SAN FRANCISCO, Jan. 20 /PRNewswire/ -- the good guys! (Nasdaq: GGUY) today
announced net earnings for its first fiscal quarter ended December 31, 1998 of
$1.7 million versus $2.4 million last year. Earnings per share were $0.12 on
14.3 million weighted average shares outstanding versus $0.18 on 13.7 million
weighted average shares outstanding during the first quarter of fiscal 1998.
As previously reported, sales for the first quarter were $294.1 million,
up 1% from $290.3 million in the first quarter of fiscal 1998. Comparable
store sales decreased by 2%.
Commenting on the Company's performance, Robert A. Gunst, President and
Chief Executive Officer, said, "While our sales of new digital technologies
-- such as DVD, camcorders, audio components, and digital television -- were
strong during the holiday shopping period, our lackluster performance overall
during the quarter reflects our sluggish sales in the more commodity-oriented
categories of home office, small screen television, portable audio, and stereo
systems. The quarter's weak sales performance also reflects the impact of
aggressive financing offers from some key competitors.
"We are taking the necessary steps to sharpen our cost structure and
address our competitive posture in all categories to regain growth momentum
and improve our ongoing economics. Most importantly, however, we remain
committed to providing a superior consumer electronics shopping experience
through great stores, an outstanding product assortment, and the most
knowledgeable, best trained sales associates. This remains our formula for
the good guys! long-term success."
the good guys! is a leading specialty retailer of consumer electronics,
operating a total of 79 stores, 61 in California, nine in Washington, five in
Oregon and four in Nevada, and marketing a broad range of high quality, name
brand products. For more information on the Company, including news releases,
employment opportunities, product information and store locations, visit the
good guys! Internet home page at http://www.thegoodguys.com . the good guys!
press releases are also available by fax through Company News-On-Call at
800-758-5804, extension 108403.
To the extent this news release contains forward-looking statements, such
statements are subject to risks and uncertainties, including, but not limited
to, increases in promotional activities of competitors, changes in consumer
buying attitudes, the presence or absence of new products or product features
in the Company's merchandise categories, changes in vendor support for
advertising and promotional programs, changes in the Company's merchandise
sales mix and economic conditions.
The Good Guys, Inc.
SELECTED FINANCIAL DATA
(Unaudited)
Quarter Ended December 31: 1998 1997
Sales $294,098,000 $290,303,000
Net Income $1,652,000 $2,403,000
Average Shares 14,250,000 13,719,000
Earnings Per Share $0.12 $0.18
The Good Guys, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands except per share data)
Three Months Ended
December 31, 1998 December 31, 1997
% of % of
Amount Sales Amount Sales
Net sales $294,098 $290,303
Cost of sales 222,648 75.7 218,682 75.3
Gross profit 71,450 24.3 71,621 24.7
Selling, general and
Administrative expenses 68,258 23.2 67,567 23.3
Income from operations 3,192 1.1 4,054 1.4
Interest income expense -- net (588) (0.2) (253) (0.1)
Income before income taxes 2,604 0.9 3,801 1.3
Income taxes 952 0.3 1,398 0.5
Net income $1,652 0.6 $2,403 0.8
Net income per common share $0.12 $0.18
Weighted average shares 14,250 13,719
The Good Guys, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
(Amounts in thousands) 1998 1997
ASSETS
Current Assets:
Cash $13,228 $28,414
Receivables 34,282 28,845
Income tax receivable -- 5,219
Inventories 148,295 145,828
Prepaid Assets 6,379 8,002
Total Current Assets 202,184 216,308
Property and equipment, net 72,597 64,103
Other assets 6,376 2,108
Total Assets $281,157 $282,519
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $111,448 $103,647
Accrued expenses 56,050 58,298
Total Current Liabilities 167,498 161,945
Shareholders' equity 113,659 120,574
Total Liabilities and
Shareholders' Equity $281,157 $282,519
SOURCE the good guys!
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Related links:
http://www.thegoodguys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Dennis C. Carroll, Chief Financial Officer of
the good guys!, 650-615-6233
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