Bestway, Inc. Reports Fiscal 2004 First Quarter Results; Same Store Revenues Up 9.5%
December 11 2003 - 2:00PM
PR Newswire (US)
Bestway, Inc. Reports Fiscal 2004 First Quarter Results; Same Store
Revenues Up 9.5% DALLAS, Dec. 11 /PRNewswire-FirstCall/ -- Bestway,
Inc. , today released financial results for its fiscal first
quarter, ended October 31, 2003. The Company had total revenues for
the quarter ended October 31, 2003 of $9,059,027, a $786,065
increase from $8,272,962 for the same period in the prior year. We
achieved this 9.5% year-over-year revenue increase from same
stores. Net earnings for the first quarter ended October 31, 2003
increased to $64,505, or $.04 per share on a diluted basis,
compared to net loss of $236,690, or $.14 per diluted share, for
the same period last year. The year-over-year increase in total
revenues and net earnings is primarily attributable to several
strategic efforts implemented in fiscal year 2003. Specifically,
the Company implemented strategies to improve profitability,
including eliminating lower-cost, lower-margin merchandise from our
product mix, focusing on higher revenue-generating merchandise,
investing in training and developing our people and implementing a
more aggressive and targeted marketing campaign. "We are very
pleased with increased results in both revenues and earnings and
look forward to continued growth this year," said David A. Kraemer,
President and Chief Executive Officer. "We remain focused on
aggressive training and marketing initiatives implemented this last
year, while strategic efforts this year include focusing on
opportunities for expansions or relocations of current stores based
on targeted market analysis." Bestway, Inc. owns and operates a
total of sixty-nine rent-to-own stores located in the southeastern
United States. These stores generally offer high quality brand name
merchandise such as home entertainment equipment, appliances,
furniture and computers under flexible rental purchase agreements
that generally allow the customer to obtain ownership of the
merchandise at the conclusion of an agreed upon rental period. This
press release and the guidance above contain various
"forward-looking statements" that involve risks and uncertainties.
Forward-looking statements represent the Company's expectations or
beliefs concerning future events. Any forward-looking statements
made by or on behalf of the Company are subject to uncertainties
and other factors that could cause actual results to differ
materially from such statements. These uncertainties and other
factors include, but are not limited to, (i) the ability of the
Company to open or acquire additional rental-purchase stores on
favorable terms, (ii) the ability of the Company to improve the
performance of such acquired stores and to integrate such opened or
acquired stores into the Company's operations, (iii) the impact of
state and federal laws regulating or otherwise affecting rental-
purchase transactions, (iv) the impact of general economic
conditions in the United States and (v) the impact of terrorist
activity, threats of terrorist activity and responses thereto on
the economy in general and the rental- purchase industry in
particular. Undo reliance should not be placed on any
forward-looking statements made by or on behalf of the Company as
such statements speak only as of the date made. The Company
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
the occurrence of future events or otherwise. BESTWAY, INC.
SELECTED BALANCE SHEET DATA (Unaudited) October 31, July 31, 2003
2003 Cash and cash equivalents $319,214 $305,869 Prepaid expenses
and other assets 264,900 234,908 Rental merchandise, net 13,705,877
13,858,064 Property and equipment, net 2,500,351 2,732,798 Total
assets 19,560,785 20,002,168 Accounts payable 1,172,840 751,328
Debt 8,547,096 9,451,299 Total liabilities 11,172,545 11,683,375
Stockholders' equity 8,388,240 8,318,793 BESTWAY, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months
Ended October 31, 2003 2002 Revenues: Rental and fee income
$8,894,938 $7,994,191 Sales of merchandise 164,089 278,771
9,059,027 8,272,962 Cost and operating expenses: Depreciation and
amortization: Rental merchandise 1,759,171 1,620,547 Other 328,441
372,537 Cost of merchandise sold 156,359 352,240 Salaries and wages
2,641,325 2,444,473 Advertising 463,889 384,990 Occupancy 618,270
589,060 Other operating expenses 2,837,956 2,654,078 Interest
expense 152,814 175,165 (Gain) loss on sale of property and
equipment (2,572) 786 8,955,653 8,593,876 Income (loss) before
income taxes 103,374 (320,914) Income tax expense (benefit) 38,869
(84,224) Net income (loss) $64,505 $(236,690) Basic and diluted net
income (loss) per share 0.04 $(0.14) Weighted average common shares
outstanding 1,678,672 1,652,572 Diluted weighted average common
shares outstanding 1,835,559 1,652,572 DATASOURCE: Bestway, Inc.
CONTACT: Beth A. Durrett, Chief Financial Officer, , or David A.
Kraemer, President and Chief Executive Officer, both of Bestway,
Inc., 1-214-630-6655
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