NEWARK, Del., Oct. 23, 2006 (PRIMEZONE) -- Theater Xtreme Entertainment Group (OTCBB:TXEG), a Newark, DE-based home cinema retailer and franchisor of home cinema design and installation centers, today announced strong revenue growth in its fiscal year 2006, ended June 30, 2006.
For fiscal year 2006, revenues totaled $4.62 Million, an increase of 64% from $2.82 Million in fiscal year 2005. The Company attributes most of this increase to the opening of new Theater Xtreme retail outlets, both Company-owned and franchised. The net loss for fiscal 2006 was $2.13 Million or $0.12 per fully diluted share, compared to $1.53 Million, or $0.12 per fully diluted in fiscal year 2005. The net loss is a result of start-up costs relating to store openings, distribution costs, and corporate overhead required to build a national model. The Company does expect to continue growing aggressively and accelerating its retail store expansion strategy.
Company Sees Continued Growth in Coming Quarters
"Our full year results affirm that our national retail strategy is quickly gathering strength and consumer acceptance. We are growing into one of the only specialty front projection home theater retailers," said Scott Oglum, Chairman and CEO of Theater Xtreme. "We expect to continue to execute on accelerating our retail store expansion strategy aggressively, yet systematically, to meet the increasing demand. The Company's unique position in the large-format home theater market, coupled with positive financial data from our existing and new stores, should enable us to continue to achieve industry-leading growth trends."
Theater Xtreme Entertainment Group, Inc.
Financial Highlights for the Years
Ended June 30, 2006 and 2005
(000 omitted except per share data)
Balance Sheet as of June 30:
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2006 2005
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Cash $ 466 $ 113
Other current assets 918 606
Net fixed assets 357 268
All other assets 21 21
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Total Assets $1,762 $1,008
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Highlights of Operations for the Year Ended June 30:
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2006 2005
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Revenue $ 4,619 $2,823
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Costs and expenses $ 6,746 $ 4,326
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Net loss $ (2,133) $ (1,533)
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Loss per common share $ (0.12) $ (0.12)
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Average shares 17,672 12,359
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To be added to Theatre Xtreme's investor contact lists, please contact Haris Tajyar at htajyar@irintl.com or 818-382-9700.
About Theater Xtreme Entertainment Group, Inc. -- Theater Xtreme designs, sells, and installs affordable, large-format, front projection home cinemas through both its company-owned design centers and through franchised design and installation centers. Its home cinema packages feature OneView(tm), a media controller that combines on-screen movies, music, photos, games, and Internet access with the touch of a button. The company focuses on middle-income consumers in the home entertainment marketplace, emphasizing value and performance across its line of home cinema audio, video, furnishings, and accessories.
Safe Harbor Statement -- Some of the information presented in this constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company's judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties, of which the Company is not aware. Factors which could cause actual results to differ from expectations include, among others, the ability of the Company to sell franchises, success of the franchise stores, location of stores, delay or loss of key products from vendors, disruption of product delivery from overseas suppliers, changes in regard to significant customers or suppliers, increased competition from companies with more expertise or experience, technological improvements in the home theater market which may render the Company's offerings obsolete, less competitive, or too expensive, material reduction in the demand for home theaters, and lack of sufficient capital to allow the Company to achieve its strategic objectives. For additional information concerning these and other important factors that may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission.