[REX STORES LOGO]
News Announcement For Immediate Release
For further information contact:
Douglas Bruggeman Stewart A. Lewack, Joseph N. Jaffoni
Chief Financial Officer Jaffoni & Collins Incorporated
937/276-3931 212/835-8500 or rsc@jcir.com
REX STORES' FISCAL FIRST QUARTER
DILUTED EARNINGS PER SHARE INCREASE 50% TO $0.48
- Comparable Store Sales Rise 7% -
- Prior Share Repurchase Authorization Expanded By 1,000,000 Shares -
Dayton, Ohio (June 2, 2005) -- REX Stores Corporation (NYSE: RSC), a specialty
retailer of consumer electronic products and appliances, today announced
financial results and comparable store sales for the three-month period ended
April 30, 2005 (the Company's 2005 fiscal year).
Net sales in the fiscal 2005 first quarter rose 6% to $89.7 million from $84.6
million in the fiscal 2004 first quarter, reflecting higher demand for LCD, DLP
and plasma televisions, as well as an increase in appliance sales. Comparable
store sales for the three months ended April 30, 2005 rose 7%. 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 three months ended April 30, 2005 rose 49% to $6.1 million, or
$0.48 per diluted share, compared to net income of $4.1 million, or $0.32 per
diluted share, in the three months ended April 30, 2004. Net income in the
fiscal 2005 first quarter includes $6.0 million of pre-tax income from synthetic
fuel limited partnerships, compared to $5.2 million of comparable investment
income in the year-ago period. Per share results are based on 12,771,000 and
12,965,000 diluted weighted average shares outstanding for the three-month
periods ending April 30, 2005 and 2004, respectively.
-more-
REX Stores Reports First Quarter Results, 6/2/05 page 2
On May 26, 2005, the Company's Board of Directors expanded a previous share
repurchase authorization by an additional 1,000,000 shares. In the first
quarter, REX purchased approximately 119,800 shares of its common stock in open
market transactions. Since the first quarter, REX has purchased 146,300
additional shares. As of May 27, 2005, the Company has approximately 1,186,945
authorized shares remaining available to purchase under the expanded stock
buy-back authorization.
Commenting on the results, Stuart Rose, Chairman and Chief Executive Officer,
stated, "Our employees should be congratulated for generating a 7% comparable
store sales increase and a 36% increase in operating income. Our sales force did
a great job of serving the customer and focusing on products we sell best, like
LCD, DLP and plasma televisions, whose price points have fallen to a level that
is now attractive to our customer base."
The Company will host a conference call and webcast today at 11:00 a.m. EDT,
both of which are open to the general public. The conference call dial-in number
is 212/676-4910; 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 9, 2005 by dialing 800/633-8284 or 402/977-9140
(international callers). The access code for the audio replay is 21248251. A
replay of the webcast will be available 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, 2005 the Company operated 229 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, 6/2/05 page 3
REX STORES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended
April 30,
(unaudited)
--------------------------
2005 2004
------------ ----------
NET SALES $ 89,742 $ 84,629
Cost of merchandise sold 65,177 59,841
--------- ---------
GROSS PROFIT 24,565 24,788
Selling, general and administrative expenses 22,869 23,542
--------- ---------
OPERATING INCOME 1,696 1,246
INVESTMENT INCOME 74 87
INTEREST EXPENSE (616) (934)
LOSS ON EARLY TERMINATION OF DEBT - (22)
INCOME FROM LIMITED PARTNERSHIPS 5,983 5,236
--------- ---------
Income from continuing operations before provision
for income taxes and discontinued operations 7,137 5,613
PROVISION FOR INCOME TAXES 1,059 1,426
--------- ---------
Income from continuing operations 6,078 4,187
Loss from discontinued operations, net of tax (94) (102)
Gain on disposal of discontinued operations, net of tax 116 -
--------- ---------
Net Income $ 6,100 $ 4,085
========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 11,156 11,155
========= =========
Basic income per share from continuing operations $ 0.55 $ 0.38
Basic loss per share from discontinued operations (0.01) (0.01)
Basic income per share on disposal of discontinued operations .01 -
--------- ---------
BASIC NET INCOME PER SHARE $ 0.55 $ 0.37
========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED 12,771 12,965
========= =========
Diluted income per share from continuing operations $ 0.48 $ 0.32
Diluted loss per share from discontinued operations (0.01) -
Diluted income per share on disposal of discontinued operations 0.01 -
--------- ---------
DILUTED NET INCOME PER SHARE $ 0.48 $ 0.32
========= =========
(more)
REX Stores Reports First Quarter Results, 6/2/05 page 4
REX STORES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
April 30, January 31, April 30,
2005 2005 2004
(unaudited) (unaudited)
----------------- ---------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,221 $ 4,671 $ 17,092
Escrow deposit 9,000 - -
Accounts receivable, net 3,984 5,460 3,049
Synthetic fuel receivable 964 1,675 893
Investments available for sale - - 7,000
Merchandise inventory 131,547 124,188 136,823
Prepaid expenses and other 672 1,230 863
Future income tax benefits 10,929 10,929 8,703
---------- ----------- -----------
Total current assets 163,317 148,153 174,423
PROPERTY AND EQUIPMENT, NET 129,330 129,723 131,513
ASSETS HELD FOR SALE 1,669 1,986 -
OTHER ASSETS 953 841 915
FUTURE INCOME TAX BENEFITS 27,978 27,978 14,645
RESTRICTED INVESTMENTS 2,277 2,270 2,259
----------- ----------- -----------
Total assets $ 325,524 $ 310,951 $ 323,755
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $ 27 $ - $ -
Current portion of long-term debt 2,881 2,897 5,044
Accounts payable, trade 47,037 32,842 47,616
Accrued income taxes 624 1,567 1,119
Current portion of deferred income and
deferred gain on sale and leaseback 9,886 10,432 10,347
Accrued payroll and related items 4,264 6,303 3,828
Other current liabilities 5,974 6,152 7,206
----------- ----------- -----------
Total current liabilities 70,693 60,193 75,160
----------- ----------- -----------
LONG-TERM LIABILITIES:
Long-term mortgage debt 29,213 30,501 47,573
Deferred income 11,582 11,703 12,269
----------- ----------- -----------
Total long-term liabilities 40,795 42,204 59,842
----------- ----------- -----------
SHAREHOLDERS' EQUITY:
Common stock 291 290 286
Paid-in capital 134,338 133,474 127,724
Retained earnings 218,729 212,629 189,165
Treasury stock (139,322) (137,839) (128,422)
----------- ----------- -----------
Total shareholders' equity 214,036 208,554 188,753
----------- ----------- -----------
Total liabilities and
shareholders' equity $ 325,524 $ 310,951 $ 323,755
=========== =========== ===========
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