Intertan 8-K Intertan Announces Fourth Quarter and Full Year Earnings

EXHIBIT 99.2

InterTAN, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

	Three months ended June 30						Twelve months ended June 30
	2003			2002			2003			2002
Net sales and operating revenues	$	90,903		$	84,935		$	403,052		$	393,809
Other expense		(10	)		(6	)		(21	)		(7	)
		90,893			84,929			403,031			393,802
Operating costs and expenses:
Cost of products sold		52,387			55,963			239,311			243,381
Selling, general and administrative expenses		35,238			28,968			137,152			116,958
Depreciation		1,878			1,542			6,923			5,674
Loss on disposal of subsidiary companies		—			217			—			217
Restructuring charges		—			209			—			2,912
		89,503			86,899			383,386			369,142
Operating income (loss)		1,390			(1,970	)		19,645			24,660
Foreign currency transaction gains (losses)		(2,149	)		(221	)		(2,112	)		41
Interest income		76			143			299			1,444
Interest expense		(187	)		(101	)		(1,018	)		(403	)
Income (loss) before income taxes and cumulative effect of accounting change		(870	)		(2,149	)		16,814			25,742
Provision for (recovery of) income taxes		421			(600	)		8,523			12,174
Net income (loss) before cumulative effect of accounting change		(1,291	)		(1,549	)		8,291			13,568
Cumulative effect of accounting change for vendor allowances, net of income tax of $388		—			—			(580	)		—
Net income (loss)	$	(1,291	)	$	(1,549	)	$	7,711		$	13,568
Basic net income (loss) per average common share
Before cumulative effect of accounting change	$	(0.06	)	$	(0.07	)	$	0.40		$	0.54
Cumulative effect of accounting change		—			—		$	(0.03	)		—
Basic net income (loss) per average common share	$	(0.06	)	$	(0.07	)	$	0.37		$	0.54
Diluted net income (loss) per average common share
Before cumulative effect of accounting change	$	(0.06	)	$	(0.07	)	$	0.39		$	0.53
Cumulative effect of accounting change		—			—		$	(0.03	)		—
Diluted net income (loss) per average common share	$	(0.06	)	$	(0.07	)	$	0.36		$	0.53
Average common shares outstanding		20,540			22,876			20,925			25,142
Average common shares outstanding assuming dilution		20,540			22,876			21,103			25,610

InterTAN, Inc.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except per share data)

	June 30, 2003			June 30, 2002
Assets
Current Assets:
Cash and short-term investments	$	10,322		$	14,699
Accounts receivable, less allowance for doubtful accounts		16,275			12,903
Inventories		92,433			81,314
Deferred service contract costs—current portion		1,368			1,170
Prepaids, deposits and other current assets		5,301			1,300
Deferred income taxes		1,306			1,374
Total current assets		127,005			112,760
Property and equipment, less accumulated depreciation		33,537			29,604
Deferred service contract costs—non-current portion		1,071			946
Other assets		761			328
Deferred income taxes		3,955			3,580
Total Assets	$	166,329		$	147,218
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	22,633		$	12,793
Accrued expenses		15,290			19,445
Income taxes payable		1,867			8,365
Long-term bank indebtedness—current portion		1,484			—
Obligation under capital leases—current portion		216			164
Deferred service contract revenue—current portion		8,809			7,274
Deferred income taxes		400			—
Total current liabilities		50,699			48,041
Long-term bank indebtedness—non-current portion		5,937			—
Obligation under capital leases—non-current portion		432			384
Deferred service contract revenue—non-current portion		6,917			6,043
Other liabilities		4,847			4,304
		68,832			58,772
Stockholders’ Equity
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—
Common stock, $1 par value, 40,000,000 shares authorized, 32,453,259 and 32,091,097 issued		32,453			32,091
Additional paid-in capital		159,776			157,684
Retained earnings		35,031			27,320
Accumulated other comprehensive loss		(6,003	)		(17,122	)
Common stock in treasury, at cost, 11,857,093 and 10,337,243 shares, respectively		(123,760	)		(111,527	)
Total stockholders’ equity		97,497			88,446
Commitments and contingent liabilities
Total Liabilities and Stockholders’ Equity	$	166,329		$	147,218

InterTAN, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, in U.S. dollars)

	Year ended June 30
	2003			2002
Cash flows from operating activities:
Net income	$	7,711		$	13,568
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation		6,923			5,674
Deferred income taxes		680			360
Inventory adjustment		—			3,500
Loss on disposition of subsidiary company		—			217
Stock-based compensation		1,119			1,409
Other		115			(10	)
Cash provided by (used in) assets and liabilities:
Accounts receivable		(1,870	)		(271	)
Inventories		(671	)		5,308
Prepaids, deposits and other current assets		(3,512	)		(378	)
Accounts payable		7,330			(6,980	)
Accrued expenses		(5,868	)		5,468
Income taxes payable		(6,588	)		(15,993	)
Deferred service contract revenue		654			1,325
Deferred service contract costs		(316	)		(254	)
Net cash provided by operating activities		5,707			12,943
Cash flows from investing activities:
Additions to property and equipment		(6,438	)		(14,550	)
Proceeds from sales of property and equipment		63			140
Other investing activities		(384	)		1,504
Net cash used in investing activities		(6,759	)		(12,906	)
Cash flows from financing activities:
Short-term bank borrowings		47,796			—
Repayments of short-term bank borrowings		(48,224	)		—
Long-term bank borrowings		7,421			—
Proceeds from issuance of common stock to employee plans		1,263			1,753
Proceeds from exercise of stock options		72			3,401
Repayment of obligation under capital lease		(180	)		(101	)
Purchase of treasury stock		(12,233	)		(75,882	)
Net cash used in financing activities		(4,085	)		(70,829	)
Effect of exchange rate changes on cash		760			(742	)
Net decrease in cash and short-term investments		(4,377	)		(71,534	)
Cash and short-term investments, beginning of year		14,699			86,233
Cash and short-term investments, end of year	$	10,322		$	14,699