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 REPORTS THIRD QUARTER FISCAL 2002
EARNINGS OF $0.10 PER SHARE
ARLINGTON, TEXAS, APRIL 18, 2002 - TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM:
TBAC) today announced improved financial results for the quarter ended March 31,
2002, compared to the same period in fiscal 2001. For the third quarter of
fiscal 2002, net sales totaled $46.6 million compared to $41.5 million for the
same period in fiscal 2001. Net income for the third quarter increased to
$598,000, or $0.10 per diluted share, versus net income of $388,000, or $0.07
per diluted share, for the same period last year.
For the nine months ended March 31, 2002, net sales totaled $161.3 million
compared to net sales of $151.2 million for the same period in the prior year.
Net income for the nine months increased to $6.0 million, or $1.03 per diluted
share, versus net income of $5.3 million, or $0.94 per diluted share, for the
comparable nine-month period in fiscal 2001.
J.S.B. Jenkins, president and chief executive officer, commented, "Tandy Brands
had a very successful third quarter, continuing the trend of strong sales and
earnings we generated in the first six months of fiscal 2002. Women's
accessories did particularly well, especially with mass merchants, where we are
well positioned to take advantage of today's fashion trends."
"Tandy Brands has also made substantial progress in other important areas. In
March, we signed an exclusive licensing agreement with Levi Strauss & Co. to
produce women's small leather goods and women's belts under the Levi's(R) name.
We are very pleased to be working with this outstanding brand. Earlier this
week, we announced the acquisition of substantially all of the assets of AA&E
Leathercraft, Inc. This acquisition will enable us to continue our successful
expansion into the sporting goods distribution channel, which we started last
April when we acquired the assets of Torel, Inc."
Mr. Jenkins concluded, "Initiatives such as these, combined with the strong
customer and product mix we have developed over the years, are making fiscal
2002 a strong year for Tandy Brands despite today's difficult retail
environment."
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, Thursday, April 18, at 10:00 a.m. ET. The dial-in number
for the call is (800) 670-3537. 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. ET on April 18 through 12:00 p.m. on Thursday, April 25,
via telephone at (800) 633-8284, reservation code #20502783. 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 hunting, 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 Nine Months Ended
March 31, March 31,
-------------------------- --------------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
Net sales $ 46,629 $ 41,540 $ 161,342 $ 151,232
Cost of goods sold 30,354 27,575 104,818 99,430
---------- ---------- ---------- ----------
Gross margin 16,275 13,965 56,524 51,802
Selling, general and administrative expenses 13,304 11,202 40,417 36,636
Depreciation and amortization 1,295 1,379 4,017 3,831
---------- ---------- ---------- ----------
Total operating expenses 14,599 12,581 44,434 40,467
---------- ---------- ---------- ----------
Operating Income 1,676 1,384 12,090 11,335
Interest expense (720) (779) (2,355) (2,800)
Royalty and other income 28 28 40 62
---------- ---------- ---------- ----------
Income before provision for income taxes 984 633 9,775 8,597
Provision for income taxes 386 245 3,804 3,326
---------- ---------- ---------- ----------
Net income $ 598 $ 388 $ 5,971 $ 5,271
========== ========== ========== ==========
Earnings per share $ 0.10 $ 0.07 $ 1.04 $ 0.94
Earnings per share--assuming dilution $ 0.10 $ 0.07 $ 1.03 $ 0.94
Common shares outstanding 5,800 5,571 5,760 5,587
Common shares outstanding--assuming dilution 5,853 5,572 5,790 5,594
</Table>
TANDY BRANDS ACCESSORIES, INC.
Condensed Consolidated Balance Sheets
(In thousands)
<Table>
<Caption>
March 31, June 30,
2002 2001
--------- ---------
ASSETS (Unaudited)
Current assets:
Cash and short-term investments $ 1,067 $ 79
Accounts receivable, net 35,263 34,459
Inventories 53,708 62,335
Other current assets 4,097 3,829
--------- ---------
Total current assets 94,135 100,702
--------- ---------
Fixed assets:
Property, plant and equipment, at cost 27,568 26,451
Accumulated depreciation (13,970) (11,963)
--------- ---------
Net property, plant and equipment 13,598 14,488
--------- ---------
Goodwill, less amortization 12,505 13,215
Other noncurrent assets 8,188 8,579
--------- ---------
Total other assets 20,693 21,794
--------- ---------
TOTAL ASSETS $ 128,426 $ 136,984
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,920 $ 9,408
Accrued expenses 7,937 4,911
--------- ---------
Total current liabilities 11,857 14,319
--------- ---------
Notes payable 34,287 47,400
Other noncurrent liabilities 2,321 1,130
--------- ---------
Total liabilities 48,465 62,849
--------- ---------
Stockholders' equity:
Common stock, $1 par value; 10,000,000 shares authorized; 5,882,926
shares issued as of March 31, 2002 and June 30, 2001 5,883 5,883
Additional paid-in capital 22,463 22,572
Cumulative other comprehensive income (1,726) (670)
Retained earnings 53,971 48,000
Treasury stock, at cost (630) (1,650)
--------- ---------
Total stockholders' equity 79,961 74,135
--------- ---------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 128,426 $ 136,984
========= =========
</Table>
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