Welcome!

News Feed Item

Trans World Entertainment Announces Fourth Quarter And Annual Results

Company reports net income of $8.3 million for fiscal 2013

ALBANY, N.Y., March 6, 2014 /PRNewswire/ -- Trans World Entertainment Corporation (Nasdaq: TWMC) today reported financial results for its fourth quarter and fiscal year ended February 1, 2014.  For the thirteen weeks ended February 1, 2014 ("Fourth Quarter"), the Company reported net income of $12.5 million, or $0.39 per diluted share and for the 52 weeks ended February 1, 2014 ("Fiscal 2013"), the Company reported net income of $8.3 million, or $0.25 per diluted share.  For the fourteen weeks ended February 2, 2013, the Company reported net income of $35.0 million, or $1.09 per diluted share and for the 53 weeks ended February 2, 2013 ("Fiscal 2012"), the Company reported net income of $33.7 million, or $1.06 per diluted share.  Fiscal 2012 results included a one-time gain of $22.8 million from the sale of real property in Miami, Florida.  Excluding the gain, the Company recorded net income of $12.2 million, or $0.38 per diluted share for the fourth quarter, and $10.9 million, or $0.34 per diluted share for Fiscal 2012.    

Comparable store sales for the Fourth Quarter were down 5.3% compared to the same quarter last year.  Total sales for the Fourth Quarter decreased 14.8% to $139.2 million compared to $163.4 million in 2012.  The decrease in sales was due to one less week of business in Fiscal 2013 and a 5.1% decline in average stores in operation to 354 during the Fourth Quarter compared to 373 stores last year.

Gross profit for the Fourth Quarter was $49.4 million, or 35.5% of sales, as compared to $59.8 million, or 36.6%, of sales for the fourth quarter last year.    

Selling, general and administrative expenses ("SG&A expenses") decreased 23.1% for the Fourth Quarter to $35.3 million compared to $45.9 million for the Fourth Quarter last year.    As a percentage of sales, SG&A expenses were 25.4% in the Fourth Quarter compared to 28.1% for the fourth quarter last year.

For Fiscal 2013, comparable store sales were down 5.0% as compared to Fiscal 2012.  Total sales for Fiscal 2013 decreased 14.2% to $393.7 million, compared to $458.5 million for Fiscal 2012.  During Fiscal 2013, the Company operated an average of 354 stores compared to 378 stores in Fiscal 2012, a 6.3% decline.     

Gross profit for Fiscal 2013 was $147.9 million, or 37.6% of sales, compared to $172.1 million, or 37.5%, of sales for Fiscal 2012.  For Fiscal 2013, SG&A expenses decreased 13.6% to $133.8 million compared to $154.8 million in Fiscal 2012.  As a percentage of sales, SG&A expenses were 34.0% in fiscal 2013 compared to 33.8% in Fiscal 2012.

Inventory was $150.2 million at the end of Fiscal 2013, versus $155.4 million at the end of Fiscal 2012, a reduction of 3.4%.  Cash on hand at the end of Fiscal 2013 was $131.0 million, compared to $133.0 million at the end of Fiscal 2012.  During the Fourth Quarter, the Company repurchased approximately 286,000 shares of common stock at an average price of $4.29 per share, for an aggregate purchase price of approximately $1.2 million. In Fiscal 2013, including shares purchased as part of a tender offer, the Company repurchased approximately 1 million shares of common stock for an aggregate purchase price of $5.4 million. The Company has approximately $19.4 million available for purchase under its repurchase program. 

In addition, the Company announced a special cash dividend of $0.50 per common share, payable April 3, 2014, to shareholders of record at the close of business on March 20, 2014. The total special dividend payout is estimated to be $16 million to be paid from cash on hand.

"We are pleased to reward our shareholders with a special dividend. We continue to maintain strong financial flexibility and working capital to fund our growth initiatives," said Robert J. Higgins, Chairman and Chief Executive Officer.

Trans World will host a teleconference call today, Thursday, March 6, 2014, 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 products, including video, music, trend, electronics, video games and related products.  The Company operates retail stores in the United States, the District of Columbia 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  --

 

 

TRANS WORLD ENTERTAINMENT CORPORATION

Financial Results





















STATEMENTS OF OPERATIONS:










(in thousands, except per share data)











Thirteen Weeks Ended and Fourteen Weeks Ended(1)


Fiscal Year Ended (2)


February 1,

% to

February 2,

% to


February 1,

% to

February 2,

% to


2014

Sales

2013

Sales


2014

Sales

2013

Sales











Net sales

$        139,186


$        163,449



$        393,659


$        458,544












Cost of sales

89,825

64.5%

103,699

63.4%


245,755

62.4%

286,422

62.5%

Gross profit

49,361

35.5%

59,750

36.6%


147,904

37.6%

172,122

37.5%











Selling, general and










   administrative expenses

35,284

25.4%

45,861

28.1%


133,801

34.0%

154,789

33.8%











Gain on sale of asset, net

-

0.0%

(22,750)

-13.9%


-

0.0%

(22,750)

-5.0%











Depreciation and amortization

1,015

0.7%

1,010

0.6%


3,728

1.0%

3,783

0.8%

Income from operations

13,062

9.4%

35,629

21.8%


10,375

2.6%

36,300

7.9%











Interest expense, net

480

0.4%

513

0.3%


1,930

0.5%

2,318

0.5%











Income before income taxes

12,582

9.0%

35,116

21.5%


8,445

2.1%

33,982

7.4%

Income tax expense

49

0.0%

107

0.1%


168

0.0%

248

0.1%





















Net income

$          12,533

9.0%

$          35,009

21.4%


$            8,277

2.1%

$          33,734

7.3%











Basic income per common share:




















Basic income per share

$              0.39


$              1.11



$              0.25


$              1.07












Weighted average number of










   common shares outstanding - basic

32,314


31,670



32,584


31,577












Diluted income per common share:




















Diluted income per share

$              0.39


$              1.09



$              0.25


$              1.06












Weighted average number of










   common shares outstanding - diluted

32,541


32,055



32,862


31,878






















SELECTED BALANCE SHEET CAPTIONS:






February 1,


February 2,


(in thousands, except store data)






2014


2013












Cash and cash equivalents






$        131,002


$        132,982


Merchandise inventory






150,167


155,429


Fixed assets (net)






12,419


9,057


Accounts payable






77,647


79,438


Borrowings under line of credit






-


-


Long-term capital lease obligations, less current portion





938


2,004












Stores in operation, end of period






339


358


Stores in operation, average during the period






354


378












(1) - The fourth fiscal quarter ended February 1, 2014 contains 13 weeks.








          The fourth fiscal quarter ended February 2, 2013 contains 14 weeks.


















(2) - The fiscal year ended February 1, 2014 contains 52 weeks.









(2) - The fiscal year ended February 2, 2013 contains 53 weeks.









 

SOURCE Trans World Entertainment Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyor belt between the Software Factory and production stages. Artifacts are ...
Back in February of 2017, Andrew Clay Schafer of Pivotal tweeted the following: “seriously tho, the whole software industry is stuck on deployment when we desperately need architecture and telemetry.” Intrigue in a 140 characters. For me, I hear Andrew saying, “we’re jumping to step 5 before we’ve successfully completed steps 1-4.”
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...