stock split paid in February 2002. Net income for the first quarter of 2003 reflects approximately $3.1 million of pre-tax investment income from the sales of the Company's entire Partnership interest in a synthetic fuel limited partnership. As previously disclosed, the IRS is auditing this limited partnership. Of the amount stated above, approximately $1.8 million of the payments relating to sales of certain portions of the limited partnership interest due the Company during the quarter are being held in escrow pending the results of the IRS audit. Future payments due the Company relating to certain of these sales will also be held in escrow pending the completion of the IRS audit. -more- REX Stores Reports First Quarter Results, 6/3/03 page 2 Commenting on the results, Stuart Rose, Chairman and Chief Executive Officer, stated, "It's a tribute to our employees that we were able to generate a 5% increase in comparable store sales during the tough economic climate that prevailed during the first quarter. Our sales force did a great job of serving the customer and focusing on products we sell best, like HDTV-ready large-screen televisions." During the fiscal 2003 first quarter, REX purchased approximately 372,500 shares of its common stock. Subsequent to the close of the first quarter, the Company purchased approximately 97,170 additional shares of its common stock. As of June 2, 2003, the Company had approximately 260,480 authorized shares remaining available to purchase under its authorized stock buy-back program. The Company will host a conference call and webcast today at 11:00 a.m. EDT, which are open to the general public. The conference call numbers are 212-346-6414 or 415-537-1841; please call ten minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the call live via the Investor Relations page of the Company's website, www.rextv.com, or at www.vcall.com; please allow 15 minutes to register and download and install any necessary software. Following its completion, a telephonic replay of the call can be accessed from 1:00 p.m. to 8:00 p.m. EDT that day by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21145891. Alternatively, a replay will be available on the Internet for 30 days at www.rextv.com or www.vcall.com. REX Stores Corporation is a leading specialty retailer of consumer electronic products and appliances. As of April 30, 2003, the Company operated 252 stores in 37 states under the trade name "REX." This news announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as "may," "expect," "believe," "estimate," "anticipate" or "continue" or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include among other things, the highly competitive nature of the consumer electronics retailing industry, changes in the national or regional economies, weather, the effects of terrorism or acts of war on consumer spending patterns, the availability of certain products and technological changes. -tables follow- REX Stores Reports First Quarter Results, 6/3/03 page 3 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts)
Three Months Ended, --------------------- April 30, April 30, 2003 2002 --------- --------- NET SALES $95,411 $93,536 COSTS AND EXPENSES: Cost of merchandise sold 67,573 66,282 Selling, general and administrative expenses 25,922 25,005 ------- ------- Total costs and expenses 93,495 91,287 ------- ------- INCOME FROM OPERATIONS 1,916 2,249 INVESTMENT INCOME 17 150 INTEREST EXPENSE (1,200) (1,583) GAIN ON SALE OF REAL ESTATE 386 -- INCOME FROM LIMITED PARTNERSHIPS 3,064 4,636 ------- ------- Income before provision for income taxes 4,183 5,452 PROVISION FOR INCOME TAXES 1,045 1,268 ------- ------- NET INCOME $ 3,138 $ 4,184 ======= ======= WEIGHTED AVERAGE SHARES OUTSTANDING -- BASIC 10,939 12,297 ======= ======= BASIC NET INCOME PER SHARE * $ 0.29 $ 0.34 ======= ======= WEIGHTED AVERAGE SHARES OUTSTANDING -- DILUTED 12,632 14,814 ======= ======= DILUTED NET INCOME PER SHARE * $ 0.25 $ 0.28 ======= =======
* All per share amounts have been adjusted to reflect a 3-for-2 split of the Company's common stock paid on February 11, 2002. (more) REX Stores Reports First Quarter Results, 6/3/03 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
April 30, January 31, April 30, 2003 2003 2002 --------- ----------- --------- ASSETS: Cash and cash equivalents $ 1,671 $ 1,380 $ 24,720 Accounts receivable, net 2,495 3,413 995 Synthetic fuel receivable 8,644 6,619 446 Merchandise inventory 161,588 142,063 116,902 Prepaid expenses and other 1,981 2,567 2,377 Future income tax benefits 10,350 10,350 12,614 --------- --------- --------- Total current assets 186,729 166,392 158,054 PROPERTY AND EQUIPMENT, NET 133,780 134,563 137,962 OTHER ASSETS 2,437 1,656 -- FUTURE INCOME TAX BENEFITS 6,070 6,070 7,320 RESTRICTED INVESTMENTS 2,246 2,241 2,227 --------- --------- --------- Total assets $ 331,262 $ 310,922 $ 305,563 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY: CURRENT LIABILITIES: Notes payable $ 8,744 $ 13,451 $ -- Current portion of long-term debt 6,413 5,657 4,680 Current portion, deferred income and deferred gain on sale and leaseback 11,422 11,107 11,486 Accounts payable, trade 57,855 27,417 37,710 Accrued income taxes 521 -- 2,258 Accrued payroll 3,957 6,750 3,700 Other current liabilities 8,315 8,669 9,021 --------- --------- --------- Total current liabilities 97,227 73,051 68,855 --------- --------- --------- LONG-TERM LIABILITIES: Long-term mortgage debt 61,825 64,426 68,975 Deferred income 13,547 13,993 14,621 Deferred gain on sale and leaseback 198 348 796 --------- --------- --------- Total long-term liabilities 75,570 78,767 84,392 --------- --------- --------- SHAREHOLDERS' EQUITY: Common stock 277 277 277 Paid-in capital 121,286 121,282 118,718 Retained earnings 160,778 157,640 138,892 Treasury stock (123,876) (120,095) (105,571) --------- --------- --------- Total shareholders' equity 158,465 159,104 152,316 --------- --------- --------- Total liabilities & shareholders' equity $ 331,262 $ 310,922 $ 305,563 ========= ========= =========
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