Tandy Brands Accessories Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended March 31, 2012; Provides Earnings Guidance for Fiscal 2012
May 14, 2012 at 04:36 pm EDT
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Tandy Brands Accessories Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2012. Net sales for the third quarter were $23.9 million, a decrease of $4.5 million against the prior year third quarter net sales of $28.40 million. Net sales in the accessories segment were $22.2 million for the third quarter, a decline of $4.7 million from the similar quarter in fiscal 2011. The decline reported in the accessories segment net sales was a result of lower sales in exited product categories and a reduction in Spring load-ins resulting from increased share gains in the prior year at a major customer. For the third quarter, the company reported net loss of $3.1 million, or $0.43 per diluted share, compared to net loss of $3.1 million, or $0.44 per diluted share, in the prior year period. Adjusted net loss improved $0.6 million to $1.7 million compared to adjusted net loss of $2.3 million in the prior year third quarter. Operating loss was $179,000 and loss before income taxes was $1,148,000 against operating loss of $4,066,000 and loss before income taxes of $4,590,000 for the same period a year ago. Adjusted net loss was $1,740,000 or $0.25 per diluted share against $2,369,000 or $0.34 per diluted share a year ago.
Net sales for the nine-month period ended March 31, 2012 were $96.0 million compared to net sales of $100.5 million reported in the prior year period. The company reported net loss of $1.4 million, or $0.20 per diluted share, compared to a net loss of $5.0 million, or a loss of $0.72 per diluted share, in the prior year period. Adjusted EBITDA improved by $4.6 million to $3.2 million over the prior year period. Net cash provided by operating activities was $8,752,000 against net cash used in operating activities of $12,552,000 a year ago period. Net cash provided by operating activities was $21.3 million higher than the first nine months of fiscal 2011 due to a $4.6 million improvement in adjusted EBITDA, faster collections on receivables, lower inventory levels, and lower funding of accounts payable and accrued expenses. Purchase of property and equipment was $495,000 against $736,000 a year ago period. Operating loss was $2,792,000 and loss before income taxes was $3,001,000 against operating loss of $2,712,000 and loss before income taxes of $2,920,000 for the same period a year ago. Adjusted net income was $410,000 or $0.06 per diluted share against net loss of $4,257,000 or $0.61 per diluted share a year ago.
The company estimates fiscal 2012 results to be a net loss of $2.7 million to $1.5 million, or $0.38 to $0.21 per diluted share. The net loss was largely a result of investments in new licenses and the unexpected bad debt provision.
Tandy Brands Accessories, Inc. is a designer and marketer of branded menâs, womenâs and childrenâs accessories, including belts, gifts, small leather goods and bags. The Companyâs merchandise is marketed under a portfolio of licensed and brand names, including SPERRY TOP-SIDER, EDDIE BAUER, TOTES, MISS ME, SAMSONITE, AMERICAN TOURISTER, SEAN JOHN, WOLVERINE, HAGGAR, ARNOLD PALMER, DOCKERS, KODIAK, TERRA, ROLFS, AMITY, CANTERBURY, PRINCE GARDNER, PRINCESS GARDNER, ABSOLUTELY FRESH and SURPLUS. The Company also sells private branded products for retail customers. It operates in two segments: accessories, which include belts, small leather goods and bags, and gifts.
Tandy Brands Accessories Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended March 31, 2012; Provides Earnings Guidance for Fiscal 2012