Attached files
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| 8-K - Kaspien Holdings Inc. | c67620_8k.htm |
| EX-99.2 - Kaspien Holdings Inc. | c67620_ex99-2.htm |
EXHIBIT 99.1
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Contact: |
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Contact: |
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38
Corporate Circle |
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www.twec.com |
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NEWS RELEASE |
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TRANS WORLD ENTERTAINMENT ANNOUNCES THIRD QUARTER RESULTS
Comparable Store Sales Flat for the Quarter
Net Loss for the Quarter Reduced By 72%
Albany, NY, November 17, 2011 — Trans World Entertainment Corporation (Nasdaq: TWMC) today reported financial results for its third quarter ended October 29, 2011. For the third quarter of 2011, the Company reported a reduction of $11.6 million or 72% in its net loss to $4.5 million, or a $0.14 loss per share, from a net loss of $16.1 million or a $0.51 loss per share for the same period last year.
Comparable store sales for the quarter were flat compared to the same quarter last year. For the quarter, total sales decreased 15% to $110.0 million compared to $128.8 million in 2010. During the quarter, the Company operated an average of 439 stores compared to 533 stores last year, an 18% decline.
“The third quarter marked our seventh consecutive quarter of improved operating results.” said Robert J. Higgins, Chairman and Chief Executive Officer of Trans World Entertainment. “The flat comp demonstrates our ability to offset declines in video and music, with strong comp increases in our emerging categories of electronics and trend. As we approach the all important holiday season, we continue our efforts to deliver a strong fourth quarter by focusing on merchandising and marketing to enhance our customers’ shopping experience.”
Gross profit for the quarter was $40.7 million or 37.0% of sales as compared to $43.9 million or 34.1% 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 costs.
Selling, general and administrative expenses decreased 24% for the quarter to $43.0 million or 39.1% of sales, compared to $56.3 million, or 43.7% 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 thirty-nine week period ended October 29, 2011 decreased 17% to $349.5 million, compared to $421.1 million in 2010. Comparable store sales for the thirty-nine week period ended October 29, 2011 decreased 3%. For the thirty-nine week period, the Company reported a reduction of $29.0 million or 67% in its net loss to $14.3 million or a $0.46 loss per share from $43.3 million or a $1.38 loss per share last year,
The Company did not have any borrowings outstanding on its credit facility at the end of the quarter as compared to $8.6 million outstanding last year. The Company has not borrowed under its line of credit this year. Cash on hand at the end of the quarter was $19.0 million compared to $6.1 million at
October 30, 2010. Inventory was $223.5 million at the end of the quarter versus $270.8 million at the end of the third quarter of last year, a decline of 17%.
Trans
World will host a teleconference call today, Thursday, November 17, 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
(in thousands, except per share data)
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Thirteen Weeks Ended |
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Thirty-nine Weeks Ended |
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October 29, |
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% to |
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October 30, |
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% to |
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October 29, |
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% to |
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October 30, |
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% to |
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Net sales |
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$ |
109,996 |
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$ |
128,787 |
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$ |
349,483 |
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$ |
421,129 |
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Cost of sales |
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69,344 |
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63.0 |
% |
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84,870 |
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65.9 |
% |
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220,550 |
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63.1 |
% |
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279,959 |
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66.5 |
% |
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Gross profit |
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40,652 |
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37.0 |
% |
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43,917 |
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34.1 |
% |
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128,933 |
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36.9 |
% |
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141,170 |
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33.5 |
% |
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Selling, general and administrative expenses |
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43,049 |
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39.1 |
% |
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56,282 |
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43.7 |
% |
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136,112 |
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38.9 |
% |
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173,363 |
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41.2 |
% |
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Depreciation and amortization |
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1,345 |
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1.3 |
% |
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2,769 |
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2.2 |
% |
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4,666 |
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1.4 |
% |
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8,420 |
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1.9 |
% |
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Loss from operations |
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(3,742 |
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-3.4 |
% |
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(15,134 |
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-11.8 |
% |
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(11,845 |
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-3.4 |
% |
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(40,613 |
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-9.6 |
% |
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Interest expense, net |
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774 |
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0.7 |
% |
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927 |
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0.7 |
% |
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2,399 |
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0.7 |
% |
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2,431 |
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0.6 |
% |
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Loss before income taxes |
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(4,516 |
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-4.1 |
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(16,061 |
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-12.5 |
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(14,244 |
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-4.1 |
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(43,044 |
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-10.2 |
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Income tax expense (benefit) |
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(5 |
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0.0 |
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55 |
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0.0 |
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90 |
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0.0 |
% |
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270 |
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0.1 |
% |
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Net loss |
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$ |
(4,511 |
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-4.1 |
% |
$ |
(16,116 |
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-12.5 |
% |
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$ |
(14,334 |
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-4.1 |
% |
$ |
(43,314 |
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-10.3 |
% |
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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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$ |
(0.14 |
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$ |
(0.51 |
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$ |
(0.46 |
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$ |
(1.38 |
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Weighted average number of common shares outstanding - basic and diluted |
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31,454 |
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31,425 |
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31,445 |
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31,415 |
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SELECTED BALANCE SHEET
CAPTIONS: |
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October 29, |
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October 30, |
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Cash and cash equivalents |
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$ |
19,017 |
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$ |
6,127 |
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Merchandise inventory |
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223,528 |
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270,800 |
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Fixed assets (net) |
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17,968 |
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26,763 |
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Accounts payable |
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78,539 |
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115,312 |
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Borrowings under line of credit |
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— |
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8,588 |
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Long-term debt, less current portion |
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4,399 |
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5,864 |
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Stores in operation |
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440 |
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533 |
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3