DENVER, July 24 /PRNewswire-FirstCall/ -- Ultimate Electronics, Inc.
(Nasdaq: ULTE) today updated interim sales results and expected earnings per
share for the quarter ending July 31, 2003.
On May 29, 2003, Ultimate Electronics provided comparable store sales
expectations for the second quarter, estimating comparable store sales to be
down in the low single digits. Comparable store sales finished down 2% for
May. However, comparable store sales quarter-to-date are now down 11%. Total
sales are anticipated to be up 8% for the quarter due to the 11 new stores
opened since last July.
J. Edward McEntire, Chief Executive Officer, stated "After a relatively
successful May, we experienced a drop in traffic during June and July. The
recent traffic patterns have impacted both comparable store and new market
sales. Video (including DVDs, VCRs and Camcorders) and mobile electronics
sales were the most impacted. However, we expect our gross margin percentage
to improve slightly for the quarter compared to the prior year. Additionally,
we have reduced our selling, general and administrative spending compared to
our original plan, and we continue to work towards lowering our cost of doing
business. In light of the sales performance, we now anticipate a loss per
share of $.11 to $.16 for the quarter. We expect our inventory levels at the
end of the quarter to be unchanged from July 31, 2002. Our borrowings under
our line of credit are currently less than $15 million out of our total
availability of $80 million."
Mr. McEntire continued, "As we look past the second quarter, we are moving
into the fall television selling season. We expect our television category to
represent approximately 47% of our product mix for the second half of the
year. This category has been a growth category for us due to the increasing
popularity of digital televisions, especially in the large screen and thin
panel formats such as Plasma, LCD and DLP. With this growth category and a
reported improving economic environment and consumer confidence index, we are
anticipating improved sales results in the second half of the year."
Ultimate Electronics is scheduled to issue a press release covering its
sales results for the second quarter on August 7, 2003.
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 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:
anticipated total sales and earnings per share for the second quarter;
improvements to gross margin percentages; reductions in selling, general and
administrative expenses; continued efforts to reduce cost of doing business;
anticipated inventory levels at July 31, 2003; the television category
representing approximately 47% of the company's product mix for the second
half of the year; increasing popularity of digital televisions; improvements
in the economic environment and consumer confidence index; and anticipated
improvement in the company's sales for the second half of the year. Actual
results may differ materially from those included in the forward-looking
statements due to a number of factors, including, but not limited to: changes
in general economic conditions; success of sales promotions and marketing
efforts; changes in consumer preferences; shifts in merchandise mix;
activities of competitors; terrorism and acts of war; consumer acceptance of
new technologies; risks associated with entering new markets; and other risk
factors identified in the company's Annual Report on Form 10-K for the fiscal
year ended January 31, 2003, 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.
For further information, please contact Alan E. Kessock, Chief Financial
Officer, Ultimate Electronics, Inc., +1-303-801-4000, alan.kessock@ulte.com .
SOURCE Ultimate Electronics, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/877054.html
CONTACT:
Alan E. Kessock, Chief Financial Officer,
Ultimate Electronics, Inc., +1-303-801-4000,
alan.kessock@ulte.com
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