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 22, 1996
Date of Earliest Event Reported: October 22, 1996
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 22, 1996, Registrant issued a press release announcing
the unaudited results of operations for the three months ended
September 30, 1996.
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, 1996.
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 22, 1996 By:/s/ Michael J. Walsh
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Michael J. Walsh
President
Date: October 22, 1996 By:/s/ James D. Allen
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James D. Allen
Chief Financial Officer
TANDYCRAFTS, INC. CONTINUES TURNAROUND
REPORTS SIGNIFICANTLY IMPROVED
FIRST QUARTER EARNINGS
Fort Worth, Texas. October 22, 1996 -- TANDYCRAFTS, INC. (NYSE: TAC) announced
today significantly improved results for its fiscal first quarter ended
September 30, 1996. Net income for the quarter was $797,000, or $0.07 per share
compared to a net income of $9,000 for the same quarter of fiscal 1996.
Excluding those operations divested as part of the company's strategic
restructuring program, net sales were basically flat when compared to the same
quarter last year. Total retail sales for the quarter increased 1.3% while
manufacturing sales from continuing operations decreased 2.8%. Although
manufacturing sales were down, the company's backlog for orders, primarily in
its Picture Frames and Framed Art division, was significantly higher when
compared to the same period last year. Net sales were $57,770,000, a 7.3%
decrease compared to the $62,349,000 reported for the comparable period last
year.
In commenting on the company's performance, R. Earl Cox III, Chairman, stated
"We are pleased with the company's progress. The results this quarter continue
the turnaround since implementing a strategic restructuring plan nine months
ago. The many changes that have taken place in the past nine months continue to
show positive results. This is the third consecutive quarter with significantly
improved earnings over the same quarter last year. Operating income for the
first quarter increased 86.5% to $2,048,000. We are encouraged by these
results, and are working to achieve the level of performance that we expect from
various units. This is a year of transition. We firmly believe that the
company is headed in the right direction and expect to continue this positive
trend going forward in fiscal 1997."
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 Office Supplies. The Specialty
Manufacturing segment is comprised of two manufacturing divisions: Picture
Frames and Framed Art and Tandy Wholesale International ("TWI"). Information
disclosed in this news release which are forward-looking statements involve
risks with uncertainties including, but not limited to, the performance of each
operating unit, relationships with certain key customers, commodity price
fluctuations, interest rate fluctuations, recessionary factors, seasonality, and
other risks indicated in filings with the Securities and Exchange Commission
such as Tandycrafts' most recent Form 10-Q and 10-K.
(Table to follow)
Three Months Ended
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September 30, September 30,
1996 1995
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Net sales $ 57,770 $ 62,349
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Operating costs and expenses:
Cost of goods sold 35,688 38,813
Selling, general and administrative 18,662 20,913
Restructuring charge
Depreciation and amortization 1,372 1,525
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Total operating costs and expenses 55,722 61,251
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Operating income 2,048 1,098
Interest expense, net 822 1,085
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Income before income taxes 1,226 13
Provision for income taxes 429 4
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Net income $ 797 $ 9
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Net income per share $0.07 $0.00
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Weighted average common and
common equivalent shares 12,198 11,769
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<TABLE><S><C>
Cargo
Joshua's Sav-On Furniture
Tandy Leather Christian Office &
Retail Bookstores Supplies Accents
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Number of stores 172 72 36 39
Net sales 9,558 5,828 9,455 5,126
Operating income / (loss) (331) (746) 562 122
Same store sales gains / (losses) (6.2)% (19.7)% 28.3% (15.9)%
</TABLE>
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