SAN FRANCISCO, July 22 /PRNewswire/ -- The Good Guys, Inc. (Nasdaq: GGUY)
today announced a net loss of $2.6 million for its third fiscal quarter ended
June 30, 1998 compared to a net loss of $4.1 million for the same period last
year. The loss per basic and diluted share was $.18 on 14,086,000 weighted
average shares outstanding, compared to a loss of $.30 per basic and diluted
share on 13,620,000 weighted average shares outstanding last year.
As reported earlier, sales for the third quarter of fiscal 1998 were
$209.1 million, up 7% from $194.8 million for the third quarter of fiscal
1997. Comparable store sales for the quarter increased 6% from 1997 levels.
For the first nine months of fiscal 1998, the net loss was $2.2 million,
compared to a net loss of $5.5 million for the same period last year. The
loss per basic and diluted share was $.16 on 13,932,000 weighted average
shares outstanding, compared to a loss of $.40 per basic and diluted share on
13,566,000 weighted average shares outstanding in the year-ago period.
Sales for the first nine months of fiscal 1998 were $708.4 million, a
3% increase from the $686.5 million reported last year. Comparable store
sales for the first nine months increased 3% from 1997 levels.
Commenting on the Company's performance, Robert A. Gunst, President and
Chief Executive Officer, said, "We are pleased with our sales performance
during the third fiscal quarter, which continued the positive trend that we
have seen throughout the fiscal year. Our 6% same store sales gain is the
best performance that we have registered since 1994. This again reflects
strong growth in our core audio and video categories, particularly color
television, DSS, DVD, camcorders, cellular phones, and stereo components,
partially offset by weak personal computer sales during the quarter.
"Our sales growth, coupled with cost control, enabled us to record a
1.5 percentage point improvement in Selling, General and Administrative
Expenses as a percent of sales over last year's third quarter. While this
improvement was not sufficient for us to show a profit during the quarter, we
are encouraged by the positive year-over-year trend.
"During the quarter, we opened our first Audio/Video Exposition-enhanced
WOW! store, located in Glendale, California. We also temporarily closed our
Stonestown (San Francisco) store for a three-month remodel and conversion into
the Audio/Video Exposition format, which will reopen in August. During the
current quarter, we are converting our Concord store and one of our Sacramento
locations into the Audio/Video Exposition formats, bringing the total
Audio/Video Exposition stores in operation to seven by the end of Fiscal 1998.
During the December quarter -- the first quarter of Fiscal 1999 -- we will
open a new the good guys! Audio/Video Exposition store in Palo Alto and a new
Audio/Video Exposition-enhanced WOW! Store in Orange County. In addition,
first quarter conversions will include moving the San Mateo store to a new
location and reopening it as the first Audio/Video Exposition-enhanced WOW!
store in Northern California and converting the Dublin store to the
Audio/Video Exposition format."
the good guys! is a leading specialty retailer of consumer electronics,
operating a total of 77 stores, 59 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.
Any forward-looking 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 June 30: 1998 1997
Sales $209,057,000 $194,834,000
Net Loss $(2,591,000) $(4,146,000)
Net Loss Per Share
Diluted and Basic $(0.18) $(0.30)
Average Shares
Diluted and Basic 14,086,000 13,620,000
Nine Months Ended June 30:
Sales $708,422,000 $686,490,000
Net Loss $(2,182,000) $(5,462,000)
Net Loss Per Share
Diluted and Basic $(0.16) $(0.40)
Average Shares
Diluted and Basic 13,932,000 13,566,000
THE GOOD GUYS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands
except per share data) Three Months Ended
June 30, 1998 June 30, 1997
% of % of
Amount Sales Amount Sales
Net sales $209,057 100.0 $194,834 100.0
Cost of sales 155,792 74.5 145,094 74.5
Gross profit 53,265 25.5 49,740 25.5
Selling, general and
administrative expenses 57,103 27.3 56,166 28.8
Loss from operations (3,838) 1.8 (6,426) 3.3
Interest expense, net 252 0.1 208 0.1
Loss before income taxes (4,090) 1.9 (6,634) 3.4
Income tax benefit (1,499) 0.7 (2,488) 1.3
Net loss $(2,591) 1.2 $(4,146) 2.1
Net loss per share
Basic and diluted $(0.18) $(0.30)
Weighted average shares
Basic and diluted 14,086 13,620
THE GOOD GUYS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands
except per share data) Nine Months Ended
June 30, 1998 June 30, 1997
% of % of
Amount Sales Amount Sales
Net sales $708,422 100.0 $686,490 100.0
Cost of sales 531,204 75.0 513,101 74.7
Gross profit 177,218 25.0 173,389 25.3
Selling, general and
administrative expenses 179,913 25.4 181,489 26.5
Loss from operations (2,695) 0.4 (8,100) 1.2
Interest expense, net 747 0.1 579 0.1
Loss before income taxes (3,442) 0.5 (8,679) 1.3
Income tax benefit (1,260) 0.2 (3,217) 0.5
Net loss $(2,182) 0.3 $(5,462) 0.8
Net loss per share
Basic and diluted $(0.16) $(0.40)
Weighted average shares
Basic and diluted 13,932 13,566
THE GOOD GUYS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
June 30
(Amounts in thousands) 1998 1997
ASSETS
Current assets:
Cash $8,469 $12,700
Receivables 33,953 23,928
Inventories 150,575 142,565
Prepaid assets 6,350 5,542
Total current assets 199,347 184,735
Property and equipment, net 65,869 58,263
Other assets 1,697 2,477
Total assets $266,913 $245,475
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $100,589 $84,274
Accrued expenses 40,593 37,313
Total current liabilities 141,182 121,587
Revolving credit debt 7,957 --
Shareholders' equity 117,774 123,888
Total liabilities and
shareholders' equity $266,913 $245,475
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, Inc., 650-615-6233
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