(TANDY BRANDS ACCESSORIES, INC. LETTERHEAD)
TANDY BRANDS ACCESSORIES, INC. INVESTOR RELATIONS:
J.S.B. Jenkins Integrated Corporate Relations
President/Chief Executive Officer Brian Yarbrough (562) 256-7050
(817) 548-0090 MEDIA RELATIONS:
britt_jenkins@tandybrands.com Monarch Communications, Inc.
Jeff Siegel (516) 569-6144
TANDY BRANDS ACCESSORIES REPORTS STRONG FOURTH QUARTER
AND FISCAL YEAR 2003 RESULTS
o Fourth quarter sales increased 15% to $51.2 million, and
operating income increased 50% to $1.7 million.
o Full year sales increased 9% to $224.5 million, and operating
income increased 15% to $15.4 million.
o Company declares its first quarterly dividend of $0.025 per
share.
ARLINGTON, TEXAS, AUGUST 13, 2003 - TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM:
TBAC) today reported financial results for the fourth quarter and fiscal year
ended June 30, 2003.
For the fourth quarter of fiscal 2003, net sales rose 15% to $51.2 million when
compared to $44.4 million in the prior period last year. Net income for the
fourth quarter 2003 was $663,000, or $0.11 per diluted share compared to net
income of $322,000 or $0.05 per diluted share for the same period last year.
For the fiscal year ended June 30, 2003, net sales rose 9% to $224.5 million
compared to $205.8 million for fiscal 2002. Net income for fiscal year 2003 was
$7.1 million, or $1.18 per diluted share compared to $6.3 million, or $1.08 per
diluted share in fiscal 2002. Net income results for the fiscal year 2003
include a first quarter non-cash charge, net of income taxes, of $581,000, or
$0.10 per diluted share, related to the cumulative effect of the accounting
change for the adoption of Statement of Financial Accounting Standards No. 142.
J.S.B. Jenkins, president and chief executive officer, stated, "We are extremely
pleased with our superior performance during the fourth quarter and the fiscal
year 2003 considering the tough retail climate. Our fourth quarter earnings per
share came in 22% above the high end of our guidance due to strong sales
performances in both our men's and women's businesses. In addition, this year's
women's fashion accessory trends have been very strong which increased our sales
both in mass merchant accessories as well as our branded women's handbags, belts
and personal leather goods."
The Board of Directors has declared the company's first quarterly dividend. The
dividend of $0.025 per share will be payable to shareholders of record as of
September 30, 2003.
Mr. Jenkins concluded, "We are pleased to be able to return profits to our
shareholders through a dividend and believe this demonstrates our confidence in
the company's continued financial strength. We look forward to continuing the
momentum into fiscal 2004 being driven by the power of our stable of brands,
which includes LEVI'S(R), DOCKERS(R), JONES NEW YORK(R), HAGGAR(R), ROLFS(R),
AMITY(R) and PRINCE GARDNER(R). We believe that our products are well positioned
to capitalize on current retail trends and we are enthusiastic about several new
growth initiatives for the coming year."
Investors and interested parties will have the opportunity to listen to
management's discussion of Tandy Brands' fourth quarter and year-end results in
a conference call to be held today, Wednesday, August 13, at 10:00 a.m. EST. The
dial-in number for the conference call is 800-475-2151. A replay of the call
will also be available through Wednesday, August 20, and can be accessed by
dialing 877-519-4471, passcode 4103526. A live webcast of the conference call
will be broadcast on www.viavid.net.
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 Twelve Months Ended
June 30, June 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Net sales $ 51,226 $ 44,427 $ 224,487 $ 205,769
Cost of goods sold 33,664 28,888 146,399 133,706
--------- --------- --------- ---------
Gross margin 17,562 15,539 78,088 72,063
--------- --------- --------- ---------
Selling, general and administrative expenses 14,830 13,043 58,450 53,297
Depreciation and amortization 1,038 1,364 4,267 5,381
--------- --------- --------- ---------
Total operating expenses 15,868 14,407 62,717 58,678
--------- --------- --------- ---------
Operating income 1,694 1,132 15,371 13,385
Interest expense (646) (634) (2,833) (3,152)
Royalty, interest and other income 41 30 101 70
--------- --------- --------- ---------
Income before provision for income taxes and
cumulative effect of accounting change 1,089 528 12,639 10,303
Provision for income taxes 426 206 4,922 4,010
--------- --------- --------- ---------
Net income before cumulative effect of
accounting change 663 322 7,717 6,293
Cumulative effect of accounting change for
SFAS No. 142, net of income taxes -- -- (581) --
--------- --------- --------- ---------
Net income $ 663 $ 322 $ 7,136 $ 6,293
========= ========= ========= =========
Earnings per common share:
Before accounting change $ 0.11 $ 0.06 $ 1.30 $ 1.09
Cumulative effect of accounting change 0.00 0.00 (0.10) 0.00
--------- --------- --------- ---------
$ 0.11 $ 0.06 $ 1.20 $ 1.09
========= ========= ========= =========
Earnings per common share-assuming dilution:
Before accounting change $ 0.11 $ 0.05 $ 1.28 $ 1.08
Cumulative effect of accounting change 0.00 0.00 (0.10) 0.00
--------- --------- --------- ---------
$ 0.11 $ 0.05 $ 1.18 $ 1.08
========= ========= ========= =========
Common shares outstanding 6,017 5,836 5,952 5,779
========= ========= ========= =========
Common shares outstanding shares-assuming dilution 6,125 5,957 6,046 5,833
========= ========= ========= =========
</Table>
TANDY BRANDS ACCESSORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
<Table>
<Caption>
June 30, June 30,
2003 2002
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 3,814 $ 6,506
Accounts receivable, net 41,672 33,699
Inventories 62,156 52,818
Other current assets 5,361 4,806
--------- ---------
Total current assets 113,003 97,829
--------- ---------
Property, plant and equipment, at cost:
Property and equipment, at cost 31,885 29,441
Accumulated depreciation (17,261) (14,373)
--------- ---------
Net property, plant and equipment 14,624 15,068
--------- ---------
Goodwill, net of accumulated amortization 11,641 12,467
Other noncurrent assets 7,262 8,073
--------- ---------
TOTAL ASSETS $ 146,530 $ 133,437
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 14,522 $ 12,755
Accrued expenses 8,331 6,857
--------- ---------
Total current liabilities 22,853 19,612
--------- ---------
Notes payable 30,000 30,000
Other noncurrent liabilities 3,623 3,161
--------- ---------
Total liabilities 56,476 52,773
--------- ---------
Stockholders' equity:
Common stock 6,019 5,899
Additional paid-in capital 23,802 22,690
Cumulative other comprehensive income (1,196) (1,706)
Retained earnings 61,429 54,293
Treasury stock, at cost -- (512)
--------- ---------
Total stockholders' equity 90,054 80,664
--------- ---------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 146,530 $ 133,437
========= =========
</Table>