Ultimate Electronics Shakes Up Management
Sales for the quarter ended January 31, 2005 were approximately $195.9 million, a decrease of 19.4 percent from $243.2 million for the same period in the previous year. Comparable store sales were down approximately 19 percent for the quarter ended January 31, 2005. The company had previously reported comparable store sales for the month of November as down approximately six percent and December as down approximately 18 percent. Sales for the year ended January 31, 2005 were approximately $658.3 million, a decrease of eight percent from $712.9 million for the previous year. Comparable store sales were down approximately 13 percent for the year ended January 31, 2005. In light of the company's Chapter 11 filing, recent changes in management and the board, and other financial issues that the management is currently addressing, Ultimate is not providing any guidance on its earnings or results of operations. In addition, the reported sales figures in this press release are preliminary and subject to adjustment.
It is not currently possible to predict the length of time Ultimate will operate under the protection of Chapter 11 and the supervision of the Bankruptcy Court, when the company will file a plan or plans of reorganization with the Bankruptcy Court, the outcome of the Chapter 11 proceedings in general, or the effect of the proceedings on the business of the company or on the interest of the various interested parties.
Based upon testimony given at the DIP financing hearing on February 14, 2005 by FTI Consulting, it appears unlikely that the outcome of the Company's reorganization will result in any value for the holders of our common stock. The company does, however, believe that with additional capital, the reorganization will result in an ongoing business that will be good for its customers, creditors and employees.