EXHIBIT 99
[TANDY BRANDS LETTERHEAD]
TANDY BRANDS ACCESSORIES REPORTS FIRST QUARTER EARNINGS
OF $0.38 PER SHARE
ARLINGTON, TX, OCTOBER 17, 2001 - TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM:
TBAC) today announced better financial results for the quarter ended September
30, 2001, compared to the same period last year. For the first quarter of fiscal
2002, net sales totaled $54.1 million compared to $53.5 million for the same
period in fiscal 2001. Net income for the first quarter totaled $2.2 million, or
$0.38 per diluted share, compared to net income of $2.0 million, or $0.36 per
diluted share, for the same period last year.
J.S.B. Jenkins, president and chief executive officer, commented, "We are very
pleased with Tandy Brands' results for the first quarter. Despite today's
economic uncertainty, we achieved both our sales and earnings goals. In fact,
our net income of $2.2 million, or $0.38 per share, was at the top end of the
guidance the company provided to our stockholders and the investment community
last quarter."
Mr. Jenkins added, "Contributing to our positive results was the successful
roll-out of our new line of Dockers(R) accessories and strong sales from our
Accessory Design Group division, whose women's belt sales were far above our
internal expectations."
Investors and interested parties will have the opportunity to listen to
management's discussion of Tandy Brands' first quarter results in a conference
call to be held today, Wednesday, October 17th, at 10:00 a.m. EDT. The dial-in
number for the call is (800) 633-8537. 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 October 17th through 12:00 p.m. on Wednesday, October 24th, via
telephone at (800) 633-8284, reservation code #19849768. A live webcast of the
conference call will also be broadcast on www.vcall.com.
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 TO FOLLOW)
TANDY BRANDS ACCESSORIES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
<Table>
<Caption>
Three Months Ended
September 30,
------------------------
2001 2000
---------- ----------
Net sales $ 54,106 $ 53,469
Cost of goods sold 35,073 35,288
---------- ----------
Gross margin 19,033 18,181
---------- ----------
Selling, general and administrative expenses 13,310 12,698
Depreciation and amortization 1,387 1,151
---------- ----------
Total operating expenses 14,697 13,849
---------- ----------
Operating income 4,336 4,332
Interest expense
(778) (1,021)
Royalty, interest and other income 9 17
Income before provision for income taxes 3,567 3,328
Provision for income taxes 1,385 1,293
---------- ----------
Net income $ 2,182 $ 2,035
========== ==========
Earnings per common share $ 0.38 $ 0.36
========== ==========
Earnings per common share-assuming dilution $ 0.38 $ 0.36
========== ==========
Common shares outstanding 5,718 5,612
========== ==========
Common shares outstanding shares-assuming dilution 5,725 5,626
========== ==========
</Table>
TANDY BRANDS ACCESSORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<Table>
<Caption>
September 30, June 30,
2001 2001
------------- ------------
ASSETS (Unaudited)
Cash and cash equivalents $ 935 $ 79
Accounts receivable, net 45,901 34,459
Inventories 61,779 62,335
Property, plant and equipment, at cost:
Property and equipment, at cost 26,600 26,451
Accumulated depreciation (12,707) (11,963)
------------- ------------
Net property, plant and equipment 13,893 14,488
------------- ------------
Goodwill, net of accumulated amortization 12,911 13,215
Other assets 12,812 12,408
------------- ------------
TOTAL ASSETS $ 148,231 $ 136,984
============= ============
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable $ 8,124 $ 9,408
Accrued expenses 9,563 6,041
Notes payable 54,956 47,400
------------- ------------
Total liabilities 72,643 62,849
------------- ------------
Stockholders' equity:
Common stock 5,883 5,883
Additional paid-in capital 22,467 22,572
Cumulative other comprehensive income (1,744) (670)
Retained earnings 50,180 48,000
Treasury stock, at cost (1,198) (1,650)
------------- ------------
Total stockholders' equity 75,588 74,135
------------- ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 148,231 $ 136,984
============= ============
</Table>