-----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, UdnCAIzH6Z58IuNargGx2C0S3rMMhquT7uH4V9rv5r0Hngylw5SuhRtcU61hFcX4 HgIUZkUH3LFGb4zlHQKVyw== 0001104659-08-055047.txt : 20080826 0001104659-08-055047.hdr.sgml : 20080826 20080826115611 ACCESSION NUMBER: 0001104659-08-055047 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080826 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080826 DATE AS OF CHANGE: 20080826 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TUESDAY MORNING CORP/DE CENTRAL INDEX KEY: 0000878726 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-VARIETY STORES [5331] IRS NUMBER: 752398532 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19658 FILM NUMBER: 081038458 BUSINESS ADDRESS: STREET 1: 6250 LBJ FREEWAY CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 2143873562 MAIL ADDRESS: STREET 1: 6250 LBJ FREEWAY CITY: DALLAS STATE: TX ZIP: 75240 8-K 1 a08-22313_18k.htm CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES

 

 

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 26, 2008

 


 

Tuesday Morning Corporation

(Exact name of registrant as specified in its charter)

 

Delaware
(State or other jurisdiction of
incorporation)

 

0-19658
(Commission File Number)

 

75-2398532
(IRS Employer Identification No.)

 

6250 LBJ Freeway
Dallas, Texas
(Address of principal executive offices)

 

75240
(Zip Code)

 

Registrant’s telephone number, including area code:  (972) 387-3562

 


 

Not applicable

(Former name or former address, if changed since last report)

 

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:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o 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 26, 2008, Tuesday Morning Corporation, a Delaware corporation (the “Company”), issued a press release announcing net income, earnings per share and final net sales for the fourth fiscal quarter and fiscal year ended June 30, 2008.  In the press release, the Company also issued its guidance for the fiscal year ending June 30, 2009.  The press release is attached to this Form 8-K as Exhibit 99.1.

 

Item 9.01 Financial Statements and Exhibits.

 

(d)           Exhibits

 

Exhibit
Number

 

Exhibit Title

99.1

 

Press release dated August 26, 2008

 

2



 

SIGNATURE

 

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.

 

 

TUESDAY MORNING CORPORATION

 

 

 

 

Date: August 26, 2008

By:

 /s/ Stephanie Bowman

 

 

Stephanie Bowman

 

 

Executive Vice President and Chief

 

 

Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit
Number

 

Exhibit Title

99.1

 

Press release dated August 26, 2008

 

4


EX-99.1 2 a08-22313_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

CONTACT:

 

Stephanie Bowman

 

 

 

Chief Financial Officer

 

 

 

TUESDAY MORNING CORPORATION

 

 

 

972-934-7251

 

 

 

 

 

 

 

 

 

 

 

Laurey Peat

 

 

 

LAUREY PEAT + ASSOCIATES

 

 

 

214/871-8787

 

TUESDAY MORNING CORPORATION

 

ANNOUNCES FOURTH QUARTER 2008 AND FISCAL YEAR 2008 RESULTS

 

DALLAS, TX – August 26, 2008 – Tuesday Morning Corporation (NASDAQ: TUES) today reported that as previously announced, net sales for the fourth quarter of fiscal 2008 were $196.5 million compared to $219.4 million for the quarter ended June 30, 2007, a decrease of 10.4%.  Comparable store sales decreased 12.7% for the quarter.  The decrease in comparable store sales was comprised of an 11.0% decrease in traffic and a 1.7% decrease in average ticket.  Net loss for the fourth quarter ended June 30, 2008 was $2.5 million or ($0.06) per diluted share, compared to net income of $2.0 million or $0.05 per diluted share last year.

 

Kathleen Mason, President and Chief Executive Officer, stated, “Record increases in energy and food prices, coupled with the prolonged housing and credit crisis, sharply restricted our customers’ disposable income during the quarter.  Despite these pressures, we were able to control inventory and expenses to partially offset the decline in demand.  We continue to compete with liquidation sales in a struggling home furnishings sector, but remain focused on achieving annual profits and maintaining our strong balance sheet.”

 

For the fiscal year ended June 30, 2008, sales were $885.3 million compared to $924.2 million for the same period ended June 30, 2007, a decrease of 4.2%.  Comparable store sales decreased by 7.6% for the fiscal year.  The decrease in comparable store sales was comprised of a 6.6% decrease in traffic and a 1.0% decrease in average ticket.  For the fiscal year ended June 30,

 

1



 

2008, net income was $14.5 million or $0.35 per diluted share compared to 2007 results of net income of $30.0 million or $0.72 per diluted share.

 

Guidance

 

Guidance for the fiscal year ending on June 30, 2009 is as follows:

·                  net sales are projected to be in the range of $868 million to $878 million;

·                  comparable store sales are projected to be in the negative mid single digits; and

·                  diluted earnings per share projected to be in the range of $0.21 to $0.27.

 

Tuesday Morning management will review fourth quarter and fiscal 2008 financial results in a teleconference call on August 26, 2008 at 10:00 a.m. Eastern Time.

 

About Tuesday Morning

 

Tuesday Morning is a leading closeout retailer of upscale, decorative home accessories, housewares and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 842 stores in 47 states. Tuesday Morning is nationally known for bringing its more than 9.0 million loyal customers a unique treasure hunt of high-end, first quality, brand name merchandise...never seconds or irregulars...at prices well below those of department and specialty stores and catalogues.

 

This press release contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, estimates and projections.  Forward-looking statements typically are identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “estimate,” “intend” and similar words, although some forward-looking statements are expressed differently.  You should carefully consider statements that contain these words because they describe our expectations, plans, strategies and goals and our beliefs concerning future business conditions, our future results of operations, our future financial positions, and our business outlook or state other “forward-looking” information.

 

Reference is hereby made to “Item 1A.  Risk Factors” of the Company’s Transition Report on Form 10-KT for the six month period ended June 30, 2007 and the Company’s Quarterly Report on Form 10-Q for the three month period ended March 31, 2008 for examples of risks, uncertainties and events that could cause our actual results to differ materially from the expectations expressed in our forward-looking statements.  These risks, uncertainties and events also include, but are not limited to, the following:  uncertainties regarding our ability to open stores in new and existing markets and operate these stores on a profitable basis; conditions affecting consumer spending; inclement weather; changes in our merchandise mix; timing and type of sales events, promotional activities and other advertising; increased or new competition; loss or departure of one or more members of our senior management, as well as experienced buying and management personnel; an increase in the cost or a disruption in the flow of our products; seasonal and quarterly fluctuations; fluctuations in our comparable store results; our ability to operate information systems and implement new technologies effectively; our ability to generate strong cash flows from our operations; our ability to maintain internal control over financial reporting; and our ability to anticipate and respond in a timely manner

 

2



 

to changing consumer demands and preferences.  The forward-looking statements made in this press release relate only to events as of the date on which the statements were made.  We undertake no obligations to update our forward-looking statements to reflect events and circumstances after the date on which the statements were made or to reflect the occurrence of unanticipated events.

 

# # #

 

3



 

Tuesday Morning Corporation

Consolidated Statement of Income (unaudited)

(In thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

Twelve Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

196,492

 

$

219,364

 

$

885,281

 

$

924,199

 

Cost of sales

 

128,401

 

139,564

 

562,578

 

578,881

 

Gross profit

 

68,091

 

79,800

 

322,703

 

345,318

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

73,288

 

75,672

 

297,852

 

296,632

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(5,197

)

4,128

 

24,851

 

48,686

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

(367

)

(924

)

(3,928

)

(2,703

)

Interest income

 

2

 

2

 

157

 

203

 

Other income (expense), net

 

271

 

153

 

1,052

 

979

 

Other income (expense)

 

(94

)

(769

)

(2,719

)

(1,521

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

(5,291

)

3,359

 

22,132

 

47,165

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

(2,795

)

1,325

 

7,634

 

17,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2,496

)

$

2,034

 

$

14,498

 

$

30,071

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share:

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.06

)

$

0.05

 

$

0.35

 

$

0.73

 

Diluted

 

$

(0.06

)

$

0.05

 

$

0.35

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares:

 

 

 

 

 

 

 

 

 

Basic

 

41,441

 

41,440

 

41,439

 

41,433

 

Diluted

 

41,503

 

41,625

 

41,494

 

41,637

 

 

 

 

 

 

 

 

 

 

 

 



 

Consolidated Balance Sheets (unaudited)

(in thousands)

 

 

 

June 30,

 

June 30,

 

 

 

2008

 

2007

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

8,630

 

$

10,303

 

Inventories

 

240,996

 

288,791

 

Prepaid expenses and other assets

 

11,292

 

5,954

 

Deferred income taxes

 

 

1,211

 

Total current assets

 

260,918

 

306,259

 

 

 

 

 

 

 

Property and Equipment, net

 

77,315

 

83,776

 

 

 

 

 

 

 

Other long-term assets:

 

 

 

 

 

Deferred financing costs

 

503

 

704

 

Other assets

 

3,040

 

3,582

 

 

 

 

 

 

 

Total Assets

 

$

341,776

 

$

394,321

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long term debt

 

$

 

$

26,500

 

Accounts payable

 

63,899

 

82,453

 

Accrued liabilities

 

28,595

 

31,223

 

Deferred Income Taxes

 

267

 

 

Income taxes payable

 

27

 

712

 

Total current liabilities

 

92,788

 

140,888

 

 

 

 

 

 

 

Revolving credit facility, excl. current portion

 

8,500

 

30,000

 

Deferred rent

 

4,163

 

4,534

 

Deferred income taxes

 

3,414

 

3,459

 

Total Liabilities

 

108,865

 

178,881

 

 

 

 

 

 

 

Stockholders’ equity

 

232,911

 

215,440

 

Total Liabilities and Stockholders’ Equity

 

$

341,776

 

$

394,321

 

 



 

Tuesday Morning Corporation (continued)

Consolidated Statement of Cash Flows (unaudited)

(in thousands)

 

 

 

Twelve Months

 

Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

Net cash flows from operating activities:

 

 

 

 

 

Net income

 

$

14,498

 

$

3,081

 

Adjustments to reconcile net income to net cash (used in) operating activities:

 

 

 

 

 

Depreciation and amortization

 

17,483

 

8,858

 

Amortization of financing fees

 

201

 

93

 

Stock compensation expense

 

3,174

 

2,011

 

Loss on disposal of assets

 

540

 

418

 

Deferred income taxes

 

1,407

 

762

 

Other non-cash charges

 

(1

)

(232

)

Net change in operating assets and liabilities

 

21,774

 

(70,749

)

 

 

 

 

 

 

Net cash provided by (used) in operating activities

 

59,076

 

(55,758

)

 

 

 

 

 

 

Net cash flows from investing activities:

 

 

 

 

 

Capital expenditures

 

(11,562

)

(6,655

)

 

 

 

 

 

 

Net cash used in investing activities

 

(11,562

)

(6,655

)

 

 

 

 

 

 

Net cash flows from financing activities:

 

 

 

 

 

Borrowings under the revolving credit facility

 

220,000

 

185,500

 

Repayments under the revolving credit facility

 

(268,000

)

(129,000

)

Change in cash overdraft

 

(1,187

)

 

Payment of cash dividend

 

 

(33,145

)

Proceeds from exercise of common stock options and stock purchase plan purchases

 

 

10

 

Payment of financing fees

 

 

(282

)

 

 

 

 

 

 

Net cash provided by (used in) financing act.

 

(49,187

)

23,083

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(1,673

)

(39,330

)

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

10,303

 

49,633

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

8,630

 

$

10,303

 

 


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