UNITED STATES
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 (Date of earliest event reported): June 9, 2009
REX STORES CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware |
001-09097 |
31-1095548 |
|
(State or other jurisdiction |
(Commission File No.) |
(IRS Employer |
|
of incorporation) |
Identification
No.) |
|
|
2875 Needmore Road, Dayton, Ohio |
45414 |
|
|
(Address
of principal executive offices) |
(Zip Code) |
|
|
Registrant's telephone number, including area code: (937) 276-3931 |
||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On June 9, 2009, REX Stores Corporation issued a press release announcing financial results for the three month period ended April 30, 2009. The press release is furnished as Exhibit 99 to this report.
Item 9.01. Financial Statements and Exhibits
| (c) |
Exhibits. The following exhibits are furnished with this report: |
|
| 99 Press Release dated June 9, 2009 |
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 by the undersigned hereunto duly authorized.
| REX STORES CORPORATION | ||||
| Date: June 9, 2009 | By: | /s/ DOUGLAS L. BRUGGEMAN | ||
| Name: | Douglas L. Bruggeman | |||
| Title: | Vice President - Finance, | |||
| Chief Financial Officer | ||||
| and Treasurer | ||||
Exhibit 99
| News Announcement | For Immediate Release |
| For further information contact: | |
| Douglas Bruggeman | Joseph N. Jaffoni/David Collins |
| Chief Financial Officer | Jaffoni & Collins Incorporated |
| 937/276-3931 | 212/835-8500 or rsc@jcir.com |
REX STORES REPORTS FISCAL 2009 FIRST QUARTER RESULTS
- Repurchased 251,463 Common Shares in Fiscal 2009 to Date -
Dayton, Ohio (June 9, 2009) – REX Stores Corporation (NYSE: RSC) today announced financial results for the three month period ended April 30, 2009 (the first quarter of the Company’s 2009 fiscal year). The Company will host a conference call and webcast this morning (details below) to review the results.
Select Balance Sheet and Segment Balance Sheet Data
Reflecting the fiscal 2009 first quarter repayment of $7.5 million of mortgage debt as well as the use during the fiscal 2009 first quarter of approximately $1.2 million for the repurchase of 154,563 common shares, as of April 30, 2009, REX had unrestricted cash and cash equivalents of approximately $84.3 million.
| April 30, 2009 | Jan. 31, 2009 | April 30, 2008 | |||||||
| Assets: | |||||||||
| Retail | $ | 52,135 | $ | 80,437 | $ | 112,449 | |||
| Alternative energy | 263,204 | 249,422 | 192,323 | ||||||
| Corporate | 125,246 | 121,429 | 121,665 | ||||||
| Total assets | $ | 440,585 | $ | 451,288 | $ | 426,437 | |||
Fiscal 2009 First Quarter Income Statement Review
Late in fiscal 2008 REX leased 37 owned retail locations to a third party who also entered into a lease and sublease for two store locations leased by REX. The Company plans to fully discontinue its retail operations during the 2009 fiscal year and going forward expects to recognize deferred income from service contracts and prior real estate sales which should largely offset costs incurred in exiting this segment. The table below summarizes net sales and revenue from REX’s retail and alternative energy segments and (loss) income from continuing operations for the three month periods ended April 30, 2009 and April 30, 2008. Certain amounts differ from those previously reported as a result of some stores being reclassified into discontinued operations.
-more-
| REX Reports Fiscal 2009 First Quarter Results, 6/9/09 | page 2 |
| Three Months Ended April 30, | ||||||||
| 2009 | 2008 | |||||||
| Net sales and revenue: | ||||||||
| Retail | $ | 15,616 | $ | 25,642 | ||||
| Alternative energy | 14,118 | 1,167 | ||||||
| Total net sales and revenues | $ | 29,734 | $ | 26,809 | ||||
| Segment profit (loss): | ||||||||
| Retail segment (loss) profit | $ | (453 | ) | $ | 713 | |||
| Alternative energy segment (loss) profit | (2,003 | ) | 428 | |||||
| Corporate expense | (383 | ) | (537 | ) | ||||
| Indirect interest expense | (201 | ) | (112 | ) | ||||
| Indirect investment income | 230 | 664 | ||||||
| Income from synthetic fuel investments | - | 670 | ||||||
| (Loss) income from continuing operations before income taxes | $ | (2,810 | ) | $ | 1,826 | |||
The Company’s financial results reflect the consolidation of its investments in two ethanol affiliates, Levelland Hockley County Ethanol, LLC (“Levelland Hockley”) and One Earth Energy LLC (“One Earth”).
In the quarter ended April 30, 2009 REX incurred a loss from continuing operations, net of tax, attributable to common shareholders of $1.3 million, or $0.14 per diluted share attributable to REX common shareholders. In the first quarter of fiscal 2008 REX reported income from continuing operations, net of tax, attributable to common shareholders of $1.6 million, or $0.13 per diluted share attributable to REX common shareholders.
During the fiscal 2009 first quarter REX recorded $0.2 million in investment income compared to $0.9 million of investment income in the comparable prior year period. The decline primarily reflects the lower yields available on cash balances in the current period. In the fiscal 2009 first quarter the Company incurred $0.8 million in interest expense compared to $0.1 million of interest expense in the comparable prior year period. The increase is primarily attributable to the Company’s consolidation of its investments in Levelland Hockley, which prior to going into production capitalized interest expense. In the three months ended April 30, 2009 REX incurred a $0.2 million loss on disposal on real estate, net, as well as a $0.1 million loss on early termination of debt. In the three months ended April 30, 2008 REX recorded $0.7 million of income from synthetic fuel investments. In the three months ended April 30, 2009 and 2008 the Company incurred a $0.3 million pre-tax loss and $1.0 million pre-tax gain, respectively, related to its unconsolidated ethanol affiliates, Patriot Renewable Fuels, LLC and Big River Resources, LLC.
During the fiscal 2009 first quarter the Company incurred a $0.6 million loss on derivative financial instruments, net, held by its consolidated ethanol entities (Levelland Hockley and One Earth) compared to a gain of $0.5 million during the fiscal 2008 first quarter.
-more-
| REX Reports Fiscal 2009 First Quarter Results, 6/9/09 | page 3 |
REX recorded, from continuing operations, a $0.9 million benefit for income taxes in the quarter ended April 30, 2009 compared with a $0.5 million income tax expense in the comparable prior year period. During the quarters ended April 30, 2009 and 2008, REX recognized a $0.4 million loss and $0.04 million loss, respectively from discontinued operations, net of taxes. Net loss attributable to common shareholders in the quarter ended April 30, 2009 was $1.7 million, or $0.19 per diluted share compared with net income of $1.5 million, or $0.13 per diluted share, in the same period of fiscal 2008. Per share results are based on 9,298,000 and 11,620,000 diluted weighted average shares outstanding for the quarters ended April 30, 2009 and April 30, 2008, respectively.
During the fiscal 2009 first quarter REX purchased 154,563 shares of its common stock in open market transactions. In the fiscal second quarter to date, REX repurchased an additional 96,900 shares. Reflecting all purchases to-date, the Company has approximately 327,885 authorized shares remaining available to purchase under the expanded February 2009 stock buy-back authorization and presently has approximately 9,225,000 shares of common stock outstanding.
REX Stores’ Current Ethanol Production Interests
| REX’s | Production | ||||
| Capital | Nameplate | ||||
| Investment | REX’s | Debt | Capacity | Estimated Plant | |
| Entity | ($ in | Ownership | Investment | (millions of | Completion |
| millions) | Interest | ($ in millions) | gallons) | Date | |
| Levelland Hockley County Ethanol, LLC (1) | $16.5 | 56% | $5.5 | 40 | In Production |
| Patriot Renewable Fuels, LLC | $16.0 | 23% | $1.0 | 100 | In Production |
| One Earth Energy, LLC | $50.8 | 74% | - | 100 | Summer 2009 |
| Big River Resources, LLC-W. Burlington | - | 92 | In Production | ||
| Big River Resources, LLC-Galva | $20.0 | 10% | - | 100 | Summer 2009 |
| (1) |
On January 29, 2009, REX (through a wholly-owned subsidiary) agreed to fund up to $2.0 million in the form of a subordinated revolving line of credit to Levelland Hockley and to issue a $1.0 million letter of credit for the benefit of Levelland Hockley. These amounts are not reflected in the table above. |
The Company will host a conference call and webcast today at 11:00 a.m. ET, which are open to the general public. The conference call dial-in number is 212/231-2920; please call ten minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the call live via the Investor Relations page of the Company’s website, www.rextv.com, or at www.earnings.com; please allow 15 minutes to register, download and install any necessary software.
Following its completion, a telephonic replay of the call can be accessed through 1:00 p.m. ET on June 22, 2009 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21427785. Alternatively, a replay will be available on the Internet for 30 days at www.rextv.com or www.earnings.com.
-more-
| REX Reports Fiscal 2009 First Quarter Results, 6/9/09 | page 4 |
This news announcement contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the highly competitive nature of the consumer electronics retailing industry, changes in the national or regional economies, weather, the effects of terrorism or acts of war on consumer spending patterns, the availability of certain products, technological changes, changes in real estate market conditions, the fluctuating amount of income received from the Company’s synthetic fuel investments and the impact of Internal Revenue Service audits. As it relates to ethanol investments, risks and uncertainties include among other things: the uncertainty of constructing plants on time and on budget, the impact of legislative changes, the price volatility and availability of corn, sorghum, dried distiller grains, ethanol, gasoline and natural gas, and the plants operating efficiently and according to forecasts and projections. The Company does not intend to update publicly any forward-looking statements except as required by law.
-tables follow-
| REX Reports Fiscal 2009 First Quarter Results, 6/9/09 | page 5 |
REX STORES CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements Of Income
(In Thousands, Except Per Share Amounts)
Unaudited
| Three Months Ended | ||||||||
| April 30, | ||||||||
| 2009 | 2008 | |||||||
| Net sales and revenue | $ | 29,734 | $ | 26,809 | ||||
| Cost of sales (excluding retail segment depreciation) | 25,015 | 18,677 | ||||||
| Gross profit | 4,719 | 8,132 | ||||||
| Selling, general and administrative expenses | (5,749 | ) | (9,240 | ) | ||||
| Investment income | 188 | 857 | ||||||
| Interest expense | (878 | ) | (113 | ) | ||||
| Loss on early termination of debt | (73 | ) | - | |||||
| Losses on disposals of real estate, net | (201 | ) | - | |||||
| Equity in (loss) income of unconsolidated ethanol affiliates | (260 | ) | 1,048 | |||||
| Income from synthetic fuel investments | - | 670 | ||||||
| (Losses) gains on derivative financial instruments, net | (556 | ) | 472 | |||||
| (Loss) income from continuing operations before income taxes and discontinued operations | (2,810 | ) | 1,826 | |||||
| Benefit (provision) for income taxes | 859 | (471 | ) | |||||
| (Loss) income from continuing operations including noncontrolling interest | (1,951 | ) | 1,355 | |||||
| Loss from discontinued operations, net of tax | (402 | ) | (46 | ) | ||||
| Net (loss) income including noncontrolling interest | (2,353 | ) | 1,309 | |||||
| Net loss attributable to noncontrolling interest | 622 | 217 | ||||||
| Net (loss) income attributable to REX common shareholders | $ | (1,731 | ) | $1,526 | ||||
| Weighted average shares outstanding - basic | 9,298 | 10,729 | ||||||
| Basic (loss) income per share from continuing operations attributable to REX common shareholders | $ | (0.14 | ) | $ | 0 .14 | |||
| Basic loss per share from discontinued operations attributable to REX common shareholders | (0.05 | ) | - | |||||
| Basic net (loss) income per share attributable to REX common shareholders | $ | (0.19 | ) | $ | 0.14 | |||
| Weighted average shares outstanding – diluted | 9,298 | 11,620 | ||||||
| Diluted (loss) income per share from continuing operations attributable to REX common shareholders | $ | (0.14 | ) | $0.13 | ||||
| Diluted loss per share from discontinued operations attributable to REX common shareholders | (0.05 | ) | - | |||||
| Diluted net (loss) income per share attributable to REX common shareholders | $ | (0.19 | ) | $ | 0.13 | |||
| Amounts attributable to REX common shareholders: | ||||||||
| (Loss) income from continuing operations, net of tax | $ | (1,329 | ) | $ | 1,572 | |||
| Loss from discontinued operations, net of tax | (402 | ) | (46 | ) | ||||
| Net (loss) income | $ | (1,731 | ) | $ | 1,526 | |||
| * |
Amounts differ from those previously reported as a result of certain stores being reclassified into discontinued operations. |
- balance sheet follows -
| REX Reports Fiscal 2009 First Quarter Results, 6/9/09 | page 6 |
REX STORES CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(in thousands)
Unaudited
| April 30, | January 31, | April 30, | ||||||||||
| 2009 | 2009 | 2008 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 85,854 | $ | 91,991 | $ | 106,301 | ||||||
| Restricted cash | 1,021 | - | - | |||||||||
| Accounts receivable, net | 2,333 | 4,197 | 3,025 | |||||||||
| Inventory, net | 6,477 | 24,374 | 56,800 | |||||||||
| Refundable income taxes | 8,761 | 7,790 | 1,400 | |||||||||
| Prepaid expenses and other | 666 | 1,063 | 804 | |||||||||
| Deferred taxes, net | 8,752 | 13,230 | 10,399 | |||||||||
| Total current assets | 113,864 | 142,645 | 178,729 | |||||||||
| Property and equipment, net | 249,819 | 235,454 | 168,359 | |||||||||
| Other assets | 11,294 | 12,414 | 14,098 | |||||||||
| Goodwill | - | - | 1,322 | |||||||||
| Deferred taxes, net | 23,862 | 18,697 | 21,929 | |||||||||
| Equity method investments | 38,566 | 38,861 | 39,509 | |||||||||
| Investments in debt instruments | 891 | 933 | - | |||||||||
| Restricted investments | 2,289 | 2,284 | 2,491 | |||||||||
| Total assets | $ | 440,585 | $ | 451,288 | $ | 426,437 | ||||||
| Liabilities and shareholders' equity: | ||||||||||||
| Current liabilities: | ||||||||||||
| Current portion of long-term debt and capital lease | ||||||||||||
| obligations, alternative energy | $ | 6,203 | $ | 5,898 | $ | 3,641 | ||||||
| Current portion of long-term debt, other | 648 | 1,576 | 1,711 | |||||||||
| Accounts payable, trade | 17,178 | 25,167 | 39,409 | |||||||||
| Deferred income | 10,489 | 11,952 | 13,708 | |||||||||
| Accrued restructuring charges | 4,786 | 4,171 | - | |||||||||
| Deferred gain on sale and leaseback | 599 | 1,558 | 1,436 | |||||||||
| Derivative financial instruments | 2,354 | 1,996 | 588 | |||||||||
| Other current liabilities | 4,090 | 5,951 | 5,928 | |||||||||
| Total current liabilities | 46,347 | 58,269 | 66,421 | |||||||||
| Long-term liabilities: | ||||||||||||
| Long-term debt and capital lease obligations, alternative energy | 107,825 | 94,003 | 32,562 | |||||||||
| Long-term debt, other | 3,371 | 9,936 | 12,714 | |||||||||
| Deferred income | 11,886 | 13,796 | 16,282 | |||||||||
| Deferred gain on sale and leaseback | 1,760 | 3,467 | 4,132 | |||||||||
| Derivative financial instruments | 3,883 | 4,032 | 1,541 | |||||||||
| Other | 4,487 | 4,152 | 6,485 | |||||||||
| Total long-term liabilities | 133,212 | 129,386 | 73,716 | |||||||||
| Equity: | ||||||||||||
| REX shareholders’ equity: | ||||||||||||
| Common stock | 299 | 299 | 298 | |||||||||
| Paid-in capital | 142,678 | 142,486 | 141,867 | |||||||||
| Retained earnings | 280,601 | 282,332 | 287,155 | |||||||||
| Treasury stock | (186,503 | ) | (186,057 | ) | (170,532 | ) | ||||||
| Total REX shareholders' equity | 237,075 | 239,060 | 258,788 | |||||||||
| Noncontrolling interests | 23,951 | 24,573 | 27,512 | |||||||||
| Total equity | 261,026 | 263,633 | 286,300 | |||||||||
| Total liabilities and equity | $ | 440,585 | $ | 451,288 | $ | 426,437 | ||||||
# # #