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): September 4, 2003 REX STORES CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-13283 31-1095548 (State or other jurisdiction (Commission File No.) (IRS Employer Identification No.) of incorporation) 2875 Needmore Road, Dayton, Ohio 45414 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (937) 276-3931
Item 7. Financial Statements and Exhibits (c) Exhibits. The following exhibits are furnished with this report: 99 Press Release dated September 4, 2003 Item 12. Results of Operations and Financial Condition On September 4, 2003, REX Stores Corporation issued a press release announcing financial results for the fiscal quarter ended July 31, 2003. The press release is furnished as Exhibit 99 to this report.
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: September 4, 2003 By: /s/ DOUGLAS L. BRUGGEMAN -------------------------------- Name: Douglas L. Bruggeman Title: Vice President - Finance and Chief Financial Officer
[REX LOGO] News Announcement For Immediate Release For further information contact: Douglas Bruggeman Joseph N. Jaffoni, Stewart A. Lewack Vice President, Finance Jaffoni & Collins Incorporated 937/276-3931 212/835-8500 or rsc@jcir.com REX STORES REPORTS SECOND QUARTER RESULTS Dayton, Ohio (September 4, 2003) -- REX Stores Corporation (NYSE: RSC), a specialty retailer of consumer electronic products and appliances, today announced financial results and comparable store merchandise sales for the Company's fiscal 2003 second quarter ended July 31, 2003. Net income in the fiscal 2003 second quarter was $3.2 million, or $0.25 per diluted share, compared to net income of $5.4 million, or $0.37 per diluted share, in the second quarter of fiscal 2002. Per share results are based on 12,626,000 and 14,728,000 diluted weighted average shares outstanding for the fiscal 2003 and 2002 periods, respectively. Net sales in the fiscal 2003 second quarter fell 2% to $91.4 million from $93.1 million in the fiscal 2002 second quarter. Comparable store sales for the three months ended July 31, 2003 were flat when compared to the same period in 2002. The Company reports sales performance quarterly and considers a store to be comparable after it has been open six full fiscal quarters. Comparable store sales figures do not include sales of extended service contracts. Net income in the first half of fiscal 2003 was $6.3 million, or $0.50 per diluted share, compared to net income of $9.6 million, or $0.65 per diluted share, in the first half of fiscal 2002. Per share results are based on 12,567,000 and 14,755,000 diluted weighted average shares outstanding for the first halves of fiscal 2003 and 2002, respectively, and reflect a 3-for-2 stock split paid in February 2002. Net sales in the first half of fiscal 2003 were essentially flat at $186.8 million compared to the first half of fiscal 2002, while comparable store sales rose 2%. -more-
REX Stores Reports Second Quarter Results, 9/4/03 page 2 Net income for the second quarter and first half of 2003 reflects approximately $3.1 million and $6.2 million, respectively, of pre-tax investment income from the sales of the Company's entire Partnership interest in a synthetic fuel limited partnership. As previously disclosed, the IRS is auditing this limited partnership. Of the amount stated above, approximately $1.9 million and $3.7 million for the second quarter and first half of 2003, respectively, of the payments relating to sales of certain portions of the limited partnership interest due the Company during the periods are being held in escrow pending the results of the IRS audit. Future payments due the Company relating to certain of these sales will also be held in escrow pending the completion of the IRS audit. Commenting on the results, Stuart Rose, Chairman and Chief Executive Officer, stated, "Fiscal 2003 second quarter air conditioner sales were lower than those in the year-ago period. Excluding this product, comparable store sales, which were flat for the fiscal 2003 second quarter, would have risen approximately 5%, an overall sales trend consistent with fiscal 2003 first quarter results." During the fiscal 2003 second quarter, REX purchased approximately 187,200 shares of its common stock. As of September 3, 2003, the Company had approximately 170,500 authorized shares remaining available to purchase under its authorized stock buy-back program. The Company will host a conference call and webcast today at 11:00 a.m. EDT, which are open to the general public. The conference call numbers are 212-346-6424 or 415-537-1836; 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.vcall.com; please allow 15 minutes to register and download and install any necessary software. Following its completion, a telephonic replay of the call can be accessed from 1:00 p.m. to 8:00 p.m. EDT that day by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21159408. Alternatively, a replay will be available on the Internet for 30 days at www.rextv.com or www.vcall.com. REX Stores Corporation is a leading specialty retailer of consumer electronic products and appliances. As of July 31, 2003, the Company operated 249 stores in 37 states under the trade name "REX." This news announcement contains 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 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 and technological changes. -tables follow-
REX Stores Reports Second Quarter Results, 9/4/03 page 3 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) Three Months Ended, Six Months Ended July 31, July 31, July 31, July 31, 2003 2002 2003 2002 -------- -------- -------- -------- NET SALES $91,436 $93,070 $186,847 $186,606 COSTS AND EXPENSES: Cost of merchandise sold 63,079 63,740 130,652 130,022 Selling, general and administrative expenses 25,979 26,012 51,901 51,017 ------- ------- -------- -------- Total costs and expenses 89,058 89,752 182,553 181,039 ------- ------- -------- -------- INCOME FROM OPERATIONS 2,378 3,318 4,294 5,567 INVESTMENT INCOME 23 133 40 283 INTEREST EXPENSE (1,297) (1,267) (2,497) (2,850) GAIN ON SALE OF REAL ESTATE -- -- 386 -- INCOME FROM LIMITED PARTNERSHIPS 3,119 5,004 6,183 9,640 ------- ------- -------- -------- Income before provision for income taxes 4,223 7,188 8,406 12,640 PROVISION FOR INCOME TAXES 1,056 1,797 2,101 3,065 ------- ------- -------- -------- NET INCOME $ 3,167 $ 5,391 $ 6,305 $ 9,575 ======= ======= ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 10,705 12,522 10,821 12,411 ======= ======= ======== ======== BASIC NET INCOME PER SHARE * $ 0.30 $ 0.43 $ 0.58 $ 0.77 ======= ======= ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 12,626 14,728 12,567 14,755 ======= ======= ======== ======== DILUTED NET INCOME PER SHARE * $ 0.25 $ 0.37 $ 0.50 $ 0.65 ======= ======= ======== ======== * All per share amounts have been adjusted to reflect a 3-for-2 split of the Company's common stock paid on February 11, 2002. (more)
REX Stores Reports Second Quarter Results, 9/4/03 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) July 31, January 31, July 31, 2003 2003 2002 --------- ----------- -------- ASSETS: Cash and cash equivalents $ 2,116 $ 1,380 $ 10,039 Accounts receivable, net 1,844 3,413 548 Synthetic fuel receivable 400 6,619 3,327 Merchandise inventory 169,101 142,063 138,860 Prepaid expenses and other 3,068 2,567 3,073 Future income tax benefits 10,350 10,350 12,614 --------- --------- --------- Total current assets 186,879 166,392 168,461 PROPERTY AND EQUIPMENT, NET 133,439 134,563 136,940 OTHER ASSETS 2,434 1,656 -- FUTURE INCOME TAX BENEFITS 6,070 6,070 7,320 SYNTHETIC FUEL ESCROW 10,042 -- -- RESTRICTED INVESTMENTS 2,250 2,241 2,232 --------- --------- --------- Total assets $ 341,114 $ 310,922 $ 314,953 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY: CURRENT LIABILITIES: Notes payable $ 30,775 $ 13,451 $ 65 Current portion of long-term debt 6,478 5,657 4,783 Current portion, deferred income and deferred gain on sale and leaseback 11,301 11,107 11,096 Accounts payable, trade 45,407 27,417 41,138 Accrued income taxes 51 -- 2,847 Accrued payroll 4,495 6,750 4,914 Other current liabilities 8,738 8,669 9,454 --------- --------- --------- Total current liabilities 107,245 73,051 74,297 --------- --------- --------- LONG-TERM LIABILITIES: Long-term mortgage debt 60,504 64,426 67,723 Deferred income 13,015 13,993 14,069 Deferred gain on sale and leaseback 49 348 646 --------- --------- --------- Total long-term liabilities 73,568 78,767 82,438 --------- --------- --------- SHAREHOLDERS' EQUITY: Common stock 278 277 277 Paid-in capital 121,786 121,282 119,026 Retained earnings 163,945 157,640 144,283 Treasury stock (125,708) (120,095) (105,368) --------- --------- --------- Total shareholders' equity 160,301 159,104 158,218 --------- --------- --------- Total liabilities & shareholders' equity $ 341,114 $ 310,922 $ 314,953 ========= ========= ========= # # #