-----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, PWmMsTACqt2pHWuCgrYYOBlcmN8Gnt79n38MXKGYojhgT+xPe6VkvuAh4Z5DQQ9k wAFsrfoYcVY4TIPlQPXCsw== 0000096294-98-000002.txt : 19980128 0000096294-98-000002.hdr.sgml : 19980128 ACCESSION NUMBER: 0000096294-98-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980123 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980127 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TANDYCRAFTS INC CENTRAL INDEX KEY: 0000096294 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940] IRS NUMBER: 751475224 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07258 FILM NUMBER: 98513618 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 26, 1998 Date of Earliest Event Reported: January 23, 1998 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, 1998, Registrant issued a press release announcing the unaudited results of operations for the three- and six-month periods ended December 31, 1997. 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, 1997. 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 26, 1998 By:/s/ Michael J. Walsh -------------------------- Michael J. Walsh, President Date: January 26, 1998 By:/s/ James D. Allen -------------------------- James D. Allen Chief Financial Officer EX-99 2 TANDYCRAFTS, INC. REPORTS 34% INCREASE IN SECOND QUARTER EARNINGS Fort Worth, Texas. January 23, 1998 -- TANDYCRAFTS, INC. (NYSE: TAC) announced today improved results for its fiscal second quarter ended December 31, 1997. Net income for the quarter increased 34% to $3,056,000, or $0.24 per share compared to net income of $2,285,000, or $0.19 per share for the same quarter last year. Excluding divested operations, net sales increased $5,227,000, or 7.7%, over the prior fiscal year with both retail sales and manufacturing sales showing increases. Same-store sales at Sav-On Office Supplies and Joshua's Christian Stores increased 6.7% and 10%, respectively, while same-store sales at Tandy Leather were essentially flat. The Picture Frame and Framed Art division, recently consolidated under the name Pinnacle Art & Frame, achieved a sales increase of 17.1%, while the TWI division achieved a 4% sales increase. In commenting on the Company's performance, Michael J. Walsh, Chief Executive Officer, stated, "The results for the second quarter of fiscal 1998 continued to show evidence of the turnaround in progress as the Company achieved a 34% increase in net income compared to the same quarter last year. Operating results were highlighted by marked improvement at Joshua's Christian Stores, Pinnacle Art & Frame and the TWI division. Sav-On Office Supplies recorded a slight decrease in operating income for the quarter primarily as a result of the impact of six new store openings in the past eight months. Although Tandy Leather's operating results for the quarter were slightly down, we are encouraged as the efforts to rebuild and broaden that company's unique market position begin to show signs of progress." For the six months ended December 31, 1997, the Company reported net income of $4,005,000 or $0.32 per share compared to net income of $3,082,000 or $0.25 per share for the same period of fiscal 1997. Certain statements contained herein which are not historical facts are forward looking statements that involve risks and uncertainties including, but not limited to, customer demand and trends, related inventory risks due to shifts in customer demand, risks associated with new business opportunities, competition, dependence on key personnel, the performance of each operating unit, relationships with key customers, commodity price fluctuations, new product introductions, interest rate fluctuations, recessionary factors, seasonality and other risks disclosed in the Company's latest annual report on Form 10-K filed with the Securities and Exchange Commission. Tandycrafts, Inc. is a specialty retailer and manufacturer. Included in its Specialty Retail segment are Tandy Leather Company, Joshua's Christian Stores, and Sav-On Office Supplies. The Specialty Manufacturing segment is comprised of two manufacturing divisions: Pinnacle Art & Frame and Tandy Wholesale International ("TWI"). Three Months Ended Six Months Ended --------------------------- --------------------------- December 31, December 31, December 31, December 31, 1997 1996 1997 1996 ------------ ------------ ------------ ------------ Net sales $ 73,237 $ 73,246 $ 128,596 $ 131,016 Operating costs and expenses: Cost of goods sold 48,702 46,732 84,536 82,420 Selling, general and administrative 17,665 20,775 33,597 39,437 Depreciation and amortization 1,259 1,391 2,529 2,763 ------------ ------------ ------------ ------------ Total operating costs and expenses 67,626 68,898 120,662 124,620 ------------ ------------ ------------ ------------ Operating income 5,611 4,348 7,934 6,396 Interest expense, net 911 833 1,773 1,655 ------------ ------------ ------------ ------------ Income before income taxes 4,700 3,515 6,161 4,741 Provision for income taxes 1,644 1,230 2,156 1,659 ------------ ------------ ------------ ------------ Net income $ 3,056 $ 2,285 $ 4,005 $ 3,082 ============ ============ ============ ============ Net income per share - basic $0.24 $0.19 $0.32 $0.25 ===== ===== ===== ===== Weighted average common shares 12,685 12,346 12,661 12,272 Joshua's Sav-On Tandy Leather Christian Office Retail Bookstores Supplies ------------- ---------- ----------- Number of stores 152 61 41 QUARTER: Net sales 10,828 11,159 9,668 Same store sales gains / (losses) (0.7)% 10.0% 6.7% SIX MONTHS: Net sales 19,806 18,083 20,267 Same store sales gains / (losses) (2.4)% 14.6% 8.0%
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