ALBANY, N.Y., March 5 /PRNewswire-FirstCall/ -- Trans World Entertainment
Corporation (Nasdaq: TWMC) today reported financial results for its fourth
quarter and fiscal year ended January 31, 2009. For the fourth quarter, total
sales decreased 24% to $344.7 million compared to $451.5 million in 2007.
Comparable store sales for the quarter decreased 14%. During the quarter,
the Company operated an average of 763 stores compared to 922 stores last
year, a 17% decline.
For the fourth quarter of 2008, the Company recorded a net loss of $9.4
million, or $0.30 per share. This year's fourth quarter results included a
non-cash impairment charge to write down certain long-lived assets, pursuant
to Statement of Financial Accounting Standards No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets," totaling $15.2 million, or $0.48
per share for the quarter. For the fourth quarter of 2007 the net loss was
$66.0 million, or $2.12 per share. Last year's fourth quarter results
included a non-cash tax expense of $43.4 million, or $1.39 per share for the
quarter, to establish a full valuation allowance against the Company's
deferred tax assets, pursuant to Statement of Financial Accounting Standards
(SFAS) No. 109, "Accounting for Income Taxes". Additionally, last year's
fourth quarter results included a non-cash impairment charge to write down
certain long-lived assets, pursuant to SFAS No. 144 totaling $30.7 million, or
$0.99 per share for the quarter.
For fiscal year 2008, total sales decreased 22% to $988.0 million compared
to $1.266 billion in 2007. Comparable store sales for fiscal year 2008
decreased 11%. During the year, the Company operated an average of 786 stores
compared to 956 stores last year, an 18% decline.
Net loss for fiscal 2008 was $69.0 million, or $2.21 per share. For
fiscal year 2007, the net loss was $99.4 million, or $3.20 per share.
Trans World will host a teleconference call today, Thursday, March 5,
2009, at 9:00 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, www.secondspin.com, www.samgoody.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.
TRANS WORLD ENTERTAINMENT CORPORATION
Financial Results
STATEMENTS OF OPERATION:
(in millions, except
per share data) Thirteen Weeks Ended
---------------------------------
Jan. 31, % to Feb. 2, % to
2009 Sales 2008 Sales
------ ----- ------ -----
Net sales $344.7 $451.5
Cost of sales 238.0 69.1% 299.4 66.3%
----- ---- ----- ----
Gross profit 106.7 30.9% 152.1 33.7%
Selling, general and
administrative expenses 94.2 27.3% 111.7 24.7%
Impairment charge 15.2 4.4% 30.7 6.8%
Depreciation and amortization 5.4 1.6% 9.9 2.2%
--- --- --- ---
Loss from operations (8.1) -2.4% (0.2) 0.0%
Interest expense, net 0.9 0.3% 1.0 0.3%
--- --- --- ---
Loss before income taxes (9.0) -2.7% (1.2) -0.3%
Income tax expense 0.4 0.1% 64.8 14.3%
--- --- ---- ----
Net loss $(9.4) -2.8% $(66.0) -14.6%
===== ==== ====== =====
Basic and diluted loss per
common share:
Basic and diluted loss per
common share $(0.30) $(2.12)
====== ======
Weighted average number of
common shares
outstanding 31.3 31.1
====== ======
(in millions, except
per share data) Fiscal Year Ended
---------------------------------
Jan. 31, % to Feb. 2, % to
2009 Sales 2008 Sales
------ ----- -------- -----
Net sales $987.6 $1,265.7
Cost of sales 656.7 66.5% 819.9 64.8%
----- ---- ----- ----
Gross profit 330.9 33.5% 445.8 35.2%
Selling, general and
administrative expenses 358.7 36.3% 433.2 34.2%
Impairment charge 15.2 1.5% 30.7 2.4%
Depreciation and
amortization 22.1 2.3% 37.2 3.0%
---- --- ---- ---
Loss from operations (65.1) -6.6% (55.3) -4.4%
Interest expense, net 3.9 0.4% 6.1 0.5%
--- --- --- ---
Loss before income taxes (69.0) -7.0% (61.4) -4.9%
Income tax expense - 0.0% 38.0 3.0%
--- --- ---- ---
Net loss $(69.0) -7.0% $(99.4) -7.9%
====== ==== ====== ====
Basic and diluted loss per
common share:
Basic and diluted loss per
common share $(2.21) $(3.20)
====== ======
Weighted average number of
common shares outstanding 31.2 31.0
====== ======
SELECTED BALANCE SHEET Jan. 31, Feb. 2,
CAPTIONS: 2009 2008
----- -----
(in millions, except store data)
Cash and cash equivalents $30.1 $74.7
Merchandise inventory 378.2 440.2
Fixed assets (net) 50.4 82.2
Accounts payable 170.3 237.8
Long-term debt and capital
lease obligations, less
current portion 8.8 12.6
Stores in operation 712 813
SOURCE Trans World Entertainment Corporation
-0- 03/05/2009
/CONTACT: John J. Sullivan, EVP, Chief Financial Officer, Trans World
Entertainment, +1-518-452-1242; Marilynn Meek, Financial Relations Board,
mmeek@frbir.com, +1-212-827-3773/
/Web Site: http://www.twec.com/ /
