-----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, OnqxZCsr/V9ts+6fq59bvJxKE6B1CWBEwbewklamKd3P8cYutuzyebPxviDO+Zzk faSFCWCcAl5EKRsFq4qRuw== 0000930413-07-009043.txt : 20071129 0000930413-07-009043.hdr.sgml : 20071129 20071129094218 ACCESSION NUMBER: 0000930413-07-009043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071129 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071129 DATE AS OF CHANGE: 20071129 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: 071273138 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 c51462_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): November 29, 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 of incorporation) Identification No.) 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 November 29, 2007, REX Stores Corporation issued a press release announcing financial results for the three month and nine month periods ended October 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 November 29, 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: November 29, 2007 By: /s/ DOUGLAS L. BRUGGEMAN -------------------------------- Name: Douglas L. Bruggeman Title: Vice President - Finance, Chief Financial Officer and Treasurer EX-99.1 2 c51462_ex99-1.txt [REX LOGO] 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 THIRD QUARTER DILUTED EARNINGS PER SHARE OF $1.25 VERSUS $0.42 IN THE PRIOR YEAR - REPURCHASES 487,000 SHARES PURSUANT TO PRIOR AUTHORIZATION - Dayton, Ohio (November 29, 2007) -- REX Stores Corporation (NYSE:RSC) today announced financial results for the three month period ended October 31, 2007. Net income in the fiscal 2007 third quarter ended October 31, 2007 was $14.7 million, or $1.25 per diluted share, compared with net income of $4.8 million, or $0.42 per diluted share, in the third quarter of fiscal 2006. For the quarter ended October 31, 2007, income from continuing operations, net of taxes was $11.7 million, compared with income from continuing operations, net of taxes of $3.8 million in the same period a year ago. Per share results are based on 11,750,000 and 11,517,000 diluted weighted average shares outstanding for the quarters ended October 31, 2007 and October 31, 2006, respectively. Net sales and revenue in the fiscal 2007 third quarter were $58.8 million compared with $61.1 million in the fiscal 2006 third quarter. Comparable store sales for the quarter ended October 31, 2007 declined 8.0%. 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. As previously disclosed, during the fiscal 2007 third quarter, REX received 3,693,858 shares of US BioEnergy (NASDAQ: USBE) common stock and approximately $4.8 million of cash as total consideration for its interest in Millennium Ethanol, LLC (acquired by US BioEnergy) based upon the conversion of REX's $14 Million Convertible Secured Promissory Note, accrued interest and exercise of its Related Purchase Rights. Accordingly, REX recorded a $17.1 million net gain on sale of investments in the fiscal 2007 third quarter adjusted for US BioEnergy's October 31, 2007 closing share price of $7.56. Inclusive of this gain, in the three months ended October 31, 2007 REX recorded a total of $18.1 million of pre-tax income from net interest income, net gains on sale of -more- REX REPORTS FISCAL 2007 THIRD QUARTER, 11/29/07 page 2 real estate, equity in unconsolidated affiliates, loss from synthetic fuel limited partnership investments, equity in unconsolidated affiliates and the realized and unrealized gain on investments related to Millennium Ethanol, LLC and US BioEnergy. The loss from synthetic fuel limited partnership investments reflects the increase in the Company's estimate of the phase out to 60% and the previously announced closure of the Colona facility. In the fiscal 2006 third quarter, REX recorded approximately $6.3 million of pre-tax income from these sources. The Company's financial results reflect the consolidation of One Earth Energy LLC as of October 30, 2007 and Levelland/Hockley County Ethanol, LLC as of September 30, 2006. During the quarter ended October 31, 2007 REX recognized a $0.4 million after tax loss from discontinued operations, net of taxes, compared with a $0.1 million loss from discontinued operations, net of taxes, in the year ago period. In addition, REX recorded a $3.4 million gain on disposal of discontinued operations, net of taxes, in the three months ended October 31, 2007 compared with a $1.1 million gain on disposal of discontinued operations, net of taxes, in the comparable prior year period. In the fiscal 2007 third quarter, REX purchased approximately 487,000 shares of its common stock in open market transactions. In the fiscal 2007 fourth quarter to date, the Company has repurchased an additional 86,200 shares of its common stock in open market transactions. The Company has approximately 231,400 authorized shares remaining available to purchase under the expanded June 2007 stock buy-back authorization. The Company will host a conference call and webcast today at 11:00 a.m. EST, which are open to the general public. The conference call dial-in number is 212/676-4905; 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 1:00 p.m. EST on December 6, 2007 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21358650. Alternatively, a replay will be available on the Internet for 30 days at WWW.REXTV.COM or WWW.EARNINGS.COM. REX Stores Corporation presently has interests in ethanol entities and has been active in synthetic fuel investments. REX is also a specialty retailer of consumer electronic products and appliances. As of October 31, 2007, the Company operated 124 retail stores in 34 states under the trade name "REX." -more- REX REPORTS FISCAL 2007 THIRD QUARTER, 11/29/07 page 3 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 include among other things: risks and uncertainties relating to the the financial performance of U.S. BioEnergy Corporation; fluctuations in the market prices and trading volumes of U.S. BioEnergy Corporation common stock; 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 REPORTS FISCAL 2007 THIRD QUARTER, 11/29/07 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME UNAUDITED
Three Months Ended Nine Months Ended October 31, October 31, ----------- ----------- 2007 2006 2007 2006 ---- ---- ---- ---- (In Thousands, Except Per Share Amounts) Net sales and revenue $ 58,765 $ 61,113 $ 162,848 $ 178,968 Cost of sales (Excluding depreciation) 42,292 44,561 113,759 128,904 ------ ------ ------- ------- Gross profit 16,473 16,552 49,089 50,064 Selling, general and administrative expenses (15,612) (17,151) (46,995) (50,444) Interest income 1,503 341 4,772 920 Interest expense (59) (387) (199) (1,084) Loss on early termination of debt - - (651) - Gains on sale of real estate, net 901 462 1,446 2,197 Equity in income of unconsolidated ethanol affiliates 535 - 2,057 - Realized and unrealized investment gains, net 17,118 - 17,118 - Income (loss) from synthetic fuel investments (1,860) 5,865 8,279 8,650 ------ ------ ------- ------- Income from continuing operations before provision for income taxes and minority interest 18,999 5,682 34,916 10,303 Provision for income taxes 7,374 1,834 13,665 3,556 Minority interest 32 - (12) - ------ ------ ------- ------- Income from continuing operations 11,657 3,848 21,239 6,747 Loss from discontinued operations, net of tax (413) (123) (1,830) (36) Gain on disposal of discontinued operations, net of tax 3,422 1,090 8,601 1,090 ------ ------ ------- ------- NET INCOME $14,666 $4,815 $28,010 $7,801 ======= ====== ======= ====== WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 10,433 10,333 10,509 10,268 ====== ====== ====== ====== Basic income per share from continuing operations $1.12 $0.37 $2.02 $0.66 Basic loss per share from discontinued operations (0.04) (0.01) (0.17) (0.01) Basic income per share on disposal of discontinued operations 0.33 0.11 0.82 0.11 ----- ----- ----- ----- BASIC NET INCOME PER SHARE $1.41 $0.47 $2.67 $0.76 ===== ===== ===== ===== WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 11,750 11,517 11,864 11,608 ====== ====== ====== ====== Diluted income per share from continuing operations $0.99 $0.33 $1.79 $0.58 Diluted loss per share from discontinued operations (0.03) (0.01) (0.15) - Diluted income per share on disposal of discontinued operations 0.29 0.10 0.72 0.09 ----- ----- ----- ----- DILUTED NET INCOME PER SHARE $1.25 $0.42 $2.36 $0.67 ===== ===== ===== =====
- balance sheet follows - REX REPORTS FISCAL 2007 THIRD QUARTER, 11/29/07 page 5 REX STORES CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS UNAUDITED
October 31, January 31, October 31, 2007 2007 2006 ---- ---- ---- (In Thousands) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 102,966 $ 43,008 $ 15,923 Accounts receivable, net 1,317 1,975 3,757 Synthetic fuel receivable 1,683 8,838 7,592 Merchandise inventory, net 78,427 70,078 116,065 Prepaid expenses and other 1,550 2,915 1,655 Future income tax benefits 6,619 9,192 9,588 --------- --------- --------- Total current assets 192,562 136,006 154,580 PROPERTY AND EQUIPMENT, NET 91,634 122,769 121,846 ASSETS HELD FOR SALE, NET 522 2,009 1,497 OTHER ASSETS 14,630 18,986 17,305 GOODWILL 1,322 1,322 726 FUTURE INCOME TAX BENEFITS 25,943 26,245 28,397 INVESTMENTS 66,936 35,699 5,000 RESTRICTED INVESTMENTS 2,462 2,406 2,384 --------- --------- --------- Total assets $ 396,011 $ 345,442 $ 331,735 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable $ 1,510 $ -- $ -- Current portion of long-term debt 2,231 2,678 2,354 Deferred income 14,472 15,641 15,287 Accounts payable, trade 35,411 23,254 23,153 Deferred gain on sale and leaseback 1,730 101 101 Other current liabilities 13,315 10,510 12,189 --------- --------- --------- Total current liabilities 68,669 52,184 53,084 --------- --------- --------- LONG-TERM LIABILITIES: Long-term mortgage debt 24,218 31,236 21,454 Deferred income 16,958 19,286 18,477 Deferred gain on sale and leaseback 5,187 504 529 Other 619 -- -- --------- --------- --------- Total long-term liabilities 46,982 51,026 40,460 --------- --------- --------- MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY 28,568 11,443 12,119 SHAREHOLDERS' EQUITY: Common stock 298 295 295 Paid-in capital 143,682 139,337 138,700 Retained earnings 279,772 252,249 248,699 Treasury stock (171,960) (161,092) (161,622) --------- --------- --------- Total shareholders' equity 251,792 230,789 226,072 --------- --------- --------- Total liabilities and shareholders' equity $ 396,011 $ 345,442 $ 331,735 ========= ========= =========
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