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 hfried@lhai.com or www.lhai.com
TANDY BRANDS ACCESSORIES' SECOND QUARTER SALES AND EARNINGS PER
SHARE INCREASE 9%
ARLINGTON, TX, JANUARY 21, 2003 - TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM:
TBAC) today announced financial results for the second quarter ended December
31, 2002. For the second quarter of fiscal 2003, net sales increased to $66.2
million from $60.6 million for the same period in fiscal 2002. Net income for
the second quarter of fiscal 2003 increased to $3.6 million, or $0.60 per
diluted share, from net income of $3.2 million, or $0.55 per diluted share, for
the same period last year.
For the six months ended December 31, 2002, net sales totaled $126.3 million, as
compared to net sales of $114.7 million for the same period in the prior year.
Net income for the six months totaled $5.4 million, or $0.91 per diluted share,
compared to net income of $5.4 million, or $0.93 per diluted share for the
comparable six-month period in fiscal 2002. Net income results for the six
months of fiscal 2003 included a non-cash charge, net of income taxes, related
to the cumulative effect of the accounting change for the adoption of Statement
of Financial Accounting Standards No.142 ("SFAS No. 142"), totaling $(581,000),
or $(0.10) loss per diluted share.
J.S.B. Jenkins, president and chief executive officer, commented, "The second
quarter was an excellent quarter for Tandy Brands Accessories in all respects.
We achieved the upper end of our earnings per share guidance for the quarter,
while many comparable sector companies had to adjust their outlook downwards due
to the difficult retail economy. Both our men's and women's businesses reported
sales and profit increases for the quarter. Women's accessories performed
especially well, shipping a record amount of merchandise in the quarter."
"Sales increases in women's small leather goods and mass merchant accessories
were major contributors to our strong performance for the second quarter. We
were successful in increasing sales in both our department store and mass
merchant distribution channels while achieving a slight increase in consolidated
gross margin compared to the prior year. Based on this performance, we believe
we have a very solid base on which to continue to build additional earnings for
our shareholders."
Investors and interested parties will have the opportunity to listen to
management's discussion of Tandy Brands' second quarter results in a conference
call to be held today, Tuesday, January 21, at 10:00 a.m. ET. The dial-in number
for the call is 888-747-3493. For those who are unable to
listen to the live broadcast, an audio replay of the call will be available
through Tuesday, January 28, and can be accessed by dialing 703 925-2533 or 888
266-2081, passcode #6371415. 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, 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 Six Months Ended
December 31, December 31,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Net sales $ 66,222 $ 60,607 $ 126,250 $ 114,713
Cost of goods sold 42,993 39,391 82,236 74,464
---------- ---------- ---------- ----------
Gross margin 23,229 21,216 44,014 40,249
---------- ---------- ---------- ----------
Selling, general and administrative expenses 15,512 13,803 30,638 27,113
Depreciation and amortization 1,078 1,335 2,158 2,722
---------- ---------- ---------- ----------
Total operating expenses 16,590 15,138 32,796 29,835
---------- ---------- ---------- ----------
Operating income 6,639 6,078 11,218 10,414
Interest expense
(749) (857) (1,407) (1,635)
Royalty, interest and other income 45 3 46 12
---------- ---------- ---------- ----------
Income before provision for income taxes and
cumulative effect of accounting change 5,935 5,224 9,857 8,791
Provision for income taxes 2,308 2,033 3,835 3,418
---------- ---------- ---------- ----------
Net income before cumulative effect of
accounting change 3,627 3,191 6,022 5,373
Cumulative effect of accounting change for
SFAS No. 142, net of income taxes -- -- (581) --
---------- ---------- ---------- ----------
Net income $ 3,627 $ 3,191 $ 5,441 $ 5,373
========== ========== ========== ==========
Earnings per common share:
Before accounting change $ 0.61 $ 0.55 $ 1.02 $ 0.94
Cumulative effect of accounting change 0.00 0.00 (0.10) 0.00
---------- ---------- ---------- ----------
$ 0.61 $ 0.55 $ 0.92 $ 0.94
========== ========== ========== ==========
Earnings per common share-assuming dilution:
Before accounting change $ 0.60 $ 0.55 $ 1.01 $ 0.93
Cumulative effect of accounting change 0.00 0.00 (0.10) 0.00
---------- ---------- ---------- ----------
$ 0.60 $ 0.55 $ 0.91 $ 0.93
========== ========== ========== ==========
Common shares outstanding 5,929 5,763 5,908 5,740
========== ========== ========== ==========
Common shares outstanding shares-assuming
dilution 6,019 5,794 5,995 5,760
========== ========== ========== ==========
</Table>
TANDY BRANDS ACCESSORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<Table>
<Caption>
December 31, June 30,
2002 2002
------------ ----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 2,428 $ 6,506
Accounts receivable, net 44,161 33,699
Inventories 56,235 52,818
Other current assets 5,058 4,806
------------ ----------
Total current assets 107,882 97,829
------------ ----------
Property, plant and equipment, at cost:
Property and equipment, at cost 30,550 29,441
Accumulated depreciation (15,777) (14,373)
------------ ----------
Net property, plant and equipment 14,773 15,068
------------ ----------
Goodwill, net of accumulated amortization 11,480 12,467
Other noncurrent assets 7,536 8,073
------------ ----------
TOTAL ASSETS $ 141,671 $ 133,437
============ ==========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,409 $ 12,755
Accrued expenses 8,830 6,857
------------ ----------
Total current liabilities 18,239 19,612
------------ ----------
Notes payable 33,376 30,000
Other noncurrent liabilities 3,541 3,161
------------ ----------
Total liabilities 55,156 52,773
------------ ----------
Stockholders' equity:
Common stock 5,926 5,899
Additional paid-in capital 23,020 22,690
Cumulative other comprehensive income (2,165) (1,706)
Retained earnings 59,734 54,293
Treasury stock, at cost 0 (512)
------------ ----------
Total stockholders' equity 86,515 80,664
------------ ----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 141,671 $ 133,437
============ ==========
</Table>