0000950130-01-504917.txt : 20011031 0000950130-01-504917.hdr.sgml : 20011031 ACCESSION NUMBER: 0000950130-01-504917 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011024 ITEM INFORMATION: Other events FILED AS OF DATE: 20011029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERTAN INC CENTRAL INDEX KEY: 0000803227 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 752130875 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10062 FILM NUMBER: 1768689 BUSINESS ADDRESS: STREET 1: 3300 HGWY #7 STREET 2: STE 904 CITY: CONCORD ONTARIO CAN STATE: TX ZIP: 76102 BUSINESS PHONE: 9057609701 MAIL ADDRESS: STREET 1: 201 MAIN ST STREET 2: STE 1805 CITY: FORT WORTH STATE: TX ZIP: 76102 8-K 1 d8k.txt FORM 8-K 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: October 24, 2001 (Date of earliest event reported) InterTAN, Inc. (Exact name of Registrant as specified in its charter) Delaware 1-10062 75-2130875 (State of Incorporation) (Commission File No.) (I.R.S. Employer Identification No.) 3300 Highway #7, Suite 904 Concord, Ontario, Canada L4K 4M3 (Address of principal executive offices) (Postal Code) Registrant's telephone number, including area code: (905) 760-9701 Item 5. Other Events ------------ At a special meeting of the Board of Directors of the Registrant (the "Board") held on October 24, 2001, the Board authorized, subject to appropriate market conditions and obtaining applicable securities regulators' approval, the repurchase of up to 2,600,000 shares of Common Stock from time to time either through open market purchases or through privately negotiated transactions at prices as are determined by the Board or by the executive officer(s) of the Registrant so designated by the Board for such purpose. 2 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 thereunto duly authorized. InterTAN, Inc. October 29, 2001 By: /s/ Jeffrey A. Losch ------------------------------------ Jeffrey A. Losch Senior Vice President, Secretary and General Counsel 3 INDEX TO EXHIBITS Exhibit No. Description ----------- ----------- 1 Copy of Press Release, released on October 25, 2001, that announces, among other things, the implementation of a stock repurchase program. EX-99 3 dex99.txt NEWS RELEASE EXHIBIT 1 NEWS RELEASE FOR IMMEDIATE RELEASE --------------------- James G. Gingerich October 25, 2001 Executive Vice President and Chief Financial Officer IT-02-010 (905) 760-9706 INTERTAN REPORTS FISCAL FIRST QUARTER EARNINGS PER SHARE OF $0.14 BEFORE RESTRUCTURING LOCAL CURRENCY SALES UP 2% WITH A COMPARABLE-STORE INCREASE OF 1% Also Announces Another 10% Share Buyback TORONTO, Oct. 25, 2001--InterTAN, Inc. (NYSE: ITN; TSE: ITA), a leading consumer electronics retailer of both private label and nationally branded products, today reported its results for the first fiscal quarter of the year ending June 30, 2002, and further reported that it has now completed the share buyback announced on August 16 and is now announcing an additional repurchase of 2,600,000 shares, about 10% of outstanding shares, subject to appropriate market conditions and obtaining applicable securities regulators' approval. Sales at RadioShack Canada for the quarter in U.S. dollars were $90,365,000. Measured in local currency, this represented an increase over the prior year of 2%. Computed on the same basis, comparable store sales increased by 1%. Had sales of computer hardware been even with the last year's first financial quarter, the Company would have reported a local currency sales increase of 5%. The sales comparison in U.S. dollars was adversely affected by a 4% decline in the value of the Canadian dollar over the first quarter of fiscal year 2001. Excluding the effects of a previously announced restructuring charge, net income for the quarter was $4,039,000 or $0.14 per diluted share. Last year, excluding the results of its former subsidiary in Australia, net income was $4,498,000, or $0.16 per diluted share. The effect of the restructuring charge on earnings this year was $0.07 per diluted share. The Company expects that the action taken which resulted in this charge will produce an annualized savings of more than $0.03 per diluted share, beginning with its upcoming third fiscal quarter. Including the restructuring charge, net income for the quarter was $1,856,000, or $0.07 per diluted share. A year ago, net income, including the results of the Company's former and now divested subsidiary in Australia, was $5,325,000, or $0.18 per diluted share. The table below compares the U.S. dollar sales, operating income and net income for the three months ended September 30, 2001 with the comparable prior year period, excluding the restructuring charge and related tax effects and the results of the Australian subsidiary:
Three months ended (U.S. dollars in thousands, except Canadian sales and September 30 ------------------------ per share amounts) 2001 2000 ------------------------ Sales and other operating revenues $ 90,365 $ 119,951 Adjustments Sales of Australian subsidiary - (27,092) --------- --------- Canadian sales, in U.S. dollars $ 90,365 $ 92,859 ========= ========= Canadian sales, in Canadian dollars $ 139,768 $ 137,619 ========= ========= Operating income $ 3,250 $ 9,337 Adjustments Restructuring charge 3,213 - Income of Australian subsidiary - (1,237) --------- --------- Comparable operating income $ 6,463 $ 8,100 ========= ========= Net income $ 1,856 $ 5,325 Adjustments Restructuring charge 3,213 - Effect of restructuring charge on income taxes (1,030) - Income of Australian subsidiary - (827) --------- --------- Comparable net income $ 4,039 $ 4,498 ========= ========= Diluted earnings per share $ 0.07 $ 0.18 ========= ========= Comparable diluted earnings per share $ 0.14 $ 0.16 ========= =========
The Company also reported that it had completed a stock buy-back program announced in August. Under this program, the Company purchased 2,800,000 common shares at an aggregate cost of $23,145,000, or $8.27 per share, including commissions. While this program had no measurable effect on earnings per share for the quarter, its benefits will be apparent in future periods. "While we are happy to be reporting EPS at the higher end of the guidance range, we are not satisfied with the rate of first quarter growth," said Brian E. Levy, President and Chief Executive Officer. "Over the past seven months, we have crafted a number of very specific sales and marketing initiatives intended for rollout during the holiday season. That rollout, and a series of significant launches of new consumer technologies are now underway, and we have every intention and resolve to produce significantly better results during the second quarter. We are already encouraged by sales and margin trends thus far in October and believe the actions we have taken will result in the Company achieving positive comparable earnings growth in the second quarter. We are also glad to report the swift completion of our third share buyback program and the initiation of our fourth share repurchase, all of which we feel benefits our shareholders," Levy concluded. InterTAN, Inc., headquartered in Toronto, operates through approximately 900 company retail stores and dealer outlets in Canada under the trade name RadioShack(R) and Rogers AT&T Wireless Communications Express (R). The Company's Australian subsidiary was sold effective April 30, 2001. InterTAN will announce its October sales results on November 8, 2001. Certain information disclosed in this press release, including, among others, statements regarding the impact of the Company's new sales and marketing initiatives and the launch of new consumer technologies on the Company's future results constitutes forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, consumer acceptance, demand and preferences, product availability, development of new technology, global political and economic conditions, and other risks indicated in filings with the Securities and Exchange Commission such as InterTAN's previously filed periodic reports, including its Form 10-K for the 2001 fiscal year. -tables follow- Consolidated Statements of Operations (U.S. dollars in thousands, except per share data) (Unaudited)
Three months ended September 30 2001 2000 ========================================================================================= Net sales and operating revenues $ 90,365 $ 119,951 Other income 11 59 ----------------------------------------------------------------------------------------- 90,376 120,010 Operating costs and expenses: Cost of products sold 54,862 72,202 Selling, general and administrative expenses 27,702 36,879 Depreciation and amortization 1,349 1,592 Restructuring charge 3,213 - ----------------------------------------------------------------------------------------- 87,126 110,673 ----------------------------------------------------------------------------------------- Operating income 3,250 9,337 Foreign currency transaction gains (losses) 139 (126) Interest income 726 434 Interest expense (104) (124) ----------------------------------------------------------------------------------------- Income before income taxes 4,011 9,521 Income taxes 2,155 4,196 ----------------------------------------------------------------------------------------- Net income $ 1,856 $ 5,325 ========================================================================================= Basic net income per average common share $ 0.07 $ 0.19 Diluted net income per average common share $ 0.07 $ 0.18 ----------------------------------------------------------------------------------------- Average common shares outstanding 27,835 28,032 Average common shares outstanding assuming dilution 28,308 28,950 =========================================================================================
Consolidated Balance Sheets (U.S. dollars in thousands, except share amounts) (Unaudited)
September 30 June 30 September 30 2001 2001 2000 ============================================================================================================= Assets Current Assets Cash and short-term investments $ 55,299 $ 86,233 $ 10,302 Accounts receivable, less allowance for doubtful accounts 21,390 12,598 22,132 Inventories 88,519 90,394 140,103 Other current assets 2,651 1,151 1,499 Deferred income taxes 2,196 2,290 2,248 ------------------------------------------------------------------------------------------------------------- Total current assets 170,055 192,666 176,284 Property and equipment, less accumulated depreciation and amortization 19,660 19,817 24,061 Other assets 13 16 28 Deferred income taxes 2,907 3,031 2,445 ------------------------------------------------------------------------------------------------------------- Total Assets $ 192,635 $ 215,530 $ 202,818 ============================================================================================================= Liabilities and Stockholders' Equity Current Liabilities Short-term bank borrowings $ - $ - $ 6,655 Accounts payable 13,490 20,034 35,000 Accrued expenses 16,971 13,650 13,882 Income taxes payable 21,242 24,913 25,343 Deferred service contract revenue - current portion 5,418 5,507 5,756 ------------------------------------------------------------------------------------------------------------- Total current liabilities 57,121 64,104 86,636 Deferred service contract revenue - non current portion 4,490 4,599 4,887 Other liabilities 2,245 2,518 5,851 ------------------------------------------------------------------------------------------------------------- Total liabilities 63,856 71,221 97,374 ============================================================================================================= Stockholders' Equity Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding - - - Common stock, $1 par value, 40,000,000 shares authorized, 31,495,255, 31,225,048 and 30,638,135, respectively, issued 31,495 31,225 30,638 Additional paid-in capital 153,820 151,744 147,303 Common stock in treasury, at cost, 5,010,168, 3,101,818 and 3,027,150 shares, respectively (51,079) (35,405) (34,529) Retained earnings (deficit) 15,608 13,752 (4,450) Accumulated other comprehensive loss (21,065) (17,007) (33,518) ------------------------------------------------------------------------------------------------------------- Total stockholders' equity 128,779 144,309 105,444 ============================================================================================================= Commitments and contingencies Total Liabilities and Stockholders' Equity $ 192,635 $ 215,530 $ 202,818 =============================================================================================================