The same store revenue decline for the fourth quarter] was principally due to increased turnover levels causing a temporary set back in operational execution, as well as a belief that we could drive more customer traffic through targeted mail and less direct mail advertising
David A. Kraemer, President and Chief Executive Officer, Bestway

Bestway, Inc. (BSTW) released financial results for its fourth quarter ended July 31, 2005.

For the fourth quarter ended July 31, 2005, revenue decreased 1.5% to $9,700,044, compared to $9,845,031 for the fourth quarter of last year. Same store revenues (revenues earned in stores operated for the entirety of both periods) decreased 2.2% in the quarter. Net earnings in the fourth quarter decreased to a loss of $40,566, or $0.02 per share, compared to income of $54,078, or $0.03 per share a year ago. The Company's quarterly decline in net earnings resulted primarily from the decrease in same store revenues, marginal increases in cost and operating expenses as well as operating losses of $41,395 from one new store location.

David A. Kraemer, the Company's President and Chief Executive Officer, said, "The same store revenue decline for the fourth quarter ended eleven consecutive quarters of increased same store revenues. Although disappointing, it was principally due to increased turnover levels causing a temporary set back in operational execution, as well as a belief that we could drive more customer traffic through targeted mail and less direct mail advertising. Focusing on both areas, we initiated several training and compensation incentives and returned to aggressive marketing initiatives. Fiscal year 2005 was a challenging year, as we implemented a more aggressive value-pricing model offering our customers the lowest total cost of ownership in the industry. As expected and as we previously communicated, our earnings were affected with higher depreciation. Despite higher depreciation, it was a critical investment made and we believe we are managing the business for the long-term as we move into 2006."

Mr. Kraemer continued, "Our list of key initiatives is very short for 2006: continue executing our low price guarantee, strengthen store personnel compensation levels to stay competitive in the industry and tightly manage controllable expenses. We anticipate the combination of all will continue improving top and bottom line performance and enable Bestway to pursue opportunistic acquisitions and grow our store count through new store openings."

Bestway, Inc. operates seventy stores located in the southeastern United States.