UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 14, 2000
Date of Report (Date of earliest event reported)
Temtex Industries, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-5940 75-1321869
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
One Lincoln Centre
5400 LBJ Freeway, Suite 1375
Dallas, Texas 75240-2602
(Address of principal executive offices) (Zip Code)
(972) 726-7175
Registrant's telephone number, including area code
N/A
(Former name or former address, if changed since last report)
<PAGE>
Item 5. OTHER EVENTS
As permitted by General Instruction F to Form 8-K
promulgated under the Securities Exchange Act of 1934, as
amended, Temtex Industries, Inc., a Delaware corporation, is
filing as Exhibit 99.1 to this Current Report on Form 8-K, that
press release issued by and on behalf of Temtex Industries, Inc.
on April 14, 2000, which such press release is specifically
incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Not Applicable.
(b) Not Applicable.
(c) Exhibits.
99.1 Press Release issued on April 14, 2000 (filed
herewith).
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
TEMTEX INDUSTRIES, INC.
Date: April 14, 2000
By: /s/ ROGER N. STIVERS
------------------------------
Roger N. Stivers
Chief Financial Officer and
Vice President - Finance
<PAGE>
INDEX TO EXHIBITS
Exhibit Description
- ----------- ---------------------------------------------
99.1 Press Release issued on April 14, 2000 (filed
herewith).
<PAGE>
[LOGO OF TEMTEX INDUSTRIES, INC.]
5400 LBJ Freeway, Suite 1375
Dallas, Texas 75240-2602
972/726-7175
FAX 972/726-0315
For Immediate Release
- ---------------------
TEMTEX INDUSTRIES ANNOUNCES SECOND QUARTER
OPERATING RESULTS
MANGEMENT'S STRATEGY FOR RETURNING COMPANY TO
PROFITABILITY FOCUSES ON
NEW PRODUCTS AND COST REDUCTIONS
DALLAS, Texas (April 14, 2000) - TEMTEX INDUSTRIES, INC. (Nasdaq:
"TMTX"), which manufactures woodburning and gas fireplaces and
related products, today reported operating results for the second
quarter and first half of FY2000.
For the quarter ended February 29, 2000, the Company reported a
net loss from continuing operations of $1,019,000, or ($0.30) per
diluted share, compared with a net loss from continuing
operations of $840,000, or ($0.24) per diluted share, in the
second quarter of the previous fiscal year. The loss for the
second quarter of FY2000 included a non-recurring pretax charge
of $242,000 related to the termination of a Management Security
Plan, as part of the Company's cost-reduction program. Net sales
for the most recent quarter approximated $5.2 million, compared
with $6.3 million in the prior-year period.
For the six months ended February 29, 2000, the Company reported
a net loss from continuing operations of $1,439,000, or ($0.42)
per share, on net sales of approximately $11.3 million. These
results compared with a net loss from continuing operations of
$1,254,000, or ($0.36) per share, and net sales of approximately
$14.0 million in the corresponding period of the previous fiscal
year.
"The decline of $1,100,000 in second quarter sales, when compared
with the year-earlier quarter, resulted from lower unit shipments
and reduced unit selling prices," commented Edwin R. Buford,
president and chief executive officer of Temtex Industries, Inc.
"The lower unit shipments were caused by a poor retail selling
season, due to the warmest winter in U.S. recorded history and
less demand for woodburning fireplaces in new construction.
Shipments of our direct vent gas fireplaces were actually up in
the second quarter, compared to the prior year, and management's
goal is to significantly expand our presently small share of the
direct vent marketplace. Competitive pricing pressures also
remained intense throughout our industry in the most recent
quarter."
<PAGE>
Our lack of profitability continues to center around reduced sales
and inadequate capacity utilization at our manufacturing
facilities. In an earlier new release, dated March 16, 2000, we
noted our focus on news product introductions, with an emphasis
upon gas fireplaces and accessories which provide builders,
distributors and homeowners a broader line of innovative heating
products. The expanding scope of our gas products should provide
opportunities for Temtex to improve its market penetration with
existing and newly established customers. In order to improve
capacity utilization and further lower our operating costs, we
are relocating the production of all fireplaces from our Perris,
California facility to our plants in Mexico and Tennessee. The
Perris plant will continue to manufacture some flue products and
accessories and will serve as a distribution center for the
western portion of North America. This should result in
significant savings in personnel costs and other operating
expenses, while consolidation of the fireplace production into
the other plants will improve capacity utilization."
"Our strategy for returning the Company to profitability revolves
around an effective cost-reduction program and the pursuit of
hugher sales volume through the introduction of new gas-fired
products and more effective marketing programs," continued
Burford. "We were very pleased with the positive reception which
our products received at the recent "Hearth & Home Expo 2000" Trade
Show in Baltimore, and we are cautiously optimistic that year-
over-year sales comparisons will improve in coming months. At the
end of the second fiscal quarter, we implemented cost reductions,
which should reduce annualized corporate overhead expenses by
over 35%. While only a portion of these savings will be evident
in FY2000, we expect these overhead cost reductions, when
combined with anticipated savings from the termination of
fireplace production activities in California, to lower the
Company's total expenses by more than $1.5 million in the fiscal
year which begins September 1, 2000."
The Company also announced that Mr. Roger N. Stivers, Vice
President of Finance, who has been a Temtex executive for more
than 22 years, is retiring effective April 30, 2000. Mr. Stivers
will continue to work with the Company on a consulting basis.
Mr. R.L. DeLozier will assume the duties of Mr. Stivers effective
May 1, 2000.
Temtex Industries, is a leading manufacturer and distributor of
zero-clearance metal fireplace products and gas fireplace
equipment, including vent-free gas logs. Its products are
marketed to residential homeowners and home remodeling
contractors. Temtex Industries is headquartered in Dallas,
Texas, and it manufacturing facilities are located in Tennessee,
California, and Mexico.
The common stock of Temtex Industries, Inc. is traded on the
Nasdaq Stock Market(REGISTERED) under the symbol "TMTX".
THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE
"FORWARD-LOOKING" STATEMENTS, INCLUDING STATEMENTS REGARDING
OUR FUTURE PROFITABILITY AND THE STRATEGY RELATED THERETO,
AS WELL AS STATEMENTS CONTAINING THE WORDS "BELIEVE",
"ESTIMATE", "PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS.
THESE STATEMENTS ARE MADE PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. FORWARD-LOOKING STATEMENTS INHERENTLY INVOLVE
RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THE FORWARD-LOOKING STATEMENTS.
FACTORS THAT WOULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES
INCLUDE, BUT ARE NOT LIMITED TO, CONTINUED ACCEPTANCE OF THE
COMPANY'S PRODUCTS IN THE MARKETPLACE, COMPETITIVE FACTORS,
NEW PRODUCTS AND TECHNOLOGICAL CHANGES, PRODUCT PRICES AND
RAW MATERIAL COSTS, DEPENDENCE UPON THIRD-PARTY VENDORS, AND
OTHER RISKS DETAILED IN THE COMPANY'S PERIODIC REPORT
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. BY
MAKING THESE FORWARD-LOOKING STATEMENTS, THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR
REVISIONS OR CHANGES AFTER THE DATE OF THIS RELEASE.
For further information, please contact:
Roger N. Stivers, Vice President, Finance at (972) 726-
7175 or RJ Falkner & Company, Inc., Investor Relations at
(800) 377-9893
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TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
------------------------------------------------
(In thousands, except share amounts)
------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
Feb. 29, 2000 Feb. 28, 1999
-------------- --------------
<S> <C> <C>
Net Sales $ 5,210 $ 6,310
Cost of goods sold 4,829 5,638
-------------- --------------
381 672
Costs and expenses:
Selling, general and administrative 2,015 1,878
Interest 60 76
Other expense (income) 4 6
-------------- --------------
2,079 1,960
Loss from continuing operations before income tax
tax benefit and discontinued operations (1,698) (1,288)
Income tax benefit (679) (448)
-------------- --------------
Loss from continuing operations (1,019) (840)
Gain from disposal and operating income from
discontinued operations, net of income taxes 0 4,828
-------------- --------------
Net income (loss) $ (1,019) $ 3,988
============== ==============
Net Income (loss) per basic and diluted
common share:
Continuing Operations $ (0.30) $ (0.24)
========= =========
Net income:
Basic $ (0.30) $ 1.15
========= =========
Diluted $ (0.30) $ 1.13
========= =========
Weighted average common shares outstanding:
Basic 3,444,641 3,477,458
Diluted 3,468,678 3,523,628
<PAGE>
Six Months Ended
--------------------------------
Feb. 29, 2000 Feb. 28, 1999
-------------- --------------
Net Sales $ 11,334 $ 13,985
Cost of goods sold 9,977 11,720
-------------- --------------
1,357 2,265
Costs and expenses:
Selling, general and administrative 3,797 3,913
Interest 103 188
Other expense (income) (145) 8
-------------- --------------
3,755 4,109
Loss from continuing operations before income
tax benefit and discontinued operations (2,398) (1,844)
Income tax benefit (959) (599)
-------------- --------------
Loss from continuing operations (1,439) (1,245)
Gain from disposal and operating income from
discontinued operations, net of income taxes 0 5,434
-------------- --------------
Net income (loss) $ (1,439) $ 4,189
============== ==============
Net Income (loss) per basic and diluted
common share:
Continuing Operations $ (0.42) $ (0.36)
======= =======
Net income:
Basic $ (0.42) $ 1.20
======= =======
Diluted $ (0.42) $ 1.19
======= =======
Weighted average common shares outstanding:
Basic 3,444,641 3,477,298
Diluted 3,471,253 3,525,963
</TABLE>
