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EXHIBIT 99
[TANDY BRANDS LOGO]
TANDY BRANDS ACCESSORIES, INC. LIPPERT/HEILSHORN & ASSOC., INC.
J.S.B. Jenkins Harriet C. Fried
President/Chief Executive Officer Assistant Vice President
(817) 548-0090 (212) 838-3777
britt_jenkins@tandybrands.com harriet@lhai.com or www.lhai.com
TANDY BRANDS ACCESSORIES, INC. REPORTS THIRD QUARTER 2001 RESULTS
ARLINGTON, TX, JANUARY 18, 2001 -- TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM:
TBAC) today announced financial results for the third fiscal quarter ended March
31, 2001.
For the third quarter of fiscal 2001, net sales totaled $42.4 million, as
compared to net sales of $39.7 million for the same period in fiscal 2000. Net
income for the third quarter of fiscal 2001 totaled $388,000, or $0.07 per
diluted share, versus $671,000, or $0.12 per diluted share, for the same period
last year. In March of 2000, the company negotiated an early termination of its
small leather goods licensing agreement with Jones New York. The prior year
three-month results included a one-time pre-tax benefit, including related
costs, of $600,000 from the termination of this licensing agreement. Excluding
the benefit of the early license termination, net income for the prior year
third quarter was $304,000, or $.05 per diluted share.
For the nine months ended March 31, 2001, net sales totaled $153.4 million as
compared to net sales of $150.5 million for the same period in the prior year.
Net income for the nine months in fiscal 2001 totaled $5.3 million, or $0.94 per
diluted share, versus net income of $8.3 million, or $1.42 per diluted share,
for the comparable nine-month period in fiscal 2000. Excluding the benefit of
the early license termination, realized during the second and third fiscal
quarters, net income for the prior year nine-month period was $7.4 million, or
$1.26 per diluted share.
J.S.B. Jenkins, President and Chief Executive Officer, stated, "Although our
third quarter earnings per share exceeded last year's results after adjusting
for a one-time benefit from a license agreement termination, the company's
performance during the third fiscal quarter was below our internal expectations
due to a difficult retail environment. The soft economy particularly affected
our department store and chain retail customers, resulting in lower than
anticipated replenishment orders, causing pressure on our gross margins and
increasing customer allowances. As a result, our sales mix was skewed to lower
margin products targeted to mass merchants, producing lower gross profit even
though our total sales rose. Unfortunately, unless the retail economy improves,
we anticipate similar sales and margin pressures in our fourth quarter."
Mr. Jenkins further commented, "We are continuing to aggressively pursue many
business opportunities designed to help Tandy Brands achieve both sales and
earnings growth. The recent launch of our new women's line of Dockers(R)
handbags, belts, and personal leather accessories has
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been very successful, with orders exceeding our original expectations during the
spring booking season. Based on the strong demand we have seen to date, we
anticipate Dockers(R) sales in fiscal year 2002 to be more than double our
original expectations and to provide important sales momentum. We are on track
to begin delivering these popular new products to our customers in July 2001."
"In addition," Mr. Jenkins noted, "we recently announced the acquisition of
certain assets of Torel, Inc., a Texas-based manufacturer and distributor of
men's belts and sporting goods accessories. This acquisition opens up new
sporting goods product opportunities as well as a new channel of distribution
for Tandy Brands."
Investors and interested parties will have the opportunity to listen to
management's discussion of Tandy Brands' third quarter results in a conference
call to be held today, Wednesday, April 25, at 10:00 a.m. EDT. The dial-in
number for the call is (888) 243-1745. For those who are unable to listen to the
live broadcast, an audio replay of the call will be available beginning at 12:00
p.m. EDT on April 25 through 12:00 p.m. on Wednesday, May 2, via telephone at
(800) 633-8284 or (858) 812-6440, reservation code #18629445.
Tandy Brands Accessories, Inc. designs, manufactures and markets fashion
accessories for men, women and children. Key product categories include belts,
wallets, handbags, suspenders, socks, scarves, and cold weather and hair
accessories. Merchandise is sold under various national brand names as well as
private labels to all major levels of retail distribution, including the ROLFS
e-commerce web site at www.rolfs.net.
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve known and unknown risks and uncertainties, which may cause the Company's
actual results in future periods to differ materially from forecasted or
expected results. Those risks include, among other things, the competitive
environment in the industry in general and in the Company's specific market
areas, inflation, changes in costs of goods and services and economic conditions
in general and in the Company's specific market area. Those and other risks are
more fully described in the Company's filings with the Securities and Exchange
Commission.
(TABLES FOLLOW)
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TANDY BRANDS ACCESSORIES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
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2001 2000 2001 2000
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Net sales $ 42,444 $ 39,686 $ 153,385 $ 150,508
Cost of goods sold 27,575 25,665 99,430 95,938
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Gross margin 14,869 14,021 53,955 54,570
Selling, general and administrative expenses 12,035 11,887 38,789 37,335
Depreciation and amortization 1,450 958 3,831 2,796
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Total operating expenses 13,485 12,845 42,620 40,131
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Operating Income 1,384 1,176 11,335 14,439
Interest expense (779) (726) (2,800) (2,541)
Royalty income and early termination of
license agreement 28 646 62 1,720
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Income before provision for income taxes 633 1,096 8,597 13,618
Provision for income taxes 245 425 3,326 5,286
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Net income $ 388 $ 671 $ 5,271 $ 8,332
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Earnings per share $ 0.07 $ 0.12 $ 0.94 $ 1.44
Earnings per share--assuming dilution $ 0.07 $ 0.12 $ 0.94 $ 1.42
Common shares outstanding 5,571 5,763 5,587 5,786
Common shares outstanding--assuming dilution 5,572 5,808 5,594 5,849
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TANDY BRANDS ACCESSORIES, INC.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, June 30,
2001 2000
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ASSETS (Unaudited)
Current assets:
Cash and short-term investments $ 345 $ 661
Accounts receivable, net 33,946 31,105
Inventories 63,541 55,340
Other current assets 2,614 2,371
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Total current assets 100,446 89,477
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Fixed assets:
Property, plant and equipment, at cost 25,922 22,317
Accumulated depreciation (11,376) (9,305)
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Net property, plant and equipment 14,546 13,012
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Goodwill, less amortization 13,089 11,410
Other noncurrent assets 8,188 7,785
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Total other assets 21,277 19,195
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TOTAL ASSETS $ 136,269 $ 121,684
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,456 $ 6,547
Accrued expenses 5,514 4,004
Notes payable 849 --
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Total current liabilities 11,819 10,551
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Notes payable 50,000 41,075
Other noncurrent liabilities 347 184
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Total liabilities 62,166 51,810
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Stockholders' equity:
Common stock, $1 par value; 10,000,000 shares authorized; 5,828,606
shares and 5,808,968 shares issued as of March 31, 2001 and
June 30, 2000, respectively 5,829 5,809
Additional paid-in capital 22,343 22,426
Cumulative other comprehensive income (952) (479)
Retained earnings 48,831 43,560
Treasury stock, at cost (1,948) (1,442)
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Total stockholders' equity 74,103 69,874
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 136,269 $ 121,684
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