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EXHIBIT 99
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
[email protected] [email protected] or www.lhai.com
TANDY BRANDS ACCESSORIES, INC.
REPORTS FIRST QUARTER 2001 RESULTS
ARLINGTON, TX, OCTOBER 16, 2000 -- TANDY BRANDS ACCESSORIES, INC. (NASDAQ: TBAC)
today announced financial results for the first fiscal quarter ended September
30, 2000.
For the first quarter of fiscal 2001, net sales totaled $54.2 million, as
compared to net sales of $53.3 million for the same period in fiscal 2000. Net
income for the first quarter totaled $2.0 million, or $0.36 per diluted share,
versus $2.8 million, or $0.47 per diluted share, for the same period last year.
J.S.B. Jenkins, President and Chief Executive Officer, stated, "We are pleased
with our results for the first quarter, which reflected sales increases in both
men's belts and women's small leather goods. The Company's September quarterly
earnings, as expected, were below the prior year's earnings due to a lower
margin sales mix of women's accessories and increased selling, general and
administrative expenses resulting from higher wages, advertising and rent
expenses."
Mr. Jenkins continued, "The first quarter also included significant brand
license activities. In September we announced the renewal of our exclusive
licensing agreement with Haggar Clothing Co., a subsidiary of Haggar Corp.
(Nasdaq: HGGR), to design, manufacture and market a wide range of goods for the
Haggar(R) and Haggar Black Label(TM) brand names. We are continuing to increase
our sales under the Haggar brands and are pleased to renew this license
agreement. In August we announced the signing of an exclusive licensing
agreement with Levi Strauss & Co. to produce women's handbags, small leather
goods and belts under the Dockers(R) name. Although we do not anticipate
Dockers(R) sales until July, 2001, this new license offers strong growth
potential to our Company in a number of key areas, including the branded handbag
business, women's belts and small leather goods."
Mr. Jenkins concluded, "We continue to be optimistic about the accessory sales
opportunities for Tandy Brands during this fiscal year. Even though the retail
economic conditions are challenging, we are excited about the sales performance
of our Rolfs(R) line of men's and women's small leather goods and handbags.
Other successes include a growing placement of private label small leather
goods, cold weather accessories and women's socks. All in all, we expect fiscal
2001 to be a solid year for Tandy Brands Accessories, Inc."
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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, Monday, October 16, at 10:00 a.m. EDT. The dial-in number
for the call is (212)582-6982. 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.
EDT on October 16 through 6:00 p.m. on October 20, via telephone at
(800)633-8284 or (858)812-6440, reservation code #16613922.
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, 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)
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TANDY BRANDS ACCESSORIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
----------------------------
2000 1999
---- ----
<S> <C> <C>
Net sales $ 54,184 $ 53,256
Cost of goods sold 35,288 34,372
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Gross margin 18,896 18,884
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Selling, general and administrative expenses 13,506 12,667
Depreciation and amortization 1,058 833
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Total operating expenses 14,564 13,500
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Operating Income 4,332 5,384
Royalty, interest and other income 17 31
Interest expense (1,021) (893)
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Income before provision for income taxes 3,328 4,522
Provision for income taxes 1,293 1,754
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Net income $ 2,035 $ 2,768
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Earnings per common share $ 0.36 $ 0.48
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Earnings per common share--assuming dilution $ 0.36 $ 0.47
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Common shares outstanding 5,612 5,797
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Common shares outstanding--assuming dilution 5,626 5,873
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</TABLE>
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TANDY BRANDS ACCESSORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
September 30, June 30,
2000 2000
------------- ---------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and short-term investments $ 384 $ 661
Accounts receivable, net 44,431 31,105
Inventories 59,993 55,340
Other current assets 2,444 2,371
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Total current assets 107,252 89,477
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Fixed assets:
Property, plant and equipment, at cost 22,812 22,317
Accumulated depreciation (9,908) (9,305)
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Net property, plant and equipment 12,904 13,012
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Goodwill, less amortization 11,172 11,410
Other noncurrent assets 8,867 7,785
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Total other assets 20,039 19,195
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TOTAL ASSETS $ 140,195 $ 121,684
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,859 $ 6,547
Accrued expenses 6,013 4,004
Current portion of long-term notes payable 7,525 --
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Total current liabilities 18,397 10,551
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Long-term notes payable 50,000 41,075
Other noncurrent liabilities 187 184
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Total liabilities 68,584 51,810
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Stockholders' equity:
Common stock, $1 par value; 10,000,000 shares authorized; 5,808,968 shares
and 5,796,028 shares issued as of September 30, 2000 and September 30,
1999, respectively 5,809 5,809
Additional paid-in capital 22,394 22,426
Cumulative other comprehensive income (149) (479)
Retained earnings 45,595 43,560
Treasury stock, at cost (2,038) (1,442)
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Total stockholders' equity 71,611 69,874
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 140,195 $ 121,684
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</TABLE>
