-----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, UpccU9N1YibPMlmyD4tOmysRUJCSs+WKTW4XgiSNGBc3ovXDU+wAT9xCZSW54i4Y TN//B5wDf/kL7237D8jG9w== 0000071023-04-000041.txt : 20041109 0000071023-04-000041.hdr.sgml : 20041109 20041109112719 ACCESSION NUMBER: 0000071023-04-000041 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041109 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events FILED AS OF DATE: 20041109 DATE AS OF CHANGE: 20041109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: THOMAS NELSON 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: 041127961 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: NELSON THOMAS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ROYAL PUBLISHERS INC DATE OF NAME CHANGE: 19721019 8-K 1 r8k11092004.txt CURRENT REPORT ON FORM 8-K DATED 11/09/2004 UNITED STATES 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): November 9, 2004 (November 9, 2004) Thomas Nelson, Inc. - ------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Tennessee 1-13788 62-0679364 - ------------------------------------------------------------------------------- (State or other (Commission File Number) (I.R.S. Employer Jurisdiction of Identification No.) Incorporation) 501 Nelson Place Nashville, Tennessee 37214-1000 - ------------------------------------------------------------------------------- (Address of Principal (Zip Code) Executive Offices) Not Applicable - ------------------------------------------------------------------------------- (Former name or former address, if changed, since last report) Registrant's telephone number, including area code: 615/889-9000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14.a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) TABLE OF CONTENTS ----------------- SIGNATURES - ---------- EXHIBIT INDEX - ------------- EX-99.1 PRESS RELEASE 11/09/04. - -------------------------------- TABLE OF CONTENTS - ----------------- Item 7.01 Regulation FD Disclosure. The following exhibit is filed pursuant to Item 7.01: 99.1 Press Release, November 9, 2004. Item 8.01 Financial Statements On November 9, 2004, Thomas Nelson, Inc. issued a press release announcing its financial results fosr the quarter ended September 30, 2004. A copy of the press release is furnished herewith as Exhibit 99.1. 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, Secretary and Chief Financial Officer Date: November 9, 2004 EXHIBIT INDEX Exhibit Numbers - ------- 99.1 On November 9, 2004, Thomas Nelson, Inc. issued a press release announcing its financial results fosr the quarter ended September 30, 2004. A copy of thepress release is furnished herewith as Exhibit 99.1. EX-99.1 2 x9911109048k.txt EXHIBIT 99.1 TO FORM 8-K DATED 11/09/2004 EXHIBIT 99.1 NEWS RELEASE - ------------ Date: November 9, 2004 Contact: Joe L. Powers Executive Vice President P.O. Box 141000 Nashville, TN 37214-1000 Phone: (615) 902-1300 Fax: (615) 883-6353 Website: www.thomasnelson.com THOMAS NELSON ANNOUNCES SECOND QUARTER (FY2005) AND SIX MONTH RESULTS AS OF SEPTEMBER 30, 2004 Nashville, TN. November 9, 2004. Thomas Nelson, Inc. (NYSE: TNM) today announced its financial results for the second quarter of fiscal 2005: Net revenue for the six months ended September 30, 2004 was $110.9 million compared to $105.7 million in the prior year, a 5% gain. Net revenue was $61.9 million for the three months ended September 30, 2004 compared to $63.8 million in the prior year's comparable period, a deline of 3%. Net income for the six months ended September 30, 2004 was $8.3 million compared to $7.7 million in the prior year, an 8% gain. Net income was $6.4 million for the three months ended September 30, 2004 compared to $6.6 million in the prior year's comparable period, a deline of 3%. Earnings per share for the six months ended September 30, 2004 were $0.57 basic and $0.55 diluted compared to $0.53 and $0.52, respectiely, in the prior year. For the quarter ended September 30, 2004 earnings per share were $0.44 basic and $0.43 diluted compared to $0.46 and $0.45 respectively, in the prior year. Thomas Nelson's balance sheet continues to show strength with cash and cash equivalents of $22.3 million as of September 30, 2004 compared to $4.9 million in the prior period. In addition, total debt has been reduced to $3.5 million compared to $6.5 million in the same period last year. Shareholders' equity is $112.9 million compared to $95.1 million a year ago, a 19% gain. Commenting on the period's results, Sam Moore, Chairman and Chief Executive Officer, noted: "Our product release schedule this year is weighted more heavily to the second half than the first. So while we never like it when our sales comparisons are a little soft, as they were in the second quarter, we still believe that results for the full year will show growth." "Our best-selling product in the period was the latest release from Max Lucado, 'Come Thirsty.' Most of our top sellers were products from our oldest business, Bibles. While it would have been great to have had one or two more strong new titles in the quarter, the value of having a great mix of products, ranging from new releases by popular authors, to a substantial back list of well established works, is clear," Mr. Moore continued. "West Bow Press, our new fiction imprint, is off to a fine start in its first fiscal year," said Mr. Moore. "They released the third title in the Ted Dekker trilogy, 'White,' which joins 'Black' and 'Red.' I believe their strongest release of the year will be Frank Peretti's first adult fiction title since 1999's 'The Visitation,' which is scheduled for the fourth quarter. We are enthusiastic about the prospects for Monster with respect to our second-half performance." "We are also creating a variety of products for children based upon the International Children's Bible, a translation geared to readers at the third-grade level of literacy," stated Mr. Moore. "Max Lucado has produced a 'Hermie & Friends Bible,' which ties in nicely with the story books, activity books and DVD's centering on the lovable caterpillar character. We are also adapting the ICB translation into the popular Biblezine format. This latest version, designed for pre-teens, and called 'Magnifiy,' will join the Biblezines designed for teen boys, teen girls, and women. It will be out later this year." "We expected the second quarter to be a little soft, and it was," observed Thomas Nelson president Mike Hyatt. "As Mr. Moore noted," said Mr. Hyatt, "our product-release calendar is weighted toward the second half this year." "Also, Census Bureau data suggest that August was the slowest month of the year to date for retail sales at book stores across the country. A decline in sales to consumers can encourage our direct customers, book sellers, to return slow-moving inventory in order to free up their capital to invest in Christmas-season products. I believe," continued Mr. Hyatt," that was one reason why our merchandise returns, and, hence, net revenues and profits, came under pressure in the period. However, with the upcoming titles and products we have planned for the remainder of the year, we expect to deliver a solid financial performance for fiscal 2005." Thomas Nelson, Inc. will host a conference call related to this earnings release at 1:30 p.m. CDT on Tuesday, November 9, 2004. Individuals may listen to the call by dialing (800) 474-8920. The confirmation number for the call is 894435. The live broadcast of Thomas Nelson's quarterly conference call will be available online by going to www.thomasnelson.com/news and at www.streetevents.com. The online replay will be available shortly after the call and continue through November 17, 2004. This news release includes certain forward-looking statements (all statements other than those made solely with respect to historical fact) and the actual results may differ materially from those contained in the forward-looking statements due to known and unknown risks and uncertainties. Any one or more of several risks and uncertainties could account for differences between the forward-looking statements that are made today and the actual results, including with respect to our sales, profits, liquidity and capital position. These factors include, but are not limited to: risks relating to our ability to satisfy regulatory requirements with respect to our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, which requires us to perform an evaluation of our internal control over financial reporting and have our auditor attest to such evaluation; softness in the general retail environment or in the markets for our products; the timing and acceptance 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; the outcome of any future Internal Revenue Service audits; and the realization of income tax and intangible assets. These conditions cannot be predicted reliably and the Company may adjust its strategy in light of changed conditions or new information. Thomas Nelson disclaims any obligation to update forward-looking statements. 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. 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. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (000's omitted, except per share data, unaudited)
Three Months Ended Six Months Ended September 30, September 30, ------------------ ------------------ 2004 2003 2004 2003 ------- ------- -------- -------- Net revenues $61,902 $63,829 $110,910 $105,660 Costs and expenses: Cost of goods sold 35,133 36,176 64,071 62,051 Selling, general & administrative 15,541 15,984 31,826 29,649 Depreciation & amortization 626 558 1,215 1,118 ------- ------- -------- -------- Total expenses 51,300 52,718 97,112 92,818 ------- ------- -------- -------- Operating income 10,602 11,111 13,798 12,842 Other expense (income) 82 (12) 149 179 Interest expense 182 243 402 487 ------- ------- -------- -------- Income from continuing operations before income taxes 10,502 10,856 13,545 12,534 Provision for income taxes 4,044 4,071 5,215 4,700 Minority interest 1 11 2 3 ------- ------- -------- -------- Income from continuing operations 6,457 6,774 8,328 7,831 Discontinued operations: Loss on disposal, net of taxes (33) (156) (33) (156) ------- ------- -------- -------- Net income $ 6,424 $ 6,618 $ 8,295 $ 7,675 ======= ======= ======== ======== Weighted average number of shares Basic 14,619 14,393 14,679 14,387 ======= ======= ======== ======== Diluted 15,056 14,761 15,175 14,667 ======= ======= ======== ======== Net income per share, Basic: Income from continuing operations $ 0.44 $ 0.47 $ 0.57 $ 0.54 Loss from discontinued operations - (0.01) - (0.01) ------- ------- -------- -------- Net income (loss) per share $ 0.44 $ 0.46 $ 0.57 $ 0.53 ======= ======= ======== ======== Net income (loss) per share, Diluted: Income from continuing operations $ 0.43 $ 0.46 $ 0.55 $ 0.53 Loss from discontinued operations - (0.01) - (0.01) ------- ------- -------- -------- Net income (loss) per share $ 0.43 $ 0.45 $ 0.55 $ 0.52 ======= ======= ======== ========
THOMAS NELSON, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's omitted, unaudited)
Three Months Ended September 30, ------------------- 2004 2003 -------- -------- ASSETS Current assets: Cash and cash equivalents $ 22,344 $ 4,909 Accounts receivable, less allowances of $7,383 and $7,798, respectively 49,755 56,501 Inventories 39,153 39,623 Prepaid expenses 17,467 13,294 Assets held for sale - 1,615 Deferred tax assets 4,923 5,085 -------- -------- Total current assets 133,642 121,027 Property, plant and equipment, net 13,117 11,961 Deferred charges 1,486 2,421 Intangible assets 814 861 Goodwill 29,304 29,304 Other assets 9,665 7,611 -------- -------- TOTAL ASSETS $188,028 $173,185 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 23,859 $ 23,773 Accrued expenses 9,284 10,247 Deferred revenue 9,429 9,435 Dividends payable 734 576 Income taxes currently payable 5,176 5,243 Current portion of long-term debt 2,308 3,022 -------- -------- Total current liabilities 50,790 52,296 Long-term debt, less current portion 1,154 3,461 Long-term taxes payable 21,290 20,884 Deferred tax liabilities 1,021 721 Other liabilities 844 694 Minority interest 11 46 Shareholders' equity 112,918 95,083 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $188,028 $173,185 ======== ========
-----END PRIVACY-ENHANCED MESSAGE-----