-----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, OeOLqnftIYRyIH6W3teoaBlzGpVUmLFnve9EWE6iP8rkGyKrp0AmL5wKYxsqESUJ Bz00WBrLukIsJC89RKXixw== 0000930413-07-002893.txt : 20070328 0000930413-07-002893.hdr.sgml : 20070328 20070328104319 ACCESSION NUMBER: 0000930413-07-002893 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070328 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070328 DATE AS OF CHANGE: 20070328 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REX STORES CORP CENTRAL INDEX KEY: 0000744187 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 311095548 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09097 FILM NUMBER: 07723016 BUSINESS ADDRESS: STREET 1: 2875 NEEDMORE RD CITY: DAYTON STATE: OH ZIP: 45414 BUSINESS PHONE: 5132763931 FORMER COMPANY: FORMER CONFORMED NAME: AUDIO VIDEO AFFILIATES INC DATE OF NAME CHANGE: 19920703 8-K 1 c47668_8k.txt 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): March 28, 2007 REX STORES CORPORATION (Exact name of registrant as specified in its charter) Delaware 001-09097 31-1095548 (State or other jurisdiction (Commission File No.) (IRS Employer Identification No.) of incorporation)
2875 Needmore Road, Dayton, Ohio 45414 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (937) 276-3931 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: [ ] 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 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On March 28, 2007, REX Stores Corporation issued a press release announcing financial results and comparable store sales for the three month and twelve month periods ended January 31, 2007. The press release is furnished as Exhibit 99 to this report. Item 9.01. Financial Statements and Exhibits (c) Exhibits. The following exhibits are furnished with this report: 99 Press Release dated March 28, 2007 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. REX STORES CORPORATION Date: March 28, 2007 By: /s/ DOUGLAS L. BRUGGEMAN -------------------------------- Name: Douglas L. Bruggeman Title: Vice President - Finance, Chief Financial Officer and Treasurer EX-99 2 c47668_ex99.txt [REX GRAPHIC OMITTED] News Announcement For Immediate Release For further information contact: Douglas Bruggeman Joseph N. Jaffoni/David Collins Chief Financial Officer Jaffoni & Collins Incorporated 937/276-3931 212/835-8500 or rsc@jcir.com REX STORES REPORTS FISCAL 2006 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS OF $0.98 - REX PROVIDES UPDATE ON ETHANOL PROJECTS - Dayton, Ohio (March 28, 2007) -- REX Stores Corporation (NYSE:RSC) today announced financial results and comparable store sales for the three- and twelve-month periods ended January 31, 2007 (the Company's 2006 fiscal year). Net income in the fiscal year ended January 31, 2007 was $11.4 million, or $0.98 per diluted share, compared with net income of $28.3 million, or $2.31 per diluted share, in fiscal 2005. Per share results are based on 11,576,000 and 12,220,000 diluted weighted average shares outstanding for the fiscal years ended January 31, 2007 and January 31, 2006, respectively. Net sales and revenue in fiscal 2006 were $347.3 million compared with $374.5 million in fiscal 2005. Comparable store sales in fiscal 2006 declined 5.0% compared to fiscal 2005. Net sales and revenue in the fiscal 2006 fourth quarter were $104.4 million compared with $123.5 million in the fiscal 2005 fourth quarter. Comparable store sales for the quarter ended January 31, 2007 declined 13.7%. The Company reports sales performance quarterly and considers a store to be comparable after it has been open six full fiscal quarters. Comparable store sales figures do not include sales of extended service contracts. REX recorded a total of $4.1 million of income from synthetic fuel limited partnership investments, investment income and equity in unconsolidated affiliates in the quarter ended January 31, 2007 of which approximately $2.1 million was income from synthetic fuel limited partnership investments. In the fiscal 2005 fourth quarter, REX recorded $5.9 million of income from these sources of which $5.7 million was derived from synthetic fuel limited partnership investments. For the 2006 calendar year the Company used an estimate of Section 29/45K tax credit phase-outs of 40% for recognizing income from synthetic fuel investments. -more- REX STORES REPORTS FISCAL 2006 RESULTS, 3/28/07 page 2 During fiscal 2006 the Company closed 25 stores, 14 of which were classified as discontinued operations and the Company recorded a $0.4 million loss, net of taxes, for discontinued operations in the fiscal 2006 fourth quarter ended January 31, 2007. For the quarter ended January 31, 2007, income from continuing operations, net of taxes was $4.0 million, or $0.34 per diluted share compared with income from continuing operations, net of taxes of $6.6 million, or $0.57 per diluted share in the same period a year ago. Net income in the quarter ended January 31, 2007 was $3.6 million, or $0.30 per diluted share, compared to net income of $6.6 million, or $0.57 per diluted share, for the quarter ended January 31, 2006. Per share results are based on 11,712,000 and 11,552,000 diluted weighted average shares outstanding for the quarters ended January 31, 2007 and 2006, respectively. ETHANOL UPDATE |X| In December 2006 REX funded its $16.0 million equity interest in Patriot Renewable Fuels LLC ("Patriot"). Patriot has commenced construction of a 100 million gallon per year ethanol production facility in Illinois. |X| In December 2006 REX funded a $5 million convertible secured promissory note for Levelland/Hockley County Ethanol, LLC ("Levelland/Hockley"). The $5 million convertible secured promissory note, if converted, along with REX's prior $11.5 million funding of the facility will enable REX to secure a majority equity interest in the LLC that controls the facility. Levelland/Hockley has commenced construction on a 40 million gallon per year ethanol production facility in Texas. Effective in the fiscal 2006 third quarter REX consolidated Levelland/Hockley with its financial statements. |X| In January 2007 REX funded an additional $5 million in Big River Resources, LLC ("Big River") bringing its total funding in the LLC to $10 million. REX has a commitment, subject to certain conditions, to fund an additional $10 million in Big River in exchange for an additional minority equity interest in the entity. Through a holding company structure, Big River presently operates a 52 million gallon dry-mill ethanol manufacturing facility in Iowa. Big River intends to expand the plant to produce 80 million gallons per year and, through interests in other entities, intends to develop additional ethanol production plants. In the fiscal 2006 fourth quarter REX recorded approximately $0.5 million of income from equity in unconsolidated affiliates related to its Big River interests. |X| In December 2006, REX funded $14 million in Millennium Ethanol, LLC ("Millennium") for a convertible note that provides the Company rights to convert the note, with additional funds, into a minority ownership interest. Millennium has commenced construction of a 100 million gallon per year ethanol production facility in South Dakota. -more- REX STORES REPORTS FISCAL 2006 RESULTS, 3/28/07 page 3 |X| In addition to the four ethanol commitments described above, REX has entered into a contingent agreement to fund $24.9 million for One Earth Energy LLC, that intends to construct a 100 million gallon per year ethanol production facility in Illinois. The Company will host a conference call and webcast today at 11:00 a.m. EDT, which are open to the general public. The conference call dial-in number is 212/346-6584; please call ten minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the call live via the Investor Relations page of the Company's website, www.rextv.com, or at www.earnings.com; please allow 15 minutes to register, download and install any necessary software. Following its completion, a telephonic replay of the call can be accessed through 12:30 p.m. EDT on April 4, 2007 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21332997. Alternatively, a replay will be available on the Internet for 30 days at www.rextv.com or www.earnings.com. REX Stores Corporation is a leading specialty retailer of consumer electronic products and appliances. Over the past eight years, REX has also been active in several synthetic fuel investments and the Company currently has agreements to participate in five ethanol entities. As of January 31, 2007, the Company operated 193 retail stores in 35 states under the trade name "REX." In February 2007, the Company agreed to sell 94 of its current and former store locations and to leaseback a minimum of 40 of the properties for an initial lease term expiring January 31, 2010. The leases will contain renewal options for up to 15 additional years. Either party may terminate a lease after the first six months of the initial lease term on 23 to 30 of the sites as selected by the Company. The transaction is expected to close in late April 2007. Subsequent to the end of the 2006 fiscal year, the Company closed 29 stores resulting in a current store count of 164 stores. This news announcement contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as "may," "expect," "believe," "estimate," "anticipate" or "continue" or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company's filings with the Securities and Exchange Commission and among other things: the highly competitive nature of the consumer electronics retailing industry, changes in the national or regional economies, weather, the effects of terrorism or acts of war on consumer spending patterns, the availability of certain products, technological changes, changes in real estate market conditions, new regulatory restrictions or tax law changes relating to the Company's synthetic fuel investments, the fluctuating amount of quarterly payments received by the Company with respect to sales of its partnership interest in a synthetic fuel investment, the potential for Section 29/45K tax credits to phase out based on the price of crude oil adjusted for inflation, and the uncertain amount of synthetic fuel production and resulting income received from time to time from the Company's synthetic fuel investments. As it relates to ethanol investments, risks and uncertainties include among other things: the uncertainty of constructing plants on time and on budget and the price volatility of corn, dried distiller grains, ethanol, gasoline and natural gas. -tables follow- REX STORES REPORTS FISCAL 2006 RESULTS, 3/28/07 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED JANUARY 31 JANUARY 31 ---------- ---------- 2007 2006 2007 2006 ---- ---- ---- ---- NET SALES AND REVENUE $ 104,441 $ 123,508 $ 347,334 $ 374,451 Cost of sales 77,488 91,042 254,003 270,956 ------ ------ ------- ------- Gross profit 26,953 32,466 93,331 103,495 Selling, general and administrative expenses 24,969 28,700 91,031 95,783 INVESTMENT INCOME 1,454 153 2,374 308 INTEREST EXPENSE (344) (599) (1,893) (2,546) EQUITY IN UNCONSOLIDATED AFFILIATES 498 - 498 - GAIN ON SALE OF REAL ESTATE - - 2,197 253 INCOME FROM SYNTHETIC FUEL INVESTMENTS 2,114 5,702 10,764 30,515 ----- ----- ------ ------ Income from continuing operations before provision for income taxes 5,706 9,022 16,240 36,242 PROVISION FOR INCOME TAXES 1,725 2,408 5,375 7,428 ----- ----- ----- ----- Income from continuing operations 3,981 6,614 10,865 28,814 Loss from discontinued operations, net of tax (431) (130) (620) (754) Gain on disposal of discontinued operations, net of tax - 82 1,106 209 ------ ------ ------- ------ NET INCOME $3,550 $6,566 $11,351 $28,269 ====== ====== ======= ======= WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 10,360 10,208 10,291 10,688 ====== ====== ====== ====== Basic income per share from continuing operations $0.38 $0.64 $1.06 $2.69 Basic loss per share from discontinued operations (0.04) (0.01) (0.06) (0.07) Basic income per share on disposal of discontinued operations - 0.01 0.10 0.02 ----- ----- ----- ----- BASIC NET INCOME PER SHARE $0.34 $0.64 $1.10 $2.64 ===== ===== ===== ===== WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 11,712 11,552 11,576 12,220 ====== ====== ====== ====== Diluted income per share from continuing operations $0.34 $0.57 $0.94 $2.36 Diluted loss per share from discontinued operations (0.04) (0.01) (0.05) (0.06) Diluted income per share on disposal of discontinued operations - 0.01 0.09 0.01 ------ ------ ------ ------ DILUTED NET INCOME PER SHARE $ 0.30 $ 0.57 $ 0.98 $ 2.31 ====== ====== ====== ======
-table follows REX STORES REPORTS FISCAL 2006 RESULTS, 3/28/07 page 5 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED)
January 31, January 31, 2007 2006 ---- ---- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 43,008 $ 21,363 Accounts receivable, net 1,975 3,457 Synthetic fuel receivable 8,838 1,790 Merchandise inventory 70,078 97,371 Prepaid expenses and other 2,529 2,052 Future income tax benefits 9,192 9,361 --------- --------- Total current assets 135,620 135,394 PROPERTY AND EQUIPMENT, NET 122,769 125,245 ASSETS HELD FOR SALE 2,009 1,497 OTHER ASSETS 4,138 760 GOODWILL 1,322 -- FUTURE INCOME TAX BENEFITS 26,245 30,031 INVESTMENTS 40,699 -- RESTRICTED INVESTMENTS 2,406 2,318 --------- --------- Total assets $ 335,208 $ 295,245 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $2,678 $2,389 Current portion of deferred income and deferred gain on sale and leaseback 11,473 10,883 Accounts payable, trade 23,254 20,396 Accrued income taxes 593 541 Accrued payroll and related items 4,528 7,183 Other current liabilities 5,389 5,973 --------- --------- Total current liabilities 47,915 47,365 --------- --------- LONG-TERM LIABILITIES: Long-term mortgage debt 31,236 21,462 Deferred income and deferred gain on sale and leaseback 13,825 12,213 --------- --------- Total long-term liabilities 45,061 33,675 --------- --------- MINORITY INTEREST 11,443 -- --------- --------- SHAREHOLDERS' EQUITY: Common stock 295 294 Paid-in capital 139,337 135,775 Retained earnings 252,249 240,898 Treasury stock (161,092) (162,762) --------- --------- Total shareholders' equity 230,789 -- --------- --------- 214,205 Total liabilities and shareholders' equity $335,208 $ 295,245 ======== =========
# # # -----END PRIVACY-ENHANCED MESSAGE-----