customsteve01 Posted December 24, 2004 Share Posted December 24, 2004 I was in a national home entertainment store(not saying the name, you can fuigure it out) on Dec. 18th and was having as chat with one of the sales people about speakers. (They don't carry the Klipsch line anymore, but they used to. I bought all of mine from them years ago.) He told me that Ultimate was going out of business in about two months and when they go under Klipsch will not have any of there higher end speakers for sale in a national store. I was wondering if any of you have heard this or was it just some kind of ploy by the sales person to dig a Klipsch and push the brands they sell??? Quote Link to comment Share on other sites More sharing options...
DrWho Posted December 24, 2004 Share Posted December 24, 2004 Well Barretts sells klipsch and I dare say they are national... It sounds like tweeter is complaining because klipsch wanted to have dedicated rooms for their stuff (for whatever reason, other companies don't mind this for bose). Quote Link to comment Share on other sites More sharing options...
mike stehr Posted December 24, 2004 Share Posted December 24, 2004 "(for whatever reason, other companies don't mind this for bose)." Don't mind, or don't have have choice? Quote Link to comment Share on other sites More sharing options...
DrWho Posted December 24, 2004 Share Posted December 24, 2004 ---------------- On 12/24/2004 3:02:07 PM mike stehr wrote: "(for whatever reason, other companies don't mind this for bose)." Don't mind, or don't have have choice? ---------------- They have a choice in that they don't have to sell Bose, just like they didn't have to sell Klipsch. They don't mind putting up with the Bose requirements, but once Klipsch required the same thing, they got booted out the door (more like Klipsch got themselves outta there). Granted, I can see a company making more money with Bose which would justify the extra cost, but Klipsch is after the more high end stores that know the importance of dedicated rooms. The retailer wouldn't dare claim that their combo rooms aren't ideal. Btw, each speaker in those combo rooms acts as a passive radiator and each driver will resonate when another speaker is playing it's resonant frequency. Just about all resonances in audio = very bad and Klipsch didn't want this happening when people were listening to their product. Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted December 24, 2004 Share Posted December 24, 2004 i think the important question is really, is ultimate electronics really going under? and if they are whats the deal? I could see this being tweeter. Tweeter as a company has a lot of bitter employee's that were upset about loosing klipsch because thats all the liked. Furthermore as a company on wallstreet tweeter is doing horrid. Just horrid. Barretts just started to expand and revamp their stores recently and as far as I have been able to tell Barretts pushes B&W anyways.... Does anyone know if ultimate is going under and therefore klipsch will no longer have a strong place to sell its refrence line? Quote Link to comment Share on other sites More sharing options...
customsteve01 Posted December 24, 2004 Author Share Posted December 24, 2004 I did a search on the web and could not find anything indicating that Ultimate was going under. The sale person told me they had had several talks within the company about this and he didn't think that Tweeters would sell Klipsch again without some sort of deal from Klipsch. I wouldn't want to think what would happen if Klipsch didn't have a main chain to sell their higher end speakers in and started sending them to B.B. I know having there product in B.B. gets them recognition and they will be a better known brand among the masses, but I think they have a quality product that diserves much more. Quote Link to comment Share on other sites More sharing options...
Rdmarsiii Posted December 24, 2004 Share Posted December 24, 2004 I've heard that Ultimate and Ciruit City both are going under. Not sure how true it is though. Quote Link to comment Share on other sites More sharing options...
Bill H. Posted December 24, 2004 Share Posted December 24, 2004 Here is the Report on Utimate Electronics stock stauts........ http://www.forbes.com/associatedpress/feeds/ap/2004/12/13/ap1708765.html Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted December 25, 2004 Share Posted December 25, 2004 I just did an evaluation on circuit city as a compnay as a whole. And basically They are not going under any time soon. Any time soon being the next 5 years. This is why. Last year at this time their stock lost about 9 cents per share. Then they made some very profitable moves in mid fiscal year. They sold their private credit bank to bank one which caused a jump in their stock which promoted great growth in the company. They then used this money to rebuild and relocate stores. Last year alone they built 44 stores 22 of them being relocations. Next year they plan to relocate another 25 stores. The day after thanks giving circuit city stock dropped 3 cents per chare. Allen Mcchoull the ceo of circuit city said he was disapointed in the sales at circuit city as a whole but he feels it is moving the the right direction as they are still under a new operating platform that started in 2000 as many of you remember with the firing of many of the associates. Also there has been tremendous growth in their online buisness and with the adition of music now and trading circuit their stock has seen growth. I would expect to see a dive in thier stock after the christmas season is over and the final results are in, but you will also see a lot of upcoming changes in advertising with the company. ie the "just what i needed" commericials. All in all, I think circuit city will be around for quite a while longer. Circuit City also pays out dividends to all their investors which is another reason which makes them a weak stock on wall street, but I would expect to see an ipo from them stopping the divedends relativly soon. As far as ultimate electronics go that is a whole different story Quote Link to comment Share on other sites More sharing options...
kenratboy Posted December 25, 2004 Share Posted December 25, 2004 While we are on the subject - how is Good Guys doing? They have awesome stores and amazing product, but they seem to be waining - they have been closing stores (went from 2 to 1 in Vegas - one of the, if not THE fastest growing city in the USA!!!) and I get TERRIBLE feedback from customers about them (they don't know the product, they don't want to help, etc.) - not a good thing. Quote Link to comment Share on other sites More sharing options...
007 Posted December 25, 2004 Share Posted December 25, 2004 Is good guys as big as these other stores? I dont hear about tweeter and such over on teh west coast. Good Guys is pretty much all we have for Klipsch reference. We also have Magnolia Hi Fi, but they dont sell Klipsch. Edit: in reguards to Good Guys service. I get ****ty service when i want to buy something under 500 dollars. Otherwise i get great service, lol. Thier stores are really niec, but thier rooms are not dedicated. Tehy have about 5 or 6 speaker brands per position(L/R/C etc...) Actually, one of them did have one dedicated room for the RX-7's matched with an RSW-15. No other speakers were in that room. Quote Link to comment Share on other sites More sharing options...
minn_male42 Posted December 25, 2004 Share Posted December 25, 2004 From the following website: http://twice.com/article/CA488371.html?display=Breaking+News Ultimate Is Facing Chapter 11 Bankruptcy By Alan Wolf -- TWICE, 12/16/2004 9:38:00 AM Thorton, Colo. Weakening fourth-quarter sales, pending loan defaults and a demand by lenders for significant additional reserves may force Ultimate Electronics to seek bankruptcy protection under Chapter 11 before February. In its third-quarter 10-Q which was delayed after lenders raised their reserve requirements Ultimate said it will likely have insufficient liquidity to fund operations beyond Jan. 31, if not sooner, raising substantial doubt about its ability to continue as a going concern. The A/V specialty chain is currently holding discussions with numerous parties as it considers options such as renegotiating leases, closing stores, entering into strategic alliances or business combinations, and selling off assets. Lenders informed Ultimate on Dec. 10 that, effective immediately, they required additional reserves against availability of funds under a revolving credit facility, and would further increase their reserve demands through Jan. 31, 2005. Last summer the retailer raised its credit facility from $80 million to $100 million and assumed a $13 million term loan for additional liquidity after vendors reduced their credit lines or shortened payment terms. Since Dec. 10, virtually all of Ultimates major vendors eliminated credit lines and are requiring advanced payment, with some reportedly diverting holiday shipments to other area dealers. Despite an uptick in Thanksgiving weekend sales, Ultimate said fourth-quarter revenue has been weak to date, which it anticipates will trigger a violation of one or more of its credit facility covenants. The company said it intends to seek a waiver from its lenders, without which it will default on the facility and the entire $81.3 million balance will become immediately due. News of its Ultimates situation sent CE retail stocks skidding on Dec. 13, with shares of Tweeter down nearly 16 percent, Best Buy down 1.2 percent and Ultimate down 55 percent at the markets close, although its shares rebounded 22 percent the following day. The chains troubles can be traced back four years, as a strategy of aggressive expansion saw the Rocky Mountain retailer extend its franchise into such new markets as St. Louis; Las Vegas; Oklahoma City; Kansas City, Mo.; Phoenix; and Dallas-Ft. Worth. As the company more than doubled its store count to 65 units in 14 states, it became hamstrung by a strained talent pool and infrastructure, a disruptive MIS changeover, unfavorable lease terms, a soft economy, and increased competition as Best Buy and Wal-Mart traded up their mix to better CE goods. Ironically, Ultimate reported improving third-quarter financials earlier this month and analysts generally lauded the retailers turnaround efforts, which have included cost reductions, assortment changes, a new marketing mix and advances into the homebuilder channel. Over the quarter, Ultimate cut its loss from operations by nearly half, gross profit gained over 1.5 percentage points, and expenses as a percentage of sales fell to 38.3 percent from 39.4 percent a year ago. During a conference call earlier this month, before its lenders tightened the screws, president/CEO Dave Workman said that Ultimate has all the pieces in place for a successful holiday season, and chief financial officer David Carter assured analysts that the company continued to maintain a very good relationship with its vendors. They remain cautious but still supportive, he said. There is a long discussion over on AVS forum: http://www.avsforum.com/avs-vb/showthread.php?s=&threadid=485185 Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted December 26, 2004 Share Posted December 26, 2004 that is interesting, I have never been to an ultimate and never hear dof them until about a year ago, the closest one to me is about an hour away and after seeing the product they sell their is about 500 places closer that sell products i like better anyways. Quote Link to comment Share on other sites More sharing options...
popbumper Posted December 26, 2004 Share Posted December 26, 2004 I would not be surprised if Ultimate would end up closing. Of all the chain stores in the Dallas/Ft. Worth area, Ultimate seems to have the "least populated" parking lot, which is usually a god indicator. Just a few miles from my home, Best Buy, Circuit City and Ultimate all share a close proximity to one another, and it is obvious that Ultimate suffers from low customer throughput. Personally, chain-wise, I like Circuit City the best. Best Buy is a good store if you want games or DVD's, but they often pull the bait-and-switch of resealed/preopened boxes with bad returns. Of course, in DFW we also have two other stores - Fry's and Conn's. Fry's is a really good store for MANY items including appliances, computers, and even electronic parts. Conn's, on the other hand, is one of the most STERILE and stuffy atmospheres I have ever been in. I don't suspect they will survive either. I would not miss Ultimate if they closed - the salespeople always had a tendency to GLOM onto you when you walked in the door, and that ALWAYS sucks. Popbumper Quote Link to comment Share on other sites More sharing options...
dkp Posted December 27, 2004 Share Posted December 27, 2004 ---------------- On 12/25/2004 1:42:37 AM Gramas701 wrote: I just did an evaluation on circuit city as a compnay as a whole. And basically They are not going under any time soon. Any time soon being the next 5 years. This is why. Last year at this time their stock lost about 9 cents per share. Then they made some very profitable moves in mid fiscal year. They sold their private credit bank to bank one which caused a jump in their stock which promoted great growth in the company. They then used this money to rebuild and relocate stores. Last year alone they built 44 stores 22 of them being relocations. Next year they plan to relocate another 25 stores. The day after thanks giving circuit city stock dropped 3 cents per chare. Allen Mcchoull the ceo of circuit city said he was disapointed in the sales at circuit city as a whole but he feels it is moving the the right direction as they are still under a new operating platform that started in 2000 as many of you remember with the firing of many of the associates. Also there has been tremendous growth in their online buisness and with the adition of music now and trading circuit their stock has seen growth. I would expect to see a dive in thier stock after the christmas season is over and the final results are in, but you will also see a lot of upcoming changes in advertising with the company. ie the "just what i needed" commericials. All in all, I think circuit city will be around for quite a while longer. Circuit City also pays out dividends to all their investors which is another reason which makes them a weak stock on wall street, but I would expect to see an ipo from them stopping the divedends relativly soon. As far as ultimate electronics go that is a whole different story ---------------- Gramas-I intend no disrespect, but your stock analysis needs some work. Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted December 30, 2004 Share Posted December 30, 2004 Circuit City Stores, Inc. Reports Third Quarter and Year-to-Date Results Circuit City Stores, Inc. today reported results for the third quarter and nine months ended November 30, 2004. Statement of Operations Highlights Three Months Ended November 30 2004 2003 (Dollar amounts in millions % of % of except per share data) $ Sales $ Sales Net sales and operating revenues $2,493.4 100.0% $2,407.4 100.0% Gross profit $627.0 25.1% $534.8 22.2% Selling, general and administrative expenses $628.8 25.2% $572.2 23.8% Net loss from continuing operations $(5.9) (0.2)% $(28.1) (1.2)% Net loss per share from continuing operations $(0.03) $(0.14) Net loss from discontinued operations -- $25.5 Net loss $(5.9) (0.2)% $(2.5) (0.1)% Nine Months Ended November 30 2004 2003 (Dollar amounts in millions % of % of except per share data) $ Sales $ Sales Net sales and operating revenues $6,905.0 100.0% $6,496.4 100.0% Gross profit $1,685.0 24.4% $1,470.5 22.6% Selling, general and administrative expenses $1,703.0 24.7% $1,611.4 24.8% Net loss from continuing operations $(22.6) (0.3)% $(95.5) (1.5)% Net loss per share from continuing operations $(0.12) $(0.46) Net loss from discontinued operations $(1.2) $(83.4) Net loss $(23.8) (0.3)% $(178.8) (2.8)% Balance Sheet Highlights November 30 (Dollar amounts in millions) 2004 2003 % Change Cash and cash equivalents $ 752.5 $455.3 65.3% Merchandise inventory $2,458.9 $2,651.1 (7.2)% Accounts payable $1,806.0 $1,793.9 0.7% Long-term debt $25.2 $24.2 4.0% Stockholders' equity $2,054.7 $2,202.1 (6.7)% Third Quarter and Year-to-Date Summary "Throughout the past year, we have focused on improving store-level execution and the overall efficiency of our operations," said W. Alan McCollough, chairman, president and chief executive officer of Circuit City Stores, Inc. "The third quarter results from continuing operations reflect achievements in both these areas. Nevertheless, we were disappointed by our sales results and recognize that considerable opportunity remains for improvements throughout the company. I congratulate our Associates for the progress we have made to date and thank them for their dedication to our customers and our business." Sales. Total sales for the third quarter ended November 30, 2004, increased 3.6 percent to $2.49 billion from $2.41 billion for the third quarter ended November 30, 2003, with comparable store merchandise sales decreasing 4.3 percent. Total sales for this year's third quarter include domestic segment sales of $2.35 billion and international segment sales of $142.0 million. The domestic segment sales include net credit revenues of $1.9 million generated through an ongoing arrangement with Chase Card Services. Total sales for the nine months ended November 30, 2004, increased 6.3 percent to $6.91 billion from $6.50 billion in the first nine months of last fiscal year, with comparable store merchandise sales increasing 1.2 percent. Total sales for this year's first nine months include domestic segment sales of $6.62 billion and international segment sales of $281.4 million. Neither the arrangement with Chase Card Services nor the international segment was in place for Circuit City last fiscal year. Prior to this year's second fiscal quarter, private-label and co-branded credit cards were made available through Circuit City's wholly owned subsidiary, First North American National Bank. Private-label and co-branded finance income generated through that subsidiary was reported as finance income on the consolidated statements of operations. The international segment consists of the operations of InterTAN, Inc., which Circuit City acquired in May 2004, and thus, comparable store merchandise sales for the current fiscal year's third quarter and first nine months and total sales for the same periods of last fiscal year reflect domestic sales only. Net Loss from Continuing Operations. The fiscal 2005 third quarter net loss from continuing operations totaled $5.9 million, or 3 cents per share, compared with a net loss from continuing operations of $28.1 million, or 14 cents per share, for the third quarter of fiscal 2004. The international segment's results reduced the fiscal 2005 third quarter net loss from continuing operations by $5.5 million, or 3 cents per share. The net loss from continuing operations for the nine months ended November 30, 2004, totaled $22.6 million, or 12 cents per share, compared with a net loss from continuing operations of $95.5 million, or 46 cents per share, for the same period last year. The international segment's results reduced the net loss from continuing operations for the first nine months of fiscal 2005 by $9.2 million, or 5 cents per share. Net Sales and Operating Revenues "We were disappointed with our third quarter sales and are cautious in our fourth quarter outlook," said McCollough. "We saw a general sales weakness as the market was more promotional than we anticipated, particularly in the second half of the quarter. Our decision to be less promotional than last year in music and movie software and business model changes in digital satellite services and wireless phones and related products added to the overall weakness. "Despite the sales decline, we believe that we continue to make progress in key areas," said McCollough. "Our extended warranty sales rate improved in comparison to the prior year's rate for the third consecutive quarter; our redesigned Web site helped to further accelerate growth in Web-originated sales; we added an exciting array of new products to our merchandise selection; and we introduced in October a new wireless sales model that we believe will help build traffic for our stores while providing added service to our customers. We also launched a new branding campaign, added strong management talent with the addition of Phil Schoonover as chief merchandising officer and continued to enhance our store base with relocations and new stores." Extended warranty revenues were as follows for the third quarter and first nine months of fiscal years 2005 and 2004: Extended Warranty Revenue(a) Three Months Ended Nine Months Ended November 30 November 30 (Dollar amounts in millions) 2004 2003 2004 2003 Extended warranty revenue $91.0 $75.4 $260.0 $225.6 Percent of total sales 3.9% 3.1% 3.9% 3.5% (a) Calculations exclude international segment net sales and operating revenues and international segment extended warranty revenue. Net Credit Revenues. Net credit revenues of $1.9 million for the third quarter include new account activation revenues of $13.3 million offset by promotional financing cost of $11.5 million. "New account activation revenues exceeded our expectations, helping us to build a customer base to which we can direct specific marketing programs," said McCollough. "However, the cost of promotional financing was also higher than anticipated as we responded to more competitive financing offers in the marketplace. As a result, third quarter net credit revenues were approximately $5 million below our initial expectations. We expect the lower-than-anticipated third quarter results will reduce pretax credit revenues below the $30 million annualized level we anticipated when we sold the private-label credit operation." Gross Profit Margin The gross profit margin was 25.1 percent in the third quarter of fiscal 2005, compared with 22.2 percent in the same period last fiscal year. The inclusion of the international segment's revenues and cost of sales, buying and warehousing contributed 87 basis points to the improvement. The domestic segment's gross profit margin improved 207 basis points. The change in the domestic gross profit margin reflects an improvement in merchandise gross profit margins; the increase in extended warranty sales, which carry higher- than-average gross profit margins; and the continued increases in the efficiency of the company's product service and distribution operations. The inclusion of net credit revenues in net sales and operating revenues had an immaterial impact on the third quarter gross profit margin. Selling, General and Administrative Expenses Selling, general and administrative expenses were 25.2 percent of total sales in the third quarter of this fiscal year, compared with 23.8 percent of total sales in the same period last year. The inclusion of the international segment's revenues and selling, general and administrative expenses increased this year's third quarter expense-to-sales ratio by 46 basis points. The domestic segment's expense-to-sales ratio rose 99 basis points. The increase in the domestic segment's ratio includes the impact of the domestic total sales decrease, increased advertising expense following the launch of the company's new branding campaign in October and higher relocation and remodel costs. Advertising expense contributed 43 basis points to the change in the domestic segment expense ratio; relocation and remodel expenses contributed 22 basis points. Relocation and remodel expenses totaled $15.1 million in this year's third quarter compared with $10.1 million in the same period last year. Selling, General and Administrative Expenses Three Months Ended November 30 2004 2003 (Dollar amounts in millions) % of % of $(a) Sales $ Sales Store expense $555.3 22.3% $520.0 21.6% General and administrative expenses 54.3 2.1 39.1 1.6 Remodel expenses 0.2 -- 0.3 -- Relocation expenses 14.9 0.6 9.8 0.4 Pre-opening expenses 7.5 0.3 4.2 0.2 Interest income (3.4) (0.1) (1.2) -- Total $628.8 25.2% $572.2 23.8% Selling, General and Administrative Expenses Nine Months Ended November 30 2004 2003 (Dollar amounts in millions) % of % of $( Sales $ Sales Store expense $1,527.3 22.1% $1,443.3 22.2% General and administrative expenses 138.9 2.0 117.4 1.8 Remodel expenses 0.3 -- 29.8 0.5 Relocation expenses 33.3 0.5 18.9 0.3 Pre-opening expenses 12.0 0.2 7.3 0.1 Interest income (8.8) (0.1) (5.3) (0.1) Total $1,703.0 24.7% $1,611.4 24.8% (a) Includes international segment store expenses of $36.2 million and general and administrative expenses of $10.5 million. ( Includes international segment store expenses of $74.4 million and general and administrative expenses of $20.4 million. Stock-based Compensation Expense Stock-based compensation expense was $6.4 million in the third quarter of this fiscal year compared with $10.8 million in the same period last fiscal year. The company estimates that stock-based compensation expense will total approximately $7 million in the fourth quarter. Financial Condition On November 30, 2004, Circuit City had cash and cash equivalents of $752 million compared with $455 million at November 30, 2003. The year-over-year change in the cash balance reflects the net cash proceeds from the sale of the company's private-label finance operation and a significant reduction in domestic merchandise inventory, partly offset by acquisition costs for InterTAN, Inc. Since the end of the third quarter of fiscal 2004, the company also has used $281 million to repurchase common stock under the company's stock buyback authorization. A $47 million decrease in accounts receivable primarily reflects the elimination of approximately $140 million in receivables related to the company's former private-label finance operation, partly offset by the addition of $43 million of accounts receivable related to the international segment. Merchandise inventory declined to $2.46 billion at November 30, 2004, from $2.65 billion at November 30, 2003. A $339 million decrease in domestic inventory was partly offset by the addition of the international segment's inventory of $147 million. The decrease in domestic inventory reflects initiatives to more closely link receipt of inventory to the time of sale. On a consolidated basis, we expect inventory at February 28, 2005, to be slightly above the February 29, 2004, level, with domestic inventory slightly below last year's year-end inventory level. Goodwill and other intangible assets of $258 million at November 30, 2004, relate to the company's purchases of InterTAN and MusicNow. An increase of $38 million in other liabilities includes $18 million of other liabilities related to the international segment. Store Revitalization Since the initiation of Circuit City's store revitalization program at the beginning of fiscal 2001 through the end of this year's third quarter, the company has relocated 60 stores, of which 39 have been open for more than six months. In their first full six months following grand opening, these stores have averaged sales changes that were approximately 31 percentage points better than the sales pace of the remainder of the store base during the same time periods and an internal rate of return of approximately 17 percent. The company continues to anticipate that, as stores are added to the relocation base, the average results from relocated stores will vary. Through November 30, Circuit City had opened 44 of a planned total of approximately 60 Circuit City Superstores for the current fiscal year. Twenty-two of the opened stores are relocations and 22 are incremental stores. The company currently expects to relocate approximately seven more Superstores and open another nine new Superstores this fiscal year. Circuit City anticipates that its capital expenditures, net of sale leasebacks and tenant improvement allowances, for its domestic and international segments combined will total approximately $165 million this fiscal year and that expenses related to domestic store relocations and one remodel will total approximately $41 million in fiscal 2005. Through the first nine months, the company incurred 81 percent of the anticipated remodel and relocation expenses. Fiscal 2006 Domestic Store Opening Plan. Circuit City also announced its domestic store opening plans for the upcoming fiscal year today. For the year ending February 28, 2006, the company's domestic segment expects to open 30 to 40 stores, of which the company is assuming approximately half will be relocations. The company expects to open approximately five of the stores in the first quarter. Circuit City anticipates that capital expenditures, net of sale leasebacks and tenant improvement allowances, for its domestic and international segments combined will total approximately $150 million in fiscal 2006 and that expenses related to domestic store relocations will total approximately $28 million in fiscal 2006. Earnings Release and Conference Call Information Circuit City will host a conference call for investors at 11:00 a.m. EST today. Investors in the United States and Canada may access the call at (800) 399-0127. Other investors may access the call at (706) 634-7512. A live Web cast of the conference call will be available on the company's investor information home page at http://investor.circuitcity.com. A replay of the call will be available by approximately 3:00 p.m. EST today and will remain available through December 24. Investors in the United States and Canada may access the recording at (800) 642-1687, and other investors may dial (706) 645-9291. The access code for the replay is 2255164. A replay of the call also will be available on the Circuit City investor information home page. December Sales Release and Conference Call Information Circuit City plans to release December sales results before the market opens on January 5, 2005. The company expects to host a conference call for investors at 10:00 a.m. EST that day. Investors in the United States and Canada may access the call at (800) 399-0127. Other investors may access the call at (706) 634-7512. A live Web cast of the conference call will be available on the company's investor information home page at http://investor.circuitcity.com. A replay of the call will be available by approximately 2:00 p.m. EST, January 5, and will remain available through January 12. Investors in the United States and Canada may access the recording at (800) 642-1687, and other investors may dial (706) 645-9291. The access code for the replay is 2685515. A replay of the call also will be available on the Circuit City investor information home page. About Circuit City Stores, Inc. Richmond, Va.,-based Circuit City Stores, Inc. is a leading specialty retailer of consumer electronics. At November 30, the domestic segment operated 622 Superstores and five mall-based stores in 160 U. S. markets. At November 30, the international segment operated through 1,026 retail stores and dealer outlets in Canada. Circuit City also operates a Web site at http://www.circuitcity.com. Forward-Looking Statements Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which are subject to risks and uncertainties, including without limitation: (1) the company's ability to continue to generate strong sales growth through its Web site, (2) the availability of real estate that meets the company's criteria for new and relocating stores, (3) the cost and timeliness of new store openings and relocations, (4) consumer reaction to new store locations and changes in the company's store design and merchandise, (5) the impact of inventory and supply chain management initiatives on inventory levels and profitability, (6) timely production and delivery of private-label merchandise and level of consumer demand for those products, (7) the extent to which customers respond to promotional financing offers and the types of promotional terms the company offers, (8) future levels of sales activity and the acceptance of the third-party credit program including the related rewards component by consumers on an ongoing basis, and (9) effectiveness of the company's brand awareness and marketing programs. Discussion of additional factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is set forth under Management's Discussion and Analysis of Results of Operations and Financial Condition in the Circuit City Stores, Inc. Annual Report for 2004 and Quarterly Report on Form 10-Q for the fiscal quarter ended August 31, 2004, and in the company's other SEC filings. A copy of the annual report is available on the company's Web site at http://www.circuitcity.com. Domestic Third Quarter Performance Summary Three Months Ended Nine Months Ended November 30 November 30 (Amounts in millions) 2004 2003 2004 2003 Net sales and operating revenues $2,351.4 $2,407.4 $6,623.6 $6,496.4 Gross profit $571.0 $534.8 $1,574.1 $1,470.5 Selling, general and administrative expenses $582.2 $572.2 $1,608.2 $1,611.4 Loss from continuing operations before income taxes $(17.6) $(42.7) $(49.9) $(150.3) International Third Quarter Performance Summary(a) Three Months Ended Nine Months Ended November 30 November 30 (Amounts in millions) 2004 2003 2004 2003 Net sales and operating revenues $142.0 $-- $281.4 $-- Gross profit $56.0 $-- $110.9 $-- Selling, general and administrative expenses $46.6 $-- $94.8 $-- Earnings from continuing operations before income taxes $8.9 $-- $15.0 $-- (a) The international segment consists of the operations of InterTAN, Inc., in which Circuit City acquired a controlling interest on May 12, 2004. CIRCUIT CITY STORES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS PERIODS ENDED NOVEMBER 30 (UNAUDITED) (Amounts in thousands except per share data) Three Months Nine Months 2004 2003 2004 2003 NET SALES AND OPERATING REVENUES $2,493,389 $2,407,424 $6,905,003 $6,496,444 Cost of sales, buying and warehousing 1,866,350 1,872,600 5,219,994 5,025,935 GROSS PROFIT 627,039 534,824 1,685,009 1,470,509 Finance income -- 5,631 5,564 22,418 Selling, general and administrative expenses 628,841 572,217 1,702,963 1,611,350 Stock-based compensation expense 6,442 10,775 20,839 30,421 Interest expense 476 169 1,625 1,479 Loss from continuing operations before income taxes (8,720) (42,706) (34,854) (150,323) Income tax benefit (2,820) (14,651) (12,304) (54,868) NET LOSS FROM CONTINUING OPERATIONS (5,900) (28,055) (22,550) (95,455) NET LOSS FROM DISCONTINUED OPERATION -- 25,546 (1,214) (83,375) NET LOSS $(5,900) $(2,509) $(23,764) $(178,830) Weighted average common shares: Basic 191,135 206,441 195,321 206,148 Diluted 191,135 206,441 195,321 206,148 NET LOSS PER SHARE: Basic: Continuing operations $(0.03) $(0.14) $(0.12) $(0.46) Discontinued operation -- 0.12 (0.01) (0.40) $(0.03) $(0.01) $(0.12) $(0.87) Diluted: Continuing operations $(0.03) $(0.14) $(0.12) $(0.46) Discontinued operation -- 0.12 (0.01) (0.40) $(0.03) $(0.01) $(0.12) $(0.87) CIRCUIT CITY STORES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands) November 30 2004 2003 ASSETS Current Assets: Cash and cash equivalents $752,478 $455,343 Accounts receivable, net of allowance for doubtful accounts of $429 and $623 126,932 173,684 Retained interests in securitized receivables -- 337,873 Merchandise inventory 2,458,876 2,651,078 Prepaid expenses and other current assets 42,383 84,945 Assets of discontinued operations -- 11,512 Total Current Assets 3,380,669 3,714,435 Property and equipment, net 645,785 631,560 Deferred income taxes 80,699 82,271 Goodwill 223,954 -- Other intangible assets 33,559 -- Other assets 15,814 29,809 TOTAL ASSETS $4,380,480 $4,458,075 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $1,806,028 $1,793,866 Accrued expenses and other current liabilities 213,932 126,609 Accrued income taxes 23,862 -- Deferred income taxes 18,335 112,272 Short-term debt 12,648 -- Current installments of long-term debt 13,461 1,253 Liabilities of discontinued operations -- 7,417 Total Current Liabilities 2,088,266 2,041,417 Long-term debt, excluding current installments 11,756 22,987 Accrued straight-line rent 97,911 102,116 Other liabilities 127,812 89,461 TOTAL LIABILITIES 2,325,745 2,255,981 Stockholders' Equity: Common stock 95,625 105,254 Capital in excess of par value 759,406 983,298 Retained earnings 1,165,149 1,113,542 Accumulated other comprehensive income 34,555 -- TOTAL STOCKHOLDERS' EQUITY 2,054,735 2,202,094 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,380,480 $4,458,075 I am not telling anyone to buy or do anything wiht their stock, i am not evualating their stock, only the company as a whole and its vitality.. nothing more Quote Link to comment Share on other sites More sharing options...
arthurs Posted December 30, 2004 Share Posted December 30, 2004 note to self....never challenge Gramas stock evaluations....he is likely to respond..... Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted December 31, 2004 Share Posted December 31, 2004 sorry no illintentions here, lol, but i realized after the fact that i should have backed up my bullsh*t from the start.... haha it just ook me a while to come up with the info circuit city did loose alpine as a vendor though, alpine claims that cc did not do its job in presenting all of the features it offers and that is why alpine sales were not that great circuit city did pick up "kicker" and rumor has it clarion, but that may not hold water Quote Link to comment Share on other sites More sharing options...
Coytee Posted December 31, 2004 Share Posted December 31, 2004 Gramas... you with FCC? or what ever their current rendition is? I use to clear through FCC. Quote Link to comment Share on other sites More sharing options...
lipinski Posted December 31, 2004 Share Posted December 31, 2004 In austin, there are 3 or 4 Best Buys and they are packed with humans and buyers. 2 Conns and the parking lot is EMPTY. 2 Ultimates, a few folks, nothing like BB. 3 or 4 circuit city with moderate traffic. BB seems to rule. Large stores with lots of buyers and employees. One Home Theater with moderate traffic. Sadly, there is no specialty stores with high end equipment. Use to be a great one, Hi Fidelity. Long time austin store that I bought my Forte IIs and Nakamichi equipment at in '89. There are a few who have little equipment and specialize in building an entire theater, but no Klipsch equipment. Traffic count in these store really counts. Those are the boys who will be here for the long term. Really means the same thing as the wall street analysis above. Quote Link to comment Share on other sites More sharing options...
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