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Digital Technology Drives Harvey Profits

13 Mar, 2002 By: Hive News


Harvey Electronics Inc., a high-end home electronics retailer and custom installer in the New York market, announced profitable results for the first fiscal quarter ended January 26.

"We achieved solid results for the first quarter of fiscal 2002, where increasing demand for new digital video technologies and custom installation services continued to drive sales," stated Franklin Karp, president of Harvey Electronics. "Given the magnitude of circumstances affecting New York City's economy during the past six months, we are pleased to report that comparable store sales for the fiscal 2002 first quarter decreased by only 2.6 percent from the prior year. We would like to note that this result is better than management expected and compares favorably with the results of other consumer electronics retailers."

Net sales for the first quarter of fiscal 2002 increased 7.5 percent to $12.4 million from $11.6 million in the same quarter last year. Pre-tax income for the first quarter of fiscal 2002 increased 19.2 percent to $640,000 compared with $537,000 for the same quarter last year. Net income rose 20.7 percent to $390,000 for the quarter ended January 26 from $323,000 for the same quarter last year. EBITDA for the first quarter of fiscal 2002 increased approximately 22 percent to almost $1 million from approximately $800,000 in the same quarter last year, and Harvey reported $0.09 earnings per diluted common share.

"Custom installation sales for the first quarter of fiscal 2002 increased 38 percent from the same quarter last year," noted CFO Joseph Calabrese. Our custom installation sales of equipment and labor income accounted for almost 44 percent of net sales, or $5.5 million for the first quarter of fiscal 2002 compared with 34 percent, or $4 million, respectively, for 2001. Our custom installation services, which differentiates us from our competitors, yield higher gross profit margins and stronger overall net profitability as compared to normal retail store sales."

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