SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 23, 1996
THE GOOD GUYS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-14134 94-2366177
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
7000 Marina Boulevard, Brisbane, California 94005-1830
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code): 415/615-5000
-1-<PAGE>
Item 5. Other Events.
On January 23, 1996, the Registrant announced that
Ronald A. Unkefer, its founder and former Chief Executive
Officer, was resigning as Chairman of the Board of Directors
and as a Director to enable him to devote his full time and
attention to other opportunities.
On January 29, 1996, the Registrant announced that
its Board of Directors had authorized the purchase of up to
500,000 shares of its common stock in open-market purchases
or in private transactions.
Item 7. Financial Statements and Exhibits.
(c) 99.1 Press Release dated January 23, 1996.
99.2 Press Release dated January 29, 1996.
SIGNATURE
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 undersigned hereunto
duly authorized.
THE GOOD GUYS, INC.
(Registrant)
By: /s/ Robert A. Gunst
________________________
Name: Robert A. Gunst
Title: Chief Executive Officer
Dated: February 7, 1996
-2-<PAGE>
Exhibit Index
Exhibit No. Description
99.1 Press Release dated January 23, 1996
99.2 Press Release dated January 29, 1996
-3-<PAGE>
EXHIBIT 99.1
[THE GOOD GUYS! LETTERHEAD]
PRESS RELEASE
Contact: Robert A. Gunst
President and Chief Executive Officer
(415) 615-6060
Keith Foxe
Public Relations Manager
(415) 615-6018
FOR RELEASE AT 8:00 a.m. EASTERN TIME
TUESDAY, JANUARY 23, 1996
THE GOOD GUYS! ANNOUNCES
FIRST QUARTER RESULTS
Brisbane (January 23, 1996)--THE GOOD GUYS! (NASDAQ: GGUY)
today announced net earnings for its first fiscal quarter
ended December 31, 1995 of $6.7 million, down from $8.6
million a year ago. Earnings per share were $.50 on 13.6
million weighted average shares outstanding, versus $.65 on
13.3 million weighted average shares outstanding during the
first quarter of fiscal 1995.
As reported earlier, sales for the first quarter of fiscal
1996 were up 9% to a record $306.7 million, with comparable
store sales declining 6%.
Commenting on the Company's performance, Robert A. Gunst,
President and Chief Executive Officer, said "The challenging
retail environment during the first quarter of fiscal 1996
resulted in disappointing sales and earnings for the Company.
Weak consumer demand and a highly promotional marketplace
characterized this key holiday period. Notwithstanding the
decline in same store sales, we believe that we were able to
maintain market share as a result of THE GOOD GUYS! value-
added marketing strategy.
"As has been the case for over a year, personal computers
represented a larger portion of our sales mix during the
quarter, strongly contributing to the 1.4 percentage point
drop in our gross profit margin versus last year, to 22.7%.
However, despite our same store sales decline, we were able
to hold SG&A costs to the same percentage of sales as last
year through rigorous cost control. In addition, and <PAGE>
importantly, our distribution and purchasing systems enabled
us to manage our holiday season inventories in line with the
decreased demand. In fact, at the end of the quarter,
merchandise inventories were $11 million below last year,
notwithstanding our eleven additional stores.
"On the expansion front, we added four new stores during the
first quarter; one in Las Vegas, one in Seattle, and two in
Southern California. During the remainder of fiscal 1996, we
plan to open seven to ten additional stores, all located
within our existing four-state market area.
"As we look forward, we see product trends that should drive
the integration of the audio, video, computer, and
communications products that we sell into new, exciting, but
more complex consumer electronics products. This fall, for
example, we expect to see the introduction of the initial new
DVD hardware and software. This product evolution will
increase the complexity of consumer electronics shopping,
reinforcing the need for the value-added, knowledgeable
service that store associates at THE GOOD GUYS! provide. We
are confident that these trends, along with our strong
consumer franchise in each of our markets, positions the
Company well for continued growth in the future."
The Company also announced that Ronald A. Unkefer, the
founder and former Chief Executive Officer of the Company,
was resigning as Chairman of the Board and as a Director to
enable him to devote his full time and attention to other
opportunities. Robert A. Gunst said, "We will miss very much
Ron Unkefer's involvement with THE GOOD GUYS!. His
contribution to the Company over the years has been
invaluable."
THE GOOD GUYS! is a leading specialty retailer of consumer
electronics, marketing a broad range of high quality, name
brand products through its 70 stores; 56 in California, eight
in Washington, three in Oregon and three in Nevada.
THE GOOD GUYS!
SELECTED FINANCIAL DATA
(Unaudited)
Quarter Ended December 31: 1995 1994
Sales $306,715,000 $281,658,000
Net Income $ 6,728,000 $ 8,601,000
Average Shares 13,581,000 13,286,000
Earnings Per Share $ .50 $ .65<PAGE>
THE GOOD GUYS, INC.
Condensed Statement of Income
(Unaudited)
(Amounts in thousands
except per share data) Three Months Ended
December 31, 1995 December 31, 1994
% of % of
Amount Sales Amount Sales
Net Sales $306,715 100.0 $281,658 100.0
Cost of sales 236,955 77.3 213,702 75.9
________ ________
Gross profit 69,760 22.7 67,956 24.1
Selling, general and
administrative expenses 58,439 19.0 53,724 19.1
________ ________
Income from operations 11,321 3.7 14,232 5.0
Interest income
(expense) - net (45) (0.0) (132) (0.0)
________ ________
Income before income taxes
11,276 3.7 14,100 5.0
Income taxes 4,548 1.5 5,499 2.0
________ ________
Net income $ 6,728 2.2 $ 8,601 3.1
======== ========
Net income per share $ 0.50 $ 0.65
======== ========
Shares used in per share
computation 13,581 13,286
======== ========<PAGE>
The GOOD GUYS, INC.
Condensed Balance Sheets
(Unaudited)
December 31
(Amounts in thousands) 1995 1994
ASSETS
Current Assets:
Cash $ 23,819 $ 20,302
Receivables 42,467 36,526
Inventories 168,825 179,819
Prepaid assets 8,999 4,514
________ ________
Total Current Assets 244,110 241,161
Property and equipment, net 57,049 52,302
Other assets 2,384 4,132
________ ________
Total assets $303,543 $297,595
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $104,627 $122,169
Accrued expenses 56,166 47,840
________ ________
Total current liabilities 160,793 170,009
Shareholders' equity 142,750 127,586
________ ________
Total liabilities and shareholders'
equity $303,543 $297,595
======== ========<PAGE>
EXHIBIT 99.2
[THE GOOD GUYS! LETTERHEAD]
PRESS RELEASE
Contact: Robert A. Gunst
President and Chief Executive Officer
(415) 615-6060
Keith J. Foxe
Public Relations Manager
(415) 615-6018
FOR RELEASE AT 8:00 AM Eastern Time
MONDAY, JANUARY 29, 1996
THE GOOD GUYS! ANNOUNCES
STOCK PURCHASE PROGRAM
Brisbane (January 29, 1996) -- THE GOOD GUYS! (NASDAQ: GGUY)
today announced that its Board of Directors has authorized
the purchase of up to 500,000 shares of its common stock in
open-market purchases or in private transactions. The
Company said that it expects the share repurchases to take
place from time-to-time as market conditions warrant.
THE GOOD GUYS! is a leading specialty retailer of consumer
electronics, marketing a broad range of high quality, name
brand products through its 70 stores; 56 in California, eight
in Washington, three in Oregon and three in Nevada.
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