EX-99 2 ex99.txt EXHIBIT 99 [REX LOGO] News Announcement For Immediate Release For further information contact: Douglas Bruggeman Joseph N. Jaffoni, Stewart A. Lewack Chief Financial Officer Jaffoni & Collins Incorporated 937/276-3931 212/835-8500 or rsc@jcir.com REX STORES' FIRST QUARTER DILUTED EARNINGS PER SHARE INCREASE 28% TO $0.32 Dayton, Ohio (May 28, 2004) -- REX Stores Corporation (NYSE:RSC), a specialty retailer of consumer electronic products and appliances, today announced financial results and comparable store sales for the Company's fiscal 2004 first quarter ended April 30, 2004. Net income in the fiscal 2004 first quarter ended April 30, 2004 rose 30% to $4.1 million, or $0.32 per diluted share, from net income of $3.1 million, or $0.25 per diluted share, in the fiscal 2003 first quarter. Fiscal 2004 first quarter net income reflects a 71% rise in investment income from synthetic fuel investments. Fiscal 2003 first quarter net income included a gain of approximately $0.4 million from the sale of real estate. Per share results are based on 12,965,000 and 12,632,000 diluted weighted average shares outstanding for the fiscal 2004 and 2003 three-month periods, respectively. Net sales in the fiscal 2004 first quarter fell 7.6% to $88.2 million from $95.4 million in the fiscal 2003 first quarter. Comparable store sales during the period fell 7% compared to the same year-ago period. 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. During the fiscal 2004 first quarter, the Company's board of directors extended a previous share repurchase authorization by an additional 1,000,000 shares. In the first quarter, REX purchased approximately 50,000 shares of its common stock in open market transactions. The Company has approximately 1,120,000 authorized shares remaining available to purchase under the expanded February 2004 stock buy-back authorization. -more- REX Stores Reports First Quarter Results, 5/28/04 page 2 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 dial-in number is 212-346-7087; 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.fulldisclosure.com; please allow 15 minutes to register, download and install any necessary software. Following its completion, a telephonic replay of the call can be accessed through 1:00 p.m. EDT on June 4, 2004 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21196544. Alternatively, a replay will be available on the Internet for 30 days at www.rextv.com or www.fulldisclosure.com. REX Stores Corporation is a leading specialty retailer of consumer electronic products and appliances. As of April 30, 2004, the Company operated 245 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, technological changes, new regulatory restrictions or tax law changes relating to the Company's synthetic fuel investments, the fluctuating amount of quarterly payments received by the Company with respect to sales of its partnership interest in a synthetic fuel investment, and the uncertain amount of synthetic fuel production and tax credits received from time to time from the Company's synthetic fuel investments. -tables follow- REX Stores Reports First Quarter Results, 5/28/04 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, 2004 2003 ---------- ---------- NET SALES $ 88,200 $ 95,411 COSTS AND EXPENSES: Cost of merchandise sold 62,432 67,573 Selling, general and administrative expenses 24,664 25,922 ---------- ---------- Total costs and expenses 87,096 93,495 ---------- ---------- INCOME FROM OPERATIONS 1,104 1,916 INVESTMENT INCOME 87 17 INTEREST EXPENSE (980) (1,200) GAIN ON SALE OF REAL ESTATE -- 386 INCOME FROM SYNFUEL INVESTMENTS 5,236 3,064 ---------- ---------- Income before provision for income taxes 5,447 4,183 PROVISION FOR INCOME TAXES 1,362 1,045 ---------- ---------- NET INCOME $ 4,085 $ 3,138 ========== ========== WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 11,155 10,939 ========== ========== BASIC NET INCOME PER SHARE $ 0.37 $ 0.29 ========== ========== WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 12,965 12,632 ========== ========== DILUTED NET INCOME PER SHARE $ 0.32 $ 0.25 ========== ==========
(more) REX Stores Reports First Quarter Results, 5/28/04 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
April 30, January 31, April 30, 2004 2004 2003 ---------- ----------- ---------- ASSETS: Cash and cash equivalents $ 25,052 $ 29,026 $ 1,671 Accounts receivable, net 2,089 2,560 2,495 Synfuel receivable 893 3,098 8,644 Merchandise inventory 136,823 116,755 161,588 Prepaid expenses and other 863 1,481 1,981 Future income tax benefits 8,703 8,703 8,860 ---------- ---------- ---------- Total current assets 174,423 161,623 185,239 PROPERTY AND EQUIPMENT, NET 131,513 131,409 133,780 OTHER ASSETS 915 3,477 2,437 FUTURE INCOME TAX BENEFITS 14,645 14,645 7,560 RESTRICTED INVESTMENTS 2,259 2,257 2,246 ---------- ---------- ---------- Total assets $ 323,755 $ 313,411 $ 331,262 ========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Notes payable $ -- $ -- $ 8,744 Current portion of long-term debt 5,044 5,258 6,413 Current portion, deferred income and deferred gain on sale and leaseback 10,347 10,544 11,422 Accounts payable, trade 47,616 32,745 57,855 Accrued income taxes 1,119 806 521 Accrued payroll 3,828 6,602 3,957 Other current liabilities 7,206 7,214 8,315 ---------- ---------- ---------- Total current liabilities 75,160 63,169 97,227 ---------- ---------- ---------- LONG-TERM LIABILITIES: Long-term mortgage debt 47,573 53,548 61,825 Deferred income 12,269 12,762 13,547 Deferred gain on sale and leaseback -- -- 198 ---------- ---------- ---------- Total long-term liabilities 59,842 66,310 75,570 ---------- ---------- ---------- Shareholders' equity: Common stock 286 283 277 Paid-in capital 127,724 126,124 121,286 Retained earnings 189,165 185,080 160,778 Treasury stock (128,422) (127,555) (123,876) ---------- ---------- ---------- Total shareholders' equity 188,753 183,932 158,465 ---------- ---------- ---------- Total liabilities & shareholders' equity $ 323,755 $ 313,411 $ 331,262 ========== ========== ==========
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