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: October 30, 1995
Date of Earliest Event Reported: October 27, 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 October 27, 1995, Registrant issued a press release announcing
the unaudited results of operations for the three months ended
September 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-months ended September 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: October 27, 1995 By:/s/ Jerry L. Roy
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Jerry L. Roy
President
Date: October 27, 1995 By:/s/ Michael J. Walsh
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Michael J. Walsh
Chief Financial Officer
TANDYCRAFTS, INC. ANNOUNCES FIRST QUARTER RESULTS,
FOR THE PERIOD ENDING SEPTEMBER 30, 1995
FORT WORTH, TEXAS, October 27, 1995 ---- TANDYCRAFTS, INC. (NYSE:TAC)
announced today results for the first quarter ended September 30, 1995.
For the three months ended September 30, 1995, net sales were $62,349,000,
a 5% decrease when compared to the $65,512,000 reported for the comparable
period of the prior year. Net income was $9,000, or $0.00 per share, compared
to $2,054,000, or $0.18 per share for the same period in fiscal 1995.
For the quarter, total retail sales increased 5% when compared to the same
period in fiscal 1995. Sales were up 44% at Sav-On Discount Office Supplies and
18% at Joshua's Christian Stores. Sales were down 9% at Tandy Leather and 18%
at Cargo Furniture & Accents on three fewer stores. Comparable store sales for
the quarter were up 10% at Sav-On Discount Office Supplies, 6% at Joshua's
Christian Stores and 1% at Cargo Furniture & Accents. Comparable store sales
were down 8% at Tandy Leather. Operating income for the retail segment was also
down when compared to the same quarter last year.
Manufacturing sales were down 12% for the quarter when compared to the same
period last year. This reflected several factors including continued weakness
in the apparel divisions, Belts and Accessories and Outerwear, a slowing of
sales at TWI which was confined primarily to Tandy Wholesale International, the
wholesale division of Tandy Leather Company, and to the shifting of certain
promotional sales from the first to the second quarter in the Frames and Framed
Art division.
In commenting on the results for the quarter, Mr. Earl Cox III, Chairman of
the Board, stated "Our Belts and Accessories and Outerwear divisions continue to
be adversely impacted by the continued lack of consumer interest in apparel and
related accessories, including belts. The decline in sales and operating income
in our Frames and Framed Art division was a result of the shifting of certain
sales from the first to the second quarter. Based on our strong backlog, we
continue to expect this division to have an exceptionally strong year. The
performance at our TWI division was adversely impacted primarily at Tandy
Leather Manufacturing, the manufacturing arm for Tandy Leather retail, where
sales and operating income were down when compared to last year. The other
operations within TWI, primarily our licensing operations, are performing
exceptionally well with strong growth in both sales and operating income."
"At retail, Tandy Leather's sales continued to reflect the weakness in
Southwest fashion. While Joshua's experienced strong gains in both sales and
same store sales, operating income was adversely impacted by the decision to
aggressively mark down certain inventory thereby positioning Joshua's well for
this important second quarter. Although same store sales were up 1%, Cargo's
operating income for the quarter was down when compared to last year. This was
primarily due to Cargo's Back to School promotion which negatively impacted
gross margins. For the quarter, Cargo set a new company record for seasonally
adjusted average store sales, and undelivered orders were exceptionally high at
the end of the quarter which should positively impact the second quarter as the
income associated with those orders is recognized. Sav-On, which experienced
strong gains in both sales and same store sales, had its first profitable
quarter since we began to aggressively expand that operation two years ago.
Their strong performance, which was ahead of our expectations, confirms our
belief that there is a good deal of potential in that concept."
Mr. Cox went on to comment that "Bear, Stearns & Co., Inc., which has been
retained to act as the Company's financial advisor with a view towards making
recommendations to maximize shareholder value, have indicated that they would be
in a position to report to the Board in the latter part of November 1995."
Tandycrafts, Inc. is a specialty retailer and manufacturer. Included in
its Specialty Retail segment are Tandy Leather Company, Joshua's Christian
Stores, Cargo Furniture & Accents, and Sav-On Discount Office Supplies. Its
Specialty Manufacturing segment is comprised of four manufacturing divisions;
Frames and Framed Art, Belts and Accessories, Outerwear and Tandy Wholesale
International ("TWI").
(Table to follow)
Three Months Ended
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September 30, September 30,
1995 1994
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Net sales $ 62,349 $ 65,512
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Operating costs and expenses:
Cost of goods sold 38,813 39,802
Selling, general and administrative 20,913 20,305
Depreciation and amortization 1,525 1,349
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Total operating costs
and expenses 61,251 61,456
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Operating income (loss) 1,098 4,056
Interest expense, net 1,085 826
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Income (loss) before income taxes 13 3,230
Provision for income taxes 4 1,176
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Net income $ 9 $ 2,054
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Net income (loss) per share $.00 $.18
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Weighted average common and
common equivalent shares 11,769 11,214
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