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
Date of Report: August 9, 1995
TANDYCRAFTS, INC.
A DELAWARE CORPORATION
1-7258 75-1475224
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(Commission File Number) (IRS Employer Identification No.)
1400 Everman Parkway
Fort Worth, Texas 76140
(817) 551-9600
ITEM 5. OTHER EVENTS
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(a) On August 9, 1995, Registrant issued a press release announcing
the unaudited results of operations for the three- and twelve-
month periods ended June 30, 1995.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits.
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Exhibit
Number Description
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99 Copy of press release announcing the
unaudited results of operations for
the three- and twelve-month periods
ended June 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
TANDYCRAFTS, INC.
Date: August 9, 1995 By:/s/ Jerry L. Roy
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Jerry L. Roy
President
Date: August 9, 1995 By:/s/ Michael J. Walsh
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Michael J. Walsh
Chief Financial Officer
TANDYCRAFTS, INC. REPORTS FOURTH QUARTER, FULL YEAR RESULTS,
RETAINS BEAR STEARNS & CO. TO ASSIST
IN ENHANCING SHAREHOLDER VALUE
FORT WORTH, TEXAS, August 9, 1995 -----TANDYCRAFTS, INC. (NYSE: TAC)
announced today results for the fourth quarter and the twelve months ended June
30, 1995.
For the three months ended June 30, 1995, net sales were $60,501,000, a 6%
increase over the $56,821,000 reported for the comparable period of the prior
year. Net income was $122,000, or $0.01 per share, compared to $2,115,000, or
$0.19 per share for the fourth quarter of fiscal 1994.
For the twelve months ended June 30, 1995, net sales were $256,523,000, a
19% increase over the $214,869,000 reported for the comparable period of the
prior year. Net income was $5,217,000, or $0.46 per share compared to
$8,906,000, or $0.79 per share, for fiscal 1994.
For the quarter total retail sales were up 8% versus the comparable fiscal
1994 quarter. Sales were up 55% at Sav-On Discount Office Supplies and 17% at
Joshua's Christian Stores. Sales were down 4% at Tandy Leather and 6% at Cargo
Furniture and Accents on three fewer stores. Comparable store sales for the
quarter were up 10% at Sav-On Discount Office Supplies and 3% at Joshua's
Christian Stores. Comparable store sales were down 4% at Tandy Leather and 9%
at Cargo Furniture and Accents. Operating income for the retail segment was
also down when compared to the same quarter last year.
For the full year, total retail sales were up 9%. Sales were up 41% at Sav-
On Discount Office Supplies and 27% at Joshua's Christian Stores. Sales were
down 3% at Tandy Leather and 4% at Cargo Furniture and Accents with three fewer
stores. Comparable store sales were up 4% at Joshua's Christian Stores and 1%
at Cargo Furniture and Accents on three fewer stores. Comparable store sales
were flat at Sav-On Discount Office Supplies and down 3% at Tandy Leather.
Operating income for the retail segment for the year was down when compared to
last year. This was primarily due to the rapid expansion of Sav-On Discount
Office Supplies, which saw its store base increase from 21 stores to 38 at year
end, an 81% increase, and Joshua's Christian Stores which saw its store base
increase from 61 stores to 72 stores, an 18% increase.
Manufacturing sales were up 5% for the quarter. Operating income continued
to be impacted by the weak performance of the Company's Belts and accessories
and Outerwear divisions. Sales at the Frames and framed art division were up
17% although operating income was down as a result of additional expenses
relating to the rollout of the new "Hermitage" line. Sales at the Tandy
Wholesale International division ("TWI") were up 33%. Operating income was down
as a result of additional expenses associated with the assimilation of the
Trench Novelty Division. For the year sales for the manufacturing segment were
up 29% and operating income was basically flat.
In commenting on the results for the year Mr. Earl Cox III, Chairman of the
Board stated, "while our performance in the first two quarters of the year was
extremely strong, our performance in the last two quarters was extremely
disappointing. Many external factors, including the weak apparel cycle, the
mild winter, and the baseball and hockey strikes all came together to adversely
impact our performance in three of our four manufacturing divisions. Also, our
retail performance was adversely impacted by rapid expansion of two of our
retail chains, Sav-On Discount Office Supplies and Joshua's Christian Stores.
On the bright side, our performance in the frames and framed art division was
extremely strong and two of our retail chains, Tandy Leather and Cargo Furniture
and Accents, continued to perform well even though customers were beginning to
pull back in the current economic environment."
Mr. Cox went on to state, "the disappointing results for the year have led
us to reexamine our strategy to grow the Company. Our mission is to enhance
shareholder value. To insure that we accomplish our mission, we have retained
Bear Stearns & Co. to act as our financial advisor and agent in connection with
reviewing alternatives, with a view toward making recommendations to maximize
shareholder value. As we go forward into fiscal 1996 we will be working on
realizing that value."
Tandycrafts Inc. is a specialty retailer and manufacturer. Included in its
specialty retailing segment are Tandy Leather Company, Joshua Christian Stores,
Cargo Furniture & Accents and Sav-On Discount Office Supplies. Its specialty
manufacturing segment is comprised of four manufacturing divisions; frame and
framed art, belts and accessories, apparel and outerwear and Tandy Wholesale
International ("TWI").
(Table to follow)
Three Months Ended Year Ended
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June 30, June 30, June 30, June 30,
1995 1994 1995 1994
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Net sales $ 60,501 $ 56,821 $ 256,523 $ 214,869
Operating costs and expenses:
Cost of goods sold 38,110 32,788 155,644 126,589
Selling, general and
administrative 19,754 19,470 83,544 68,845
Depreciation and
amortization 1,454 1,152 5,475 4,018
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Total operating costs
and expenses 59,318 53,410 244,663 199,452
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Operating income (loss) 1,183 3,411 11,860 15,417
Interest expense, net 1,056 432 3,833 1,437
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Income (loss) before
income taxes 127 2,979 8,027 13,980
Provision for income taxes 5 864 2,810 5,074
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Net income $ 122 $ 2,115 $ 5,217 $ 8,906
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Net income (loss) per
share $0.01 $0.19 $0.46 $0.79
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Weighted average common and
common equivalent shares 11,642 11,131 11,434 11,336
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