DENVER, Oct. 17 /PRNewswire-FirstCall/ -- Ultimate Electronics, Inc.
(Nasdaq: ULTE) today updated interim sales results for the quarter ending
October 31, 2003.
On August 28, 2003, Ultimate Electronics provided revised comparable store
sales expectations for the third quarter, estimating comparable store sales to
be down mid-single digits. The Company's comparable store sales quarter-to-
date are down approximately 10%, and its total sales for the quarter through
October 15, 2003 are down approximately 9%.
J. Edward McEntire, Chief Executive Officer, stated, "Based on store
traffic, comparable store sales of negative 1% for August, the planned
implementation of our new management information system and our scheduled exit
from the computer category, we anticipated comparable store sales for the
third quarter to be down mid-single digits. Store traffic has not
materialized in September and October as expected from the momentum
established in August. During the week of September 8, 2003, we initiated the
conversion to our new management information system. Along with the
anticipated disruptions associated with the implementation of the new system,
we also experienced unexpected issues during the conversion, which we believe
have resulted in an unexpected shortfall in sales. We believe we have
resolved the majority of these problems and feel we have adequate resources in
place to resolve the remaining issues. While the conversion to the new system
has had a negative effect on our third quarter sales and earnings to date, we
do not expect these issues to affect our operating results over the long term.
We expect our new system to generate improved operating efficiencies, deliver
more robust information and provide greater capabilities over the long term."
Ultimate Electronics is scheduled to issue a press release covering its
sales results for the third quarter on Thursday, November 6, 2003. Ultimate
Electronics is scheduled to release its third quarter earnings results on the
morning of Wednesday, November 26, 2003, and to hold a conference call at
11:00 a.m. Eastern Time on November 26, 2003 to discuss third quarter results,
at which time the Company plans to discuss in more detail the impacts of the
system conversion, the exit from the computer category and store traffic.
Ultimate Electronics is a leading specialty retailer of home entertainment
and consumer electronics products in 14 states. The company operates
61 stores, including 50 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 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: the
effect on sales of the issues experienced with the conversion to the new
system; resolution of the issues with the new system; the anticipated benefits
of the new system; the timing of the sales and earnings releases for the third
quarter; and the discussion of the impacts on third quarter sales and
earnings. Actual results may differ materially from those included in the
forward-looking statements due to a number of factors, including, but not
limited to: unforeseen problems with the Company's new management information
system; 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., 303-801-4000.
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
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