SAN FRANCISCO, April 23 /PRNewswire/ -- the good guys! (Nasdaq: GGUY)
today announced a net loss of $7.2 million for its second fiscal quarter ended
March 31, 1999 compared to a net loss of $2.0 million for the same period last
year. The loss per share was $.50 on 14,508,000 weighted average shares
outstanding compared to a loss of $.14 per share on 13,995,000 weighted
average shares outstanding last year.
As previously reported, sales for the second quarter of fiscal 1999 were
$219.1 million, up 5% from $209.1 million in the second quarter of fiscal
1998. Comparable store sales for the quarter increased 1% from 1998 levels.
For the first six months of fiscal 1999, the net loss was $5.6 million,
compared to net income of $409,000 for the same period last year. The loss
per share was $.39 on 14,378,000 weighted average shares outstanding in the
first half of fiscal 1999, compared to net income of $.03 per share on
13,889,000 weighted average shares outstanding in the year-ago period.
Sales for the first six months of fiscal 1999 were $513.2 million, a
3% increase from the $499.4 million reported last year. Comparable store
sales for the first six months were level with the prior year.
Commenting on the Company's performance, Robert A. Gunst, President and
Chief Executive Officer, said, "After a disappointing December quarter, we
initiated steps to sharpen our cost structure and to approach our business
somewhat more promotionally. These actions have resulted in improvements in
many areas of our operations over the course of the second quarter, but are
not yet reflected in our financial results. We expect to see the ongoing
benefits from our cost structure improvement initiatives, and from the
expected continued improvement in our sales trends, during the remainder of
the fiscal year.
"During the second half of fiscal 1999, we are broadening our assortment
of high quality audio/video furniture and improving our in-store merchandising
and display of two key digital categories -- wireless phones and DirecTV -- to
further drive high margin sales growth. By the end of the fiscal year, we
will also offer complete online shopping on our Internet web site. This will
enable us to market all our product categories much more broadly and, in the
process, better service both our current customers and the vast market of
online consumers.
"The ongoing conversion of our existing stores to our highly popular
Audio/Video Exposition format is a key part of our strategy. On April 1, we
re-opened our Reno location as an Expo store, and our Tustin store, which has
been closed since February, will re-open in June under the Expo format. The
relocation of our Woodland Hills store is currently underway and will open as
an Expo store at the end of the month. In addition, our Modesto and Santa
Rosa stores will be moved to new locations and re-opened during the September
quarter. By the end of this fiscal year, 16 of our stores will be Audio/Video
Exposition stores."
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 March 31: 1999 1998
Sales $219,099,000 $209,062,000
Net Loss $(7,246,000) $(1,994,000)
Net Loss Per Share
Basic (.50) (.14)
Diluted (.50) (.14)
Average Shares
Basic 14,508,000 13,995,000
Diluted 14,508,000 13,995,000
Six Months Ended March 31: 1999 1998
Sales $513,199,000 $499,365,000
Net Income (Loss) $(5,594,000) $409,000
Net Income (Loss) Per Share
Basic (.39) .03
Diluted (.39) .03
Average Shares
Basic 14,378,000 13,856,000
Diluted 14,378,000 13,889,000
The Good Guys, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands
except per share data) Three Months Ended
March 31, 1999 March 31, 1998
% of % of
Amount Sales Amount Sales
Net sales $219,099 100.0 $209,062 100.0
Cost of sales 167,156 76.3 156,730 75.0
Gross profit 51,943 23.7 52,332 25.0
Selling, general and
administrative expenses 59,475 27.1 55,243 26.4
Income (loss) from
operations (7,532) (3.4) (2,911) (1.4)
Interest expense, net 666 (0.3) 242 (0.1)
Income (loss) before
income taxes (8,198) (3.7) (3,153) (1.5)
Income tax expense (benefit) (952) (0.4) (1,159) (0.6)
Net income (loss) $(7,246) (3.3) $(1,994) (1.0)
Net income (loss) per
common share
Basic: $(0.50) $(0.14)
Diluted: $(0.50) $(0.14)
Weighted average shares
Basic: 14,508 13,995
Diluted: 14,508 13,995
Six Months Ended
March 31, 1999 March 31, 1998
% of % of
Amount Sales Amount Sales
Net sales $513,199 100.0 $499,365 100.0
Cost of sales 389,806 76.0 375,412 75.2
Gross profit 123,393 24.0 123,953 24.8
Selling, general and
administrative expenses 127,733 24.9 122,810 24.6
Income (loss)
from operations (4,340) (0.8) 1,143 0.2
Interest expense, net 1,254 (0.2) 495 (0.1)
Income (loss) before
income taxes (5,594) (1.1) 648 0.1
Income tax expense (benefit) 0 0.0 239 0.0
Net income (loss) $(5,594) (1.1) $409 0.1
Net income (loss) per
common share
Basic: $(0.39) $0.03
Diluted: $(0.39) $0.03
Weighted average shares
Basic: 14,378 13,856
Diluted: 14,378 13,889
The Good Guys, Inc.
CONSOLIDATED BALANCE SHEET
(Unaudited)
(Amounts in thousands) March 31, September 30,
1999 1998
ASSETS
Current Assets:
Cash $3,124 $3,051
Receivables, net 26,184 26,653
Inventories 147,596 135,072
Prepaid Assets 6,530 6,445
Total Current Assets 183,434 171,221
Property and equipment, net 76,452 72,216
Other assets 7,283 7,421
Total Assets $267,169 $250,858
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $92,205 $96,517
Accrued expenses 37,922 42,334
Total Current Liabilities 130,127 138,851
Revolving Credit Debt 29,305 0
Shareholders' equity 107,737 112,007
Total Liabilities and Shareholders' Equity $267,169 $250,858
SOURCE The Good Guys, Inc.
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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, Inc., 650-615-6233
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