0000096294-95-000010.txt : 19950811 0000096294-95-000010.hdr.sgml : 19950811 ACCESSION NUMBER: 0000096294-95-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950810 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TANDYCRAFTS INC CENTRAL INDEX KEY: 0000096294 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOBBY, TOY & GAME SHOPS [5945] IRS NUMBER: 751475224 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07258 FILM NUMBER: 95560708 BUSINESS ADDRESS: STREET 1: 1400 EVERMAN PKWY CITY: FORT WORTH STATE: TX ZIP: 76140 BUSINESS PHONE: 8175519600 MAIL ADDRESS: STREET 1: 1400 EVERMAN PKWY CITY: FORT WORTH STATE: TX ZIP: 76140 8-K 1 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: August 9, 1995 TANDYCRAFTS, INC. A DELAWARE CORPORATION 1-7258 75-1475224 ------ ---------- (Commission File Number) (IRS Employer Identification No.) 1400 Everman Parkway Fort Worth, Texas 76140 (817) 551-9600 ITEM 5. OTHER EVENTS ------------ (a) On August 9, 1995, Registrant issued a press release announcing the unaudited results of operations for the three- and twelve- month periods ended June 30, 1995. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- (c) Exhibits. --------- Exhibit Number Description ------- ------------------------------ 99 Copy of press release announcing the unaudited results of operations for the three- and twelve-month periods ended June 30, 1995. 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 of the undersigned thereunto duly authorized. TANDYCRAFTS, INC. Date: August 9, 1995 By:/s/ Jerry L. Roy ------------------------- Jerry L. Roy President Date: August 9, 1995 By:/s/ Michael J. Walsh ------------------------- Michael J. Walsh Chief Financial Officer EX-99 2 TANDYCRAFTS, INC. REPORTS FOURTH QUARTER, FULL YEAR RESULTS, RETAINS BEAR STEARNS & CO. TO ASSIST IN ENHANCING SHAREHOLDER VALUE FORT WORTH, TEXAS, August 9, 1995 -----TANDYCRAFTS, INC. (NYSE: TAC) announced today results for the fourth quarter and the twelve months ended June 30, 1995. For the three months ended June 30, 1995, net sales were $60,501,000, a 6% increase over the $56,821,000 reported for the comparable period of the prior year. Net income was $122,000, or $0.01 per share, compared to $2,115,000, or $0.19 per share for the fourth quarter of fiscal 1994. For the twelve months ended June 30, 1995, net sales were $256,523,000, a 19% increase over the $214,869,000 reported for the comparable period of the prior year. Net income was $5,217,000, or $0.46 per share compared to $8,906,000, or $0.79 per share, for fiscal 1994. For the quarter total retail sales were up 8% versus the comparable fiscal 1994 quarter. Sales were up 55% at Sav-On Discount Office Supplies and 17% at Joshua's Christian Stores. Sales were down 4% at Tandy Leather and 6% at Cargo Furniture and Accents on three fewer stores. Comparable store sales for the quarter were up 10% at Sav-On Discount Office Supplies and 3% at Joshua's Christian Stores. Comparable store sales were down 4% at Tandy Leather and 9% at Cargo Furniture and Accents. Operating income for the retail segment was also down when compared to the same quarter last year. For the full year, total retail sales were up 9%. Sales were up 41% at Sav- On Discount Office Supplies and 27% at Joshua's Christian Stores. Sales were down 3% at Tandy Leather and 4% at Cargo Furniture and Accents with three fewer stores. Comparable store sales were up 4% at Joshua's Christian Stores and 1% at Cargo Furniture and Accents on three fewer stores. Comparable store sales were flat at Sav-On Discount Office Supplies and down 3% at Tandy Leather. Operating income for the retail segment for the year was down when compared to last year. This was primarily due to the rapid expansion of Sav-On Discount Office Supplies, which saw its store base increase from 21 stores to 38 at year end, an 81% increase, and Joshua's Christian Stores which saw its store base increase from 61 stores to 72 stores, an 18% increase. Manufacturing sales were up 5% for the quarter. Operating income continued to be impacted by the weak performance of the Company's Belts and accessories and Outerwear divisions. Sales at the Frames and framed art division were up 17% although operating income was down as a result of additional expenses relating to the rollout of the new "Hermitage" line. Sales at the Tandy Wholesale International division ("TWI") were up 33%. Operating income was down as a result of additional expenses associated with the assimilation of the Trench Novelty Division. For the year sales for the manufacturing segment were up 29% and operating income was basically flat. In commenting on the results for the year Mr. Earl Cox III, Chairman of the Board stated, "while our performance in the first two quarters of the year was extremely strong, our performance in the last two quarters was extremely disappointing. Many external factors, including the weak apparel cycle, the mild winter, and the baseball and hockey strikes all came together to adversely impact our performance in three of our four manufacturing divisions. Also, our retail performance was adversely impacted by rapid expansion of two of our retail chains, Sav-On Discount Office Supplies and Joshua's Christian Stores. On the bright side, our performance in the frames and framed art division was extremely strong and two of our retail chains, Tandy Leather and Cargo Furniture and Accents, continued to perform well even though customers were beginning to pull back in the current economic environment." Mr. Cox went on to state, "the disappointing results for the year have led us to reexamine our strategy to grow the Company. Our mission is to enhance shareholder value. To insure that we accomplish our mission, we have retained Bear Stearns & Co. to act as our financial advisor and agent in connection with reviewing alternatives, with a view toward making recommendations to maximize shareholder value. As we go forward into fiscal 1996 we will be working on realizing that value." Tandycrafts Inc. is a specialty retailer and manufacturer. Included in its specialty retailing segment are Tandy Leather Company, Joshua Christian Stores, Cargo Furniture & Accents and Sav-On Discount Office Supplies. Its specialty manufacturing segment is comprised of four manufacturing divisions; frame and framed art, belts and accessories, apparel and outerwear and Tandy Wholesale International ("TWI"). (Table to follow) Three Months Ended Year Ended --------------------- ---------------------- June 30, June 30, June 30, June 30, 1995 1994 1995 1994 ---------- --------- ---------- ---------- Net sales $ 60,501 $ 56,821 $ 256,523 $ 214,869 Operating costs and expenses: Cost of goods sold 38,110 32,788 155,644 126,589 Selling, general and administrative 19,754 19,470 83,544 68,845 Depreciation and amortization 1,454 1,152 5,475 4,018 ---------- --------- ---------- ---------- Total operating costs and expenses 59,318 53,410 244,663 199,452 ---------- --------- ---------- ---------- Operating income (loss) 1,183 3,411 11,860 15,417 Interest expense, net 1,056 432 3,833 1,437 ---------- --------- ---------- ---------- Income (loss) before income taxes 127 2,979 8,027 13,980 Provision for income taxes 5 864 2,810 5,074 ---------- --------- ---------- ---------- Net income $ 122 $ 2,115 $ 5,217 $ 8,906 ========== ========= ========== ========== Net income (loss) per share $0.01 $0.19 $0.46 $0.79 ===== ===== ===== ===== Weighted average common and common equivalent shares 11,642 11,131 11,434 11,336 ====== ====== ====== ====== # # #