SUN TELEVISION AND APPLIANCES, INC.
COLUMBUS, Ohio, April 29 /PRNewswire/ -- Sun Television and Appliances, Inc. (NASDAQ: SNTV) today reported record results for its fourth quarter and fiscal year ended Feb. 28, 1993. Net income for the fourth quarter increased 121 percent to $5,500,000 or $.68 per share compared to $2,494,000 or $.39 per share for the prior year's comparable quarter, notwithstanding a 27 percent increase in average shares outstanding during fiscal 1993. Net income for the fiscal year ended Feb. 28, 1993 rose 101 percent to $11,598,000 from $5,763,000 reported last year. Net income per share for the fiscal year ended Feb. 28, 1993 rose 58 percent to $1.55 from $.98 in the prior year, also, notwithstanding a 27 percent increase in the average shares outstanding this year. Fourth quarter net sales and service revenues rose 43 percent to $146,287,000 from $102,461,000 reported last year. Net sales and service revenues for fiscal 1993 rose 47 percent to a record $398,642,000 from $270,602,000 last year. Comparable stores recorded a 14 percent sales increase in the fourth quarter and a 13 percent increase for all of fiscal 1993. Robert E. Oyster, president, stated, "We are very pleased to again report record sales and earnings for the year, particularly in view of the slow recovery being experienced in the national economy. All major markets, as well as the seven new stores we opened during fiscal 1993, contributed to our sales and earnings growth. The proceeds from our public offerings and increased cash flow from earnings have enabled us to pay off all our bank borrowings and position the company to appropriately capitalize on future expansion opportunities under our controlled growth strategy. At our fiscal year-end, the company held $45,091,000 or approximately $5.26 per share in cash or cash equivalents putting Sun TV in an extremely strong financial position." For the fourth quarter, Sun TV's gross profit percentage increased by 0.3 of a percentage point of net sales reflecting improvement over last year when the company engaged in extensive price promotion as it entered new markets in Cleveland, Akron and Youngstown, Ohio. For the full fiscal year, gross profit declined by 0.1 of a percentage point reflecting the increased sales of computers and related products which have a slightly lower gross profit rate. Sun TV's fourth quarter, selling, general and administrative expenses decreased by 1.8 percentage points of net sales reflecting efficiencies associated with the increased store base, particularly payroll and advertising. Selling, general and administrative expenses decreased 0.8 of a percentage point of net sales for the entire fiscal year for primarily the same reasons. Fourth quarter interest expense of $117,000 represented a 67 percent decrease from $351,000 in the prior year. For all of fiscal 1993, interest expense declined 61 percent to $626,000 from $1,608,000 last year. The decline in both periods resulted from a decline in average interest rates as well as a reduction in average borrowings outstanding. Average borrowings were reduced by the company's utilization of the proceeds from its public offerings as well as the application of a portion of its annual cash flow to repay debt. Sun TV is specialty retailer selling high quality, brand name consumer electronic, home appliance and home office products in 32 stores in Central and Northeast Ohio, Western Pennsylvania and West Virginia. Sun TV's common stock is traded over the counter and is quoted on the NASDAQ National Market System under the symbol SNTV. SUN TELEVISION & APPLIANCES, INC. CONSOLIDATED STATEMENT OF INCOME (In thousands, except per share amounts) Three Months Ended 2/28/93 2/29/92 Net sales and service revenues $146,287 $102,461 Cost of sales 108,170 76,048 Gross profit 38,117 26,413 Selling, general and administrative expense 28,858 22,023 Amortization of intangibles 123 123 Income from operations 9,136 4,267 Interest income 141 62 Interest expense 117 351 Income before income taxes 9,160 3,978 Income taxes 3,660 1,484 Net income 5,500 2,494 Net income per share $.68 $.39 Primary weighted average shares outstanding 8,134 6,390 Year Ended 2/28/93 2/29/92 Net sales and service revenues $398,642 $270,602 Cost of sales 290,502 197,100 Gross profit 108,140 73,502 Selling, general and administrative expense 88,103 62,040 Amortization of intangibles 493 500 Income from operations 19,544 10,962 Interest income 224 216 Interest expense 626 1,608 Income before income taxes 19,142 9,570 Income taxes 7,544 3,807 Net income 11,598 5,763 Net income per share $1.55 $.98 Primary weighted average shares outstanding 7,460 5,886 SUN TELEVISION AND APPLIANCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Assets 2/28/93 2/29/92 Current assets Cash and cash equivalents $ 45,091 $ 2,927 Receivables 14,513 8,478 Merchandise inventory 54,791 40,773 Other current assets 4,007 2,087 Total current assets 118,402 54,265 Receivable from stock offering --- 12,375 Property and equipment, net 33,596 26,340 Deferred income taxes 7,119 4,555 Intangible assets 16,527 17,048 Total assets $175,644 $114,583 Liabilities and Stockholders' equity Current liabilities Accounts payable $ 18,836 $ 14,770 Current portion of deferred revenue 12,874 9,714 Other current liabilities 12,815 8,777 Total current liabilities 44,525 33,261 Long-term debt 968 16,979 Deferred revenues, noncurrent 17,500 11,734 Stockholders' equity 112,651 52,609 Total liabilities and stockholders' equity $175,644 $114,583 -0- 4/29/93 /CONTACT: Robert E. Oyster, president, Sun Television and Appliances, Inc., 614-445-8401/ (SNTV)
CO: Sun Television and Appliances, Inc. ST: Ohio IN: REA SU: ERN
KL -- CL007 -- 2485 04/29/93 09:24 EDT
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|Date:||Apr 29, 1993|
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