EX-99.1 2 c77015exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
Exhibit 99.1
(LOGO)
     
Tandy Brands Accessories, Inc.
  Investor Relations
J.S.B. Jenkins
  Beacon Street Group, LLC
Chairman
  Kenneth E. Pieper
817-548-0090 
  972-618-6924 
britt_jenkins@tandybrands.com
  kpieper@beaconstreetgroup.com
Tandy Brands Reports 1Q Fiscal 2009 Results
  •   Bottom line improves over 2008 1Q results reflecting $2 million reduction in S,G&A expenses
 
  •   Balance sheet remains strong with working capital of $50.9 million
 
  •   Company poised for growth when retail environment improves
Arlington, Texas (November 10, 2008) — Tandy Brands Accessories (Nasdaq GM:TBAC) today reported results for the first quarter of fiscal 2009.
For the first quarter of fiscal 2009 ended September 30, 2008, the company reported a net loss of $1.3 million, or $0.18 per share, on net sales of $34.6 million, versus a net loss of $1.7 million, or $0.25 per share, on net sales of $39.5 million for the quarter ended September 30, 2007. Although net sales in the quarter declined $4.9 million from the first quarter in fiscal 2008, the company was able to reduce its pretax loss by $1.8 million due in large part to reductions in selling, general and administrative expenses of $2 million.
Balance Sheet
The company’s financial position remains strong. As of September 30, 2008, the company had working capital of $50.9 million. Outstanding borrowings were $15.4 million at quarter’s end and credit facility borrowing availability was $12.2 million. The company expects that cash flow from operations will enable the company to pay down the line in early calendar 2009.
Sales Growth Initiatives
During the first quarter, the company added a new ladies belt line at a major customer. Looking forward, the company continues to expand its totes® gifts distribution at mass merchants and department stores.
“The decline in net sales is a direct result of the current difficult retail environment as several customers continue to be very cautious in expanding inventories going into the holiday season,” said J.S.B. Jenkins, chairman of Tandy Brands. “In addition, first quarter 2009 net sales were impacted by the timing of product shipments to certain customers that moved from the first quarter last year to the second quarter this year.”
“We remain cautious and conservative in our approach to the market in this challenging environment,” added Mr. Jenkins. “We feel that we have the financial strength and flexibility to support our customers.”

 

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New CEO and President Named
On October 1, 2008, the company announced that it had named N. Roderick (Rod) McGeachy, III, as its president and chief executive officer. Mr. McGeachy was named to the company’s board of directors on October 30, 2008.
Conference Call
The company has scheduled a conference call for 5 p.m. ET on November 10, 2008. Parties interested in participating in the conference call may dial-in at 877-407-9205, while international callers may dial-in at 201-689-8054. A replay of the call will be available through November 30, 2008 and can be accessed by dialing 877-660-6853, or 201-612-7415 for international callers, and entering account number 286, and conference ID number 297289. A live webcast of the conference call will be broadcast at www.InvestorCalendar.com.
About Tandy Brands Accessories, Inc.
Tandy Brands Accessories, Inc. designs and markets fashion accessories for men, women and children. Key product categories include belts, wallets, suspenders, gifts, and sporting goods. Merchandise is sold under various national brand names as well as private labels to all major levels of retail distribution, including the e-commerce web sites for Rolfs® at www.rolfs.net and Sport Beads at www.sport-beads.com.
Safe Harbor Language
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.

 

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Tandy Brands Accessories, Inc. And Subsidiaries
Unaudited Consolidated Statements Of Operations
(in thousands except per share amounts)
                 
    Three Months Ended  
    September 30  
    2008     2007  
Net sales
   $ 34,617     $ 39,464  
Cost of goods sold
     22,607       26,634  
 
            
Gross margin
     12,010       12,830  
Selling, general and administrative expenses
     12,401       14,441  
Depreciation and amortization
     569       976  
 
            
Total operating expenses
     12,970       15,417  
 
            
Operating loss
     (960 )     (2,587 )
Interest expense
     (148 )     (280 )
Other income
     61       45  
 
            
Loss before income taxes
     (1,047 )     (2,822 )
Income taxes (benefit)
     233       (1,087 )
 
            
Net loss
   $ (1,280 )   $ (1,735 )
 
            
Loss per common share
   $ (0.18 )   $ (0.25 )
Loss per common share assuming dilution
   $ (0.18 )   $ (0.25 )
Cash dividends declared per common share
   $ 0.04     $ 0.04  
Common shares outstanding
     6,988       6,826  
Common shares outstanding assuming dilution
     6,988       6,826  

 

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Tandy Brands Accessories, Inc. And Subsidiaries
Unaudited Consolidated Balance Sheets
(in thousands)
                 
    September 30     June 30  
    2008     2008  
Assets
                
Current assets:
                
Cash and cash equivalents
   $ 2,102     $ 2,855  
Accounts receivable
     26,411       22,147  
Inventories
     48,489       35,535  
Other current assets
     7,246       8,783  
 
            
Total current assets
     84,248       69,320  
Property and equipment
     4,911       5,382  
Other assets:
                
Intangibles
     2,986       3,069  
Other assets
     2,571       1,617  
 
            
Total other assets
     5,557       4,686  
 
            
 
   $ 94,716     $ 79,388  
 
            
 
                
Liabilities And Stockholders’ Equity
                
Current liabilities:
                
Accounts payable
   $ 12,498     $ 10,312  
Accrued expenses
     5,317       5,361  
Note payable
     15,441       363  
 
            
Total current liabilities
     33,256       16,036  
Other liabilities:
                
Supplemental executive retirement obligation
     1,813       1,893  
Other liabilities
     3,620       3,581  
 
            
Total other liabilities
     5,433       5,474  
Stockholders’ equity:
                
Preferred stock, $1.00 par value, 1,000 shares authorized, none issued
     —       —  
Common stock, $1.00 par value, 10,000 shares authorized, 7,048 shares and 7,049 shares issued and outstanding
     7,048       7,049  
Additional paid-in capital
     34,819       34,840  
Retained earnings
     13,775       15,337  
Other comprehensive income
     1,435       1,666  
Shares held by Benefit Restoration Plan Trust
     (1,050 )     (1,014 )
 
            
Total stockholders’ equity
     56,027       57,878  
 
            
 
   $ 94,716     $ 79,388  
 
            

 

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