Exhibit 99
[REX STORES LOGO]
NEWS ANNOUNCEMENT FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Douglas Bruggeman Joseph N. Jaffoni/David Collins
Chief Financial Officer Jaffoni & Collins Incorporated
937/276-3931 212/835-8500 or rsc@jcir.com
REX STORES REPORTS FISCAL SECOND QUARTER DILUTED
EARNINGS PER SHARE OF $0.48 VERSUS $0.13 IN THE PRIOR YEAR
- REPURCHASES 454,700 SHARES PURSUANT TO PRIOR AUTHORIZATION -
Dayton, Ohio (September 5, 2007) -- REX Stores Corporation (NYSE:RSC) today
announced financial results for the three month period ended July 31, 2007.
Net income in the fiscal 2007 second quarter ended July 31, 2007 was $5.8
million, or $0.48 per diluted share, compared with net income of $1.5 million,
or $0.13 per diluted share, in the second quarter of fiscal 2006. For the
quarter ended July 31, 2007, income from continuing operations, net of taxes was
$3.8 million, compared with income from continuing operations, net of taxes of
$1.6 million in the same period a year ago. Per share results are based on
11,989,000 and 11,575,000 diluted weighted average shares outstanding for the
quarters ended July 31, 2007 and July 31, 2006, respectively.
Net sales and revenue in the fiscal 2007 second quarter were $56.3 million
compared with $63.6 million in the fiscal 2006 second quarter. Comparable store
sales for the quarter ended July 31, 2007 declined 12.0%. The Company reports
sales performance quarterly and considers a store to be comparable after it has
been open six full fiscal quarters. Comparable store sales figures do not
include sales of extended service contracts.
REX recorded a total of $5.9 million of income from synthetic fuel limited
partnership investments, interest income, gains on sale of real estate and
equity in unconsolidated affiliates in the quarter ended July 31, 2007 of which
approximately $3.4 million was income from synthetic fuel limited partnership
investments. In the fiscal 2006 second quarter, REX recorded approximately $2.7
million of income from these sources (none which was derived from equity in
unconsolidated affiliates). During the quarter ended July 31, 2007 REX
recognized a $0.6 million loss from
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REX REPORTS FISCAL 2007 SECOND QUARTER, 9/5/07 page 2
discontinued operations, net of taxes, compared with a $0.07 million loss from
discontinued operations, net of taxes, in the year ago period. In addition, REX
recorded a $2.6 million gain on disposal of discontinued operations, net of
taxes, in the three months ended July 31, 2007.
In the fiscal 2007 second quarter, REX purchased approximately 195,400 shares of
its common stock in open market transactions. In the fiscal 2007 third quarter
to date, the Company has repurchased an additional 259,300 shares of its common
stock in open market transactions. The Company has approximately 545,300
authorized shares remaining available to purchase under the expanded June 2007
stock buy-back authorization.
On August 30, 2007 (in REX's fiscal 2007 third quarter), REX received 3,693,858
shares of US BioEnergy (NASDAQ: USBE) common stock and approximately $4.8
million of cash as total consideration for its interest in Millennium Ethanol,
LLC (acquired by US BioEnergy) based upon the conversion of REX's $14 Million
Convertible Secured Promissory Note, accrued interest and exercise of its
Related Purchase Rights.
The Company will host a conference call and webcast today at 11:00 a.m. EDT,
which are open to the general public. The conference call dial-in number is
212/231-6010; please call ten minutes in advance to ensure that you are
connected prior to the presentation. Interested parties may also access the call
live via the Investor Relations page of the Company's website, www.rextv.com, or
at www.earnings.com; please allow 15 minutes to register, download and install
any necessary software.
Following its completion, a telephonic replay of the call can be accessed
through 1:00 p.m. EDT on September 12, 2007 by dialing 800/633-8284 or
402/977-9140 (international callers). The access code for the audio replay is
21347687. Alternatively, a replay will be available on the Internet for 30 days
at WWW.REXTV.COM or WWW.EARNINGS.COM.
Over the past eight years, REX has been active in several synthetic fuel
investments and has agreements to participate in four ethanol entities. REX
Stores Corporation is also a specialty retailer of consumer electronic products
and appliances. As of July 31, 2007, the Company operated 142 retail stores in
35 states under the trade name "REX."
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REX REPORTS FISCAL 2007 SECOND QUARTER, 9/5/07 page 3
This news announcement contains or may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements can be identified by use of forward-looking terminology such as
"may," "expect," "believe," "estimate," "anticipate" or "continue" or the
negative thereof or other variations thereon or comparable terminology. Readers
are cautioned that there are risks and uncertainties that could cause actual
events or results to differ materially from those referred to in such
forward-looking statements. These risks and uncertainties include the risk
factors set forth from time to time in the Company's filings with the Securities
and Exchange Commission and include among other things: risks and uncertainties
relating to the acquisition of REX Stores' interest in Millennium Ethanol, LLC
by U.S. BioEnergy Corporation including uncertainty of the financial performance
of U.S. BioEnergy Corporation following completion of the transaction;
fluctuations in the market prices and trading volumes of U.S. BioEnergy
Corporation common stock; the highly competitive nature of the consumer
electronics retailing industry, changes in the national or regional economies,
weather, the effects of terrorism or acts of war on consumer spending patterns,
the availability of certain products, technological changes, changes in real
estate market conditions, new regulatory restrictions or tax law changes
relating to the Company's synthetic fuel investments, the fluctuating amount of
quarterly payments received by the Company with respect to sales of its
partnership interest in a synthetic fuel investment, the potential for Section
29/45K tax credits to phase out based on the price of crude oil adjusted for
inflation, and the uncertain amount of synthetic fuel production and resulting
income received from time to time from the Company's synthetic fuel investments.
As it relates to ethanol investments, risks and uncertainties include among
other things: the uncertainty of constructing plants on time and on budget and
the price volatility of corn, dried distiller grains, ethanol, gasoline and
natural gas.
-tables follow-
REX REPORTS FISCAL 2007 SECOND QUARTER, 9/5/07 page 4
REX STORES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
UNAUDITED
Three Months Ended Six Months Ended
JULY 31 JULY 31
------- -------
2007 2006 2007 2006
---- ---- ---- ----
(In Thousands, Except Per Share Amounts)
Net sales and revenue $ 56,264 $ 63,583 $ 113,955 $ 129,572
Cost of sales (Excluding depreciation) 38,666 45,822 78,577 92,964
--------- -------- --------- ---------
Gross profit 17,598 17,761 35,378 36,608
Selling, general and administrative expenses (17,013) (17,645) (33,834) (35,936)
Interest income 1,976 287 3,269 579
Interest expense (121) (398) (286) (799)
Loss on early termination of debt - - (651) -
Gains on sale of real estate, net 72 1,735 842 1,735
Equity in income of unconsolidated ethanol affiliates 412 - 1,522 -
Income from synthetic fuel investments 3,406 723 10,139 2,785
--------- -------- --------- ---------
Income from continuing operations before provision
for income taxes and minority interest 6,330 2,463 16,379 4,972
Provision for income taxes 2,578 895 6,454 1,845
Minority interest 54 - (41) -
--------- -------- --------- ---------
Income from continuing operations 3,806 1,568 9,884 3,127
Loss from discontinued operations, net of tax (573) (71) (1,525) (141)
Gain on disposal of discontinued operations, net of tax 2,577 - 4,985 -
--------- -------- --------- ---------
NET INCOME $5,810 $1,497 $13,344 $2,986
========= ======== ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 10,625 10,323 10,548 10,235
========= ======== ========= =========
Basic income per share from continuing operations $0.36 $0.15 $0.94 $0.30
Basic loss per share from discontinued operations (0.05) - (0.14) (0.01)
Basic income per share on disposal of discontinued operations 0.24 - 0.47 -
--------- -------- --------- ---------
BASIC NET INCOME PER SHARE $0.55 $0.15 $1.27 $0.29
========= ======== ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED 11,989 11,575 11,911 11,607
========= ======== ========= =========
Diluted income per share from continuing operations $0.32 $0.13 $0.83 $0.27
Diluted loss per share from discontinued operations (0.05) - (0.13) (0.01)
Diluted income per share on disposal of discontinued operations 0.21 - 0.42 -
--------- -------- --------- ---------
DILUTED NET INCOME PER SHARE $0.48 $0.13 $1.12 $0.26
========= ======== ========= =========
- balance sheet follows -
REX REPORTS FISCAL 2007 SECOND QUARTER, 9/5/07 page 5
REX STORES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
UNAUDITED
July 31, January 31, July 31,
2007 2007 2006
--------- --------- ---------
ASSETS (In Thousands)
CURRENT ASSETS:
Cash and cash equivalents $ 90,293 $ 43,008 $ 5,481
Accounts receivable, net 3,128 1,975 4,149
Synthetic fuel receivable 3,851 8,838 3,171
Note receivable, related party - - 5,595
Merchandise inventory, net 84,256 70,078 123,349
Prepaid expenses and other 2,932 2,915 2,226
Future income tax benefits 6,562 9,192 9,354
--------- --------- ---------
Total current assets 191,022 136,006 153,325
PROPERTY AND EQUIPMENT, NET 78,575 122,769 121,994
ASSETS HELD FOR SALE, NET 1,064 2,009 2,822
OTHER ASSETS 23,595 18,986 10,580
GOODWILL 1,322 1,322 -
FUTURE INCOME TAX BENEFITS 23,533 26,245 29,228
INVESTMENTS 60,887 35,699 -
RESTRICTED INVESTMENTS 2,443 2,406 2,367
--------- --------- ---------
Total assets $ 382,441 $ 345,442 $ 320,316
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 2,183 $ 2,678 $ 2,476
Deferred income - extended warranties 15,085 15,641 15,401
Accounts payable, trade 42,923 23,254 31,557
Current portion of deferred gain on sale and leaseback 2,068 101 101
Other current liabilities 9,381 10,510 11,296
--------- --------- ---------
Total current liabilities 71,640 52,184 60,831
--------- --------- ---------
LONG-TERM LIABILITIES:
Long-term mortgage debt 19,122 31,236 20,117
Deferred income - extended warranties 17,653 19,286 18,054
Deferred gain on sale and leaseback 6,163 504 554
Other 940 - -
--------- --------- ---------
Total long-term liabilities 43,878 51,026 38,725
--------- --------- ---------
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY 11,764 11,443 -
SHAREHOLDERS' EQUITY:
Common stock 298 295 295
Paid-in capital 143,214 139,337 138,238
Retained earnings 265,106 252,249 243,884
Treasury stock (163,176) (161,092) (161,657)
Accumulated other comprehensive income, net of tax 9,717 - -
--------- --------- ---------
Total shareholders' equity 255,159 230,789 220,760
--------- --------- ---------
Total liabilities and shareholders' equity $382,441 $ 345,442 $ 320,316
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