-----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, Cza715Xy7gJzQDIocEJOFCIe3x7s3f1UY7JATh+77QDLi9n7uw3utFh1WinXkFL2 ibSMVSZlaWwdjQ8tTl47HQ== 0000096287-98-000006.txt : 19980617 0000096287-98-000006.hdr.sgml : 19980617 ACCESSION NUMBER: 0000096287-98-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980502 FILED AS OF DATE: 19980616 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOMBAY COMPANY INC CENTRAL INDEX KEY: 0000096287 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FURNITURE STORES [5712] IRS NUMBER: 751475223 STATE OF INCORPORATION: DE FISCAL YEAR END: 0128 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-07288 FILM NUMBER: 98649041 BUSINESS ADDRESS: STREET 1: 550 BAILEY AVE STE 700 CITY: FORT WORTH STATE: TX ZIP: 76107 BUSINESS PHONE: 8173478200 MAIL ADDRESS: STREET 1: 550 BAILEY AVENUE STREET 2: SUITE 700 CITY: FORT WORTH STATE: TX ZIP: 76107 FORMER COMPANY: FORMER CONFORMED NAME: TANDY BRANDS INC DATE OF NAME CHANGE: 19901114 10-Q 1 1ST QUARTER 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 rk one) [ 3 ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 2, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 1-7288 THE BOMBAY COMPANY, INC. (Exact name of registrant as specified in its charter) Delaware 75-1475223 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 550 Bailey Avenue, Fort Worth, Texas 76107 (Address of principal executive offices) (Zip Code) (817) 347-8200 (Registrant's telephone number, including area code) Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ______ Indicate the number of shares outstanding of each of the issuer's classes of commmon stock as of the latest practicable date. Class Number of shares outstanding at May 2, 1998 Common stock, $1 par value 38,128,556 THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Form 10-Q Quarter Ended May 2, 1998 TABLE OF CONTENTS PART I -- FINANCIAL INFORMATION Page No. Financial Statements............................................... 3-6 Management's Discussion and Analysis of Financial Condition and Results of Operations.............................. 7-8 PART II -- OTHER INFORMATION Exhibits and Reports on Form 8-K................................... 9 Signatures......................................................... 10 THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
Three Months Ended May 2, May 3, 1998 1997 Net Sales $68,343 $67,231 Costs and expenses: Cost of sales, buying and store 52,634 52,399 occupancy costs Selling, general and administrative 22,738 23,214 expenses Interest income, net (617) (737) Total costs and expenses 74,755 74,876 Loss before income taxes (6,412) (7,645) Benefit for income taxes (2,531) (3,020) Net loss ($3,881) ($4,625) Basic earnings per share ($0.10) ($0.12) Diluted earnings per share ($0.10) ($0.12) Average common shares outstanding and dilutive potential common shares. 38,121 38,022 Cash dividends per common share -- -- The accompanying notes are an integral part of these consolidated financial statements.
THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands)
May 2, January 31, May 3, 1998 1998 1997 ASSETS (Unaudited) Unaudited) Current assets: Cash and cash equivalents $40,666 $56,110 $56,477 Inventories 87,787 85,861 65,843 Deferred taxes 3,400 3,400 3,428 Other current assets 12,213 3,742 10,874 Total current assets 144,066 149,113 136,622 Property and equipment, net 38,887 36,753 39,013 Goodwill, less amortization 533 540 561 Other assets 9,415 9,056 8,729 Total assets $192,901 $195,462 $184,925 LIABILITIES AND STOCKHOLDERS'EQUITY Current liabilities: Accounts payable and accrued $25,260 $23,019 $23,707 expenses Accrued payroll and bonuses 3,371 4,390 3,504 Gift certificates redeemable 2,737 3,008 2,103 Total current liabilities 31,368 30,417 29,314 Accrued rent and other liabilities 6,904 6,807 6,347 Stockholders' equity: Preferred stock, $1 par value, 1,000,000 shares authorized -- -- -- Common stock, $1 par value, 50,000,000 shares authorized, 38,128,556; 38,114,187 and 38,042,509 shares issued, 38,129 38,114 38,043 respectively Additional paid-in capital 75,960 75,904 75,624 Retained earnings 41,542 45,423 36,348 Accumulated other comprehensive (1,002) (1,203) (751) loss Total stockholders' equity 154,629 158,238 149,264 Total liabilities and stockholders' $192,901 $195,462 $184,925 equity The accompanying notes are an integral part of these consolidated financial statements.
THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited)
Three Months Ended May 2, May 3, 1998 1997 Cash flows from operating activities: Net loss ($3,881) ($4,625) Adjustments to reconcile net loss to net cash from operations: Depreciation and amortization 2,350 2,554 Deferred taxes and other 7 68 Noncash contributions to employee benefit plans -- 243 Change in assets and liabilities: (Increase) decrease in inventories (1,686) 3,710 Increase in other current assets (8,160) (2,213) Increase (decrease) in current liabilities 586 (6,304) Increase in noncurrent assets (599) (75) Increase (decrease) in noncurrent liabilities 82 (2) Net cash used by operations (11,301) (6,644) Cash flows from investing activities: Purchases of property and equipment (4,262) (397) Sales of property and equipment 106 85 Net cash used by investing activities (4,156) (312) Cash flows from financing activities: Sale of stock to employee benefit plans 50 186 Proceeds from the exercise of employee stock 18 22 options Net cash provided by financing activities 68 208 Effect of exchange rate change on cash (55) 95 Net decrease in cash and cash equivalents (15,444) (6,653) Cash and cash equivalents at beginning of period 56,110 63,130 Cash and cash equivalents at end of period $40,666 $56,477 Supplemental disclosure of cash flow information: Income taxes paid (refunded) $1,861 ($581) The accompanying notes are an integral part of these consolidated financial statements.
THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (1)Accounting Principles In the opinion of the Company, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position as of May 2, 1998 and May 3, 1997, and the results of operations and cash flows for the three months then ended. The results of operations for the three month periods ended May 2, 1998 and May 3, 1997 are not necessarily indicative of the results to be expected for the full fiscal year. The consolidated financial statements should be read in conjunction with the financial statement disclosures contained in the Company's 1997 Annual Report to Shareholders. (2) Financing Arrangements The Company has renewed its unsecured revolving credit agreements with banks, aggregating $45,000,000, of which $30,000,000 is committed. These credit facilities, which expire April 13, 1999, are for working capital and letter of credit purposes, primarily to fund seasonal merchandise purchases, and bear interest at market rates based on prime. (3) Comprehensive Income Effective February 1, 1998, the Company adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" ("FAS 130"). Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive loss for the three months ended May 2, 1998 and May 3, 1997 was $3,680,000 and $4,873,000, respectively. THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Special Note Regarding Forward-Looking Statements Certain statements in this Form 10-Q under "Management's Discussion and Analysis of Financial Condition and Results of Operations" constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the actual results, performance or achievements of The Bombay Company, Inc. ("Company") to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: competition; seasonality; success of operating initiatives; new product development and introduction schedules; acceptance of new product offerings; advertising and promotional efforts; adverse publicity; expansion of the store chain; availability, locations and terms of sites for store development; changes in business strategy or development plans; availability and terms of capital; labor and employee benefit costs; changes in government regulations; risks associated with international business; regional weather conditions; and other factors referenced in the Company's 1997 Form 10-K Annual Report. General The Bombay Company, Inc. is a specialty retailer which markets traditional and classic furniture, prints and accessories through its 409 locations of The Bombay Company ("Bombay") retail stores in 42 states in the United States and nine Canadian provinces. To accommodate the increasing number of products, the Company introduced a large format Bombay store in late fiscal 1992. The large format stores average 4,000 square feet, while the regular stores average 1,800 square feet. Presently, the Company's store opening program calls for large format stores ranging in size from 2,500 to 3,500 square feet. At May 2, 1998, 228 large format Bombay stores were in operation, including 141 stores that have been converted from regular stores since fiscal 1992. The largest percentage of the Company's sales and operating income is realized in the fiscal quarter that includes December (Christmas season). Although the precise effect of inflation on operations cannot be accurately determined, management does not believe inflation has a material impact on sales or results of operations. Results of Operations Quarters ended May 2, 1998 and May 3, 1997 Net sales were $68,343,000 for the quarter ended May 2, 1998 compared to $67,231,000 for the same period last year, an increase of 1.7%. The increase is primarily attributable to a 3% same store sales increase slightly offset by there being 15 fewer stores than at May 3, 1997. Cost of sales, including buying and occupancy costs, was $52,634,000 for the first fiscal quarter compared to $52,399,000 for the same period last year. As a percentage of sales, cost of sales decreased to 77.0% for the quarter compared to 77.9% for the prior year period. The 90 basis point improvement is due to higher product margin (30 basis points) as well as lower buying and occupancy costs relative to sales (60 basis points). The higher product margins reflect stronger margins in the non furniture merchandise particularly for gift oriented product as the Company focused on the Spring gift giving season. The percentage decrease in buying and occupancy costs reflects their relatively fixed nature measured against sales increases. Selling, general and administrative expenses were $22,738,000 or 33.3% of sales for the quarter compared to $23,214,000 or 34.5% of sales for the comparable prior year period. The decreases are the result of on-going expense control efforts and are primarily related to reduced payroll expenses. Liquidity and Capital Resources The primary sources of liquidity and capital resources are cash flows from operations and bank lines of credit. Bank borrowings are utilized to fund seasonal inventory purchases. In addition, the bank credit lines are used for overseas merchandise purchases. Letters of credit totaling $14,575,000 were outstanding at May 2, 1998. Bank lines total $45,000,000, of which $30,000,000 is committed, under revolving credit agreements expiring April 13, 1999. Based upon available cash balances at May 2, 1998 of over $40,000,000 and cash forecasts for the year, the Company does not presently expect to be in a borrowing position at any time during fiscal 1998. The bank credit lines are,however, being utilized to support inventory purchases under letters of credit. The store expansion program for the remainder of the fiscal year anticipates approximately 19 new stores and 14 conversions. New stores and conversions in fiscal 1998 are in a new design which includes customer-friendly merchandise displays and updated styling. The Company also intends to retrofit a number of its existing larger format stores with certain of the more successful elements of the new design. Capital expenditures for the quarter, totaling $4,262,000,included two store conversions and eleven retrofit projects as well as routine purchases of machinery and equipment. The total estimated capital expenditures for fiscal 1998 are $22,000,000. The Company believes that its current cash position, cash flow from operations and credit line facilities will be sufficient to fund current operations and its capital expenditure program. THE BOMBAY COMPANY, INC. AND SUBSIDIARIES PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K No reports on Form 8-K have been filed during the quarter ended May 2, 1998. No exhibits have been filed as a part of this report. THE BOMBAY COMPANY, INC. AND SUBSIDIARIES 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. THE BOMBAY COMPANY, INC. (Registrant) /s/ Robert S. Jackson Robert S. Jackson Chief Executive Officer /s/ Elaine D. Crowley Elaine D. Crowley Vice President, Finance and Treasurer Date: June 15, 1998 EX-27 2 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from The Bombay Company, Inc. quarterly report on Form 10-Q for the three months ended May 2, 1998 and is qualified in its entirety by reference to such 10-Q. 0000096287 THE BOMBAY COMPANY, INC. 1000 3-MOS JAN-30-1999 FEB-01-1998 MAY-02-1998 40666 0 0 0 87787 144066 91356 52469 192901 31368 0 0 0 38129 116500 192901 68343 68343 52634 75372 0 0 (617) (6412) (2531) (3881) 0 0 0 (3881) (.10) (.10)
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