[REX LOGO]
News Announcement For Immediate Release
For further information contact:
Douglas Bruggeman Joseph N. Jaffoni, Stewart A. Lewack
Chief Financial Officer Jaffoni & Collins Incorporated
937/276-3931 212/835-8500 or rsc@jcir.com
REX STORES' FIRST QUARTER DILUTED
EARNINGS PER SHARE INCREASE 28% TO $0.32
Dayton, Ohio (May 28, 2004) -- REX Stores Corporation (NYSE:RSC), a specialty
retailer of consumer electronic products and appliances, today announced
financial results and comparable store sales for the Company's fiscal 2004 first
quarter ended April 30, 2004.
Net income in the fiscal 2004 first quarter ended April 30, 2004 rose 30% to
$4.1 million, or $0.32 per diluted share, from net income of $3.1 million, or
$0.25 per diluted share, in the fiscal 2003 first quarter. Fiscal 2004 first
quarter net income reflects a 71% rise in investment income from synthetic fuel
investments. Fiscal 2003 first quarter net income included a gain of
approximately $0.4 million from the sale of real estate. Per share results are
based on 12,965,000 and 12,632,000 diluted weighted average shares outstanding
for the fiscal 2004 and 2003 three-month periods, respectively.
Net sales in the fiscal 2004 first quarter fell 7.6% to $88.2 million from $95.4
million in the fiscal 2003 first quarter. Comparable store sales during the
period fell 7% compared to the same year-ago period. 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.
During the fiscal 2004 first quarter, the Company's board of directors extended
a previous share repurchase authorization by an additional 1,000,000 shares. In
the first quarter, REX purchased approximately 50,000 shares of its common stock
in open market transactions. The Company has approximately 1,120,000 authorized
shares remaining available to purchase under the expanded February 2004 stock
buy-back authorization.
-more-
REX Stores Reports First Quarter Results, 5/28/04 page 2
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
212-346-7087; 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.fulldisclosure.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 June 4, 2004 by dialing 800/633-8284 or 402/977-9140
(international callers). The access code for the audio replay is 21196544.
Alternatively, a replay will be available on the Internet for 30 days at
www.rextv.com or www.fulldisclosure.com.
REX Stores Corporation is a leading specialty retailer of consumer electronic
products and appliances. As of April 30, 2004, the Company operated 245 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, technological
changes, 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, and the uncertain amount of synthetic
fuel production and tax credits received from time to time from the Company's
synthetic fuel investments.
-tables follow-
REX Stores Reports First Quarter Results, 5/28/04 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,
2004 2003
---------- ----------
NET SALES $ 88,200 $ 95,411
COSTS AND EXPENSES:
Cost of merchandise sold 62,432 67,573
Selling, general and administrative expenses 24,664 25,922
---------- ----------
Total costs and expenses 87,096 93,495
---------- ----------
INCOME FROM OPERATIONS 1,104 1,916
INVESTMENT INCOME 87 17
INTEREST EXPENSE (980) (1,200)
GAIN ON SALE OF REAL ESTATE -- 386
INCOME FROM SYNFUEL INVESTMENTS 5,236 3,064
---------- ----------
Income before provision for income taxes 5,447 4,183
PROVISION FOR INCOME TAXES 1,362 1,045
---------- ----------
NET INCOME $ 4,085 $ 3,138
========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 11,155 10,939
========== ==========
BASIC NET INCOME PER SHARE $ 0.37 $ 0.29
========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 12,965 12,632
========== ==========
DILUTED NET INCOME PER SHARE $ 0.32 $ 0.25
========== ==========
(more)
REX Stores Reports First Quarter Results, 5/28/04 page 4
REX STORES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, January 31, April 30,
2004 2004 2003
---------- ----------- ----------
ASSETS:
Cash and cash equivalents $ 25,052 $ 29,026 $ 1,671
Accounts receivable, net 2,089 2,560 2,495
Synfuel receivable 893 3,098 8,644
Merchandise inventory 136,823 116,755 161,588
Prepaid expenses and other 863 1,481 1,981
Future income tax benefits 8,703 8,703 8,860
---------- ---------- ----------
Total current assets 174,423 161,623 185,239
PROPERTY AND EQUIPMENT, NET 131,513 131,409 133,780
OTHER ASSETS 915 3,477 2,437
FUTURE INCOME TAX BENEFITS 14,645 14,645 7,560
RESTRICTED INVESTMENTS 2,259 2,257 2,246
---------- ---------- ----------
Total assets $ 323,755 $ 313,411 $ 331,262
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Notes payable $ -- $ -- $ 8,744
Current portion of long-term debt 5,044 5,258 6,413
Current portion, deferred income and deferred gain
on sale and leaseback 10,347 10,544 11,422
Accounts payable, trade 47,616 32,745 57,855
Accrued income taxes 1,119 806 521
Accrued payroll 3,828 6,602 3,957
Other current liabilities 7,206 7,214 8,315
---------- ---------- ----------
Total current liabilities 75,160 63,169 97,227
---------- ---------- ----------
LONG-TERM LIABILITIES:
Long-term mortgage debt 47,573 53,548 61,825
Deferred income 12,269 12,762 13,547
Deferred gain on sale and leaseback -- -- 198
---------- ---------- ----------
Total long-term liabilities 59,842 66,310 75,570
---------- ---------- ----------
Shareholders' equity:
Common stock 286 283 277
Paid-in capital 127,724 126,124 121,286
Retained earnings 189,165 185,080 160,778
Treasury stock (128,422) (127,555) (123,876)
---------- ---------- ----------
Total shareholders' equity 188,753 183,932 158,465
---------- ---------- ----------
Total liabilities & shareholders' equity $ 323,755 $ 313,411 $ 331,262
========== ========== ==========
# # #