DENVER, Nov. 6 /PRNewswire-FirstCall/ -- Ultimate Electronics, Inc.
(Nasdaq: ULTE) today announced its sales results for the quarter ended October
31, 2003.
Sales for the quarter ended October 31, 2003 were $160 million, a 10%
decrease from sales of $177.8 million for the same period in the previous
year. Comparable store sales were down 12% for the quarter ended October 31,
2003.
J. Edward McEntire, Chief Executive Officer, stated, "Our sales
performance for the third quarter did not meet expectations. Store traffic
did not materialize as planned in September and October, impacting sales in
both our comparable store markets as well as our new markets. Unexpected
issues arising with the conversion to our new management information system
also contributed to the shortfall in our third quarter sales. We believe that
we have put the critical system integration issues behind us. In addition,
our previously announced exit from the computer category accounted for a
portion of the reduction in our sales and is expected to negatively impact our
gross margins for the quarter. In light of these issues, we now anticipate a
loss per share of $.35 to $.42 for the quarter."
Mr. McEntire continued, "We enter the holiday selling season with
64 stores, five of which opened during the last two weeks of October. In an
effort to improve our sales performance in all markets, we have increased
advertising spending for the holiday selling season, which will focus
primarily on increasing store traffic and reinforcing our brand."
Ultimate Electronics is scheduled to release its third quarter earnings
results on the morning of Wednesday, November 26, 2003. Ultimate Electronics
is scheduled to hold a conference call at 11:00 a.m. Eastern Time on November
26, 2003 to discuss these results, at which time the Company plans to discuss
the system conversion, its holiday advertising program, and its outlook for
the holiday selling season.
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
issues experienced with the conversion to the new system; the impact on gross
margins from exiting the computer category; the anticipated loss per share for
the third quarter; and the timing of the earnings release for the third
quarter. 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 advertising
programs, 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.
Ultimate Electronics is a leading specialty retailer of home entertainment
and consumer electronics products in 14 states. The company operates
64 stores, including 53 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."
Ultimate Electronics is expected to release its third quarter earnings
results on the morning of November 26, 2003 and to hold its conference call at
11:00 a.m. Eastern Time on the day of the release, which will be broadcast
live on the Internet. Please visit the Company's Web site at
http://www.ultimateelectronics.com and click on the Street Events icon on the
Investor Relations page to access the live broadcast. Ultimate Electronics
news releases, quarterly sales and operating results can be found on the
Internet on the Company's Web site at http://www.ultimateelectronics.com .
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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