Fiscal Responsibility
Moral Correctness
Living With Integrity
History
Annual Revenue $81 million Annual Revenue $132 million Annual Revenue $232 million
History
Annual Revenue $283 million Annual Revenue $404 million Annual Revenue $540 million
Five Year Revenue Growth
• 1998 +13.5%
• 1999 + 5.0%
• 2000 +12.5%
• 2001 + .6%
• 2002 - 3.2%
• 2003 - 8.0% to -12.0% estimate
Differentiated Business Model
12 Stores
in 9 states
Store Count – 9/30/03
177 Stores
1
4 16
2
15 4 7 1
16 6 2
4
4
2 3
14 4
5 3 14
8
9 33
21 States
EDCP & Automatic Price Protection
23%
• A differentiation strategy
• A service strategy for people who love music,
movies and sports – home entertainment -
and want it all at the touch of a button.
• A margin strategy
• An average ticket strategy
• A convergence strategy
The Tweeter Customer
Our Customer
23%
$800
$700
$500
Millions
(estimate)
$300 540.1
$200 399.9
279.5
228.9
$100
$0
1998 1999 2000 2001 2002 2003
40%
35%
Millions
30%
25%
35.2% 35.4% 35.9% 36.6% 36.0% 35.3%
35.6%
20%
15%
10%
1997 1998 1999 2000 2001 2002 2003 to
date
Fiscal Year Ended
September 30,
Operating Income
$35
$30
$25
Millions
$20
$15 30.1
27.8
25.7
$10
15.4
12.1
$5
$0
1998 1999 2000 2001 2002 2003 est
Fiscal Year Ended
September 30,
Operating Margin
7%
6%
5%
Millions
4%
6.4%
3%
5.5%
5.1% 5.1%
2% 3.7%
1%
0%
1998 1999 2000 2001 2002 2003 est
Fiscal Year Ended
September 30,
Current Conditions – Sales
2
0
New Flat Panel Display Wall
So what does all this mean?