ALBANY, N.Y., May 22, 2014 /PRNewswire/ -- Trans World Entertainment Corporation (Nasdaq: TWMC) today reported financial results for its first quarter ended May 3, 2014. For the first quarter of 2014, the Company reported a net loss of $0.4 million, or $0.01 per diluted share, compared to net income of $1.6 million, or $0.05 per diluted share, for the same period last year.

Comparable store sales for the quarter increased 0.3% compared to the same quarter last year. Total sales for the quarter decreased 7.2% to $87.2 million compared to $93.9 million for the same period last year. The Company ended the quarter with 333 stores in operation as compared to 353 stores last year, a 5.7% decline and total square footage in operation declined 8.3%. During the quarter, the Company opened or relocated 5 stores and closed 11 stores.

Gross profit for the quarter was $32.8 million, or 37.6% of sales, as compared to $35.8 million, or 38.1%, of sales for the same period last year. The decrease in gross profit as a percentage of sales was due to increased promotional activity.

Selling, general and administrative ("SG&A") expenses decreased 3.0% for the quarter to $31.9 million compared to $32.8 million in the comparable period last year. The reduction in SG&A expenses was due to fewer stores in operation. As a percentage of sales, SG&A expenses were 36.5% in the quarter as compared to 34.9% for the same period last year.

Cash on hand at the end of the quarter was $90.1 million, compared to $111.3 million at the end of the first quarter last year. Inventory was $140.1 million at the end of the quarter, versus $153.5 million at the end of the first quarter last year, a decline of 8.7%.

During the first quarter, the Company repurchased approximately 212,000 shares of common stock at an average price of $3.84 per share, for an aggregate purchase price of approximately $0.8 million. The Company has approximately $18.6 million available for purchase under its repurchase program. In addition, the Company paid a special cash dividend of $0.50 per common share. The total special dividend payout was approximately $16 million.

Trans World will host a teleconference call today, Thursday, May 22, 2014, at 10:00 AM ET to discuss its financial results. Interested parties can listen to the simultaneous webcast on the Company's corporate website, www.twec.com.

Trans World Entertainment is a leading specialty retailer of entertainment products, including video, music, trend, electronics, video games and related products. The Company operates retail stores in the United States and Puerto Rico, primarily under the names f.y.e. for your entertainment and Suncoast and on the web at www.fye.com, www.wherehouse.com, and www.secondspin.com.

Certain statements in this release set forth management's intentions, plans, beliefs, expectations or predictions of the future based on current facts and analyses. Actual results may differ materially from those indicated in such statements. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission.

-- table to follow --



                       TRANS WORLD ENTERTAINMENT CORPORATION

                                 Financial Results



     STATEMENTS
     OF
     OPERATIONS:

    (in
     thousands,
     except
     per
     share
     data)

                        Fiscal Quarter Ended

                               May 3,              % to      May 4,       % to

                                        2014      Sales             2013 Sales
                                        ----      -----             ---- -----


    Net
     sales                           $87,216                     $93,934


    Cost of
     sales                            54,439           62.4%      58,145      61.9%
                                      ------           ----       ------      ----

    Gross
     profit                           32,777           37.6%      35,789      38.1%


    Selling,
     general
     and

        administrative
        expenses                      31,851           36.5%      32,835      34.9%


     Depreciation
     and
     amortization                        782            0.9%         824       0.9%
                                         ---            ---          ---       ---

    Income
     from
     operations                          144            0.2%       2,130       2.3%


    Interest
     expense,
     net                                 483            0.6%         484       0.5%
                                         ---            ---          ---       ---


    Income
     (Loss)
     before
     income
     taxes                              (339)          -0.4%       1,646       1.8%

    Income
     tax
     expense                              47            0.1%          48       0.1%
                                         ---            ---          ---       ---



    Net
     Income
     (Loss)                            $(386)          -0.5%      $1,598       1.7%
                                       =====           ====       ======       ===


    Basic
     Income
     (Loss)
     per
     common
     share:


    Basic
     Income
     (Loss)
     per
     share                            $(0.01)                      $0.05
                                      ======                       =====


    Weighted
     average
     number
     of

       common
        shares
        outstanding
        -basic                        32,089                      32,286
                                      ======                      ======


    Diluted
     Income
     (Loss)
     per
     common
     share:


    Diluted
     Income
     (Loss)
     per
     share                            $(0.01)                      $0.05
                                      ======                       =====


    Weighted
     average
     number
     of

       common
        shares
        outstanding
        -
        diluted                       32,089                      32,571
                                      ======                      ======



    SELECTED
     BALANCE
     SHEET
     CAPTIONS:                 May 3,                        May 4,

    (in
     thousands,
     except
     store
     data)                              2014                        2013
                                        ----                        ----


    Cash and
     cash
     equivalents                     $90,088                    $111,276

     Merchandise
     inventory                       140,138                     153,519

    Fixed
     assets,
     net                              14,944                       8,961

    Accounts
     payable                          46,999                      51,608

     Borrowings
     under
     line of
     credit                                -                           -


    Stores
     in
     operation                           333                         353

SOURCE Trans World Entertainment Corporation