Attached files
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| 8-K - Kaspien Holdings Inc. | c66725_8-k.htm |
| EX-99.2 - Kaspien Holdings Inc. | c66725_ex99-2.htm |
Exhibit 99.1
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Contact: |
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Contact: |
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NEWS RELEASE |
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TRANS WORLD ENTERTAINMENT ANNOUNCES SECOND QUARTER RESULTS
Net Loss Reduced By 54%
Albany, NY, August 18, 2011 — Trans World Entertainment Corporation (Nasdaq: TWMC) today reported financial results for its second quarter ended July 30, 2011. For the second quarter of 2011, the Company reported an $8.5 million or 54% reduction in its net loss to $7.3 million, or $0.23 per share, as compared to a net loss of $15.8 million or $0.50 per share for the same period last year.
For the second quarter, total sales decreased 20% to $108.0 million compared to $135.8 million in 2010. Comparable store sales for the quarter decreased 6%. During the quarter, the Company operated an average of 442 stores compared to 538 stores last year, an 18% decline.
Gross profit for the quarter was $40.0 million or 37.0% of sales as compared to $45.7 million or 33.7% 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 all product categories and the leveraging of distribution and freight expenses primarily due to the closing of a distribution center in Carson, California last year.
Selling, general and administrative expenses decreased 22% for the quarter to $44.8 million or 41.5% of sales, compared to $57.8 million, or 42.5% of sales in the comparable period last year. The reduction in SG&A expenses was due to the closing of underperforming stores and continued effective expense management.
Total sales for the twenty-six week period ended July 30, 2011 decreased 18% to $239.5 million, compared to $292.3 million in 2010. Comparable store sales for the twenty-six week period ended July 30, 2011 decreased 4%. Net loss for the twenty-six week period improved $17.4 million, or 64%, to $9.8 million or $0.31 per share versus $27.2 million or $0.87 per share last year.
Cash on hand at the end of the quarter was $22.5 million compared to $10.5 million in 2010. The Company has not had any borrowings under its line of credit this year.
Trans World will host a teleconference call today, Thursday, August 18, 2011, 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 software, including music, video and video games and related products. The Company operates 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 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 —
2
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
STATEMENTS OF OPERATIONS:
(in thousands, except per share data)
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Thirteen Weeks Ended |
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Twenty-six Weeks Ended |
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July 30, |
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% to |
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July 31, |
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% to |
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July 30, |
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% to |
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July 31, |
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% to |
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Net sales |
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$ |
107,990 |
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$ |
135,804 |
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$ |
239,486 |
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$ |
292,342 |
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Cost of sales |
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67,999 |
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63.0 |
% |
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90,075 |
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66.3 |
% |
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151,206 |
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63.1 |
% |
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195,089 |
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66.7 |
% |
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Gross profit |
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39,991 |
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37.0 |
% |
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45,729 |
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33.7 |
% |
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88,280 |
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36.9 |
% |
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97,253 |
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33.3 |
% |
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Selling, general and administrative expenses |
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44,810 |
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41.5 |
% |
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57,766 |
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42.5 |
% |
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93,064 |
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38.9 |
% |
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117,081 |
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40.0 |
% |
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Depreciation and amortization |
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1,606 |
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1.5 |
% |
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2,788 |
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2.1 |
% |
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3,321 |
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1.5 |
% |
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5,651 |
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2.0 |
% |
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Loss from operations |
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(6,425 |
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-6.0 |
% |
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(14,825 |
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-10.9 |
% |
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(8,105 |
) |
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-3.4 |
% |
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(25,479 |
) |
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-8.7 |
% |
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Interest expense, net |
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793 |
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0.7 |
% |
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815 |
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0.6 |
% |
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1,624 |
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0.7 |
% |
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1,504 |
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0.5 |
% |
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Loss before income taxes |
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(7,218 |
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-6.7 |
% |
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(15,640 |
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-11.5 |
% |
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(9,729 |
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-4.1 |
% |
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(26,983 |
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-9.2 |
% |
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Income tax expense |
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60 |
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0.1 |
% |
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141 |
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0.1 |
% |
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96 |
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0.0 |
% |
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215 |
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0.1 |
% |
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Net loss |
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$ |
(7,278 |
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-6.8 |
% |
$ |
(15,781 |
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-11.6 |
% |
$ |
(9,825 |
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-4.1 |
% |
$ |
(27,198 |
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-9.3 |
% |
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Basic and diluted loss per common share: |
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Basic and diluted loss per share |
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$ |
(0.23 |
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$ |
(0.50 |
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$ |
(0.31 |
) |
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$ |
(0.87 |
) |
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Weighted average number of common shares outstanding - basic and diluted |
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31,455 |
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31,424 |
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31,440 |
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31,409 |
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SELECTED BALANCE
SHEET CAPTIONS: |
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July 30, |
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July 31, |
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Cash and cash equivalents |
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$ |
22,494 |
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$ |
10,505 |
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Merchandise inventory |
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205,452 |
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237,141 |
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Fixed assets (net) |
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18,816 |
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29,074 |
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Accounts payable |
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58,896 |
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69,233 |
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Borrowings under line of credit |
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— |
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— |
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Long-term debt, less current portion |
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4,778 |
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6,208 |
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Stores in operation |
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440 |
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534 |
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3