SAN FRANCISCO, Nov. 13 /PRNewswire/ -- the good guys! (Nasdaq: GGUY) today
announced a net loss of $8.9 million for the fiscal year ended
September 30, 1998 as compared to a net loss of $12.2 million for fiscal 1997.
The loss for the year was $.64 per share on 14,011,000 weighted average shares
outstanding, compared to a loss of $.89 per share on 13,626,000 weighted
average shares outstanding last year.
As reported earlier, fiscal 1998 sales were $928.5 million, a 4% increase
from the $890.5 million reported for fiscal 1997. Comparable store sales
increased 3% from last year's levels.
For the fourth quarter of fiscal 1998, the Company's net loss was
$6.7 million, compared to the $6.7 million loss during the same period last
year. The loss per share for the quarter was $.47 on 14,248,000 weighted
average shares outstanding, compared to a per share loss of $.49 on
13,803,000 weighted average shares outstanding in the year-ago period.
Sales for the fourth quarter were $220.1 million, versus $204.0 million in
the fourth quarter of fiscal 1997. Comparable store sales increased 3% during
the quarter.
Robert A. Gunst President and Chief Executive Officer, said, "Fiscal 1998
was a mixed year for the good guys! Although our financial results continued
to be disappointing, we made progress in reducing our losses, rejuvenating our
stores, enhancing our service delivery, and strengthening our market
franchise. Our focus now is on accelerating this progress and returning our
company to profitability."
During the fourth quarter, the Company converted its Concord, Sacramento,
and Stonestown the good guys! stores in Northern California into its new
Audio/Video Exposition format. This brought the total number of Audio/Video
Exposition stores to seven as of the end of the fiscal year.
During the current quarter, the first quarter of fiscal 1999, the Company
will convert its Dublin, California store into this new format and will move
its San Mateo store to a new location, where it will open the first
Audio/Video Exposition WOW! store in Northern California in partnership with
Tower Records. Also during the first quarter, the Company and Tower Records
will open a new Audio/Video Exposition WOW! Store in Laguna Hills, California
and a new Audio/Video Exposition store in Palo Alto, California.
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.
This news release contains forward-looking statements, which 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, economic
conditions, and other factors referred to in the Company's 1997 Annual Report
on Form 10-K under "Information Regarding Forward Looking Statements."
THE GOOD GUYS, INC.
SELECTED FINANCIAL DATA
(Unaudited)
Quarter Ended September 30: 1998 1997
Sales $220,068,000 $204,034,000
Net Loss $(6,749,000) $(6,720,000)
Average Shares 14,248,000 13,803,000
Loss Per Share $(.47) $(.49)
Year Ended September 30:
Sales $928,490,000 $890,524,000
Net Loss $(8,933,000) $(12,182,000)
Average Shares 14,011,000 13,626,000
Loss Per Share $(.64) $(.89)
THE GOOD GUYS, INC.
Condensed Consolidated Statements of Operations
(Amounts in thousands
except per share data) Three Months Ended
September 30,
1998 1997
% of % of
Amount Sales Amount Sales
Net sales $220,068 -- $204,034 --
Cost of sales 168,954 76.8 154,308 75.6
Gross profit 51,114 23.2 49,726 24.4
Selling, general and
administrative expenses 61,228 27.9 60,287 29.6
Loss from operations (10,114) (4.6) (10,561) (5.2)
Interest expense, net (531) (0.2) (179) (0.1)
Loss before income taxes (10,645) (4.8) (10,740) (5.3)
Income tax benefit (3,896) (1.8) (4,020) (2.0)
Net loss $(6,749) (3.1) $(6,720) (3.3)
Net loss per share $(0.47) -- $(0.49) --
Shares used in per share
computation 14,248 -- 13,803 --
THE GOOD GUYS, INC.
Condensed Consolidated Statements of Operations
(Amounts in thousands
except per share data) Twelve Months Ended
September 30,
1998 1997
% of % of
Amount Sales Amount Sales
Net sales $928,490 -- $890,524 --
Cost of sales 700,158 3113.0 667,409 74.9
Gross profit 228,332 24.6 223,115 25.1
Selling, general and
administrative expenses 241,155 26.1 241,776 27.2
Loss from operations (12,823) (1.4) (18,661) (2.0)
Interest expense, net (1,277) (0.1) (758) (0.1)
Loss before income taxes (14,100) (1.5) (19,419) (2.2)
Income tax benefit (5,167) (0.6) (7,237) (0.8)
Net loss $(8,933) (1.0) $(12,182) (1.4)
Net loss per share $(0.64) -- $(0.89) --
Shares used in per share
computation 14,011 -- 13,626 --
THE GOOD GUYS, INC.
Condensed Consolidated Balance Sheets
September 30,
(Amounts in thousands) 1998 1997
ASSETS
Current assets:
Cash $3,051 $18,951
Receivables 26,653 27,887
Inventories 135,072 117,768
Prepaid assets 6,445 6,716
Total current assets 171,221 171,322
Property and equipment, net 72,216 62,153
Other assets 7,421 2,587
Total assets $250,858 $236,062
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $96,517 $75,517
Accrued expenses 42,334 42,441
Total current liabilities 138,851 117,958
Shareholders' equity 112,007 118,104
Total liabilities and shareholders' equity $250,858 $236,062
SOURCE the good guys!
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Related links:
http://www.thegoodguys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Dennis C. Carroll, Chief Financial Officer of
the good guys!, 650-615-6233
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