-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Tnp1lJLILt7LYcL6wH11/f/NBSQfR+mwggvvpPyJhQU9wWWRCppCJ04CPLISqxmV dyp6nTgKy73poqSS4c3AJw== 0000071023-03-000006.txt : 20030210 0000071023-03-000006.hdr.sgml : 20030210 20030210130931 ACCESSION NUMBER: 0000071023-03-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030210 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20030210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NELSON THOMAS INC CENTRAL INDEX KEY: 0000071023 STANDARD INDUSTRIAL CLASSIFICATION: BOOKS: PUBLISHING OR PUBLISHING AND PRINTING [2731] IRS NUMBER: 620679364 STATE OF INCORPORATION: TN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13788 FILM NUMBER: 03546591 BUSINESS ADDRESS: STREET 1: 501 NELSON PLACE CITY: NASHVILLE STATE: TN ZIP: 37214-1000 BUSINESS PHONE: 6158899000 MAIL ADDRESS: STREET 1: P O BOX 141000 CITY: NASHVILLE STATE: TN ZIP: 37214-1000 FORMER COMPANY: FORMER CONFORMED NAME: ROYAL PUBLISHERS INC DATE OF NAME CHANGE: 19721019 8-K 1 r8k021003.txt CURRENT REPORT ON FORM 8-K FOR FEBRUARY 10, 2003 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 10, 2003 (February 10, 2003) Thomas Nelson, Inc. (Exact Name of Registrant as Specified in Charter) Tennessee 0-4095 62-0679364 (State or other (Commission File Number) (I.R.S. Employer Identification No.) Jurisdiction of Incorporation) 501 Nelson Place Nashville, Tennessee 37214-1000 (Address of Principal (Zip Code) Executive Offices) Registrant's telephone number, including area code: 615/889-9000 Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits: (99) News Release, February 10, 2003. Item 9. Regulation FD Disclosure A press release issued by Thomas Nelson, Inc. on February 10, 2003 is attached hereto as Exhibit 99. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THOMAS NELSON, INC. By: /s/ Joe L. Powers ----------------------------- Name: Joe L. Powers Title: Executive Vice President Date: February 10, 2003 INDEX TO EXHIBITS Exhibit Numbers 99 News Release, February 10, 2003. EX-99 4 ex990210038k.txt EXHIBIT 99 FOR FEBRUARY 10, 2003 CURRENT REPORT ON FORM 8-K EXHIBIT 99 NEWS RELEASE DATE: FEBRUARY 10, 2003 CONTACT: JOE L. POWERS EXECUTIVE VICE PRESIDENT P.O. BOX 141000, NASHVILLE, TN 37214-1000 WEBSITE: www.thomasnelson.com PHONE: (615) 902-1300 FAX: (615) 883-6353 THOMAS NELSON INCRESES PROFIT BY 33% DESPITE A DECLINE IN NET REVENUES FOR THE THIRD QUARTER Nashville, TN, February 10, 2003 - Thomas Nelson, Inc. (NYSE: TNM) today announced its results for the third quarter of fiscal 2003: For the three months ended December 31, 2002, the Company's net revenues were $53.8 million compared to $61.2 million last year, a decline of $7.4 million or 12%. Income from continuing operations was $2.5 million compared to $1.9 million in the previous year's quarter, an increase of $611,000 or 33%. Income per share from continuing operations was $0.17 versus $0.13, an increase of 31%. For the nine month period ended December 31, 2002, net revenues were $157.0 million compared to $165.3 million in the previous year, down $8.3 million or 5%. Income from continuing operations was $6.9 million compared to $5.7 million in the previous year's period, an increase of $1.2 million or 21%. Income per share from continuing operations was $0.48 versus $0.40, a 20% increase over last year's nine month period. Net income was $6.9 million compared to a net loss of $50.2 million during the same period last year. The loss recorded last year resulted from discontinued operations and the cumulative effect of a change in accounting principle related to the write-down of goodwill associated with those discontinued operations. Financial Condition at December 31, 2002 is stronger than a year ago, and stronger than at March 31, 2002. Debt has been reduced from $68 million as of December 31, 2001 to $40.3 million at December 31, 2002, a reduction of $27.7 million or 41%. $16.1 million of this amount has been paid down since March 31, 2002. Total assets employed have been reduced by $25.7 million from last year, primarily through reductions in inventories and the collection of accounts receivable and tax refunds. Shareholders' equity has increased by $7.8 million or 10%. "Once again, unfavorable business conditions challenged our coping skills, and I think we performed creditably in the third quarter," noted Sam Moore, Chairman and Chief Executive Officer. "Our net income showed a positive year-to-year comparison in the quarter, in part because in last year's period we booked a significant charge when we fully reserved our Kmart receivable of $4.4 million. $1.3 million of this charge was reversed in the fourth quarter of last fiscal year in conjunction with the sale of the receivable," Mr. Moore stated. Mr. Moore said, "We have experienced more and more of our sales coming from fewer of our authors. In a competitive environment where consumers are overwhelmed with choices, they tend to reach for the authors and brand names they know and trust. This is as true with books and Bibles as it is for other consumer products. Therefore, as we have recently announced, we have realigned the Company structure with our basic business strategy to develop more products with our established author brands and to begin to identify and build the emerging author brands of the future. As a result, we intend to publish fewer, but better performing titles. This strategy will enable us to better serve our authors and customers, streamline our operations and reduce our operating overhead. The steamlining has resulted in the net elimination of approximately 30 employee positions in the Company. I have every confidence that this strategy will result in the Company being stronger than ever, in terms of financial and competitive positions." This news release includes certain forward-looking statements. Actual results could differ materially from those reflected by the forward-looking statements and a number of factors may affect future results, liquidity and capital resources. These factors include, but are not limited to, softness in the general retail environment, the timing of products being introduced to the market, the level of product returns experienced, the level of margins achievable in the marketplace, the collectibility of accounts receivable, the recoupment of royalty advances, the effects of acquisitions or dispositions, the financial condition of our customers and suppliers, the realization of inventory values at carrying amounts, our access to capital and the realization of income tax and intangible assets. Future revenue and margin trends cannot be reliably predicted and may cause the Company to adjust its business strategy during the remaining portion of the 2003 fiscal year. The Company disclaims any intent or obligation to update forward-looking statements. Thomas Nelson, Inc. will host a conference call related to this earnings release at 1:30 CST on Tuesday, February 11, 2003. Individuals may listen to the call by dialing (719) 457-2727. The confirmation number for the call is 793319. The live broadcast of Thomas Nelson's quarterly conference call will be available online by going to www.thomasnelson.com and clicking on the link to News and at www.streetevents.com. The online replay will be available shortly after the call and continue through February 18, 2003. Thomas Nelson, Inc. is a leading publisher, producer and distributor of products emphasizing Christian, inspirational and family value themes and believes it is the largest publisher of Bibles and inspirational products in the English language. For more information, visit our website www.thomasnelson.com. Thomas Nelson's Common stock and Class B Common stock are listed on the New York Stock Exchange (TNM-NYSE). Thomas Nelson, Inc. & Subsidiaries Consolidated Statements of Operations (000's omitted except per share data, unaudited)
Three Months Ended Nine Months Ended December 31, December 31, 2002 2001 2002 2001 ---------- ---------- --------- --------- Net revenues $53,774 $61,167 $157,020 $165,291 Costs and expenses: Cost of goods sold 32,646 36,297 95,240 99,225 Selling, general & administrative 15,986 19,837 46,974 51,590 Depreciation & amortization 444 823 1,567 2,093 ---------- ---------- --------- --------- Total expenses 49,076 56,957 143,781 152,908 ---------- ---------- --------- --------- Operating income 4,698 4,210 13,239 12,383 Other income 27 50 102 125 Interest expense 792 1,208 2,382 3,330 ---------- ---------- --------- --------- Income from continuing operations before income taxes 3,933 3,052 10,959 9,178 Provision for income taxes 1,436 1,114 4,000 3,350 Minority interest 11 63 49 119 ---------- ---------- --------- --------- Income from continuing operations 2,486 1,875 6,910 5,709 Discontinued operations: Operating loss, net of taxes - - - (766) Loss on disposal, net of taxes - - - (14,707) ---------- ---------- --------- --------- Total loss from discontinued operations - - - (15,473) ---------- ---------- --------- --------- Cumulative effect of change in accounting principle - - - (40,433) ---------- ---------- --------- --------- Net income (loss) $ 2,486 $ 1,875 $ 6,910 $(50,197) ========== ========== ========= ========= Weighted average number of shares Basic 14,369 14,343 14,368 14,343 ========== ========== ========= ========= Diluted 14,475 15,103 14,613 15,014 ========== ========== ========= ========= Net income (loss) per share, Basic: Income from continuing operations $ 0.17 $ 0.13 $ 0.48 $ 0.40 Loss from discontinued operations - - - (1.08) Cumulative effect of change in accounting principle - - - (2.82) ---------- ---------- --------- --------- Net income (loss) per share $ 0.17 $ 0.13 $ 0.48 $ (3.50) ========== ========== ========= ========= Net income (loss) per share, Diluted: Income from continuing operations $ 0.17 $ 0.12 $ 0.47 $ 0.38 Loss from discontinued operations - - - (1.03) Cumulative effect of change in accounting principle - - - (2.69) ---------- ---------- --------- --------- Net income (loss) per share $ 0.17 $ 0.12 $ 0.47 $ (3.34) ========== ========== ========= =========
Thomas Nelson, Inc. & Subsidiaries Consolidated Balance Sheets (000's omitted, unaudited)
December 31, 2002 2001 ---------- ---------- ASSETS Current assets: Cash & cash equivalents $ 1,959 $ 659 Accounts receivable, less allowances of $8,863 and $13,315, respectively 54,873 64,434 Inventories 37,987 44,622 Prepaid expenses 13,423 16,402 Assets held for sale 2,500 2,500 Refundable income taxes - 5,450 Deferred income tax benefits 7,966 12,876 ---------- ---------- Total current assets 118,708 146,943 Property, plant & equipment, net 11,203 11,314 Other assets 8,421 6,259 Deferred charges 1,727 1,290 Goodwill 29,304 29,304 ---------- ---------- Total Assets $169,363 $195,110 LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 23,318 $ 21,328 Accrued expenses 9,453 19,726 Deferred revenue 6,805 5,638 Income taxes currently payable 3,330 528 Current portion of long-term debt 3,322 4,163 ---------- ---------- Total current liabilities 46,228 51,383 Long term debt 36,930 63,853 Deferred tax liability and other liabilities 1,655 3,083 Minority interest 49 119 Shareholders' equity 84,501 76,672 ---------- ---------- Total Liabilities & Shareholders' Equity $169,363 $195,110 ========== ==========
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