This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Trans World Entertainment CEO Discusses Q3 2010 Results – Earnings Call Transcript

For the quarter our comp sales in music were down 7% compared to CD sales for the industry that declined 24%. Music represents 36% of our business as compared to 37% last year. Comp store sales for electronics accessory and trend increased 5% on a combined basis and represented 15% of our business versus 13% last year. Comp store sales in our game category decreased 41% and represented 5% of our business as compared to 8% last year. During fiscal 2009, the company eliminated the game category in over 200 stores; at the end of the third quarter 135 of our stores carry games compared to 347 a year ago. John will now take you through the financial results for the third quarter. John.

John Sullivan

Thank you Bob, good morning. Our net loss for the quarter improved $6.2 million to $16.1 million from last year’s net loss of $22.3 million. The loss per share was $0.51 compared to $0.71 per share last year. Our gross margin rate for the quarter increased to 34.1% from 33.9% last year, a 20 basis point improvement. SG&A expenses were $56.2 million, a reduction of 22% versus a sales decline of 20%. As a percentage of sales, SG&A expenses were 43.7% this year versus 44.8% last year, an improvement of a 110 basis points.

EBITDA was a loss of $12.3 million in the quarter versus $17.6 million last year, an improvement of $5.3 million. Net interest expense was $900,000 in the quarter versus $700,000 last year.

At the end of the quarter, borrowings on our line of credit were $8.6 million which was $46.9 million less than last year's $55.5 million. We accomplish this through the management of working capital. Year-over-year, we lowered our inventory by $98 million. At quarter-end inventory position was $271 million versus last year's $369 million.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.58 -1.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs