-----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, RBmGIBqc6qB/NrP58885bF6QuLPoEmAMhRtrFUXG/B/yEDWs2GJdOqFCwjJOg2XS XYGQFPgLIaZSO5EVaVT/0A== 0000096294-98-000012.txt : 19980430 0000096294-98-000012.hdr.sgml : 19980430 ACCESSION NUMBER: 0000096294-98-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980427 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980428 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: 98602111 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: April 27, 1998 Date of Earliest Event Reported: April 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 April 23, 1997, Registrant issued a press release announcing the unaudited results of operations for the three- and nine-month periods ended March 31, 1998. 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 nine-month periods ended March 31, 1998. 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: April 27, 1998 By:/s/ Michael J. Walsh -------------------------- Michael J. Walsh, President and Chief Executive Officer Date: April 27, 1998 By:/s/ James D. Allen -------------------------- James D. Allen, Executive Vice President and Chief Financial Officer EX-99 2 FOR IMMEDIATE RELEASE TANDYCRAFTS, INC. REPORTS SIGNIFICANTLY IMPROVED THIRD QUARTER AND NINE-MONTH EARNINGS ----------------------- FORT WORTH, TEXAS, APRIL 23, 1998 -- TANDYCRAFTS, INC. (NYSE: TAC) TODAY ANNOUNCED IMPROVED RESULTS FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31, 1998. NET INCOME FOR THE QUARTER WAS $198,000, OR $.02 PER SHARE COMPARED TO A NET LOSS OF $5,701,000, OR $.45 PER SHARE FOR THE SAME QUARTER LAST YEAR. FOR THE NINE MONTHS ENDED MARCH 31, 1998, THE COMPANY REPORTED NET INCOME OF $4,203,000, OR $.33 PER SHARE COMPARED TO A NET LOSS OF $2,619,000, OR $.21 PER SHARE, FOR THE SAME PERIOD LAST YEAR. For the quarter, net sales were basically flat when compared to the same period last year with retail sales showing a slight decrease of 3.6% while manufacturing sales showed a slight increase of 2.3%. Same-store sales at Sav- On Office Supplies and Tandy Leather increased 1.4% and 2.3%, respectively, while same-store sales at Joshua's Christian Stores were down 6.1%, reflecting a shift in Easter sales and less promotional activity. Pinnacle Art & Frame achieved a sales increase of 15.5%, while sales at the TWI division were down 22.7%, primarily due to soft demand for sports licensed products. In commenting on the Company's performance, chief executive Michael J. Walsh stated, "The results for the third quarter of fiscal 1998 continued to show progress. Excluding a $5.3 million charge taken in the third quarter last year to restructure the Joshua's chain, consolidated operating income increased $3,894,000 compared to the same quarter last year. While we have made significant progress from a year ago, the operating results for this year continue to reflect a significant amount of investment to strengthen the marketing and operational capabilities of our businesses. Pinnacle Art & Frame posted another strong increase in sales and income as that division continues to strengthen its market position. Sav-On Office Supplies recorded a decrease in operating income for the quarter reflecting losses from six new stores. Operating income decreased slightly at the TWI division primarily as a result of soft demand for sports licensed products. Tandy Leather's operating results were down slightly reflecting the closure of 12 stores during the quarter; however, we are encouraged as the efforts to rebuild and broaden Tandy Leather's unique market position begin to show signs of progress. Same-store sales at Tandy Leather were up 2.3% for the quarter and 7.4% for the month of March." Mr. Walsh continued, "Although the Joshua's Christian Stores chain has shown significant improvement from a year ago, our recent announcement of the sale of the Joshua's chain to Family Christian Stores reflects management's decision to recover our investment in that business and continue to focus our resources on our most profitable and promising operations. As we stated previously, we expect that sale to close on or about May 31, 1998." 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, Sav-On Office Supplies and Joshua's Christian Stores. The Specialty Manufacturing segment is comprised of two manufacturing divisions: Pinnacle Art & Frame and Tandy Wholesale International. Three Months Ended Nine Months Ended ------------------------- ------------------------- March 31, March 31, March 31, March 31, 1998 1997 1998 1997 ----------- ----------- ----------- ----------- Net sales $ 53,100 $ 54,456 $ 181,696 $ 185,472 Operating costs and expenses: Cost of goods sold 35,766 41,128 120,302 123,548 Selling, general and administrative 14,935 20,062 48,532 59,499 Depreciation and amortization 1,254 1,315 3,783 4,078 ----------- ----------- ----------- ----------- Total operating costs and expenses 51,955 62,505 172,617 187,125 ----------- ----------- ----------- ----------- Operating income (loss) 1,145 (8,049) 9,079 (1,653) Interest expense, net 841 720 2,614 2,375 ----------- ----------- ----------- ----------- Income (loss) before income taxes 304 (8,769) 6,465 (4,028) Provision for income taxes 106 (3,068) 2,262 (1,409) ----------- ----------- ----------- ----------- Net income (loss) $ 198 $ (5,701) $ 4,203 $ (2,619) =========== =========== =========== =========== Net income (loss) per share - basic and diluted $ 0.02 $ (0.45) $ 0.33 $ (0.21) =========== ========== =========== =========== Weighted average common shares 12,649 12,565 12,657 12,369 ====== ====== ====== ====== Joshua's Sav-On Tandy Leather Christian Office Retail Bookstores Supplies ------------- ---------- ---------- Number of stores 140 58 41 QUARTER: Net sales 8,983 6,310 9,971 Same store sales gains / (losses) 2.3% (6.1)% 1.4% NINE MONTHS: Net sales 28,789 24,393 30,238 Same store sales gains / (losses) (1.1)% 8.7% 5.4%
# # # -----END PRIVACY-ENHANCED MESSAGE-----