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 FOURTH FISCAL QUARTER 2002
EARNINGS OF $0.05 PER SHARE
ARLINGTON, TEXAS, AUGUST 14, 2002 - TANDY BRANDS ACCESSORIES, INC.
(NASDAQ NM: TBAC) today announced its financial results for the fourth fiscal
quarter and year ended June 30, 2002. For the fourth quarter of fiscal 2002, net
sales totaled $44.4 million compared to $44.6 million for the same period in
fiscal 2001. The company reported net income of $322,000, or $0.05 per diluted
share, compared to a net loss of ($831,000), or ($0.15) per diluted share, for
the same period last year. Tandy Brands' prior year fourth quarter results were
impacted by increased bad debt expense resulting from the bankruptcy of a
substantial customer.
For the twelve months ended June 30, 2002, net sales totaled $205.8
million compared to $195.8 million for fiscal 2001. Net income for fiscal 2002
totaled $6.3 million, or $1.08 per diluted share, compared to net income of $4.4
million, or $0.79 per diluted share, for fiscal 2001.
J.S.B. Jenkins, president and chief executive officer, commented, "We
are very proud of Tandy Brands' excellent performance throughout fiscal 2002. In
each quarter, we achieved improved results despite a very difficult retail
environment. Through consistent performance, as well as the development of a
strong customer base and product mix, we were able to meet the company's
financial goals for 2002. We are especially pleased that both our men's business
and our women's accessories turned in a solid performance in the fourth quarter.
Sales to mass merchants were particularly strong, as they have been throughout
the year."
Mr. Jenkins continued, "This year we successfully focused considerable
effort on improving our gross margins and reducing inventory levels compared to
last year. The increased cash flow resulting from these efforts has allowed us
to significantly decrease the company's debt level below our internal
expectations.
"We are looking forward to building on Tandy Brands' consistent
performance in fiscal 2003. The company is well positioned to capitalize on
today's many fashion trends, such as the continued interest in women's belts,
which was an important sales driver in fiscal 2002. We are excited about the
upcoming launch of our line of women's belts and small leather goods to be sold
under the Levi's(R)
brand. Early reaction from retailers to our new products has been very positive.
We also look forward to using Tandy Brands' strong financial position to take
advantage of growth opportunities that present themselves in 2003 and beyond."
Investors and interested parties will have the opportunity to listen to
management's discussion of Tandy Brands' fourth quarter and year-end results, as
well as fiscal 2003 earnings guidance, in a conference call to be held today,
Wednesday, August 14, at 10:00 a.m. EDT. The dial-in number for the conference
call is 877-282-2316. A replay of the call will also be available through
Wednesday, August 21, and can be accessed by dialing 888-266-2081, passcode
#6122195. A live webcast of the conference call will 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, personal leather goods, handbags, suspenders, socks, scarves, sporting
goods 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 Year Ended
June 30, June 30,
------------------------------ ------------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Net sales $ 44,427 $ 44,561 $ 205,769 $ 195,793
Cost of goods sold 28,888 30,602 133,706 130,032
------------ ------------ ------------ ------------
Gross margin 15,539 13,959 72,063 65,761
Selling, general and administrative expenses 13,099 13,116 53,516 49,752
Depreciation and amortization 1,364 1,393 5,381 5,224
------------ ------------ ------------ ------------
Total operating expenses 14,463 14,509 58,897 54,976
------------ ------------ ------------ ------------
Operating Income/(loss) 1,076 (550) 13,166 10,785
Interest expense (578) (784) (2,933) (3,584)
Royalty and other income 30 1 70 63
------------ ------------ ------------ ------------
Income/(loss) before provision for income taxes 528 (1,333) 10,303 7,264
Provision/(benefit) for income taxes 206 (502) 4,010 2,824
------------ ------------ ------------ ------------
Net income/(loss) $ 322 $ (831) $ 6,293 $ 4,440
============ ============ ============ ============
Earnings/(loss) per share $ 0.06 $ (0.15) $ 1.09 $ 0.79
Earnings/(loss) per share--assuming dilution $ 0.05 $ (0.15) $ 1.08 $ 0.79
Common shares outstanding 5,836 5,651 5,779 5,605
Common shares outstanding--assuming dilution 5,957 5,651 5,833 5,609
</Table>
TANDY BRANDS ACCESSORIES, INC.
Condensed Consolidated Balance Sheets
(In thousands)
<Table>
<Caption>
June 30, June 30,
2002 2001
------------ ------------
ASSETS (Unaudited)
Current assets:
Cash and short-term investments $ 6,506 $ 79
Accounts receivable, net 33,699 34,459
Inventories 52,818 62,335
Other current assets 4,806 3,829
------------ ------------
Total current assets 97,829 100,702
------------ ------------
Fixed assets:
Property, plant and equipment, at cost 29,441 26,451
Accumulated depreciation (14,373) (11,963)
------------ ------------
Net property, plant and equipment 15,068 14,488
------------ ------------
Goodwill, less amortization 12,467 13,215
Other noncurrent assets 8,073 8,579
------------ ------------
Total other assets 20,540 21,794
------------ ------------
TOTAL ASSETS $ 133,437 $ 136,984
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,755 $ 9,408
Accrued expenses 6,857 4,911
------------ ------------
Total current liabilities 19,612 14,319
------------ ------------
Notes payable 30,000 47,400
Other noncurrent liabilities 3,161 1,130
------------ ------------
Total liabilities 52,773 62,849
------------ ------------
Stockholders' equity:
Common stock, $1 par value; 10,000,000 shares authorized; 5,899,173 shares
and 5,882,926 shares issued as of June 30, 2002 and 2001, respectively 5,899 5,883
Additional paid-in capital 22,690 22,572
Cumulative other comprehensive income (1,706) (670)
Retained earnings 54,293 48,000
Treasury stock, at cost (512) (1,650)
------------ ------------
Total stockholders' equity 80,664 74,135
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 133,437 $ 136,984
============ ============
</Table>