EXHIBIT 99
TANDY BRANDS ACCESSORIES, INC.
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
TANDY BRANDS ACCESSORIES' THIRD QUARTER FISCAL 2003 EARNINGS
PER SHARE INCREASE 70% TO $0.17 PER SHARE
ARLINGTON, TEXAS, APRIL 17, 2003 - TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM:
TBAC) today announced improved financial results for the third quarter ended
March 31, 2003. Net sales rose to $47.01 million from $46.6 million for the same
period in fiscal 2002. Net income for the third quarter of 2003 increased to
$1.03 million, or $0.17 per diluted share, compared to net income of $598,000,
or $0.10 per diluted share, for the same period last year.
For the nine months ended March 31, 2003, net sales rose to $173.3 million
compared to net sales of $161.3 million for the same period in the prior year.
Net income for the nine months increased to $6.5 million, or $1.08 per diluted
share, versus net income of $6.0 million, or $1.03 per diluted share, for the
comparable nine-month period in fiscal 2002. Net income results for the nine
months of fiscal 2003 include a first quarter 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, totaling
$(581,000), or $(0.10) loss per diluted share.
J.S.B. Jenkins, president and chief executive officer, commented, "We are
pleased to report Tandy Brands' third quarter results, which reflect continued
strong earnings growth. Despite a weak retail environment and unfavorable
shopping weather, we increased quarterly earnings per share by 70% and have
already equaled last year's earnings per share results for the full year.
"Our women's business performed significantly better than planned in the third
quarter. Women's mass merchant accessories generated especially strong results
through the sale of a broad range of products that successfully reflected the
latest fashion trends. Our sales of women's belts and small leather goods were
also above expectations, demonstrating the popular styling of our Docker's(R),
Levi's(R) and ROLFS(R) branded products."
"We are providing the following updated fourth quarter 2003 earnings per share
estimates, which even with the continuing difficult retail climate, exceed our
earnings per share performance last year. In the fourth quarter, we expect to
generate earnings per diluted share of $0.06 to $0.09 compared to $0.05 in the
same period last year. This would result in estimated earnings per diluted share
for 2003 of between $1.14 and $1.17. This range represents an increase of
approximately 6% to 8% over last year's performance and reflects the positive
earnings per share
performance Tandy Brands has achieved to date despite a very difficult and
uncertain 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 17, at 10:00 a.m. ET. The dial-in number
for the call is (800) 982-3472. For those who are unable to listen to the live
broadcast, an audio replay of the call will be available beginning at 1:00 p.m.
ET on April 17 through 12:00 p.m. on Thursday, April 24, and can be accessed by
dialing (703) 925-2533, passcode #6462457. 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,
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,
-------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net sales $ 47,011 $ 46,629 $ 173,261 $ 161,342
Cost of goods sold 30,499 30,354 112,735 104,818
----------- ----------- ----------- -----------
Gross margin 16,512 16,275 60,526 56,524
----------- ----------- ----------- -----------
Selling, general and administrative expenses 13,149 13,304 43,787 40,417
Depreciation and amortization 1,071 1,295 3,229 4,017
----------- ----------- ----------- -----------
Total operating expenses 14,220 14,599 47,016 44,434
----------- ----------- ----------- -----------
Operating income 2,292 1,676 13,510 12,090
Interest expense (613) (720) (2,020) (2,355)
Royalty, interest and other income 15 28 61 40
----------- ----------- ----------- -----------
Income before provision for income taxes and
cumulative effect of accounting change 1,694 984 11,551 9,775
Provision for income taxes 662 386 4,497 3,804
----------- ----------- ----------- -----------
Net income before cumulative effect of
accounting change 1,032 598 7,054 5,971
Cumulative effect of accounting change for
SFAS No. 142, net of income taxes -- -- (581) --
----------- ----------- ----------- -----------
Net income $ 1,032 $ 598 $ 6,473 $ 5,971
=========== =========== =========== ===========
Earnings per common share:
Before accounting change $ 0.17 $ 0.10 $ 1.19 $ 1.04
Cumulative effect of accounting change 0.00 0.00 (0.10) 0.00
----------- ----------- ----------- -----------
$ 0.17 $ 0.10 $ 1.09 $ 1.04
=========== =========== =========== ===========
Earnings per common share-assuming dilution:
Before accounting change $ 0.17 $ 0.10 $ 1.18 $ 1.03
Cumulative effect of accounting change 0.00 0.00 (0.10) 0.00
----------- ----------- ----------- -----------
$ 0.17 $ 0.10 $ 1.08 $ 1.03
=========== =========== =========== ===========
Common shares outstanding 5,976 5,800 5,930 5,760
=========== =========== =========== ===========
Common shares outstanding shares-assuming dilution 6,069 5,853 6,020 5,790
=========== =========== =========== ===========
</Table>
TANDY BRANDS ACCESSORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<Table>
<Caption>
March 31, June 30,
2003 2002
------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 2,032 $ 6,506
Accounts receivable, net 44,942 33,699
Inventories 60,533 52,818
Other current assets 4,825 4,806
------------- -------------
Total current assets 112,332 97,829
------------- -------------
Property, plant and equipment, at cost:
Property and equipment, at cost 30,831 29,441
Accumulated depreciation (16,560) (14,373)
------------- -------------
Net property, plant and equipment 14,271 15,068
------------- -------------
Goodwill, net of accumulated amortization 11,550 12,467
Other noncurrent assets 7,299 8,073
------------- -------------
TOTAL ASSETS $ 145,452 $ 133,437
============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,529 $ 12,755
Accrued expenses 7,913 6,857
------------- -------------
Total current liabilities 15,442 19,612
------------- -------------
Notes payable 38,190 30,000
Other noncurrent liabilities 3,379 3,161
------------- -------------
Total liabilities 57,011 52,773
------------- -------------
Stockholders' equity:
Common stock 5,977 5,899
Additional paid-in capital 23,420 22,690
Cumulative other comprehensive income (1,722) (1,706)
Retained earnings 60,766 54,293
Treasury stock, at cost 0 (512)
------------- -------------
Total stockholders' equity 88,441 80,664
------------- -------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 145,452 $ 133,437
============= =============
</Table>