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): December 2, 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 December 2, 2003 Item 12. Results of Operations and Financial Condition On December 2, 2003, REX Stores Corporation issued a press release announcing financial results for the fiscal quarter ended October 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: December 2, 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 THIRD QUARTER NET INCOME OF $4.1 MILLION, OR $0.32 PER DILUTED SHARE - Third Quarter Comp Store Sales Rise 2% - Dayton, Ohio (December 2, 2003) -- REX Stores Corporation (NYSE: RSC), a specialty retailer of consumer electronic products and appliances, today announced financial results and comparable store sales for the Company's fiscal 2003 third quarter ended October 31, 2003. Net income in the fiscal 2003 third quarter was $4.1 million, or $0.32 per diluted share, compared to net income of $4.3 million, or $0.31 per diluted share, in the third quarter of fiscal 2002. Per share results are based on 12,866,000 and 13,791,000 diluted weighted average shares outstanding for the fiscal 2003 and 2002 periods, respectively. Net sales in the fiscal 2003 third quarter rose 1% to $96.6 million from $95.7 million in the fiscal 2002 third quarter. Comparable store sales for the three months ended October 31, 2003 rose 2% 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 nine months of fiscal 2003 was $10.4 million, or $0.82 per diluted share, compared to net income of $13.8 million, or $0.96 per diluted share, in the first nine months of fiscal 2002. Per share results are based on 12,608,000 and 14,482,000 diluted weighted average shares outstanding for the first nine months of fiscal 2003 and 2002, respectively, and reflect a 3-for-2 stock split paid in February 2002. Net sales in the first nine months of fiscal 2003 were essentially flat at $283.4 million compared to the first nine months of fiscal 2002, while comparable store sales rose 2%. -more-
REX Stores Reports Third Quarter Results, 12/2/03 page 2 Net income for the third quarter and first nine months of 2003 reflects approximately $3.7 million and $9.9 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 $2.2 million and $6.0 million for the third quarter and first nine months 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, "Large-screen, HDTV-ready televisions continued to be a strong category for us in the third quarter as consumers continue to upgrade their home entertainment systems." The Company will host a conference call and webcast today at 11:00 a.m. EST, which are open to the general public. The conference call numbers are 212/341-7082 or 415/904-7384; 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. EST that day by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21167740. 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 October 31, 2003, the Company operated 248 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 Third Quarter Results, 12/2/03 page 3 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) Three Months Ended, Nine Months Ended October 31, October 31, October 31, October 31, 2003 2002 2003 2002 ----------- ----------- ----------- ----------- NET SALES $96,556 $95,743 $283,404 $282,349 COSTS AND EXPENSES: Cost of merchandise sold 67,869 66,825 198,521 196,847 Selling, general and administrative expenses 26,111 25,716 78,012 76,733 ------- ------- -------- -------- Total costs and expenses 93,980 92,541 276,533 273,580 ------- ------- -------- -------- INCOME FROM OPERATIONS 2,576 3,202 6,871 8,769 INVESTMENT INCOME 14 16 54 299 INTEREST EXPENSE (1,275) (1,388) (3,773) (4,238) GAIN ON SALE OF REAL ESTATE 393 -- 779 -- INCOME FROM LIMITED PARTNERSHIPS 3,733 3,854 9,916 13,494 ------- ------- -------- -------- Income before provision for income taxes 5,441 5,684 13,847 18,324 PROVISION FOR INCOME TAXES 1,360 1,410 3,461 4,475 ------- ------- -------- -------- NET INCOME $ 4,081 $ 4,274 $ 10,386 $ 13,849 ======= ======= ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 10,819 12,179 10,820 12,333 ======= ======= ======== ======== BASIC NET INCOME PER SHARE* $ 0.38 $ 0.35 $ 0.96 $ 1.12 ======= ======= ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 12,866 13,791 12,608 14,482 ======= ======= ======== ======== DILUTED NET INCOME PER SHARE* $ 0.32 $ 0.31 $ 0.82 $ 0.96 ======= ======= ======== ======== * 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 Third Quarter Results, 12/2/03 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) October 31, January 31, October 31, 2003 2003 2002 ----------- ----------- ---------- ASSETS: Cash and cash equivalents $ 1,503 $ 1,380 $ 1,495 Accounts receivable, net 1,551 3,413 626 Synthetic fuel receivable 655 6,619 5,592 Merchandise inventory 155,354 142,063 167,616 Prepaid expenses and other 2,704 2,567 3,282 Future income tax benefits 10,350 10,350 12,614 --------- --------- --------- Total current assets 172,117 166,392 191,225 PROPERTY AND EQUIPMENT, NET 131,560 134,563 136,280 OTHER ASSETS 2,596 1,656 -- FUTURE INCOME TAX BENEFITS 6,070 6,070 7,320 SYNTHETIC FUEL ESCROW 7,886 -- -- RESTRICTED INVESTMENTS 2,253 2,241 2,237 --------- --------- --------- Total assets $ 322,482 $ 310,922 $ 337,062 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Notes payable $ 18,901 $ 13,451 $ 21,829 Current portion of long-term debt 7,708 5,657 4,845 Current portion, deferred income and deferred gain on sale and leaseback 10,985 11,107 11,154 Accounts payable, trade 34,690 27,417 46,075 Accrued income taxes 1,371 -- 3,005 Accrued payroll 4,885 6,750 5,209 Other current liabilities 8,449 8,669 9,349 --------- --------- --------- Total current liabilities 86,989 73,051 101,466 --------- --------- --------- LONG-TERM LIABILITIES: Long-term mortgage debt 57,752 64,426 66,493 Deferred income 12,632 13,993 13,679 Deferred gain on sale and leaseback -- 348 497 --------- --------- --------- Total long-term liabilities 70,384 78,767 80,669 --------- --------- --------- Shareholders' equity: Common stock 281 277 277 Paid-in capital 123,677 121,282 119,082 Retained earnings 168,026 157,640 148,557 Treasury stock (126,875) (120,095) (112,989) --------- --------- --------- Total shareholders' equity 165,109 159,104 154,927 --------- --------- --------- --------- --------- --------- Total liabilities & shareholders' equity $ 322,482 $ 310,922 $ 337,062 ========= ========= ========= # # #