EX-99.1 2 c58594_ex99-1.htm

Exhibit 99.1

 

 

 

 

 

(TRANS WORLD ENTERTAINMENT LOGO)

 

Contact:
Trans World Entertainment
John J. Sullivan
EVP, 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 SECOND QUARTER 2009 RESULTS

          Albany, NY, August 20, 2009 -- Trans World Entertainment Corporation (Nasdaq National Market: TWMC) today announced total sales for the second quarter ended August 1, 2009 decreased 23% to $165.7 million, compared to $215.2 million in the second quarter of 2008. Average stores in operation during the quarter were 705 compared to 794 last year, an 11% decline. Comparable store sales in the second quarter of 2009 decreased 15%. For the second quarter of 2009, the Company’s net loss was $17.8 million, or $0.57 per share compared to a net loss of $19.2 million, or $0.62 per share for the same period last year.

          Gross profit as a percentage of sales for the second quarter of 2009 was 35.5% compared to 35.3% in the second quarter of 2008. Selling, general and administrative expenses for the quarter were $72.1 million, a 19% reduction from $89.1 million in the comparable period last year. SG&A expenses were 43.5% of sales versus 41.4% of sales for the same period last year.

          Sales for the twenty-six week period ended August 1, 2009 decreased 20% to $357.2 million, compared to $447.8 million in 2008. Comparable store sales for the twenty-six week period ended August 1, 2009 decreased 12%. Net loss for the twenty-six week period was $31.5 million or $1.00 per share versus $31.1 million or $1.00 per share last year.

          The Company had $28.3 million in borrowings outstanding on its credit facility at the end of the quarter as compared to $35.5 million last year. Inventory was $320.4 million, or $72 per square foot, at the end of the quarter versus $399.2 million or $81 per square foot for the same period last year.

          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, www.secondspin.com, and www.suncoast.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 millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen Weeks Ended

 

Twenty-six Weeks Ended

 

 

 

        

 

 

August 1,
2009

 

% to
Sales

 

August 2,
2008

 

% to
Sales

 

August 1,
2009

 

% to
Sales

 

August 2,
2008

 

% to
Sales

 

 

 

                                

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

165.7

 

 

 

 

$

215.2

 

 

 

 

$

357.2

 

 

 

 

$

447.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

106.9

 

 

64.5

%

 

139.4

 

 

64.7

%

 

232.7

 

 

65.1

%

 

288.9

 

 

64.5

%

 

 

                                                

Gross profit

 

 

58.8

 

 

35.5

%

 

75.9

 

 

35.3

%

 

124.5

 

 

34.9

%

 

158.9

 

 

35.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and
administrative expenses

 

 

72.1

 

 

43.5

%

 

89.1

 

 

41.4

%

 

147.8

 

 

41.4

%

 

177.4

 

 

39.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

3.7

 

 

2.3

%

 

5.5

 

 

2.6

%

 

7.3

 

 

2.1

%

 

11.0

 

 

2.5

%

 

 

                                                

Loss from operations

 

 

(17.0

)

 

-10.3

%

 

(18.7

)

 

-8.7

%

 

(30.6

)

 

-8.6

%

 

(29.5

)

 

-6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

0.7

 

 

0.4

%

 

0.9

 

 

0.4

%

 

1.4

 

 

0.4

%

 

1.9

 

 

0.4

%

 

 

                                                

Loss before income taxes

 

 

(17.7

)

 

-10.7

%

 

(19.6

)

 

-9.1

%

 

(32.0

)

 

-9.0

%

 

(31.4

)

 

-6.9

%

 

Income tax expense (benefit)

 

 

0.1

 

 

0.0

%

 

(0.4

)

 

-0.2

%

 

(0.5

)

 

-0.1

%

 

(0.3

)

 

0.0

%

 

 

                                                

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$

(17.8

)

 

-10.7

%

$

(19.2

)

 

-8.9

%

$

(31.5

)

 

-8.9

%

$

(31.1

)

 

-6.9

%

 

 

                                                

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

    

 

 

 

 

    

 

 

 

 

    

 

 

 

 

 

Basic and diluted loss per share

 

$

(0.57

)

 

 

 

$

(0.62

)

 

 

 

$

(1.00

)

 

 

 

$

(1.00

)

 

 

 

 

 

    

 

 

 

 

    

 

 

 

 

    

 

 

 

 

    

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

31.4

 

 

 

 

 

31.2

 

 

 

 

 

31.3

 

 

 

 

 

31.2

 

 

 

 

 

 

    

 

 

 

 

    

 

 

 

 

    

 

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED BALANCE SHEET CAPTIONS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, except store data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 1, 2009

 

 

 

 

August 2, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7.1

 

 

 

 

$

10.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise inventory

 

 

320.4

 

 

 

 

 

399.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed assets (net)

 

 

44.5

 

 

 

 

 

71.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

94.7

 

 

 

 

 

115.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under line of credit

 

 

28.3

 

 

 

 

 

35.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

7.5

 

 

 

 

 

10.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stores in operation

 

 

697

 

 

 

 

 

789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2