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Harvey’s Fiscal Q2 Sales Increase 13.5%

Driven by strong demand for custom installation services, flat-panel plasma and LCD televisions, DVD and home theater products, Harvey Electronics enjoyed a 13.5 percent increase in sales in its fiscal second quarter, reaching $10.4 million, compared with $9.1 million in the year-ago period. Comp-store sales climbed 5.7 percent.

Net income for the second quarter, ended April 27, increased to $90,609, erasing a net loss of $147,430 in the same period last year.

Earnings before interest taxes, depreciation and amortization (EBITDA) in the second three months jumped to $477,000, up from EBITDA of $67,000 for the same quarter last year.

Pretax income climbed 165 percent in the second quarter, hitting $160,609, compared with a pretax loss of $246,430 in the second quarter of 2001.

“Our pretax income and EBITDA benefited from reduced operating losses associated with the opening of two new stores and the company’s Web site,” said Franklin Karp, president. “Our net income should continue to benefit as these new stores mature.”

Harvey reported that custom installation services have increased to almost $11 million, or almost 48 percent of net sales for the first six months of fiscal 2002, compared with $7.6 million and 37 percent of net sales for the same period last year.

The increase in higher margin custom installation sales of equipment and labor income has driven Harvey’s overall gross margin for the second quarter up 60 basis points, to 39.7 percent. For the six months, gross margin rose 50 basis points, to 39.5 percent.

Sales for the six months climbed 10.1 percent, reaching $22.8 million. Comp-store sales for the six months increased 1.1 percent.