EXHIBIT 99
(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 SOLID
FIRST QUARTER 2004 RESULTS
o Net sales grew 7.0% to a record $64.2 million
o Operating income rose 16.1% to $5.4 million
ARLINGTON, TX, OCTOBER 21, 2003 - TANDY BRANDS ACCESSORIES, INC. (NASDAQ NM:
TBAC) today announced financial results for the first quarter ended September
30, 2003. For the first quarter of fiscal 2004, net sales totaled $64.2 million
compared to $60.0 million for the same period in fiscal 2003. Net income for the
first quarter of fiscal 2004 totaled $2.8 million, or $0.45 per diluted share,
compared to net income of $2.4 million, or $0.40 per diluted share, before the
cumulative effect of the accounting change for SFAS No. 142, for the same period
last year.
J.S.B. Jenkins, president and chief executive officer, stated, "We continue to
achieve our quarterly goals in both sales and earnings and are pleased to report
earnings at the upper end of our guidance range for the first quarter. Even
though we experienced lower gross margins due to higher mass merchant sales we
also decreased selling, general and administrative expenses as a percent of
sales resulting in improved operating margins compared to last year's September
quarter."
Mr. Jenkins concluded, "We are pleased to announce that our Board of Directors
approved another quarterly dividend on October 15, 2003. We consider this is an
excellent way to utilize our strong cash flow and will continue to evaluate all
strategic alternatives to increase shareholder value."
The quarterly dividend of $0.025 per common share will be payable January 22,
2004, to shareholders of record at the close of business on December 31, 2003.
Investors and interested parties will have the opportunity to listen to
management's discussion of Tandy Brands' first quarter results in a conference
call to be held today, Tuesday, October 21, at 10:00 a.m. ET. The dial-in number
for the call is (888) 417-2317. For those who are unable to listen to the live
broadcast, an audio replay of the call will be available through Tuesday,
October 28, and can be accessed by dialing (877) 519-4471, passcode #4245350. A
live webcast of the conference call will also 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, 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
September 30,
------------------------------
2003 2002
------------- -------------
Net sales $ 64,232 $ 60,028
Cost of goods sold 42,602 39,243
------------- -------------
Gross margin 21,630 20,785
------------- -------------
Selling, general and administrative expenses 15,210 15,070
Depreciation and amortization 1,038 1,080
------------- -------------
Total operating expenses 16,248 16,150
------------- -------------
Operating income 5,382 4,635
Interest expense
(693) (714)
Royalty, interest and other income 2 1
------------- -------------
Income before provision for income taxes and
cumulative effect of accounting change 4,691 3,922
Provision for income taxes 1,846 1,527
------------- -------------
Net income before cumulative effect of accounting
change 2,845 2,395
Cumulative effect of accounting change for
SFAS No. 142, net of income taxes 0 (581)
------------- -------------
Net income $ 2,845 $ 1,814
============= =============
Earnings per common share:
Before accounting change $ 0.47 $ 0.41
Cumulative effect of accounting change 0.0 (0.10)
------------- -------------
$ 0.47 $ 0.31
============= =============
Earnings per common share-assuming dilution:
Before accounting change $ 0.45 $ 0.40
Cumulative effect of accounting change $ 0.0 (0.10)
------------- -------------
0.45 $ 0.30
============= =============
Dividends per share $ 0.025 $ 0.00
============= =============
Common shares outstanding 6,107 5,888
============= =============
Common shares outstanding shares-assuming dilution 6,273 5,984
============= =============
</Table>
TANDY BRANDS ACCESSORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<Table>
<Caption>
September 30, June 30,
2003 2003
------------- -------------
ASSETS (Unaudited) (Unaudited)
Current assets:
Cash and cash equivalents $ 2,700 $ 3,814
Accounts receivable, net 53,272 41,672
Inventories 58,030 62,156
Deferred income taxes 4,683 4,757
Other current assets 1,459 1,250
------------- -------------
Total current assets 120,144 113,649
------------- -------------
Property, plant and equipment, at cost:
Property and equipment, at cost 32,591 31,885
Accumulated depreciation (18,014) (17,261)
------------- -------------
Net property, plant and equipment 14,577 14,624
------------- -------------
Goodwill, net of accumulated amortization 11,646 11,641
Other intangibles, less amortization 4,799 4,900
Other noncurrent assets 1,520 1,716
------------- -------------
TOTAL ASSETS $ 152,686 $ 146,530
============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,786 $ 14,522
Accrued expenses 11,021 9,996
------------- -------------
Total current liabilities 19,807 24,518
------------- -------------
Notes payable 36,796 30,000
Deferred income taxes 1,863 1,776
Other noncurrent liabilities 189 182
------------- -------------
Total liabilities 58,655 56,476
------------- -------------
Stockholders' equity:
Common stock 6,141 6,019
Additional paid-in capital 24,971 23,802
Cumulative other comprehensive income and unearned
compensation on restricted stock (1,202) (1,196)
Retained earnings 64,121 61,429
------------- -------------
Total stockholders' equity 94,031 90,054
------------- -------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 152,686 $ 146,530
============= =============
</Table>