EX-99.1 2 c73945_99-1.htm

Exhibit 99.1

 

 

 

(TRANS WORLD ENTERTAINMENT LOGO)

Contact:
Trans World Entertainment
John Anderson
Chief Financial Officer
(518) 452-1242

Contact:
Financial Relations Board
Marilynn Meek
(mmeek@frbir.com)
(212) 827-3773

 

 

 

38 Corporate Circle
Albany, NY 12203

 

 

 

 

 

 

 

 

www.twec.com

 NEWS RELEASE 

 
     

TRANS WORLD ENTERTAINMENT ANNOUNCES FIRST QUARTER RESULTS

          Albany, NY, May 23, 2013 -- 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,
2013

 

 

% to
Sales

 

April 28,
2012

 

 

% to
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:
(in thousands, except store data)

 

May 4,
2013

 

April 28,
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

 

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