DENVER, April 29 /PRNewswire-FirstCall/ --
Ultimate Electronics, Inc. (Nasdaq: ULTE) today updated its expectations for
its first quarter of fiscal 2004.
On March 13, 2003, Ultimate Electronics announced that it expected
comparable store sales for fiscal 2004 to be down in the low single digits for
the first half of the year followed by positive low single digit comparable
store sales in the third quarter and mid-single digit comparable store sales
in the fourth quarter. The company estimated sales volume for the year to be
between $815 million and $830 million, a 16% to 18% increase over fiscal 2003,
given the effect of anticipated comparable store sales and the impact of new
stores expected to open in 2003. Based upon this plan, the company expected a
loss per share of between $.01 and $.04 for the first quarter, breakeven
results in the second quarter, earnings per share of $.05 to $.10 for the
third quarter and earnings per share of $.45 to $.60 for the fourth quarter.
In light of the current economic environment and the war with Iraq, the
company has revised sales and earnings expectations for the first quarter of
fiscal 2004. The company now anticipates its first quarter comparable store
sales to be down by 8% to 9% and total sales to be between $154 million and
$157 million. During the period from March 17, 2003 through April 11, 2003,
when the United States was actively at war and business at most of the
company's Colorado stores was severely impaired for five days due to the
area's largest snow storm in over 90 years, the company experienced negative
17% comparable stores sales (after adjusting for the shift in Easter from
March 31, 2002 to April 20, 2003).
The company's comparable stores sales from April 12, 2003 to date were a
negative 4%. The company believes that results for the second half of April
indicate that sales may be returning to the company's pre-war expectations for
fiscal 2004. The company now expects a loss per share of between $.09 and
$.13 for the first quarter. Although the company believes consumer spending
remains relatively unsettled in the aftermath of the Iraq war and the current
economic environment, the company is maintaining its previous guidance for the
next three quarters. These estimates may be adjusted for any quarterly impact
from the adoption of EITF 02-16, Accounting by a Customer for Certain
Consideration Received from a Vendor, effective in the first quarter.
Ultimate Electronics plans to announce final sales results for the quarter
in a press release scheduled for May 8, 2003 and earnings for the first
quarter in a press release scheduled for May 29, 2003. The company plans to
provide an update on the impact of EITF 02-16, its product mix and its
initiatives to improve gross margins and selling, general and administrative
expenses in its earnings release.
Ultimate Electronics is a leading specialty retailer of home entertainment
and consumer electronics products in 13 states. The company operates 58
stores, including 40 stores in Arizona, Idaho, Illinois, Iowa, Minnesota,
Missouri, Nevada, New Mexico, Oklahoma, South Dakota, Texas and Utah under the
trade name Ultimate Electronics(R), 11 stores in Colorado under the trade name
SoundTrack(R) and seven stores in Minnesota under the trade name Audio
King(R). In addition, the company operates Fast Trak, Inc., an independent
electronics repair company based in Minnesota 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: total
sales for the first fiscal quarter; post-war sales trends; comparable store
sales and earnings per share for each quarter during fiscal 2004; and the
schedule for releasing results for the first quarter. Actual results may
differ materially from those included in the forward-looking statement due to
a number of factors, including, but not limited to: gross margins and selling,
general and administrative expenses for April 2003; the success of sales and
gross margin initiatives and cost reduction measures for the balance of fiscal
2004; the timing and success of the conversion to the company's management
information system; changes in general economic conditions; shifts in
merchandise mix; activities of competitors; the challenges associated with
entering new markets; terrorism and acts of war; the impact of the company's
adoption of EITF 02-16 and other risk factors identified in the company's
Annual Report on Form 10-K for the fiscal year ended January 31, 2002, 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.
For further information, please contact: Alan E. Kessock, Chief Financial
Officer of Ultimate Electronics, Inc., +1-303-801-4000, alan.kessock@ulte.com
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 of
Ultimate Electronics, Inc., +1-303-801-4000,
alan.kessock@ulte.com
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