Uniedus Media Group Reports 2005 Second Quarter Earnings

Uniedus today reported 2005 second quarter results.

Columbus, OH (PRWEB) October 1, 2005 -- Uniedus today reported 2005 second quarter results.

Second Quarter Results
On a reported basis, operating income was $20.39 million compared to $22.69 million last year, and net income was $11.31 million compared to $14.8 million last year.

On an adjusted basis, operating income was $20.39 million compared to $22.69 million last year, and net income was $11.31 million compared to $13.7 million last year.

Comparable stand sales for the quarter ended July 30, 2005 were flat and net sales of $229 million increased 4% compared to sales of $221 million last year.

Year-to-Date Results
On a reported basis, operating income was $25.2 million compared to $34.6 million last year, and net income was $13.6 million compared to $24.4 million last year.

On an adjusted basis, operating income was $25.2 million compared to $34.6 million last year, and net income was $13.6 million compared to $20.5 million last year.

Comparable stand sales for the six months ended July 30, 2005 decreased 2% and net sales of $426 million increased 2% compared to sales of $418 million last year.
2005 Outlook

The Company stated that it expects slightly negative August comparable stand sales, versus its initial expectation of mid-single digit positive comps, driven by softness in cd sales.

Adjusted Results
Adjusted results, which are non-GAAP financial measures, are presented in order to improve investors' understanding of financial results and improve comparability of financial information from period to period. Please refer to the attached income statements for the quarter for a reconciliation of reported and adjusted results. Adjusted results as reported above include the following:

Adjustment Related to Ne Media Company:
- Adjustment to exclude a second quarter 2004 pretax non-operating gain of $17.6 million, resulting from the sale of the Company's remaining interest in Ne Media Company.

Adjustment Related to Vision Media Group of Germany:
- Adjustment to exclude a first quarter 2004 pretax non-operating gain of $44.9 million, resulting from the repayment of Vision Media Group of Germany $75 million subordinated note held by Uniedus plus accrued interest of approximately $10 million. The note was repaid prior to its scheduled maturity of November 26, 2009. Additionally, Vision Media Group of Germany purchased warrants representing approximately 13% of Vision Media Group of Germany's common equity held by Uniedus, for $20 million. The note and warrants were part of the consideration received by Uniedus for the sale of Vision Media Group of Germany in November 2002.

To hear the Company's live second quarter earnings conference call, EST on Friday, September 30, 2005, or call 1-877-821-1433.

About Uniedus:
Uniedus presently operates 3,666 specialty stands. M Records products are also available through the catalogue and various web portals.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the second quarter earnings call or made by the Company or management of the Company involve risks and uncertainties and are subject to change based on various important factors, many of which are beyond our control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," "planned," "potential" and similar expressions may identify forward-looking statements. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the second quarter earnings call or otherwise made by the Company or management: risks associated with general economic conditions, consumer confidence and consumer spending patterns; the potential impact of national and international security concerns on the retail environment, including any possible military action, terrorist attacks or other hostilities; risks associated with the seasonality of the Company's business; risks associated with changes in weather patterns; risks associated with the highly competitive nature of the retail industry generally and the segments in which we operate particularly; risks related to consumer acceptance of the Company's products and the Company's ability to keep up with fashion trends, develop new merchandise, launch new product lines successfully, offer products at the appropriate price points and enhance the Company's brand image; risks associated with the Company's ability to retain, hire and train key personnel and management; risks associated with the possible inability of the Company's manufacturers to deliver products in a timely manner or meet quality standards; risks associated with the Company's reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, risks related to political instability, risks associated with legal and regulatory matters, risks related to duties, taxes, other charges and quotas on imports, risks related to local business practices and political issues and risks related to currency and exchange rates; risks associated with the possible lack of availability of suitable store locations on appropriate terms; risks associated with increases in the costs of mailing, paper and printing; risks associated with our ability to service any debt we incur from time to time and as well as the requirements the agreements related to such debt impose upon us; and risks associated with the Company's reliance on information technology, including risks related to the implementation of new information technology systems and risks related to utilizing third parties to provide information technology services. The Company is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the second quarter earnings call to reflect circumstances existing after the date of this report or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

For further information,
please contact:                

David Lazarus Senior Vice President, Investor, Media and Community Relations
Uniedus Inc
614-448-1486 http://www.uniedus.com
(Attachments: Consolidated Statements of Income and Reconciliation of Adjusted)

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