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Tandy Brands announces earnings, dividend & strategic initiative

23 Aug '07

4 min read

Tandy Brands Accessories Inc announced financial results for the year and fourth quarter ended June 30, 2007. For the fiscal year 2007 ended June 30, 2007, net income increased to $1.9 million, or $0.28 per diluted share, from a net loss of $3.5 million, or ($0.52) per diluted share reported in fiscal year 2006.

This $5.4 million improvement in income, as well as the resulting expected decrease in revenue in fiscal 2007 to $195.8 million compared to $227.3 million in the prior fiscal year, is due to exiting certain non-profitable lines from the women's business during fiscal 2006.

J.S.B. Jenkins, President and Chief Executive Officer, commented, “I am pleased with the performance of our team following the restructuring announced on April 26, 2006, to exit certain non-profitable lines in our women's business."

"The result of these initiatives contributed to the reduction of selling, general and administrative expenses by $4 million, improved fiscal year 2007 gross margins, excluding charges for discontinued product line inventory, by 240 basis points and reduced debt by 57% to $6.1 million."

For the fourth quarter of fiscal 2007, the Company had a net loss of $2.9 million or ($0.43) per diluted share compared to a net loss of $1.0 million, or ($0.16) per diluted share, in the prior year fourth quarter.

Included in the Company's 2007 fourth quarter earnings is $762,000 in pretax charges related to the transition of manufacturing functions out of Yoakum, Texas, facilities to overseas partners and other severance related costs.

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