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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest
event reported) October 27, 1994
Tambrands Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-8714 (13-1366500)
(State of (Commission File Number) (IRS Employer
incorporation) Identification No.)
777 Westchester Avenue, White Plains, New York 10604
(Address of principal executive offices) (Zip Code)
(914) 696-6000
(Registrant's telephone number,
including area code)
N/A
(Former name or former address, if changed since last report)
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Items 1-4. Not Applicable.
Item 5. Other Events.
The Company issued a press release on October 26, 1994.
Item 6. Not Applicable.
Item 7. Exhibits.
99.1 Press Release of the Company dated
October 26, 1994.
Item 8. Not Applicable.
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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 thereunto duly authorized.
Tambrands Inc.
By /s/Raymond F. Wright
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Name: Raymond F. Wright
Title: Senior Vice President --
Chief Financial Officer
Date: October 26, 1994
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EXHIBIT INDEX
Sequentially
Exhibit No. Description Numbered Page
- - ----------- ----------- -------------
99.1 Press Release of the Company
dated October 26, 1994.
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EXHIBIT 99.1
Investor Contact: Media Contact:
- - ---------------- -------------
Kathy B. Makrakis Bruce P. Garren
(914) 696-6509 (914) 696-6540
FOR IMMEDIATE RELEASE (Wednesday, October 26, 1994)
- - ---------------------------------------------------
TAMBRANDS REPORTS RECORD THIRD-QUARTER SALES;
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ANNOUNCES 43RD ANNUAL DIVIDEND INCREASE
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White Plains, New York--October 26, 1994--Tambrands Inc. (NYSE:TMB) today
reported third-quarter results that included record sales and improved earnings.
Net sales for the quarter ended September 30, 1994 were $175,336,000, an
increase of 9% over sales of $161,417,000 in the third quarter of 1993, driven
by substantial gains in International volumes. Net earnings were $25,024,000,
5% more than third-quarter 1993 earnings of $23,824,000. Earnings per share
increased to $0.68 in the third quarter of 1994, up 10% from earnings per share
of $0.62 in the same period of 1993. Earnings per share increased at a higher
rate than net earnings because Tambrands' stock buybacks reduced the number of
shares outstanding.
Commenting on the results, Edward T. Fogarty, President and Chief Executive
Officer, said, "I am encouraged by the third quarter. Worldwide sales reached a
new third-quarter record in dollars and in units, based on strong performances
in the United States and Europe and on new product introductions. Overall, the
quarter demonstrates that the fundamental strengths of this franchise remain in
place around the world, forming a solid foundation for future growth."
"In addition," Fogarty said, "I am delighted that Tambrands' new top management
team is now in place. As previously announced, we have recently hired Mike
Lorelli as Executive Vice President and President, North America/Latin America;
Tom Mason as Group Vice President - International; and Tom Soper as Senior Vice
President - Human Resources and Communications. With these additions to the
team, we have experienced, world-class management to lead this world-class
Tampax franchise into the future."
Companywide marketing, selling and distribution expenses in the quarter were
above last year's levels, as Tambrands continued its increased marketing
spending. This increased spending was
--more--
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partially offset by reductions in administrative expenses, driven
principally by the Company's continuing overhead reduction programs.
For the first nine months of 1994, net sales were $480,133,000, compared to
$464,806,000 in the comparable period of 1993. Net earnings for the nine months
were $67,075,000, or $1.81 per share, compared to earnings before the cumulative
effect of accounting change of $52,628,000, or $1.36 per share, in the first
nine months of 1993. Excluding also the second-quarter 1993 restructuring
charge, net earnings for the first nine months of 1993 were $72,901,000.
The Company also announced that its Board of Directors had voted to increase the
regular quarterly dividend on the Company's common stock from 42 to 44 cents per
share. This is the forty-third consecutive year that the Company has increased
its dividend. The increased dividend will be payable on December 15, 1994 to
shareholders of record on December 5, 1994.
Said Fogarty, "The Board and management have great confidence in the strength of
this business, and increasing the dividend is an expression of that confidence.
We are very proud of our long history of dividend increases, which few companies
can match."
Tambrands has manufactured Tampax(R) tampons for almost 60 years, and today is
the market leader worldwide. Tambrands' major markets include the United
States, the United Kingdom, France, Canada and Spain.
A summary of consolidated operating results for the three months and nine months
ended September 30, 1994 is attached.
# # #
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TAMBRANDS INC.
CONSOLIDATED INCOME STATEMENTS
3 Months and 9 Months Ended September 30
3 Months Ended 9 Months Ended
(In thousands, September 30 Percent September 30 Percent
----------------- ----------------
except per share 1994 1993 Change 1994 1993* Change
------ ------ ------- ------ ------ -------
figures)
NET SALES $175,336 $161,417 9 $480,133 $464,806 3
COST OF
PRODUCTS SOLD 57,733 53,944 7 154,244 151,258 2
-------- -------- -------- --------
GROSS PROFIT 117,603 107,473 9 325,889 313,548 4
SELLING, ADMIN. AND
GENERAL:
MARKETING, SELLING
AND DISTRIBUTION 62,581 56,650 10 172,154 153,461 12
ADMIN. AND GENERAL 12,690 13,714 (7) 40,262 45,116 (11)
RESTRUCTURING AND
OTHER CHARGES - - - - 30,042 -
-------- -------- -------- --------
75,271 70,364 7 212,416 228,619 (7)
-------- -------- -------- -------
OPERATING INCOME 42,332 37,109 14 113,473 84,929 34
INTEREST,
NET AND OTHER (2,613) 344 - (7,005) 382 -
-------- -------- -------- --------
EARNINGS BEFORE
PROVISION FOR INCOME
TAXES AND CUM. EFFECT
OF ACCT. CHANGE 39,719 37,453 6 106,468 85,311 25
PROVISION FOR
INCOME TAXES 14,695 13,629 8 39,393 32,683 21
-------- -------- -------- --------
EARNINGS BEFORE
CUMULATIVE EFFECT
OF ACCT. CHANGE 25,024 23,824 5 67,075 52,628 27
CUMULATIVE EFFECT
OF ACCT. CHANGE - - - - (10,252) -
-------- -------- -------- --------
NET EARNINGS $ 25,024 $ 23,824 5 $ 67,075 $ 42,376 58
======== ======== ======== ========
PER COMMON SHARE:
EARNINGS BEFORE
CUMULATIVE EFFECT
OF ACCT. CHANGE $ 0.68 $ 0.62 10 $ 1.81 $ 1.36 33
CUMULATIVE EFFECT
OF ACCT. CHANGE - - - - (0.27) -
-------- -------- -------- --------
NET EARNINGS $ 0.68 $ 0.62 10 $ 1.81 $ 1.09 66
======== ======== ======== ========
AVG. SHARES
OUTSTANDING 36,645 38,419 37,090 38,704
*Reflects adoption of SFAS No. 112 effective 1/1/93.
