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Tandy Brands announces 4 cents per share dividend
16 May '08
4 min read
Sales Growth Initiatives:
The Company continues to pursue both new licenses and private label programs in order to diversify sales and generate opportunities for renewed growth. The Company noted the previously announced license for gift items under the Goodyear brand will open a new channel of distribution, providing further diversification. The Company also plans to expand the women's gift line making the overall line appeal to a broader consumer base and launch the Rolfs 1915 brand of men's small leather goods.
Operational Improvements:
In addition to the closure of its West Bend, Wisconsin distribution facility, the Company is taking additional steps to reduce costs. Management believes such expenses as sample production costs can be reduced and a wide variety of cost reductions can be achieved through process enhancements and careful control of discretionary costs such as travel and consulting fees.
Longer-term, reconfiguring the Company's facilities might significantly reduce rent expense. The Company has increased its estimate of the annual cost savings it will achieve through its strategic transformation process from $4 million to $7 million, including the benefits of the actions which have already been implemented.
Balance Sheet:
The Company's financial position remains strong following the inventory and intangible asset write downs of the previous quarter. Inventories at the close of the third quarter were $36.8 million versus $64.4 million at June 30, 2007, a reduction of 43%.
Accounts receivable and payable were described as appropriate and consistent with expectations. Outstanding borrowings were $4.4 million at quarter end and credit facility borrowing availability was $21.6 million. Stockholders' equity of $62.5 million equated to $8.91 per share at March 31, 2008.
J.S.B. Jenkins, Chief Executive Officer, commented, "We are satisfied our strategic transformation process is well underway. We believe that over the course of the next several quarters we will be able to capitalize on new business initiatives, drive our costs to appropriate levels, and generate sustainable levels of profitability and cash flow. In connection with the corporate leadership changes announced in February 2008, we have retained an executive search firm to assist with hiring a President/COO."
Mr. Jenkins concluded, "I am grateful for the support of our board of directors, our management team, and our employees during this process. We will do nothing less than remake the way our Company does business in order to be competitive and successful, regardless of the realities of the market."
The Company continues to pursue both new licenses and private label programs in order to diversify sales and generate opportunities for renewed growth. The Company noted the previously announced license for gift items under the Goodyear brand will open a new channel of distribution, providing further diversification. The Company also plans to expand the women's gift line making the overall line appeal to a broader consumer base and launch the Rolfs 1915 brand of men's small leather goods.
Operational Improvements:
In addition to the closure of its West Bend, Wisconsin distribution facility, the Company is taking additional steps to reduce costs. Management believes such expenses as sample production costs can be reduced and a wide variety of cost reductions can be achieved through process enhancements and careful control of discretionary costs such as travel and consulting fees.
Longer-term, reconfiguring the Company's facilities might significantly reduce rent expense. The Company has increased its estimate of the annual cost savings it will achieve through its strategic transformation process from $4 million to $7 million, including the benefits of the actions which have already been implemented.
Balance Sheet:
The Company's financial position remains strong following the inventory and intangible asset write downs of the previous quarter. Inventories at the close of the third quarter were $36.8 million versus $64.4 million at June 30, 2007, a reduction of 43%.
Accounts receivable and payable were described as appropriate and consistent with expectations. Outstanding borrowings were $4.4 million at quarter end and credit facility borrowing availability was $21.6 million. Stockholders' equity of $62.5 million equated to $8.91 per share at March 31, 2008.
J.S.B. Jenkins, Chief Executive Officer, commented, "We are satisfied our strategic transformation process is well underway. We believe that over the course of the next several quarters we will be able to capitalize on new business initiatives, drive our costs to appropriate levels, and generate sustainable levels of profitability and cash flow. In connection with the corporate leadership changes announced in February 2008, we have retained an executive search firm to assist with hiring a President/COO."
Mr. Jenkins concluded, "I am grateful for the support of our board of directors, our management team, and our employees during this process. We will do nothing less than remake the way our Company does business in order to be competitive and successful, regardless of the realities of the market."
Tandy Brands Accessories Inc
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