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Sound Advice Fiscal Q1 Sales Up 13%, Income Rises 16.5%

6/14/2001 11:22:00 AM Eastern

Dania Beach, Fla. - Filing what possibly might be its last quarterly financial report as an independent company, Sound Advice rolled up record sales and earnings for its fiscal first three months, ended April 30.

The upscale home entertainment and consumer electronics retailer has entered a definitive merger agreement with Tweeter Home Entertainment, with the transaction scheduled for completion on or about Sept. 1.

Benefiting significantly from its acquisition of Showcase Home Entertainment, net sales at Sound Advice for the first quarter climbed 13.1 percent, to $48.3 million, compared with $42.7 million in the year-ago three months. Comp-store sales rose 1.5 percent over the prior-year period.

Net income at Sound Advice increased 16.5 percent, reaching $788,000, compared with $676,000 in the same quarter in 2000.

Increased sales of projection and direct view televisions and custom installation services were primarily responsible for the chain's 17.2 percent increase in gross profit in the first quarter. This hit $17.7 million, compared with $15.1 million in the same three months last year.

'We are pleased with the company's first-quarter results, which illustrate that our strategy continues to be effective, despite the soft economy,' said Peter Beshouri, chairman/CEO. Beshouri emphasized the importance of Sound Advice's combination of complementary offerings that he said simply are not available from the big-box retailers.

Sound Advice operates 30 stores in Florida, including 24 Sound Advice units, five Bang & Olufsen specialty stores and one Electronic Interiors concept store.