-----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, UjG7tO4uv/Y6+93QgT9nl2y15U3hPuxHmXFO+swIPWX0QU07XYnUArhHKgRpkwc9 JIQazXP/paEYcdnptkPR9Q== 0000950117-05-004516.txt : 20051130 0000950117-05-004516.hdr.sgml : 20051130 20051130084502 ACCESSION NUMBER: 0000950117-05-004516 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051130 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051130 DATE AS OF CHANGE: 20051130 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: 051233279 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 a40897.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): November 30, 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 November 30, 2005, REX Stores Corporation issued a press release announcing financial results and comparable store sales for the three month and nine month periods ended October, 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 November 30, 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: November 30, 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 Joseph N. Jaffoni Chief Financial Officer Jaffoni & Collins Incorporated 937/276-3931 212/835-8500 or rsc@jcir.com REX STORES' THIRD QUARTER DILUTED EARNINGS PER SHARE RISE 115% TO $0.58 - Fiscal Third Quarter Comp Store Sales Rise 4.6% - Dayton, Ohio (November 30, 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 nine-month periods ended October 31, 2005. Net income in the three months ended October 31, 2005 rose 104% to $6.9 million, or $0.58 per diluted share, from net income of $3.4 million, or $0.27 per diluted share, in the three months ended October 31, 2004. Per share results are based on 11,865,000 and 12,610,000 diluted weighted average shares outstanding for the three-month periods ending October 31, 2005 and October 31, 2004, respectively. Income from continuing operations before income taxes in the three months ended October 31, 2005 rose 122% to $9.2 million from $4.1 million in the quarter ended October 31, 2004. Income from continuing operations before income taxes reflects fiscal 2005 third quarter income of $8.4 million from synthetic fuel investments, including a $1.2 million gain related to the sale during the fiscal third quarter by the Company of its interest in a synthetic fuel limited partnership, compared to $5.2 million of comparable investment income in the year-ago period. Net sales in the three months ended October 31, 2005 rose 4.2% to $94.3 million from $90.5 million in the three months ended October 31, 2004. Comparable store sales during the period rose 4.6% compared with 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 Third Quarter Results, 11/30/05 page 2 During the three-month period ended October 31, 2005, REX purchased approximately 455,300 shares of its common stock in open market transactions. Subsequent to the close of the fiscal third quarter, REX purchased an additional 119,100 shares. The Company now has approximately 769,245 shares remaining available to purchase under its stock buy-back authorization reflecting the previously disclosed expansion of its share repurchase authorization by 1,000,000 shares during the fiscal 2005 third quarter and the share repurchase activity during and subsequent to the fiscal 2005 third quarter noted above. Net income in the nine month period ended October 31, 2005 rose 102% to $21.7 million, or $1.76 per diluted share, compared to net income of $10.8 million, or $0.84 per diluted share, in the nine month period ended October 31, 2004. Per share results are based on 12,353,000 and 12,778,000 diluted weighted average shares outstanding for the nine month periods ending October 31, 2005 and October 31, 2004, respectively. Income from continuing operations before income taxes in the nine months ended October 31, 2005 rose 112% to $26.9 million from $12.7 million in the nine months ended October 31, 2004. Income from continuing operations before income taxes for the nine months ended October 31, 2005, reflects income of $24.8 million from synthetic fuel investments, compared to $13.8 million of comparable investment income in the year-ago period. Net sales in the 2005 nine month period rose 3% to $267.0 million from $259.2 million in the nine months ended October 31, 2004. Comparable store sales in the first nine months of fiscal 2005 rose 3.7% compared to the same year-ago period. Commenting on the results, Stuart Rose, REX Stores' Chairman and Chief Executive Officer, stated, "We are very pleased with the third quarter results as they extended the Company's momentum from the first half of the fiscal year. We would like to recognize all of our employees that were impacted by the hurricanes and their tireless efforts which ensured that our stores are operational and ready for the holiday selling season." 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 212/676-5411; 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. -more- REX Stores Reports Third Quarter Results, 11/30/05 page 3 Following its completion, a telephonic replay of the call can be accessed through 1:00 p.m. EST on December 7, 2005 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21269518. 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 October 31, 2005, the Company operated 226 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 Third Quarter Results, 11/30/05 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited)
Three Months Ended Nine Months Ended October 31 October 31 ---------- ---------- 2005 2004 2005 2004 ---- ---- ---- ---- NET SALES $ 94,321 $ 90,502 $ 267,011 $ 259,172 COSTS AND EXPENSES: Cost of merchandise sold 68,465 66,138 192,073 186,165 ------ ------ ------ ------ Gross profit 25,856 24,364 74,938 73,007 Selling, general and administrative expenses 24,689 24,846 71,284 71,359 ------ ------ ------ ------ Operating income (loss) 1,167 (482) 3,654 1,648 INVESTMENT INCOME 23 7 155 152 INTEREST EXPENSE (690) (719) (2,020) (2,437) LOSS ON EARLY TERMINATION OF DEBT - - - (614) GAIN ON SALE OF REAL ESTATE 253 121 253 121 INCOME FROM SYNTHETIC FUEL INVESTMENTS 8,433 5,219 24,813 13,798 ------ ------ ------ ------ Income from continuing operations before provision for income taxes and discontinued operations 9,186 4,146 26,855 12,668 PROVISION FOR INCOME TAXES 2,203 564 4,900 1,251 ------ ------ ------ ------ Income from continuing operations 6,983 3,582 21,955 11,417 Loss from discontinued operations, net of tax (101) (201) (377) (667) Gain on disposal of discontinued operations, net of tax - - 125 - ------ ------ ------ ------ Net Income $6,882 $3,381 $21,703 $10,750 ====== ====== ======= ======= WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 10,532 10,897 10,850 11,092 ====== ====== ====== ====== Basic income per share from continuing operations $0.66 $0.33 $2.02 $1.03 Basic loss per share from discontinued operations (0.01) (0.02) (0.03) (0.06) Basic income per share on disposal of discontinued operations - - 0.01 - ------ ------ ------ ------ BASIC NET INCOME PER SHARE $0.65 $0.31 $2.00 $0.97 ====== ====== ====== ====== WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 11,865 12,610 12,353 12,778 ====== ====== ====== ====== Diluted income per share from continuing operations $0.59 $0.29 $1.78 $0.89 Diluted loss per share from discontinued operations (0.01) (0.02) (0.03) (0.05) Diluted income per share on disposal of discontinued operations - - 0.01 - ------ ------ ------ ------ DILUTED NET INCOME PER SHARE $0.58 $0.27 $1.76 $0.84 ====== ====== ====== ======
-more- REX Stores Reports Third Quarter Results, 11/30/05 page 5 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
October 31 January 31 October 31 2005 2005 2004 ---- ---- ---- Unaudited Unaudited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,254 $ 4,671 $ 1,075 Accounts receivable, net 4,460 5,460 5,088 Synthetic fuel receivable 2,930 1,675 1,848 Merchandise inventory 135,220 124,188 152,215 Prepaid expenses and other 1,555 1,230 2,897 Future income tax benefits 10,929 10,929 8,703 -------- --------- -------- Total current assets 156,348 148,153 171,826 PROPERTY AND EQUIPMENT, NET 127,626 129,723 130,487 ASSETS HELD FOR SALE 1,669 1,986 2,569 OTHER ASSETS 823 841 612 FUTURE INCOME TAX BENEFITS 27,978 27,978 16,082 RESTRICTED INVESTMENTS 2,300 2,270 2,265 -------- --------- -------- Total assets $ 316,744 $ 310,951 $323,841 ========= ========= ======== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable $ - $ - $ 15,169 Current portion of long-term debt 2,958 2,897 2,939 Current portion of deferred income and deferred gain on sale and leaseback 10,609 10,432 10,378 Accounts payable, trade 38,919 32,842 49,259 Accrued income taxes 418 1,567 - Accrued payroll and related items 5,777 6,303 5,101 Other current liabilities 6,596 6,152 7,454 -------- --------- -------- Total current liabilities 65,277 60,193 90,300 -------- --------- -------- LONG-TERM LIABILITIES: Long-term mortgage debt 27,774 30,501 31,633 Deferred income 11,349 11,703 11,522 -------- --------- -------- Total long-term liabilities 39,123 42,204 43,155 -------- --------- -------- SHAREHOLDERS' EQUITY: Common stock 293 290 287 Paid-in capital 134,985 133,474 130,705 Retained earnings 234,332 212,629 195,830 Treasury stock (157,266) (137,839) (136,436) -------- --------- -------- Total shareholders' equity 212,344 208,554 190,386 -------- --------- -------- Total liabilities and shareholders' equity $316,744 $ 310,951 $323,841 ======== ========= ========
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