1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2000
Commission File Number 0-18927
TANDY BRANDS ACCESSORIES, INC.
STOCK PURCHASE PLAN
(full title of Plan)
TANDY BRANDS ACCESSORIES, INC.
690 East Lamar Blvd., Suite 200
Arlington, Texas 76011
(Name of issuer of the securities held pursuant to the Plan and
address of its principal executive office.)
================================================================================
2
CONTENTS
Page
----
TABLE OF CONTENTS ........................................................ 1
CERTIFIED PUBLIC ACCOUNTANT'S REPORT ..................................... 4
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS .......................... 5
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS ............... 6
NOTES TO FINANCIAL STATEMENTS ............................................ 7-9
SIGNATURE PAGE ........................................................... 10
CONSENT OF INDEPENDENT ACCOUNTANTS ....................................... 11
1
3
TANDY BRANDS ACCESSORIES, INC.
STOCK PURCHASE PROGRAM
FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
2
4
TANDY BRANDS ACCESSORIES, INC.
STOCK PURCHASE PROGRAM
FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
TABLE OF CONTENTS
Report of Independent Auditors ............................................ 4
Financial Statements:
Statements of Net Assets Available for Benefits ...................... 5
Statements of Changes in Net Assets Available for Benefits ........... 6
Notes to Financial Statements ............................................. 7
3
5
[WHITLEY PENN LETTERHEAD]
REPORT OF INDEPENDENT AUDITORS
To the Administrative Committee and Participants of
Tandy Brands Accessories, Inc. Stock Purchase Program
We have audited the accompanying statements of net assets available for benefits
of Tandy Brands Accessories, Inc. Stock Purchase Program (the "Plan") as of
December 31, 2000 and 1999 and the related statements of changes in net assets
available for benefits for the years then ended. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, based on our audits, the financial statements referred to above
present fairly, in all material respects, the net assets available for benefits
of Tandy Brands Accessories, Inc. Stock Purchase Program as of December 31, 2000
and 1999, and the changes in its net assets available for benefits for the years
then ended in conformity with generally accepted accounting principles.
/s/ WHITLEY PENN
Fort Worth, Texas
February 19, 2001
4
6
TANDY BRANDS ACCESSORIES, INC.
STOCK PURCHASE PROGRAM
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31,
2000 1999
---------- ----------
ASSETS
Cash and cash equivalents $ 848,580 $ 909,856
Employer contribution receivable 414,386 440,570
---------- ----------
Total assets 1,262,966 1,350,426
LIABILITIES -- --
NET ASSETS AVAILABLE FOR BENEFITS 1,262,966 1,350,426
========== ==========
See accompanying notes.
5
7
TANDY BRANDS ACCESSORIES, INC.
STOCK PURCHASE PROGRAM
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31,
2000 1999
----------- -----------
ADDITIONS TO NET ASSETS:
Contributions:
Employee contributions $ 848,580 $ 909,856
Employer contributions 414,386 440,570
----------- -----------
Total additions to net assets 1,262,966 1,350,426
DEDUCTIONS FROM NET ASSETS:
Benefit Distributions 1,350,426 1,249,322
----------- -----------
Net increase (decrease) (87,460) 101,104
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 1,350,426 1,249,322
----------- -----------
End of year $ 1,262,966 $ 1,350,426
=========== ===========
See accompanying notes.
6
8
TANDY BRANDS ACCESSORIES, INC. STOCK PURCHASE PROGRAM
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
A. DESCRIPTION OF PLAN
The following description of the Tandy Brands Accessories, Inc. Stock Purchase
Program (the "Plan") provides only general information. Participants should
refer to the Plan document for a more complete description of the Plan's
provisions.
GENERAL
The purpose of the Plan is to assist the employees of the Company in building
personal net worth and to encourage ownership in the Company by providing a Plan
for regular investment in the Company's common stock.
Employees who are of legal age, continuously employed for six months or more and
work a minimum of twenty hours per week are eligible to participate in the Plan.
Once an eligible employee reaches two years of continuous service, participation
in the Tandy Brands Accessories, Inc. Employees Investment Plan is required to
continue participation in the Plan.
CONTRIBUTIONS
A participant may contribute to the Plan through authorized payroll deduction of
5% or 10% of their qualifying compensation.
The Company matches 25% of the participant contributions for eligible employees
with less than two years of continuous employment with the Company. Eligible
employees with two years of continuous employment that participate in the Tandy
Brands Accessories, Inc. Employees Investment Plan receive a 50% matching
contribution from the Company.
The employee payroll deduction is accumulated and the Company contribution is
determined and accrued monthly. The total contributions for each month are
credited to the participants' accounts as stock on the basis of a price equal to
the average of the closing price of the stock for each trading day in the month.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contribution and
the Company's contribution for each month. Participant accounts are valued on a
monthly basis in accordance with the Plan's provisions.
VESTING
Participants are immediately vested (at all times) in all contributions plus
actual earnings thereon.
7
9
TANDY BRANDS ACCESSORIES, INC. STOCK PURCHASE PROGRAM
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
A. DESCRIPTION OF PLAN - CONTINUED
PAYMENT OF BENEFITS
Each participant's account is distributed no later than February 15th following
the end of each calendar year. Fractional shares are retained, however,
fractional shares pertaining to former employees may be paid in cash in
accordance with the Plan's provisions.
B. SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared using the accrual method of
accounting.
ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires the plan administrator to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly,
actual results may differ from those estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Company stock is valued at its quoted market price. This investment is
subject to market or credit risks customarily associated with equity
investments.
Purchases and sales of securities are recorded on a trade-date basis.
PAYMENT OF BENEFITS
Benefits are recorded when paid. Benefits payable at December 31, 2000 and 1999
approximated $1,262,966 and $1,350,426, respectively.
C. ADMINISTRATION OF PLAN ASSETS
The Plan's assets, which consist principally of cash, are held by the Company.
Contributions are held and managed by the Company, which invests cash received,
and makes distributions to participants.
Certain administrative functions are performed by officers or employees of the
Company. No such officer or employee receives compensation from the Plan.
Administrative expenses related to the Plan are paid directly by the Company.
8
10
TANDY BRANDS ACCESSORIES, INC. STOCK PURCHASE PROGRAM
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
D. AVERAGE SHARE PRICE
The average share price each month for the Company common stock for the year
ended December 31, 2000:
AVERAGE
MONTH SHARE PRICE
----- -----------
January 14.0250
February 13.0181
March 9.2656
April 8.5970
May 7.1752
June 7.2820
July 8.4948
August 7.6467
September 7.0559
October 6.6793
November 7.2188
December 6.6546
E. TAX STATUS
The Plan is not a qualified plan as determined by the Internal Revenue Code.
9
11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
TANDY BRANDS ACCESSORIES, INC.
EMPLOYEES INVESTMENT PLAN
/s/ J.S.B. Jenkins
--------------------------------
J.S.B. Jenkins
Administrative Committee Member
Date: March 31, 2001
10