-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KXeDnEaK/Q/F8amWVSdA7ftKPAc/z4o6ldN1P5wDcY30rJdeD7ZKkO/cfE9jAue0 6wCo1BEc2z+XwR0ay+r+AQ== 0001104659-04-035285.txt : 20041112 0001104659-04-035285.hdr.sgml : 20041111 20041112092317 ACCESSION NUMBER: 0001104659-04-035285 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041110 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041112 DATE AS OF CHANGE: 20041112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANS WORLD ENTERTAINMENT CORP CENTRAL INDEX KEY: 0000795212 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL- COMPUTER & PRERECORDED TAPE STORES [5735] IRS NUMBER: 141541629 STATE OF INCORPORATION: NY FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14818 FILM NUMBER: 041135577 BUSINESS ADDRESS: STREET 1: 38 CORPORATE CIRCLE CITY: ALBANY STATE: NY ZIP: 12203 BUSINESS PHONE: 5184521242 MAIL ADDRESS: STREET 1: 38 CORPORATE CIRCLE CITY: ALBANY STATE: NY ZIP: 12203 FORMER COMPANY: FORMER CONFORMED NAME: TRANS WORLD MUSIC CORP DATE OF NAME CHANGE: 19920703 8-K 1 a04-13565_18k.htm 8-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

Current Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 10, 2004

 

TRANS WORLD ENTERTAINMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

New York

 

0-14818

 

14-1541629

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(I.R.S. Employer
identification No.)

 

 

 

 

 

38 Corporate Circle, Albany, New York

 

12203

(Address of principal executive offices)

 

(Zip Code)

 

 

 

 

 

Registrant’s telephone number, including area code: (518) 452-1242

 

 

 

 

 

None

(Former name or former address, if changed since last report.)

 

 


 

ITEM 7.01.  REGULATION FD DISCLOSURE

 

The information regarding Trans World Entertainment Corporation’s financial results furnished under this “Item 7.01. Regulation FD Disclosure” is being furnished pursuant to “Item 2.02. Results of Operations and Financial Condition” of Form 8-K in accordance with SEC Release No. 34-47583.

 

See the press release attached hereto as Exhibit 99.1 dated November 10, 2004, announcing Trans World Entertainment Corporation’s financial results for the third quarter ended October 30, 2004.

 

 

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

 

(c) EXHIBITS. The following is furnished as an Exhibit to this Report:

 

Exhibit
No.

 

Description

 

 

 

99.1

 

Trans World Entertainment Company Press Release dated November 10, 2004.

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

TRANS WORLD ENTERTAINMENT CORPORATION

 

 

 

 

Date:   November 10, 2004

 

 

/s/ John J. Sullivan

 

 

John J. Sullivan

 

 

Executive Vice President-Finance, Chief

 

 

Financial Officer and Secretary

 

 

3


 

EXHIBIT INDEX

 

Exhibit
No.

 

Description

 

 

 

99.1

 

Trans World Entertainment Company Press Release dated November 10, 2004.

 

4

 EX-99.1 2 a04-13565_1ex99d1.htm EX-99.1

Exhibit 99.1

 

TRANS WORLD ENTERTAINMENT CORPORATION

 

Contact:

John Sullivan

 

 

 

Executive Vice President, Chief Financial Officer

 

 

 

(518) 452-1242 ext. 7400

 

 

 

 

THE MWW GROUP

 

Contact:

Rich Tauberman (rtauberman@mww.com)

 

 

 

(201) 507-9500

 

 

TRANS WORLD ENTERTAINMENT ANNOUNCES THIRD QUARTER RESULTS

 

Albany, NY, November 10, 2004 — Trans World Entertainment Corporation (Nasdaq National Market: TWMC) today reported total sales of $270.0 million for its third quarter ended October 30, 2004, compared to $268.5 million for the corresponding period last year.  Comparable store sales decreased 2%.  For the quarter, the net loss was $4.6 million or $0.14 per share compared to a net loss of $5.9 million or $0.16 per share for the comparable period in 2003.  Included in the net loss was an extraordinary gain of $0.6 million or $0.01 per share related to the Wherehouse acquisition in October of 2003.  In the third quarter last year, the extraordinary gain related to the Wherehouse acquisition was $2.2 million or $0.06 per share.

 

“While games performed very well reflecting the improvements we have made to product selection and merchandising, sales in our music and video categories were slightly below expectations.  Overall, we were able to deliver better bottom line performance year over year through improved gross margins,” commented Robert J. Higgins, Trans World’s Chairman and Chief Executive Officer.  “In October, we took a major step in our digital strategy with the launch of the F.Y.E. Download Zone, a digital music service that will link the online and in-store experience and that is also featured in the new Microsoft Windows Media Player 10.  We continue to focus our efforts on merchandising and marketing to deliver a strong fourth quarter.”

 

In the third quarter, gross profit as a percentage of sales increased to 37.0% of sales compared to 35.9% in the third quarter of 2003.  Selling, general and administrative expenses (SG&A) increased to 37.4% of sales compared to 37.1% of sales in the third quarter last year.

 

Sales for the thirty-nine week period ended October 30, 2004 were $851.7 million, compared to $788.7 million for the same period last year.  Comparable store sales for the period increased 0.8% over last year.  Net income for the thirty-nine week period was $7.2 million, or $0.20 per share compared to a net loss of $13.9 million or $0.37 per share last year.  Net income for the thirty-nine week period of 2004 includes an income tax benefit of $10.5 million or $0.28 per diluted share, the result of closing a federal income tax examination and an extraordinary gain of $3.2 million or $0.09 per share related to the Wherehouse acquisition.  In the thirty-nine week period last year, the extraordinary gain related to the Wherehouse acquisition was $2.2 million or $0.06 per share.

 

Mr. Higgins concluded, “Based on our expectations of improved new releases for the holiday season, we are maintaining our 2004 earnings per share projections of $0.93 to $0.98 per share before the extraordinary gain.  The earnings per share projections including the extraordinary gain related to the Wherehouse acquisition will be in the range of $1.02 to $1.07 per share.”

 

Trans World Entertainment is a leading specialty retailer of music and video products.  The Company operates approximately 850 retail stores in 47 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and e-commerce sites, www.fye.com, www.wherehouse.com, www.coconuts.com and www.secondspin.com.  In addition to its mall locations, operated primarily under the FYE brand, the Company also operates freestanding locations under the names Coconuts Music and Movies, Strawberries Music, Wherehouse, CD World, Spec’s, Second Spin  and Planet Music.

 

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

 

 

INCOME STATEMENTS:

 

(in millions, except per share data)

 

 

 

Thirteen Weeks Ended

 

Thirty-nine Weeks Ended

 

 

 

Oct 30,
2004

 

% to
Sales

 

Nov 1,
2003

 

% to
Sales

 

Oct 30,
2004

 

% to
Sales

 

Nov 1,
2003

 

% to
Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

270.0

 

 

 

$

268.5

 

 

 

$

851.7

 

 

 

$

788.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

170.0

 

63.0

%

172.2

 

64.1

%

535.4

 

62.9

%

498.2

 

63.2

%

Gross profit

 

100.0

 

37.0

%

96.3

 

35.9

%

316.3

 

37.1

%

290.5

 

36.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

100.9

 

37.4

%

99.7

 

37.1

%

302.5

 

35.5

%

290.7

 

36.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

8.0

 

2.9

%

9.5

 

3.6

%

24.9

 

2.9

%

29.1

 

3.7

%

Loss from operations

 

(8.9

)

-3.3

%

(12.9

)

-4.8

%

(11.1

)

-1.3

%

(29.3

)

-3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

0.6

 

0.2

%

0.5

 

0.2

%

1.3

 

0.2

%

1.1

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes and extraordinary gain

 

(9.5

)

-3.5

%

(13.4

) 

-5.0

%

(12.4

) 

-1.5

%

(30.4

) 

-3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

(4.3

)

-1.6

%

(5.3

)

-2.0

%

(16.4

)

-1.9

%

(14.3

)

-1.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before extraordinary gain

 

$

(5.2

)

-1.9

%

$

(8.1

)

-3.0

%

$

4.0

 

0.4

%

$

(16.1

)

-2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary gain - unallocated negative goodwill, net of income taxes

 

$

0.6

 

0.2

%

$

2.2

 

0.8

%

$

3.2

 

0.4

%

$

2.2

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

(4.6

)

-1.7

%

$

(5.9

)

-2.2

%

$

7.2

 

0.8

%

$

(13.9

)

-1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before extraordinary gain

 

$

(0.15

)

 

 

$

(0.22

)

 

 

$

0.11

 

 

 

$

(0.43

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary gain - unallocated negative goodwill, net of income taxes

 

$

0.01

 

 

 

$

0.06

 

 

 

$

0.09

 

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share

 

$

(0.14

)

 

 

$

(0.16

)

 

 

$

0.20

 

 

 

$

(0.37

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

33.8

 

 

 

36.6

 

 

 

35.0

 

 

 

37.8

 

 

 

Diluted income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before extraordinary gain

 

$

(0.15

)

 

 

$

(0.22

)

 

 

$

0.11

 

 

 

$

(0.43

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary gain - unallocated negative goodwill, net of income taxes

 

$

0.01

 

 

 

$

0.06

 

 

 

$

0.09

 

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share

 

$

(0.14

)

 

 

$

(0.16

)

 

 

$

0.20

 

 

 

$

(0.37

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding -diluted

 

33.8

 

 

 

36.6

 

 

 

36.7

 

 

 

37.8

 

 

 

 

SELECTED BALANCE SHEET CAPTIONS:

 

(in millions, except store data)

 

Cash and cash equivalents

 

$

18.7

 

$

20.5

 

 

 

 

 

 

 

Merchandise inventory

 

459.2

 

509.4

 

Fixed assets (net)

 

121.1

 

135.5

 

Accounts payable

 

224.8

 

277.3

 

Long-term debt and capital lease obligations, less current portion

 

12.3

 

7.6

 

 

 

 

 

 

 

Stores in operation at the end of the period

 

852

 

950

 

 

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