-----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, VVDhwLOvQfo5/yeNsCPz8hVRZlB/DirKkhwK5Mrr80u53eLgccV+Z2ax7Yq1C2Er HSFS9ONkEkv1PWmSwYjRRw== /in/edgar/work/20000602/0000096287-00-000007/0000096287-00-000007.txt : 20000919 0000096287-00-000007.hdr.sgml : 20000919 ACCESSION NUMBER: 0000096287-00-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000429 FILED AS OF DATE: 20000602 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOMBAY COMPANY INC CENTRAL INDEX KEY: 0000096287 STANDARD INDUSTRIAL CLASSIFICATION: [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: 648368 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 0001.txt 1ST QUARTER 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark one) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 2000 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 common stock as of the latest practicable date. Class Number of shares outstanding at April 29, 2000 Common stock, $1 par value 33,554,489 THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Form 10-Q Quarter Ended April 29, 2000 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 April 29, May 1, 2000 1999 Net sales $85,288 $75,286 Costs and expenses: Cost of sales, buying and store 61,809 55,680 occupancy costs Selling, general and administrative 26,645 23,999 expenses Interest income, net (397) (374) Total costs and expenses 88,057 79,305 Loss before income taxes (2,769) (4,019) Income tax benefit (1,094) (1,588) Net loss ($1,675) ($2,431) Basic earnings per share ($0.05) ($0.07) Diluted earnings per share ($0.05) ($0.07) Average common shares outstanding and dilutive potential common shares 34,878 36,737 The accompanying notes are an integral part of these consolidated financial statements.
THE BOMBAY COMPANY, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands)
April 29, January 29, May 1, 2000 2000 1999 (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents $26,982 $39,174 $34,632 Inventories 87,673 90,583 87,282 Other current assets 10,727 9,365 16,603 Total current assets 125,382 139,122 138,517 Property and equipment, net 47,036 47,544 43,222 Goodwill, less amortization 478 485 505 Other assets 15,616 14,721 12,556 Total assets $188,512 $201,872 $194,800 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued $23,156 $24,459 $28,593 expenses Income taxes payable 4,229 5,192 306 Accrued payroll and bonuses 2,512 4,519 3,126 Gift certificates redeemable 3,893 4,184 3,351 Total current liabilities 33,790 38,354 35,376 Accrued rent and other liabilities 7,055 7,270 6,999 Stockholders' equity: Preferred stock, $1 par value, 1,000,000 shares authorized -- -- -- Common stock, $1 par value, 50,000,000 shares authorized, 38,149,646 shares issued 38,150 38,150 38,150 Additional paid-in capital 76,067 76,082 76,055 Retained earnings 55,100 56,775 47,002 Accumulated other comprehensive (1,244) (1,013) (1,195) loss Common shares in treasury, at cost, 4,595,157; 2,677,236 and 1,562,725 shares, (19,712) (13,129) (7,587) respectively Stock purchase loans (694) (617) -- Total stockholders' equity 147,667 156,248 152,425 Total liabilities and stockholders' $188,512 $201,872 $194,800 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 April 29, May 1, 2000 1999 Cash flows from operating activities: Net loss ($1,675) ($2,431) Adjustments to reconcile net loss to net cash from operations: Depreciation and amortization 3,439 2,852 Deferred taxes and other (9) (197) Change in assets and liabilities: (Increase) decrease in inventories 2,605 (12,514) Increase in other current assets (1,194) (6,794) Increase (decrease) in current liabilities (4,668) 4,950 (Increase) decrease in noncurrent assets (13) 11 Increase (decrease) in noncurrent liabilities (59) 67 Net cash used by operations (1,574) (14,056) Cash flows from investing activities: Purchases of property and equipment (3,987) (2,335) Sales of property and equipment 68 114 Net cash used by investing activities (3,919) (2,221) Cash flows from financing activities: Purchases of treasury stock (6,869) (1,762) Sale of stock to employee benefit plans 58 43 Proceeds from the exercise of employee stock -- 5 options Net cash used by financing activities (6,811) (1,714) Effect of exchange rate change on cash 112 (186) Net decrease in cash and cash equivalents (12,192) (18,177) Cash and cash equivalents at beginning of period 39,174 52,809 Cash and cash equivalents at end of period $26,982 $34,632 Supplemental disclosure of cash flow information: Income taxes paid $24 $1,588 Non-cash financing activities: Distributions of deferred director fees -- 58 Issuance of restricted stock 136 64 Loans issued to purchase Company stock 77 -- 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 April 29, 2000 and May 1, 1999, and the results of operations and cash flows for the three months then ended. The results of operations for the three month periods ended April 29, 2000 and May 1, 1999 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 1999 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 May 12, 2001, are for working capital and letter of credit purposes, primarily to fund seasonal merchandise purchases, and bear interest at market rates based on prime. There were no borrowings under these revolving credit facilities during the quarter ended April 29, 2000. (3) Comprehensive Income/Loss Comprehensive loss for the three months ended April 29, 2000 and May 1, 1999 was $1,906,000 and $2,125,000, respectively. Accumulated other comprehensive income consists of the cumulative effect of foreign currency translation adjustments. (4) Stock Repurchase Program On June 17, 1998, the Company announced that its Board of Directors had approved a stock repurchase program with initial authorization to purchase up to $10 million of the Company's stock. On August 18, 1999 and on March 8, 2000, the Board of Directors announced that it had extended this program by $5 million and $10 million, respectively. The shares may be purchased from time to time, through open market purchases and privately negotiated transactions. As of April 29, 2000, 4,963,016 shares had been purchased at a cost aggregating $21,565,000. 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 1999 Form 10-K Annual Report. General The Bombay Company, Inc. ("Company") is a specialty retailer which markets timeless and classic furniture, prints and accessories through over 400 locations of The Bombay Company ("Bombay") retail stores in 42 states in the United States and nine Canadian provinces, through mail order and over the internet at www.bombayco.com. The largest percentage of the Company's sales and operating income is realized in the fiscal quarter that includes December (Christmas season). Merchandise is manufactured to Company specification through a network of contract manufacturers located principally in Asia and North America. Because the majority of the Company's products are proprietary, the impact of inflation on operating results is typically not significant. The Company attempts to alleviate inflationary pressures by increasing selling prices (subject to competitive conditions), improving designs and finding alternative production sources in lower cost countries. Results of Operations Quarters Ended April 29, 2000 and May 1, 1999 Net sales were $85,288,000 for the quarter ended April 29, 2000 compared to $75,286,000 for the quarter ended May 1, 1999, an increase of 13%. Same store sales increased 9% over the prior year with positive contributions from every region. Sales increases for the quarter were primarily attributable to furniture categories, followed by increases in accessories and wall decor. The sales mix for the first quarter of Fiscal 2000 consisted of 50.4% furniture, 27.8% accessories, 16.8% wall decor and 5.0% lamps and other categories. During the same period of last year, the sales mix was 49.6% furniture, 28.6% accessories, 16.7% wall decor and 5.1% lamps and other. During the quarter ended April 29, 2000, the transaction count increased by approximately 18% over the first fiscal quarter of last year, while the average transaction declined from $98 to $94 during the applicable periods reflecting the impact of continued emphasis in the accessories and take-with categories. Cost of sales, including buying and occupancy costs, was $61,809,000 for the first fiscal quarter compared to $55,680,000 for the same period last year. As a percentage of sales, cost of sales decreased to 72.5% for the quarter compared to 74.0% for the prior year period. Product margins declined by 60 points due primarily to higher domestic freight costs resulting from last year's freight rate increases, heavier shipping weights with more furniture sales and other heavy items, and fuel surcharges. Buying and occupancy costs declined to 23.3% from 25.4% as fixed costs are leveraged on the higher sales base. Selling, general and administrative expenses were $26,645,000 or 31.2% of sales for the quarter compared to $23,999,000 or 31.9% of sales for the comparable prior year period. The largest component of the dollar increase continues to be higher payroll costs driven by the higher sales volume and higher store pay rates in the tight labor market. Amortization costs resulting from investments made in technology and higher credit card expenses on the increased sales volumes also contributed to increased selling, general and administrative expenses, while advertising decreased slightly. However, as a percentage of sales, selling, general and administrative expenses declined as the Company continues to exercise strong controls and leverage these costs on the higher sales base particularly in the areas of payroll costs and advertising. 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 available to fund seasonal inventory purchases. In addition, the bank credit lines, which were renewed during the quarter, are used for overseas merchandise purchases under letters of credit. Unsecured bank lines aggregate $45 million, of which $30 million are committed under revolving credit agreements expiring May 12, 2001. Letters of credit totaling $15,078,000 were outstanding at April 29, 2000. The store expansion plan for the remainder of the fiscal year anticipates approximately 14 new stores and 19 conversions to the large format. Capital expenditures for the quarter included one new store opening, one new outlet and six conversions as well as routine purchases of furniture, equipment and software. The total estimated capital expenditures for Fiscal 2000 are approximately $20 million. The Company also continues a stock repurchase program approved by the Board of Directors of up to $25 million. During the quarter ended April 29, 2000, $6,869,000 was spent to acquire 1,978,400 shares of the Company's common stock. Through April 29, 2000, $21,565,000 has been spent to repurchase 4,963,016 shares. The Company believes that its current cash position, cash flows from operations and credit line facilities will be sufficient to fund its current operations, capital expenditure and stock repurchase programs. 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 April 29, 2000. 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/ Carmie Mehrlander Carmie Mehrlander President and Chief Executive Officer /s/ Elaine D. Crowley Elaine D. Crowley Vice President, Finance and Treasurer Date: June 2, 2000 EX-27 2 0002.txt 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 April 29, 2000 and is qualified in its entirety by reference to such 10-Q. 0000096287 THE BOMBAY COMPANY, INC. 1000 3-MOS FEB-03-2001 JAN-30-2000 APR-29-2000 26982 0 0 0 87673 125382 109648 62612 188512 33790 0 0 0 38150 109517 188512 85288 85288 61809 88454 0 0 (397) (2769) (1094) (1675) 0 0 0 (1675) (.05) (.05)
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