DENVER, Jan. 8 /PRNewswire-FirstCall/ -- Ultimate Electronics, Inc.
(Nasdaq: ULTE) today announced its sales results for the two months ended
December 31, 2003.
Sales for the two months ended December 31, 2003 were $183.1 million,
compared to sales of $183.2 million for the same period in the previous year.
Comparable store sales were down 11% for the two months ended December 31,
2003.
Dave Workman, president and chief executive officer, stated "Comparable
store sales were down 10% for the month of November and down 12% for the month
of December. Our sales for the holiday season did not meet our expectations
despite the growth seen in digital and flat panel television sales. The
advertising campaign we conducted during December did not yield the sales
results that we anticipated. In addition, while improvement was made with our
new management information system, integration issues continued to hamper our
efforts to maximize the selling opportunities presented to us during the
holidays."
Mr. Workman added, "We expect total sales for the fiscal year ending
January 31, 2004 to be approximately $710 million. We also anticipate a loss
for the year. We are disappointed with our operating results and are in the
process of analyzing every aspect of our business to determine ways to improve
our operations. We expect to implement changes to our operations during the
first quarter of fiscal 2005. We plan to direct our advertising to a more
targeted audience and to focus such advertising on communicating the
advantages to customers of shopping at Ultimate Electronics. We plan to
reduce our capital expenditures to under $20 million for fiscal 2005. We plan
to limit new store openings to one or two new stores in existing markets and
to relocate and expand one or two of our smaller stores. We expect to discuss
these and other changes to our business in greater detail in mid-February."
Ultimate Electronics is a leading specialty retailer of home entertainment
and consumer electronics products in 14 states. The company operates 65
stores, including 54 stores in Arizona, Idaho, Illinois, Iowa, Kansas,
Minnesota, Missouri, Nevada, New Mexico, Oklahoma, South Dakota, Texas and
Utah under the trade name Ultimate Electronics(R) and 11 stores in Colorado
under the trade name SoundTrack(R). In addition, the company operates Fast
Trak, Inc., an independent electronics repair company and a wholly owned
subsidiary of Ultimate Electronics. During the past two years, the company
received numerous industry awards including Audio Video International's 2002
"Top 10 Audio/Video Retailer of the Year."
The statements made in this news release, other than those concerning
historical financial information, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements are made based upon management's current expectations and
beliefs concerning future developments and their potential effects upon the
company. These forward-looking statements include statements regarding:
expected total sales, anticipated losses, the implementation of changes in
operations, the direction of advertising, the reduction of capital
expenditures, the number and locations of new store openings, the number and
size of stores relocated or expanded, and the timing of discussions regarding
changes to the business. Actual results may differ materially from those
included in the forward-looking statements due to a number of factors,
including, but not limited to: changes in general economic conditions; success
of sales promotions and marketing efforts; shifts in merchandise mix;
activities of competitors; terrorism and acts of war; consumer acceptance of
new technologies; risks associated with the operation of our new management
information system; risks associated with entering new markets; and other risk
factors identified in the company's Annual Report on Form 10-K for the fiscal
year ended January 31, 2003, filed with the Securities and Exchange
Commission. There can be no assurance that future developments affecting the
company will be those anticipated by management. The company disclaims any
obligation to update or revise any of the forward-looking statements that are
in this news release.
Ultimate Electronics news releases, quarterly sales and operating results
can be found on the Internet on the Company's Web site at
http://www.ultimateelectronics.com or accessed via PR Newswire's Web site at
http://www.prnewswire.com.
Contact: Alan E. Kessock, Chief Financial Officer, Ultimate Electronics,
Inc., 303-801-4000
SOURCE Ultimate Electronics, Inc.
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Related links:
http://www.ultimateelectronics.com
Company News On-Call:
http://www.prnewswire.com/comp/877054.html
CONTACT:
Alan E. Kessock, Chief Financial Officer,
Ultimate Electronics, Inc., +1-303-801-4000
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