-----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, SG5t+rdxw7jXdWiwLBQ/wuoQDdmY+GPape2v+J+BOSArCoBG6lEIyAW46b8/gRGH P0lsEf5CdLF6fJWo5s0qKA== 0000950117-05-001201.txt : 20050331 0000950117-05-001201.hdr.sgml : 20050331 20050331092341 ACCESSION NUMBER: 0000950117-05-001201 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050331 DATE AS OF CHANGE: 20050331 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: 05716572 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 a39524.txt REX STORES CORPORATION 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 31, 2005 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 31, 2005, REX Stores Corporation issued a press release announcing financial results and comparable store sales for the three- and twelve-month periods ended January 31, 2005. 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 31, 2005 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 31, 2005 By: /s/ DOUGLAS L. BRUGGEMAN -------------------------------- Name: Douglas L. Bruggeman Title: Vice President - Finance, Chief Financial Officer and Treasurer EX-99 2 ex99-1.txt EXHIBIT 99.1 [REX STORES LOGO] News Announcement For Immediate Release For further information contact: Douglas Bruggeman Stewart A. Lewack, Joseph N. Jaffoni Chief Financial Officer Jaffoni & Collins Incorporated 937/276-3931 212/835-8500 or rsc@jcir.com
REX STORES REPORTS FOURTH QUARTER NET INCOME OF $16.8 MILLION, OR $1.30 PER DILUTED SHARE Dayton, Ohio (March 31, 2005) -- REX Stores Corporation (NYSE: RSC), a specialty retailer of consumer electronic products and appliances, today announced financial results and comparable store sales for the three- and twelve-month periods ended January 31, 2005 (the Company's 2004 fiscal year). Net income in the three months ended January 31, 2005 was $16.8 million, or $1.30 per diluted share, compared to net income of $17.1 million, or $1.32 per diluted share, in the three months ended January 31, 2004. Net income in the fiscal 2004 fourth quarter includes $4.8 million of investment income from a synthetic fuel limited partnership. Results for the 2004 period also reflect an income tax benefit due to the reduction of valuation allowances for tax credits earned by its investment in a synthetic fuel limited partnership, which resulted from the completion of an Internal Revenue Service examination. Per share results are based on 12,899,000 and 12,966,000 diluted weighted average shares outstanding for the three-month periods ending January 31, 2005 and 2004, respectively. Net sales in the three months ended January 31, 2005 fell 4% to $125.4 million from $130.2 million in the three months ended January 31, 2004. Comparable store sales during the period fell 2% compared to the year-ago period. 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. During the three-month period ended January 31, 2005, REX purchased approximately 70,000 shares of its common stock in open market transactions. The Company has approximately 430,745 authorized shares remaining available to purchase under its previously announced stock buy-back authorization. -more- REX Stores Reports Fourth Quarter/Year-End Results, 3/31/05 page 2 Net income for the fiscal year ended January 31, 2005 was $27.5 million, or $2.17 per diluted share, compared to net income of $27.4 million, or $2.17 per diluted share, in the twelve-month period ended January 31, 2004. Net income in fiscal 2004 includes $18.6 million of investment income from a synthetic fuel limited partnership, as well as an income tax benefit due to the reduction of valuation allowances for tax credits earned by its investment in a synthetic fuel limited partnership. Per share results are based on 12,714,000 and 12,648,000 diluted weighted average shares outstanding for the twelve-month periods ending January 31, 2005 and 2004, respectively. Net sales in fiscal 2004 were $391.3 million compared to $405.4 million in fiscal 2003, while comparable store sales fell 2%. Commenting on the results, Stuart Rose, Chairman and Chief Executive Officer, stated, "Our strongest product category in fiscal 2004 remained televisions, reflecting higher demand for LCD, DLP, plasma and other high definition-ready televisions. We continued to strengthen our balance sheet in fiscal 2004 with the cash generated from our synthetic fuel investments, reducing long-term debt by $25.4 million by pre-paying mortgages on 43 retail locations. This action will continue to benefit the Company going forward." 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 212/341-7098; 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.FULLDISCLOSURE.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 March 31, 2005 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21236574. A replay of the webcast will be available for 30 days at WWW.REXTV.COM or WWW.FULLDISCLOSURE.COM. REX Stores Corporation is a leading specialty retailer of consumer electronic products and appliances. As of January 31, 2005 the Company operated 234 stores in 37 states under the trade name "REX." This news announcement contains 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 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, 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, and the uncertain amount of synthetic fuel production and tax credits received from time to time from the Company's synthetic fuel investments. -tables follow- REX Stores Reports Fourth Quarter/Year-End Results, 3/31/05 page 3 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts)
Three Months Ended Twelve Months Ended January 31, January 31, -------------------- -------------------- 2005 2004 2005 2004 ---- ---- ---- ---- NET SALES ................................................ $ 125,435 $ 130,170 $ 391,300 $ 405,413 COSTS AND EXPENSES: Cost of merchandise sold ............................ 91,030 93,776 282,047 286,273 Selling, general and administrative expenses ........ 29,753 29,939 103,437 105,564 --------- --------- --------- --------- Total costs and expenses ................................. 120,783 123,715 385,484 391,837 --------- --------- --------- --------- Income from continuing operations before interest, other items, income taxes and discontinued operations ............................................... 4,652 6,455 5,816 13,576 INVESTMENT INCOME ........................................ 26 23 178 77 INTEREST EXPENSE ......................................... (706) (1,065) (3,130) (4,751) LOSS ON EARLY TERMINATION OF DEBT ........................ (65) (18) (679) (18) GAIN ON SALE OF REAL ESTATE .............................. 125 375 246 1,153 INCOME FROM SYNTHETIC FUEL LIMITED PARTNERSHIP INVESTMENTS 4,817 6,094 18,615 16,011 --------- --------- --------- --------- Income from continuing operations before provision for income taxes and discontinued operations ............................................... 8,849 11,864 21,046 26,048 BENEFIT FOR INCOME TAXES ................................. (7,834) (5,216) (6,840) (1,725) --------- --------- --------- --------- Income from continuing operations ........................ 16,683 17,080 27,886 27,773 Loss from discontinued operations, net of tax ............ (97) (26) (549) (333) Gain on disposal of discontinued operations, net of tax .. 212 0 212 0 --------- --------- --------- --------- Net Income ............................................... $ 16,798 $ 17,054 $ 27,549 $ 27,440 ========= ========= ========= ========= WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC ...................................... 11,049 10,992 11,081 10,863 ========= ========= ========= ========= Basic income per share from continuing operations ........ $ 1.51 $ 1.55 $ 2.52 $ 2.56 Basic loss per share from discontinued operations ........ (0.01) (0.00) (0.05) (0.03) Basic gain on disposal of discontinued operations ........ 0.02 0.00 0.02 0.00 --------- --------- --------- --------- BASIC NET INCOME PER SHARE ............................... $ 1.52 $ 1.55 $ 2.49 $ 2.53 ========= ========= ========= ========= WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED .................................... 12,899 12,966 12,714 12,648 ========= ========= ========= ========= Diluted income per share from continuing operations ...... $ 1.29 $ 1.32 $ 2.19 $ 2.20 Diluted loss per share from discontinued operations ...... (0.01) (0.00) (0.04) (0.03) Diluted gain on disposal of discontinued operations ...... 0.02 0.00 0.02 0.00 --------- --------- --------- --------- DILUTED NET INCOME PER SHARE ............................. $ 1.30 $ 1.32 $ 2.17 $ 2.17 ========= ========= ========= =========
(more) REX Stores Reports Fourth Quarter/Year-End Results, 3/31/05 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (in thousands, except per share amounts)
January 31, January 31, 2005 2004 ----------- ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents ............... $ 4,671 $ 19,780 Accounts receivable, net ................ 5,460 4,806 Synthetic fuel receivable ............... 1,675 3,098 Investments available for sale .......... -- 7,000 Merchandise inventory ................... 124,188 116,755 Prepaid expenses and other .............. 1,230 1,481 Future income tax benefits .............. 10,929 8,703 --------- --------- Total current assets ............ 148,153 161,623 PROPERTY AND EQUIPMENT, NET .................... 129,723 131,409 ASSETS HELD FOR SALE ........................... 1,986 -- OTHER ASSETS ................................... 841 3,477 FUTURE INCOME TAX BENEFITS ..................... 27,978 14,645 RESTRICTED INVESTMENTS ......................... 2,270 2,257 --------- --------- Total assets .................... $ 310,951 $ 313,411 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt ...... $ 2,897 $ 5,258 Accounts payable, trade ................ 32,842 32,745 Accrued income taxes ................... 1,567 806 Current portion of deferred income and deferred gain on sale and leaseback 10,432 10,544 Accrued payroll ........................ 6,303 6,602 Other current liabilities .............. 6,152 7,214 --------- --------- Total current liabilities ....... 60,193 63,169 --------- --------- LONG-TERM LIABILITIES: Long-term mortgage debt ............... 30,501 53,548 Deferred income ....................... 11,703 12,762 --------- --------- Total long-term liabilities ..... 42,204 66,310 --------- --------- SHAREHOLDERS' EQUITY: Common stock .......................... 290 283 Paid-in capital ....................... 133,474 126,124 Retained earnings ..................... 212,629 185,080 Treasury stock ........................ (137,839) (127,555) --------- --------- Total shareholders' equity ...... 208,554 183,932 --------- --------- --------- --------- Total liabilities and shareholders' equity ........ $ 310,951 $ 313,411 ========= =========
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