SAN FRANCISCO, April 22 /PRNewswire/ -- The Good Guys, Inc.
(Nasdaq: GGUY) today announced a net loss of $2.0 million for its second
fiscal quarter ended March 31, 1998 compared to a net loss of $3.3 million for
the same period last year. The loss per share was $.14 on 13,995,000 weighted
average shares outstanding, compared to a loss of $.24 per share on
13,616,000 weighted average shares outstanding last year.
As reported earlier, sales for the second quarter of fiscal 1998 were
$209.1 million, up 2% from $205.1 million for the second quarter of fiscal
1997. Comparable store sales for the quarter increased 2% from 1997 levels.
For the first six months of fiscal 1998 net income was $409,000, compared
to a net loss of $1.3 million for the same period last year. The earnings per
share were $.03 on 13,889,000 weighted average shares outstanding in the first
half of fiscal 1998, compared to a loss of $.10 per share on 13,539,000
weighted average shares outstanding in the year-ago period.
Sales for the first six months of fiscal 1998 were $499.4 million, a
2% increase from the $491.7 million reported last year. Comparable store
sales for the first six months increased 1% from 1997 levels.
Commenting on the Company's performance, Robert A. Gunst, President and
Chief Executive Officer, said, "Despite the generally soft retail sales
environment that has continued to prevail in consumer electronics, the good
guys! achieved a 2% increase in same store sales during the second fiscal
quarter. This represents a continuation of, and slight improvement in, the
positive sales trends that we began to see last quarter. This growth reflects
the increasingly strong performance of our core Audio and Video categories,
partially offset by weaker sales of Home Office products. Although this
growth was insufficient for us to show a profit during the quarter, we are
pleased with the continued year-over-year improvement, which we believe should
continue in the second half of fiscal 1998 and into fiscal 1999.
"After over a decade that saw no major new technologies being introduced
into the Audio/Video marketplace, we are tremendously excited about the
digital era that the introduction of digital and high definition television
will usher in this fall. These new technologies, and the entertainment
products that will flow from them, match well with the good guys! strategic
positioning and executional strengths. Our market leadership and reputation
for knowledgeable, value-added service, puts us in a prime position to
leverage these new product introductions for strong, profitable growth.
Combining this with the ongoing conversion of our stores into our new
Audio/Video Exposition format, and our commitment to a process of continual
improvement in the quality of the service that we deliver daily to our
customers, makes us optimistic about the good guys! future.
"During the third quarter, we will open our first Audio/Video Exposition
enhanced WOW! store in Glendale, California, and we will temporarily close our
Stonestown the good guys! store in San Francisco for a three-month Audio/Video
Exposition remodel. By the end of calendar 1998, we should have approximately
a dozen Audio/Video Exposition stores in operation. "
the good guys! is a leading specialty retailer of consumer electronics,
operating a total of 76 stores, 58 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.
This news release contains forward-looking statements, which 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 March 31:
1998 1997
Sales $ 209,062,000 $ 205,091,000
Net Loss $ (1,994,000) $ (3,282,000)
Net Loss Per Share
Basic (.14) (.24)
Diluted (.14) (.24)
Average Shares
Basic 13,995,000 13,616,000
Diluted 13,995,000 13,616,000
Six Months Ended March 31:
Sales $ 499,365,000 $ 491,656,000
Net Income (Loss) $ 409,000 $ (1,316,000)
Net Income (Loss) Per Share
Basic .03 (.10)
Diluted .03 (.10)
Average Shares
Basic 13,856,000 13,539,000
Diluted 13,889,000 13,539,000
THE GOOD GUYS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
March 31
(Amounts in thousands) 1998 1997
ASSETS
Current assets:
Cash $ 5,228 $ 12,651
Receivables 29,291 23,993
Inventories 145,434 137,298
Prepaid assets 6,896 6,778
Total current assets 186,849 180,720
Property and equipment, net 64,001 58,313
Other assets 1,338 1,884
Total assets $252,188 $240,917
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 86,276 $ 64,696
Accrued expenses 46,355 48,186
Total current liabilities 132,631 112,882
Shareholders' equity 119,557 128,035
Total liabilities and shareholders'
equity $252,188 $240,917
THE GOOD GUYS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands
except per share data) Three Months Ended
March 31, 1998 March 31, 1997
% of % of
Amount Sales Amount Sales
Net sales $209,062 100.0 $205,091 100.0
Cost of sales 156,730 75.0 153,137 74.7
Gross profit 52,332 25.0 51,954 25.3
Selling, general and
administrative expenses 55,243 26.4 57,147 27.8
Loss from operations (2,911) (1.4) (5,193) (2.5)
Interest expense, net (242) (0.1) (129) (0.1)
Loss before income taxes (3,153) (1.5) (5,322) (2.6)
Income tax benefit (1,159) (0.6) (2,040) (1.0)
Net loss $(1,994) (0.9) $(3,282) (1.6)
Net loss per share
Basic $ (0.14) $ (0.24)
Diluted $ (0.14) $ (0.24)
Weighted average shares
Basic 13,995 13,616
Diluted 13,995 13,616
THE GOOD GUYS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands except per share data)
THE GOOD GUYS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands
except per share data) Six Months Ended
March 31, 1998 March 31, 1997
% of % of
Amount Sales Amount Sales
Net sales $499,365 100.0 $491,656 100.0
Cost of sales 375,412 75.2 368,007 74.9
Gross profit 123,953 24.8 123,649 25.1
Selling, general and
administrative expenses 122,810 24.6 125,323 25.5
Income (loss) from operations 1,143 0.2 (1,674) (0.4)
Interest expense, net (495) (0.1) (371) 0.0
Income (loss) before income
taxes 648 0.1 (2,045) (0.4)
Income tax (benefit) expense 239 0.0 (729) (0.1)
Net income (loss) $ 409 0.1 $(1,316) (0.3)
Net income (loss) per share
Basic $ 0.03 $ (0.10)
Diluted $ 0.03 $ (0.10)
Weighted average shares
Basic 13,856 13,539
Diluted 13,889 13,539
SOURCE The Good Guys, Inc.
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Related links:
http://www.thegoodguys.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 108403
CONTACT:
Dennis C. Carroll, Chief Financial Officer of
the good guys!, 650-615-6233; or media, Parsons & Associates,
206-789-5668, for the good guys!
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