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News Announcement For Immediate Release
For further information contact:
Douglas Bruggeman Joseph N. Jaffoni, Stewart A. Lewack
Vice President, Finance Jaffoni & Collins Incorporated
937/276-3931 212/835-8500 or rsc@jcir.com
REX STORES' FIRST QUARTER COMPARABLE STORE SALES INCREASE 5%
Dayton, Ohio (June 3, 2003) -- REX Stores Corporation (NYSE:RSC), a specialty
retailer of consumer electronic products and appliances, today announced
financial results and comparable store merchandise sales for the Company's
fiscal 2003 first quarter ended April 30, 2003.
Net sales in the fiscal 2003 first quarter rose 2% to $95.4 million from $93.5
million in the fiscal 2002 first quarter, reflecting increased sales of
HDTV-ready large-screen televisions. Comparable store sales for the three months
ended April 30, 2003 rose 5%. 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.
Net income in the fiscal 2003 first quarter was $3.1 million, or $0.25 per
diluted share, compared to net income of $4.2 million, or $0.28 per diluted
share, in the first quarter of fiscal 2002. Per share results are based on
12,632,000 and 14,814,000 diluted weighted average shares outstanding for the
fiscal 2003 and 2002 periods, respectively, and reflect a 3-for-2 stock split
paid in February 2002.
Net income for the first quarter of 2003 reflects approximately $3.1 million of
pre-tax investment income from the sales of the Company's entire Partnership
interest in a synthetic fuel limited partnership. As previously disclosed, the
IRS is auditing this limited partnership. Of the amount stated above,
approximately $1.8 million of the payments relating to sales of certain portions
of the limited partnership interest due the Company during the quarter are being
held in escrow pending the results of the IRS audit. Future payments due the
Company relating to certain of these sales will also be held in escrow pending
the completion of the IRS audit.
-more-
REX Stores Reports First Quarter Results, 6/3/03 page 2
Commenting on the results, Stuart Rose, Chairman and Chief Executive Officer,
stated, "It's a tribute to our employees that we were able to generate a 5%
increase in comparable store sales during the tough economic climate that
prevailed during the first quarter. Our sales force did a great job of serving
the customer and focusing on products we sell best, like HDTV-ready large-screen
televisions."
During the fiscal 2003 first quarter, REX purchased approximately 372,500 shares
of its common stock. Subsequent to the close of the first quarter, the Company
purchased approximately 97,170 additional shares of its common stock. As of June
2, 2003, the Company had approximately 260,480 authorized shares remaining
available to purchase under its authorized stock buy-back program.
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 numbers are
212-346-6414 or 415-537-1841; 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.vcall.com; please allow 15 minutes to register and
download and install any necessary software. Following its completion, a
telephonic replay of the call can be accessed from 1:00 p.m. to 8:00 p.m. EDT
that day by dialing 800/633-8284 or 402/977-9140 (international callers). The
access code for the audio replay is 21145891. Alternatively, a replay will be
available on the Internet for 30 days at www.rextv.com or www.vcall.com.
REX Stores Corporation is a leading specialty retailer of consumer electronic
products and appliances. As of April 30, 2003, the Company operated 252 stores
in 37 states under the trade name "REX."
This news announcement contains 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 among other things, 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 and
technological changes.
-tables follow-
REX Stores Reports First Quarter Results, 6/3/03 page 3
REX STORES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended,
---------------------
April 30, April 30,
2003 2002
--------- ---------
NET SALES $95,411 $93,536
COSTS AND EXPENSES:
Cost of merchandise sold 67,573 66,282
Selling, general and administrative expenses 25,922 25,005
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Total costs and expenses 93,495 91,287
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INCOME FROM OPERATIONS 1,916 2,249
INVESTMENT INCOME 17 150
INTEREST EXPENSE (1,200) (1,583)
GAIN ON SALE OF REAL ESTATE 386 --
INCOME FROM LIMITED PARTNERSHIPS 3,064 4,636
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Income before provision for income taxes 4,183 5,452
PROVISION FOR INCOME TAXES 1,045 1,268
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NET INCOME $ 3,138 $ 4,184
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WEIGHTED AVERAGE SHARES OUTSTANDING -- BASIC 10,939 12,297
======= =======
BASIC NET INCOME PER SHARE * $ 0.29 $ 0.34
======= =======
WEIGHTED AVERAGE SHARES OUTSTANDING -- DILUTED 12,632 14,814
======= =======
DILUTED NET INCOME PER SHARE * $ 0.25 $ 0.28
======= =======
* All per share amounts have been adjusted to reflect a 3-for-2 split of the
Company's common stock paid on February 11, 2002.
(more)
REX Stores Reports First Quarter Results, 6/3/03 page 4
REX STORES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, January 31, April 30,
2003 2003 2002
--------- ----------- ---------
ASSETS:
Cash and cash equivalents $ 1,671 $ 1,380 $ 24,720
Accounts receivable, net 2,495 3,413 995
Synthetic fuel receivable 8,644 6,619 446
Merchandise inventory 161,588 142,063 116,902
Prepaid expenses and other 1,981 2,567 2,377
Future income tax benefits 10,350 10,350 12,614
--------- --------- ---------
Total current assets 186,729 166,392 158,054
PROPERTY AND EQUIPMENT, NET 133,780 134,563 137,962
OTHER ASSETS 2,437 1,656 --
FUTURE INCOME TAX BENEFITS 6,070 6,070 7,320
RESTRICTED INVESTMENTS 2,246 2,241 2,227
--------- --------- ---------
Total assets $ 331,262 $ 310,922 $ 305,563
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LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES:
Notes payable $ 8,744 $ 13,451 $ --
Current portion of long-term debt 6,413 5,657 4,680
Current portion, deferred income and deferred gain
on sale and leaseback 11,422 11,107 11,486
Accounts payable, trade 57,855 27,417 37,710
Accrued income taxes 521 -- 2,258
Accrued payroll 3,957 6,750 3,700
Other current liabilities 8,315 8,669 9,021
--------- --------- ---------
Total current liabilities 97,227 73,051 68,855
--------- --------- ---------
LONG-TERM LIABILITIES:
Long-term mortgage debt 61,825 64,426 68,975
Deferred income 13,547 13,993 14,621
Deferred gain on sale and leaseback 198 348 796
--------- --------- ---------
Total long-term liabilities 75,570 78,767 84,392
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SHAREHOLDERS' EQUITY:
Common stock 277 277 277
Paid-in capital 121,286 121,282 118,718
Retained earnings 160,778 157,640 138,892
Treasury stock (123,876) (120,095) (105,571)
--------- --------- ---------
Total shareholders' equity 158,465 159,104 152,316
--------- --------- ---------
Total liabilities & shareholders' equity $ 331,262 $ 310,922 $ 305,563
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