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As filed with the Securities and Exchange Commission on January 19, 1999
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 19, 1999
TWEETER HOME ENTERTAINMENT GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-24091 04-341753
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
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10 PEQUOT WAY
CANTON, MASSACHUSETTS 02021
(ADDRESS, INCLUDING ZIP CODE OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
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C-1
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Item 5. Other Events
On January 19, 1999 Tweeter Home Entertainment Group, Inc. announced earnings
results for the quarter ended December 31, 1998. A copy of the press release is
attached as an exhibit to this report.
Item 7. Exhibits
Exhibit Number Exhibit
99 Press Release dated January 19, 1999
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
under-signed hereunto duly authorized.
TWEETER HOME ENTERTAINMENT GROUP, INC.
Registrant
By: /s/ Joseph G. McGuire
Joseph G. McGuire
Chief Financial Officer
DATED: January 19, 1999
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*CONFIDENTIAL*
EXHIBIT 99
TWEETER HOME ENTERTAINMENT GROUP REPORTS EARNINGS FOR ITS FIRST QUARTER ENDING
DECEMBER 31, 1998
CANTON, MA., January 19, 1999 -- Tweeter Home Entertainment Group, Inc.
(Nasdaq: TWTR) announced its earnings results for the quarter ended
December 31, 1998.
For the quarter ended December 31, 1998, total revenue increased 16.3%, to
$86.8 million from $74.6 million for the same period last year. Comparable
store sales for the three-month period increased 10.6%, comprised of a 11.9%
increase at Tweeter stores, a 23.9% increase at Bryn Mawr stores and no change
in comparable store sales at HiFi Buys. Net income for the quarter increased
43.6% to $4.6 million, compared to $3.2 million for the same period last year.
Earnings per share were $.64 on a fully diluted basis.
Income from operations, as a percentage of total revenue, increased to 9.0% for
the quarter ended December 31, 1998 from 8.2% for the same period last year.
This was derived primarily from a decrease in selling expenses offset by an
increase in corporate, general and administrative expenses, as percentages of
total revenue. Specifically, selling expenses as a percent of revenue decreased
to 20.2% from 22.0% for the same period last year. Corporate, general and
administrative expenses as a percent of revenue increased to 4.7% from 3.5% for
the same period last year. Additionally, interest expense for the quarter
decreased to $201,000 from $865,000 for the same quarter last year.
Tweeter Home Entertainment Group, Inc. is a specialty retailer of mid to
high-end audio and video consumer electronics products. The Company operates 53
stores under the Tweeter, Bryn Mawr and HiFi Buys names in the New England,
Mid-Atlantic and South-East markets, respectively. The Company's stores feature
an extensive selection of home and car audio systems and components, portable
audio equipment, and home video products, including large screen televisions,
DVD players, digital satellite systems, video cassette recorders and camcorders.
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TWEETER HOME ENTERTAINMENT GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1998
AND THE FISCAL YEAR ENDED SEPTEMBER 30, 1998
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, September 30,
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1997 1998 1997 1998
----- ---- ---- ----
<S> <C> <C> <C> <C>
Total revenue $ 74,617 $ 86,784 $ 132,525 $ 232,289
Cost of sales 49,236 57,233 86,315 151,266
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Gross Profit 25,381 29,551 46,210 81,023
Selling expenses 16,390 17,499 35,568 56,906
Corporate, general and administrative expenses 2,617 4,041 8,102 11,128
Amortization of goodwill 221 215 487 917
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Income from operations 6,153 7,796 2,053 12,072
Interest expense 865 201 1,808 2,753
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Income (loss) before income taxes 5,288 7,595 245 9,319
Income tax expense (benefit) 2,115 3,038 99 3,724
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Net income (loss) before extraordinary items $ 3,173 $ 4,557 $ 146 $ 5,595
========= ========= ========= =========
Extraordinary items, net of tax -- -- -- 340
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NET INCOME (LOSS) $ 3,173 $ 4,557 $ 146 $ 5,255
========= ========= ========= =========
Accretion of preferred stock 792 -- 2,156 2,514
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Net income (loss) available to common
stockholders 2,381 4,557 (2,010) 2,741
========= ======== ========= ========
Basic earnings per share
Income (loss) available to common
shareholders before extraordinary item ...... 1.42 0.72 (1.20) 1.24
Extraordinary item ........................... -- -- -- (0.14)
--------- --------- --------- ---------
Net income (loss) ............................ $ 1.42 $ 0.72 $ (1.20) $ 1.10
========= ========= ========= =========
Diluted earnings per share
Net income (loss) before extraordinary item .. 0.69 0.64 (1.20) 1.11
Extraordinary item ........................... -- -- -- (0.07)
--------- --------- --------- ---------
Net Income (loss) ............................ $ 0.69 $ 0.64 $ (1.20) $ 1.04
========= ========= ========= =========
Weighted average shares outstanding
Basic ........................................ 1,672,507 6,356,561 1,672,507 2,486,271
Diluted ...................................... 4,589,499 7,102,100 1,672,507 5,033,803
</TABLE>
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TWEETER HOME ENTERTAINMENT GROUP, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31,
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1997 1998
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<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ......................... $ 9,932,904 $ 3,912,650
Accounts receivable, net .......................... 9,325,907 11,568,663
Inventory ......................................... 33,031,814 43,885,848
Other current assets .............................. 1,727,582 2,018,494
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Total current assets ............................ 54,018,207 61,385,655
Property and equipment, net ....................... 18,703,379 26,771,456
Other assets, net ................................. 381,802 72,660
Goodwill, net ..................................... 20,351,821 19,904,854
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TOTAL ......................................... $93,455,209 $108,134,625
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LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt ................. $ 400,000 $ --
Amount due to bank ................................ 7,324,274 6,402,324
Accounts payable, accrued expenses and other
current liabilities ............................. 34,540,318 40,227,278
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Total current liabilities ..................... 42,264,592 46,629,602
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LONG-TERM DEBT:
Note payable to bank .............................. 12,000,000 --
Subordinated debt ................................. 16,274,617 --
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Total long-term debt .......................... 28,274,617 --
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Other long-term liabilities ....................... 4,686,756 5,337,321
Total liabilities.............................. 75,225,965 51,966,923
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COMMITMENTS AND CONTINGENCIES
REDEEMABLE CONVERTIBLE PREFERRED STOCK .............. 21,391,130 --
STOCKHOLDERS' EQUITY (DEFICIT) ...................... (3,161,886) 56,167,702
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TOTAL ......................................... $93,455,209 $108,134,625
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</TABLE>
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Tweeter Home Entertainment Group news and financial releases can be found on
the Company's investor relations website at www.twtr.com. For further
information, please contact Joe McGuire, Chief Financial Officer at
(781) 830-3314 voice, (781) 821-9956 fax, or via email at [email protected]
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Certain statements contained in this press release, including, without
limitation, statements containing the words "expects," "anticipates,"
"believes," and words of similar import, constitute "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward looking statements are subject to various risks and
uncertainties, including those related to Company growth and acquisitions,
dependence on key personnel, the need for additional financing, competition and
seasonal fluctuations, and those referred to in the Company's Registration
Statement on Form S-1, that could cause actual future results and events to
differ materially from those currently anticipated. Readers are cautioned not
to place undue reliance on these forward looking statements.
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