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Ultimate Electronicsí Net Income Up 290 Percent
Ultimate Electronics announces its operating results for the quarter and the year ended January 31, 2000. The company reported that net income increased 290 percent to $8,427,000 for the year ended January 31, 2000 from $2,160,000 in the prior year. Sales for the year ended January 31, 2000 were $384,983,000, a 17 percent increase from sales of $328,907,000 for the prior year. Comparable store sales were up 16 percent over the prior year. Gross margins for the year were 30 percent, compared to 29 percent for the prior year. The gross margin increase experienced in fiscal 2000 was primarily due to the following: increased sales of new digital technology products, increasing inventory turns to 5.2 compared to 4.9 in the prior year, an 116 percent increase in DVD sales at slightly higher margins and increased sales of accessories. Selling, general and administrative expenses for the year ended January 31, 2000 were 26 percent of sales, compared to 26.7 percent of sales for the prior year. This decrease in expense as a percentage of sales resulted primarily from leveraging fixed expenses against the 16 percent comparable store sales growth. For the fourth quarter ended January 31, 2000, net income increased 50 percent to $5,171,000 from net income of $3,436,000 for the same quarter in the prior year. Sales for the quarter ended January 31, 2000 were $130,721,000, a 16 percent increase from sales of $112,621,000 for the same period in the prior year. Comparable store sales were up 13 percent compared to the same quarter of the prior year. Gross margins for the fourth quarter were 29.4 percent, compared to 28.3 percent in the same quarter of the prior year. Selling, general and administrative expenses for the quarter ended January 31, 2000 were 23 percent of sales 22.7 percent excluding store pre-opening expenses), compared to 22.8 percent of sales for the same period in the prior year. Ed McEntire, CEO, stated, ""We are very proud of the accomplishments of our company during the past year. The company's industry leading comparable store sales growth for the year confirms our market position as a premier full service consumer electronics specialist focusing on new digital entertainment products. We anticipate continued success based upon the unprecedented number of new digital products, our expansion into new markets and the execution of our operating strategy."" Dave Workman, President and COO, stated, ""Consumer demand continues to accelerate in the key new digital technology products including digital television, DVD, digital camcorders and cameras. Margins benefited from the increased sales of these products as well as tighter management of inventory which resulted in lower levels of discontinued product, increased inventory turns and an improved in-stock position throughout the year.""