-----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, LHeqIiPh4zP+w8ub4kYaTF8k0m/XepzRzKOhbZbepXaMy+svHdS3YS1+PjTPFbJN XG1n6jBhHplKQqiRO/cE7Q== 0000096294-96-000002.txt : 19960125 0000096294-96-000002.hdr.sgml : 19960125 ACCESSION NUMBER: 0000096294-96-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960124 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: 96506453 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: January 24, 1996 Date of Earliest Event Reported: January 23, 1996 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 January 23, 1996, Registrant issued a press release announcing the unaudited results of operations for the three- and six-month periods ended December 31, 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 six-month periods ended December 31, 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: January 23, 1996 By:/s/ Jerry L. Roy ---------------------- Jerry L. Roy, President Date: January 23, 1996 By:/s/ Michael J. Walsh ---------------------- Michael J. Walsh Chief Financial Officer EX-99 2 TANDYCRAFTS, INC. REPORTS SECOND QUARTER RESULTS WHICH INCLUDES ANNOUNCED RESTRUCTURING CHARGE Fort Worth, Texas. January 23, 1996 -- TANDYCRAFTS, INC. (NYSE: TAC) today reported a net loss after restructuring charge of $12,379,000 or $1.04 per share for the second quarter of fiscal 1996 compared with net income of $4,097,000 or $0.36 per share in the second quarter of fiscal 1995. The results for the second quarter reflect the Company's adoption of a strategic restructuring and consolidation program designed to increase its competitive position and to increase value to Tandycrafts' shareholders. As a result, a pre-tax restructuring charge totaling $18.8 million, or $12.6 million net of income taxes, is included in the second quarter loss. Of this amount, approximately $16.9 million, before income taxes, relates to non-cash items. Net sales for the second quarter were $74,347,000, a decrease of 2% from the $75,619,000 in the second quarter of fiscal 1995. For the quarter, total retail sales increased 2% when compared to the same period in fiscal 1995 while manufacturing sales were down 4% for the quarter when compared to the same period last year. For the six months ended December 31, 1995, the Company reported a net loss of $12,370,000, or $1.04 per share, compared to net income of $6,151,000, or $0.54 per share, for the corresponding period of the prior fiscal year. These results include the effects of the restructuring charge taken in the current quarter. Net sales for the six months ended December 31, 1995 decreased 3% to $136,696,000 versus $141,131,000 for fiscal 1995. In commenting on the proposed restructuring and consolidation program approved by the Board, Mr. Cox stated that "the program, which is designed to increase the Company's competitive position and to increase value to Tandycrafts' shareholders, will allow the Company to become more focused when completed. Tandycrafts will be comprised of three specialty retail operations; Tandy Leather, Joshua's Christian Stores and Sav-On Discount Office Supplies, and two manufacturing divisions; TWI and Frames and Framed Art. The primary components of this program include: - The sale of Cargo Furniture & Accents. - The sales or closings of David James Manufacturing, Brand Name Apparel and Prestige Leather Creations. - The consolidation of certain functions within TWI ("Tandy Wholesale International") of Nocona Belt Company and Rivertown Button Company, which is being relocated from Houston, Minnesota to Fort Worth, Texas. - The closings of 11 underperforming retail outlets including two at Sav-On Discount Office Supplies, five at Joshua's Christian Stores and four at Tandy Leather Company. - The consolidation, streamlining, and in some cases, outsourcing of certain functions, including advertising, to increase efficiency throughout the various operating units. - The retention of an outside consulting firm to assist senior management in evaluating the Company's retail concepts. The pre-tax restructuring charge includes the following components: - $18.0 million for asset write downs and other exit costs associated with businesses which are expected to be sold or closed - $0.8 million for estimated tenancy, inventory disposition and other exit costs associated with the closure of eleven stores The total goodwill write-off included in the aggregate pre-tax charge of $18.8 million is $7.7 million." Three Months Ended Six Months Ended -------------------------- -------------------------- December 31, December 31, December 31, December 31, 1995 1994 1995 1994 ------------ ------------ ------------ ------------ Net sales $ 74,347 $ 75,619 $ 136,696 $ 141,131 Operating costs and expenses: Cost of goods sold 47,885 44,572 86,698 84,374 Selling, general and administrative 23,136 22,583 44,049 42,888 Depreciation and amortization 1,715 1,207 3,240 2,556 Restructuring charge 18,818 - 18,818 - ------------ ------------ ------------ ----------- Total operating costs and expenses 91,554 68,362 152,805 129,818 ------------ ------------ ------------ ----------- Operating income (loss) (17,207) 7,257 (16,109) 11,313 Interest expense, net 1,244 950 2,329 1,776 ------------ ------------ ------------ ----------- Income (loss) before income taxes (18,451) 6,307 (18,438) 9,537 Provision (benefit) for income taxes (6,072) 2,210 (6,068) 3,386 ------------ ------------ ------------ ----------- Net income (loss) $ (12,379) $ 4,097 $ (12,370) $ 6,151 ============ ============ ============ =========== Net income (loss) per share ($1.04) $0.36 ($1.04) $0.54 ===== ===== ===== ===== Weighted average common and common equivalent shares 11,935 11,383 11,852 11,298
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