WEST CHESTER, Pa., May 18 /PRNewswire/ -- Electronics Boutique Holdings
Corp. (Nasdaq: ELBO), among the world's largest specialty retailers of
electronic games, today reported results for the first quarter of its fiscal
2001 year, which ended April 29, 2000.
Total revenues increased 22% to $151.1 million in the first quarter of
fiscal 2000, compared with $123.6 million in the prior-year period. Revenue
growth resulted from an 11% increase in comparable store sales, as well as an
increase of 78 stores year-over-year in the retail store base. The increase
in comparable store sales was due to solid performance within the video game
category, as well as continued sales of Pokemon trading cards. In addition to
a number of strong new software titles, the video game category was fueled by
continued solid sales of Sega Dreamcast, Nintendo Game Boy, and Nintendo 64
systems.
Net income for the first quarter totaled $2.4 million, or $0.11 per
diluted share, compared with $2.9 million, or $0.14 per diluted share, in the
year-ago quarter. Excluding the loss from the Company's Internet business,
EBWorld.com, net income would have totaled $2.9 million, or $0.13 per share,
for the first quarter of this year.
EBWorld.com has exceeded the Company's expectations with first quarter
sales more than doubling to $3.1 million from $1.5 million a year ago.
Additionally, EBWorld.com is currently finalizing a number of new strategic
alliances, which it will announce upon completion.
Gross margin on sales for the first quarter was 25.1%, compared with 26.3%
for the year-ago quarter. The primary factor for the decline in margin was a
shift in the Company's sales mix to a higher quantity of video game products
than PC software, accessories and toys, which have higher margins.
Electronics Boutique has had strong sales in video game software for the Sega
Dreamcast, Nintendo Game Boy and N64 systems and in what it terms the "Budget
PlayStation" category.
Joseph J. Firestone, President and Chief Executive Officer, commented, "We
are pleased to start the year off with solid results. We continue to
demonstrate that in electronic gaming we are the number one specialty
retailer, which puts us in a strong position to capitalize on the highly
anticipated release of PlayStation 2 later this fall."
"Since we have chosen not to acquire Funco at a price that would have been
dilutive to our earnings, we will now accelerate our strategy of opening new
non-mall-based stores. These stores appeal to a different customer
demographic than our traditional mall-based stores. We had put our plans to
expand the non-mall store concept on hold as we evaluated the Funco
transaction, because of the potential overlap in stores and the time needed to
assess the most strategic locations. We now expect to open 25 to
50 non-mall-based stores this year, bringing our goal of new store openings to
approximately 150 to 175 including 10 to 15 EBKids stores," concluded
Mr. Firestone.
Electronics Boutique is among the world's largest specialty retailers of
video and computer games and also sells video game hardware, PC productivity
software and accessories. The company currently operates 628 stores in
46 states, Puerto Rico, Canada, Australia and South Korea, primarily under the
names Electronics Boutique and Stop 'N Save Software. The Company has also
established a separate e-commerce division, EBWorld.com, Inc. The Company's
website can be found at http://www.ebworld.com .
This press release contains "forward-looking statements." Electronics
Boutique ("EB") is including this statement for the express purpose of
availing itself of the protections of the safe harbor provided by the Private
Securities Litigation Reform Act of 1995 with respect to all such
forward-looking statements. These forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially.
These risks include, but are not limited to, EB's dependence on the continued
introduction of new and enhanced video games and PC hardware and software; the
cyclical nature of the video game market; the rapid technological changes
which occur in the video game and PC industry; EB's ability to open and
operate new stores on a profitable basis; the intensely competitive nature of
the electronic game industry and its rapid changes in consumer preferences and
frequent new product introductions; the seasonal nature of the retail
industry; EB's dependence on its suppliers for products; risks inherent to
conducting international operations; and consumer spending patterns and
prevailing economic conditions. Please refer to Electronics Boutique's Annual
Report on Form 10-K on file with the SEC for a more detailed discussion of
these and other risks that could cause results to differ materially.
Electronics Boutique Holdings Corp.
Consolidated Statements of Income
(Amounts in thousands, except share and per-share amounts)
Thirteen Weeks Ended
(Unaudited)
April 29, May 1,
2000 1999
Net Sales $150,151 $122,744
Management fees 924 861
Total Revenues 151,075 123,605
Costs and Expenses:
Cost of merchandise sold,
including freight 112,483 90,438
Selling, general and administrative 32,113 26,025
Depreciation and amortization 3,541 2,707
Operating Income 2,938 4,435
Interest (income) expense, net (1,045) (290)
Income before income tax expense 3,983 4,725
Income tax expense 1,580 1,852
Net income $2,403 $2,873
Net income per share - basic $0.11 $0.14
Weighted average shares
outstanding - basic 22,223,443 20,169,200
Net income per share - diluted $0.11 $0.14
Weighted average shares
outstanding - diluted 22,417,430 20,312,657
Electronics Boutique Holdings Corp.
Selected Consolidated Balance Sheet Data
(Amounts in thousands)
April 29, Jan. 29,
2000 2000
(unaudited)
Cash and cash equivalents $59,666 $88,356
Merchandise inventories 89,499 90,551
Total current assets 164,474 198,940
Total assets 244,479 275,513
Current liabilities 123,732 156,373
Total liabilities 126,485 159,026
Stockholders' equity 117,994 116,487
SOURCE Electronics Boutique Holdings Corp.
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Related links:
http://www.ebworld.com
CONTACT:
John R. Panichello, Chief Financial Officer
of Electronics Boutique, 610-430-8100, or Kelly Lofts of The
Financial Relations Board, 212-661-8030, klofts@frb.bsmg.com
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