DENVER, July 27 /PRNewswire-FirstCall/ -- Ultimate Electronics, Inc.
(Nasdaq: ULTE) announced today that it has obtained a $13 million secured term
loan from a group of banks led by Back Bay Capital Funding LLC and has also
entered into a fourth amended and restated credit and security agreement with
a bank syndicate led by Wells Fargo Retail Finance, part of Wells Fargo &
Company (NYSE: WFC) to provide for the new financing and to amend the
Company's financial covenants. Ultimate Electronics plans to use the funds
for general working capital purposes.
The fourth amended and restated credit facility includes $100 million of
revolving credit borrowings, subject to borrowing base limitations, and a
$13 million term loan. After giving effect to the $13 million term loan, the
Company's current outstanding borrowings are $56 million and the Company has
$23 million available for borrowing under the revolving credit facility.
The amended credit agreement amends the covenant regarding minimum EBITDA
(i.e. earnings before interest, taxes, depreciation and amortization) by
reducing the required EBITDA targets starting in June 2004 and replacing the
EBITDA covenant effective July 2005 with a new fixed charge coverage ratio
covenant.
Dave Workman, President and Chief Executive Officer, stated, "We believe
the financing supplied by Back Bay Capital will provide us with additional
financial flexibility to effectuate our turnaround efforts."
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: the use of funds; the financial flexibility provided by the new
term loan; and the Company's turnaround strategy. 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; activities of
competitors; terrorism and acts of war; consumer acceptance of new
technologies; risks associated with the operation of our new management
information system; and other risk factors identified in the company's Annual
Report on Form 10-K for the fiscal year ended January 31, 2004, 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.
About Ultimate Electronics, Inc. (Nasdaq: ULTE)
Ultimate Electronics is a leading specialty retailer of home entertainment
and consumer electronics products in 14 states. The company operates
65 stores, including 54 stores in Arizona, Idaho, Illinois, Iowa, Kansas,
Minnesota, Missouri, Nevada, New Mexico, Oklahoma, South Dakota, Texas and
Utah under the trade name Ultimate Electronics(R) and 11 stores in Colorado
under the trade name SoundTrack(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 2003
"Top 10 Audio/Video Retailer of the Year."
For further information, please contact: David Carter, CFO of Ultimate
Electronics, Inc., +1-303-801-4025.
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:
David Carter, CFO of Ultimate Electronics,
Inc., +1-303-801-4025
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