-----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, Cn79tMdbHIgS2/XfHXCGt2gf39VtCMWp2KcoQNlmG8TBfxCUyQuPvgaflwDW1WgS Na66uxoE5X7Jg37ZmR7AxA== 0000950117-05-003501.txt : 20050831 0000950117-05-003501.hdr.sgml : 20050831 20050831093148 ACCESSION NUMBER: 0000950117-05-003501 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050831 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050831 DATE AS OF CHANGE: 20050831 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: 051060323 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 a40454.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): August 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 August 31, 2005, REX Stores Corporation issued a press release announcing financial results and comparable store sales for the three month and six month periods ended July 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 August 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: August 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 [LOGO OF REX STORES] 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' SECOND QUARTER DILUTED EARNINGS PER SHARE INCREASES 169% TO $0.70 - Prior Share Repurchase Authorization Expanded By 1,000,000 Shares - Dayton, Ohio (August 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 six-month periods ended July 31, 2005 (the Company's 2005 fiscal year). Net income in the three months ended July 31, 2005 rose 166% to $8.7 million, or $0.70 per diluted share, from net income of $3.3 million, or $0.26 per diluted share, in the three months ended July 31, 2004. Net income in the fiscal 2005 second quarter includes $10.4 million of pre-tax income from synthetic fuel investments, including a one-time $3.5 million payment related to a synthetic fuel facility resuming commercial operations, compared to $3.3 million of comparable investment income in the year-ago period. Net income in the fiscal 2004 period reflects an income tax benefit of $1.4 million due to the successful completion of an Internal Revenue Service examination related to the Company's Section 29 income tax credits for certain years and a $0.6 million pre-tax loss on the early termination of debt. Per share results are based on 12,437,000 and 12,854,000 diluted weighted average shares outstanding for the three-month periods ending July 31, 2005 and July 31, 2004, respectively. Net sales in the three months ended July 31, 2005 fell 1% to $84.7 million from $85.8 million in the three months ended July 31, 2004. Comparable store sales during the period fell 1% compared to the same year-ago period. Excluding sales of air conditioners in the quarter ended July 31, 2005, comparable store sales would have declined 5% compared to the same 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. -more- REX Stores Reports Second Quarter Results, 8/31/05 page 2 During the three-month period ended July 31, 2005, REX purchased approximately 989,600 shares of its common stock in open market transactions. Subsequent to the close of the quarter, REX purchased an additional 87,700 shares. On August 30, 2005, the Company's Board of Directors expanded the previous share repurchase authorization by an additional 1,000,000 shares. Pursuant to this expanded reauthorization, the Company now has approximately 1,255,945 authorized shares remaining available to purchase under its stock buy-back authorization. Net income in the six-month period ended July 31, 2005 rose 101% to $14.8 million, or $1.18 per diluted share, compared to net income of $7.4 million, or $0.57 per diluted share, in the six-month period ended July 31, 2004. Per share results are based on 12,602,000 and 12,925,000 diluted weighted average shares outstanding for the six-month periods ending July 31, 2005 and July 31, 2004. Net sales in the 2005 six-month period were $174.3 million compared to $170.2 million in the six months ended July 31, 2004, while comparable store sales rose 3%. 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 212/676-5257; 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. EDT on September 7, 2005 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21258881. Alternatively, a replay will be available on the Internet 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 July 31, 2005, the Company operated 228 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 Second Quarter Results, 8/31/05 page 3 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited)
Three Months Ended Six Months Ended July 31, July 31, ----------- ----------- ----------- ----------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- NET SALES $ 84,693 $ 85,814 $ 174,272 $ 170,241 COST OF MERCHANDISE SOLD 59,698 61,483 124,754 121,179 ----------- ----------- ----------- ----------- GROSS PROFIT 24,995 24,331 49,518 49,062 SELLING, GENERAL & ADMINISTRATIVE EXPENSES 24,248 23,530 47,055 46,976 ----------- ----------- ----------- ----------- OPERATING INCOME 747 801 2,463 2,086 INVESTMENT INCOME 58 58 132 145 INTEREST EXPENSE (714) (784) (1,330) (1,718) LOSS ON EARLY TERMINATION OF DEBT - (592) - (614) INCOME FROM SYNTHETIC FUEL INVESTMENTS 10,398 3,343 16,380 8,579 ----------- ----------- ----------- ----------- INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION (BENEFIT) FOR INCOME TAXES 10,489 2,826 17,645 8,478 PROVISION (BENEFIT) FOR INCOME TAXES 1,621 (762) 2,689 672 ----------- ----------- ----------- ----------- INCOME FROM CONTINUING OPERATIONS 8,868 3,588 14,956 7,806 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (147) (304) (260) (437) GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS, NET OF TAX - - 125 - ----------- ----------- ----------- ----------- NET INCOME $ 8,721 $ 3,284 $ 14,821 $ 7,369 =========== =========== =========== =========== WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 10,871 11,225 11,011 11,190 =========== =========== =========== =========== Basic income per share from continuing operations 0.81 0.32 1.36 0.70 Basic loss per share from discontinued operations (0.01) (0.03) (0.02) (0.04) Basic gain of disposal of discontinued operations 0.00 0.00 0.01 0.00 ----------- ----------- ----------- ----------- BASIC NET INCOME PER SHARE $ 0.80 $ 0.29 $ 1.35 $ 0.66 =========== =========== =========== =========== WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 12,437 12,854 12,602 12,925 =========== =========== =========== =========== Diluted income per share from continuing operations 0.71 0.28 1.19 0.60 Diluted loss per share from discontinued operations (0.01) (0.02) (0.02) (0.03) Diluted gain on disposal of discontinued operations 0.00 0.00 0.01 0.00 ----------- ----------- ----------- ----------- DILUTED NET INCOME PER SHARE $ 0.70 $ 0.26 $ 1.18 $ 0.57 =========== =========== =========== ===========
(more) REX Stores Reports Second Quarter Results, 8/31/05 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (in thousands, except per share amounts)
July 31 January 31 July 31 2005 2005 2004 ----------- ---------- ----------- (Unaudited) (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 1,744 $ 4,671 $ 1,202 Accounts receivable, net 3,458 5,460 3,929 Synthetic fuel receivable 786 1,675 2,288 Merchandise inventory 133,759 124,188 156,167 Prepaid expenses and other 2,807 1,230 1,670 Future income tax benefits 10,929 10,929 8,703 ----------- ---------- ----------- Total current assets 153,483 148,153 173,959 PROPERTY AND EQUIPMENT, NET 128,700 129,723 132,953 ASSETS HELD FOR SALE 1,669 1,986 - OTHER ASSETS 915 841 639 FUTURE INCOME TAX BENEFITS 27,978 27,978 16,082 RESTRICTED INVESTMENTS 2,290 2,270 2,262 ----------- ---------- ----------- Total assets $ 315,035 $ 310,951 $ 325,895 =========== ========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable $ 4,031 $ - $ 11,560 Current portion of long-term debt 2,919 2,897 2,899 Current portion of deferred income and deferred gain on sale and leaseback 9,920 10,432 10,348 Accounts payable, trade 35,599 32,842 57,522 Accrued income taxes - 1,567 575 Accrued payroll and related items 5,093 6,303 4,406 Other current liabilities 6,623 6,152 7,576 ----------- ---------- ----------- Total current liabilities 64,185 60,193 94,886 ----------- ---------- ----------- LONG-TERM LIABILITIES: Long-term mortgage debt 28,490 30,501 32,406 Deferred income 11,387 11,703 11,809 ----------- ---------- ----------- Total long-term liabilities 39,877 42,204 44,215 ----------- ---------- ----------- SHAREHOLDERS' EQUITY: Common stock 293 290 286 Paid-in capital 135,496 133,474 127,734 Retained earnings 227,450 212,629 192,449 Treasury stock (152,266) (137,839) (133,675) ----------- ---------- ----------- Total shareholders' equity 210,973 208,554 186,794 ----------- ---------- ----------- Total liabilities and shareholders' equity $ 315,035 $ 310,951 $ 325,895 =========== ========== ===========
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