Intertan 8-K Intertan to Expand Its Board and Pursue Income Trust

EXHIBIT 99.3

InterTan, Inc.

Consolidated Statements of Operations

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

(Unaudited)

	Three months ended September 30
	2003			2002
Net sales and operating revenues	$	106,459		$	92,903
Other income (loss)		(33	)		11
		106,426			92,914
Operating costs and expenses:
Cost of products sold		64,405			56,528
Selling, general and administrative expenses		36,600			31,216
Depreciation		1,932			1,641
		102,937			89,385
Operating income		3,489			3,529
Foreign currency transaction gains (losses)		(53	)		171
Interest income		49			96
Interest expense		(187	)		(198	)
Income before income taxes and cumulative effect
of accounting change		3,298			3,598
Income taxes		1,817			1,663
Income before cumulative effect of accounting change		1,481			1,935
Cumulative effect of accounting change for vendor allowances, net of income taxes of $388		—			(580	)
Net income	$	1,481		$	1,355
Basic net income per average common share
Before cumulative effect of accounting change	$	0.07		$	0.09
Cumulative effect of accounting change		—			(0.03	)
Basic net income per average common share	$	0.07		$	0.06
Diluted net income per average common share
Before cumulative effect of accounting change	$	0.07		$	0.09
Cumulative effect of accounting change		—			(0.03	)
Diluted net income per average common share	$	0.07		$	0.06
Average common shares outstanding		20,623			21,357
Average common shares outstanding assuming dilution		20,923			21,613

Consolidated Balance Sheets

(U.S. dollars, in thousands, except share amounts)

(Unaudited)

	September 30 2003			June 30 2003			September 30 2002
Assets
Current Assets
Cash and short-term investments	$	10,045		$	10,322		$	6,196
Accounts receivable, less allowance for doubtful accounts		26,683			16,275			19,874
Inventories		98,059			92,433			90,567
Deferred service contract costs—current portion		1,381			1,368			1,141
Prepaids, deposits and other current assets		2,672			5,301			1,453
Deferred income taxes		1,304			1,306			1,312
Total current assets		140,144			127,005			120,543
Property and equipment, less accumulated depreciation		34,147			33,537			28,096
Deferred service contract costs—non-current portion		1,101			1,071			889
Other assets		694			761			289
Deferred income taxes		3,949			3,955			3,428
Total Assets	$	180,035		$	166,329		$	153,245
Liabilities and Stockholders’ Equity
Current Liabilities
Short-term bank borrowings	$	4,440		$	—		$	6,301
Accounts payable		29,512			22,633			25,838
Accrued expenses		15,321			15,290			14,960
Income taxes payable		1,723			1,867			6,793
Long-term bank indebtedness—current portion		1,482			1,484			—
Obligation under capital leases—current portion		227			216			157
Deferred service contract revenue—current portion		8,924			8,809			7,178
Deferred income taxes		400			400			—
Total current liabilities		62,029			50,699			61,227
Long-term bank indebtedness—non-current portion		5,929			5,937			—
Obligation under capital leases—non-current portion		448			432			336
Deferred service contract revenue—non current portion		7,079			6,917			5,676
Other liabilities		4,969			4,847			4,124
Total liabilities		80,454			68,832			71,363
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, 32,530,410, 32,453,261 and 32,173,560, respectively, issued		32,530			32,453			32,174
Additional paid-in capital		160,363			159,776			158,308
Common stock in treasury, at cost, 11,857,093, 11,857,093 and 10,792,093 shares, respectively		(123,760	)		(123,760	)		(116,485	)
Retained earnings		36,512			35,031			28,675
Accumulated other comprehensive loss		(6,064	)		(6,003	)		(20,790	)
Total stockholders’ equity		99,581			97,497			81,882
Commitments and contingencies
Total Liabilities and Stockholders’ Equity	$	180,035		$	166,329		$	153,245

InterTAN, Inc.

Consolidated Statements of Cash Flows

(U.S. dollars in thousands)	Three months ended September 30
(Unaudited)	2003			2002
Cash flows from operating activities:
Net income	$	1,481		$	1,355
Adjustments to reconcile net income to cash used in operating activities:
Depreciation		1,932			1,641
Stock-based compensation		308			327
Other		68			11
Cash provided by (used in) assets and liabilities:
Accounts receivable		(10,201	)		(7,551	)
Inventories		(5,626	)		(13,051	)
Other current assets		2,520			(216	)
Accounts payable		6,763			13,808
Accrued expenses		67			(3,953	)
Income taxes payable		(146	)		(1,244	)
Deferred service contract revenue		292			140
Deferred service contract costs		(42	)		(19	)
Net cash used in operating activities		(2,584	)		(8,752	)
Cash flows from investing activities:
Additions to property and equipment		(2,435	)		(1,291	)
Proceeds from sales of property and equipment		—			51
Other investing activities		102			(107	)
Net cash used in investing activities		(2,333	)		(1,347	)
Cash flows from financing activities:
Short-term bank borrowings		4,440			6,393
Proceeds from issuance of common stock to employee plans		357			353
Proceeds from exercise of stock options		—			27
Repayment of obligation under capital lease		(59	)		(31	)
Purchase of treasury stock		—			(4,958	)
Net cash provided by financing activities		4,738			1,784
Effect of exchange rate changes on cash		(98	)		(188	)
Net decrease in cash and short-term investments		(277	)		(8,503	)
Cash and short-term investments, beginning of period		10,322			14,699
Cash and short-term investments, end of period	$	10,045		$	6,196