EX-99 3 d09818exv99.txt PRESS RELEASE EXHIBIT 99 (TANDY BRANDS ACCESSORIES, INC.LETTERHEAD) TANDY BRANDS ACCESSORIES, INC. INVESTOR RELATIONS: J.S.B. Jenkins Integrated Corporate Relations President/Chief Executive Officer Brian Yarbrough (562) 256-7050 (817) 548-0090 MEDIA RELATIONS: britt_jenkins@tandybrands.com Monarch Communications, Inc. Jeff Siegel (516) 569-6144 TANDY BRANDS ACCESSORIES' REPORTS SOLID FIRST QUARTER 2004 RESULTS o Net sales grew 7.0% to a record $64.2 million o Operating income rose 16.1% to $5.4 million ARLINGTON, TX, OCTOBER 21, 2003 - TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM: TBAC) today announced financial results for the first quarter ended September 30, 2003. For the first quarter of fiscal 2004, net sales totaled $64.2 million compared to $60.0 million for the same period in fiscal 2003. Net income for the first quarter of fiscal 2004 totaled $2.8 million, or $0.45 per diluted share, compared to net income of $2.4 million, or $0.40 per diluted share, before the cumulative effect of the accounting change for SFAS No. 142, for the same period last year. J.S.B. Jenkins, president and chief executive officer, stated, "We continue to achieve our quarterly goals in both sales and earnings and are pleased to report earnings at the upper end of our guidance range for the first quarter. Even though we experienced lower gross margins due to higher mass merchant sales we also decreased selling, general and administrative expenses as a percent of sales resulting in improved operating margins compared to last year's September quarter." Mr. Jenkins concluded, "We are pleased to announce that our Board of Directors approved another quarterly dividend on October 15, 2003. We consider this is an excellent way to utilize our strong cash flow and will continue to evaluate all strategic alternatives to increase shareholder value." The quarterly dividend of $0.025 per common share will be payable January 22, 2004, to shareholders of record at the close of business on December 31, 2003. Investors and interested parties will have the opportunity to listen to management's discussion of Tandy Brands' first quarter results in a conference call to be held today, Tuesday, October 21, at 10:00 a.m. ET. The dial-in number for the call is (888) 417-2317. For those who are unable to listen to the live broadcast, an audio replay of the call will be available through Tuesday, October 28, and can be accessed by dialing (877) 519-4471, passcode #4245350. A live webcast of the conference call will also be broadcast on www.viavid.net. Tandy Brands Accessories, Inc. designs, manufactures and markets fashion accessories for men, women and children. Key product categories include belts, wallets, handbags, suspenders, socks, scarves, sporting goods, and cold weather and hair accessories. Merchandise is sold under various national brand names as well as private labels to all major levels of retail distribution, including the ROLFS e-commerce web site at www.rolfs.net. Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted or expected results. Those risks include, among other things, the competitive environment in the industry in general and in the Company's specific market areas, inflation, changes in costs of goods and services and economic conditions in general and in the Company's specific market area. Those and other risks are more fully described in the Company's filings with the Securities and Exchange Commission. (TABLES TO FOLLOW) TANDY BRANDS ACCESSORIES, INC. Condensed Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited)
Three Months Ended September 30, ------------------------------ 2003 2002 ------------- ------------- Net sales $ 64,232 $ 60,028 Cost of goods sold 42,602 39,243 ------------- ------------- Gross margin 21,630 20,785 ------------- ------------- Selling, general and administrative expenses 15,210 15,070 Depreciation and amortization 1,038 1,080 ------------- ------------- Total operating expenses 16,248 16,150 ------------- ------------- Operating income 5,382 4,635 Interest expense (693) (714) Royalty, interest and other income 2 1 ------------- ------------- Income before provision for income taxes and cumulative effect of accounting change 4,691 3,922 Provision for income taxes 1,846 1,527 ------------- ------------- Net income before cumulative effect of accounting change 2,845 2,395 Cumulative effect of accounting change for SFAS No. 142, net of income taxes 0 (581) ------------- ------------- Net income $ 2,845 $ 1,814 ============= ============= Earnings per common share: Before accounting change $ 0.47 $ 0.41 Cumulative effect of accounting change 0.0 (0.10) ------------- ------------- $ 0.47 $ 0.31 ============= ============= Earnings per common share-assuming dilution: Before accounting change $ 0.45 $ 0.40 Cumulative effect of accounting change $ 0.0 (0.10) ------------- ------------- 0.45 $ 0.30 ============= ============= Dividends per share $ 0.025 $ 0.00 ============= ============= Common shares outstanding 6,107 5,888 ============= ============= Common shares outstanding shares-assuming dilution 6,273 5,984 ============= =============
TANDY BRANDS ACCESSORIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
September 30, June 30, 2003 2003 ------------- ------------- ASSETS (Unaudited) (Unaudited) Current assets: Cash and cash equivalents $ 2,700 $ 3,814 Accounts receivable, net 53,272 41,672 Inventories 58,030 62,156 Deferred income taxes 4,683 4,757 Other current assets 1,459 1,250 ------------- ------------- Total current assets 120,144 113,649 ------------- ------------- Property, plant and equipment, at cost: Property and equipment, at cost 32,591 31,885 Accumulated depreciation (18,014) (17,261) ------------- ------------- Net property, plant and equipment 14,577 14,624 ------------- ------------- Goodwill, net of accumulated amortization 11,646 11,641 Other intangibles, less amortization 4,799 4,900 Other noncurrent assets 1,520 1,716 ------------- ------------- TOTAL ASSETS $ 152,686 $ 146,530 ============= ============= LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 8,786 $ 14,522 Accrued expenses 11,021 9,996 ------------- ------------- Total current liabilities 19,807 24,518 ------------- ------------- Notes payable 36,796 30,000 Deferred income taxes 1,863 1,776 Other noncurrent liabilities 189 182 ------------- ------------- Total liabilities 58,655 56,476 ------------- ------------- Stockholders' equity: Common stock 6,141 6,019 Additional paid-in capital 24,971 23,802 Cumulative other comprehensive income and unearned compensation on restricted stock (1,202) (1,196) Retained earnings 64,121 61,429 ------------- ------------- Total stockholders' equity 94,031 90,054 ------------- ------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 152,686 $ 146,530 ============= =============