TANDYCRAFTS, INC. REPORTS THIRD QUARTER, NINE MONTHS RESULTS
Fort Worth, Texas. April 21, 1995 -- TANDYCRAFTS, INC. (NYSE: TAC) today
announced results for the third quarter and nine months of fiscal 1995, ended
March 31, 1995.
For the three months ended March 31, 1995, the Company incurred a loss of
$1,056,000 or $.09 per share compared to income of $1,680,000 or $.15 per share
reported for the same period in Fiscal 1994. Net sales for the third quarter of
fiscal 1995 were $54,891,000, a 5% increase over the $52,469,000 reported for
the comparable period in the prior year.
For the nine months ended March 31, 1995, net income was $5,095,000 or $.45
per share compared to $6,791,000 or $.60 for the prior fiscal year. Net sales
increased 24% to $196,022,000 versus $158,048,000 for fiscal 1994.
At the Specialty Retail level, total sales for the quarter increased 9%
compared to the same period in fiscal 1994. Both sales and same store sales at
Tandy Leather, with 175 stores, were down 3% when compared to the same period
last year. Cargo Furniture & Accents, with 40 stores opened versus 44 for the
same period last year, saw sales slip 4% due to the smaller number of stores,
while same store sales increased 3%. Sav-On Discount Office Supplies, with 36
stores opened versus 15 last year, reported a 44% sales increase and a 4%
increase in same store sales. Joshua's Christian Stores, with 70 stores opened
versus 57 stores opened last year, realized a 21% sales increase. Same store
sales, which were flat for the quarter, were up 4% in January and February but
down by 7% for March as a result of Easter falling two weeks later - April 16
versus April 3 last year - making March comparisons difficult. For the first
two weeks of April 1995, sales were up 29% and same store sales were up 16%.
At the Specialty Manufacturing level, sales for the quarter were up 1% when
compared to last year. This reflected several factors including continued
weakness in the apparel divisions, Belts and Accessories and Outerwear, a
slowing of sales at TWI as a result of the baseball strike and the shifting of
certain promotional sales from the third quarter to the fourth quarter in the
Frames and Framed Art division.
Going into the fourth quarter, plans call for the opening of four
additional Joshua's Christian Stores and two Sav-On Discount Office Supplies
stores prior to June 30, 1995.
Commenting on the results, Earl Cox, Chairman, stated "While Tandycrafts
completed its quarter setting sales records, the Company, as previously stated,
did incur a loss for the quarter. This loss was attributable to several factors
including weakness in the apparel industry, decline in sales at TWI due to the
baseball strike, shifting of retail sales as a result of a later
Easter and additional new store expenses incurred primarily in expanding
one of the Company's most promising retail operations, Sav-On Discount Office
Supplies." Looking to the fourth quarter, Mr. Cox added, "Some of these factors
including the continuing weakness in the apparel divisions, Belts and
Accessories and Outerwear, will continue to negatively impact our performance."
Tandycrafts, Inc. is a specialty retailer and manufacturer. Included in
its Specialty Retail segment are Tandy Leather Company, Joshua's Christian
Stores, Cargo Furniture & Accents, and Sav-On Discount Office Supplies. Its
Specialty Manufacturing segment is comprised of four manufacturing divisions;
Frames and Framed Art, Belts and Accessories, Outerwear and Tandy Wholesale
International ("TWI").
(Table to follow)
Three Months Ended Nine Months Ended
------------------- ---------------------
March 31, March 31, March 31, March 31,
1995 1994 1995 1994
-------- -------- -------- ---------
Net sales $ 54,891 $ 52,469 $ 196,022 $ 158,048
Operating costs and expenses:
Cost of goods sold 33,160 31,222 117,534 93,801
Selling, general and
administrative 20,902 17,024 63,790 49,375
Depreciation and
amortization 1,465 1,046 4,021 2,866
---------- ---------- ---------- ----------
Total operating costs
and expenses 55,527 49,292 185,345 146,042
---------- ---------- ---------- ----------
Operating income (loss) (636) 3,177 10,677 12,006
Interest expense, net 1,001 476 2,777 1,005
---------- ---------- ---------- ----------
Income (loss) before
income taxes (1,637) 2,701 7,900 11,001
Provision for income
taxes (581) 1,021 2,805 4,210
---------- ---------- ---------- ----------
Net income $ (1,056) $ 1,680 $ 5,095 $ 6,791
========== ========== ========== ==========
Net income (loss) per
share $(0.09) $0.15 $0.45 $0.60
======= ===== ===== =====
Weighted average common and
common equivalent shares 11,500 11,327 11,366 11,404
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