UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Form 10-Q
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[X] |
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Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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For the quarterly period ended October 30, 2004 |
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or |
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[ ] |
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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For the transition period from ____________________ to ____________________ |
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Commission File Number: |
0-21360 |
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Shoe Carnival, Inc. |
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(Exact name of registrant as specified in its charter) |
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Indiana |
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35-1736614 |
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(State or other jurisdiction of |
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(IRS Employer Identification Number) |
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8233 Baumgart Road |
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47725 |
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(Address of principal executive offices) |
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(Zip code) |
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(812) 867-6471 |
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(Registrant's telephone number, including area code) |
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NOT APPLICABLE |
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(Former name, former address and former fiscal year, if changed since last report) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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[X] |
Yes |
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[ ] |
No |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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[X] |
Yes |
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[ ] |
No |
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Common Stock, $.01 par value, 12,837,144 shares outstanding as of November 27, 2004
SHOE CARNIVAL, INC.
INDEX TO FORM 10-Q
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Page |
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Part I |
Financial Information |
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Item 1. |
Financial Statements (Unaudited) |
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Condensed Consolidated Balance Sheets |
3 |
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Condensed Consolidated Statements of Income |
4 |
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Condensed Consolidated Statement of Shareholders' Equity |
5 |
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Condensed Consolidated Statements of Cash Flows |
6 |
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Notes to Condensed Consolidated Financial Statements |
7 - 8 |
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Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
9 - 13 |
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
13 |
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Item 4. |
Controls and Procedures |
13 |
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Part II |
Other Information |
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Item 6. |
Exhibits |
14 |
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Signature |
15 |
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2
SHOE CARNIVAL, INC.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
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October 30, |
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January 31, |
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November 1, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
3,789 |
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$ |
4,071 |
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$ |
3,072 |
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Accounts receivable |
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2,152 |
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587 |
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2,280 |
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Merchandise inventories |
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172,375 |
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165,110 |
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165,356 |
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Deferred income tax benefit |
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684 |
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1,954 |
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1,183 |
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Other |
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2,076 |
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6,753 |
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4,731 |
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Total Current Assets |
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181,076 |
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178,475 |
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176,622 |
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Property and equipment-net |
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69,683 |
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69,246 |
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70,129 |
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Total Assets |
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$ |
250,759 |
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$ |
247,721 |
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$ |
246,751 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
39,095 |
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$ |
53,181 |
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$ |
40,270 |
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Accrued and other liabilities |
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9,718 |
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8,208 |
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9,334 |
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Current portion of long-term debt |
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94 |
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222 |
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268 |
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Total Current Liabilities |
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48,907 |
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61,611 |
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49,872 |
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Long-term debt |
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24,201 |
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21,956 |
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36,195 |
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Deferred lease incentives |
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7,929 |
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8,033 |
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8,175 |
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Accrued rent |
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2,897 |
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2,808 |
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2,707 |
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Deferred income taxes |
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8,080 |
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7,544 |
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4,737 |
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Other |
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1,535 |
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1,218 |
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1,106 |
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Total Liabilities |
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93,549 |
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103,170 |
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102,792 |
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Shareholders' Equity: |
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Common stock, $.01 par value, 50,000 |
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shares authorized, 13,363 shares |
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issued at October 30, 2004, January 31, 2004 |
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and November 1, 2003 |
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134 |
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134 |
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134 |
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Additional paid-in capital |
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66,968 |
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66,252 |
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66,150 |
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Retained earnings |
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93,769 |
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82,324 |
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82,211 |
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Treasury stock, at cost 529, 601 and 656 shares at |
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October 30, 2004, January 31, 2004 and November 1, 2003 |
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(3,661 |
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(4,159 |
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(4,536 |
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Total Shareholders' Equity |
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157,210 |
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144,551 |
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143,959 |
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Total Liabilities and Shareholders' Equity |
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$ |
250,759 |
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$ |
247,721 |
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$ |
246,751 |
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See notes to condensed consolidated financial statements.
3
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
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Thirteen |
Thirteen |
Thirty-nine |
Thirty-nine |
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Net sales |
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$ |
162,717 |
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$ |
152,365 |
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$ |
446,309 |
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$ |
423,678 |
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Cost of sales (including buying, |
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distribution and occupancy costs) |
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115,341 |
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107,006 |
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318,227 |
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300,487 |
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Gross profit |
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47,376 |
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45,359 |
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128,082 |
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123,191 |
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Selling, general and administrative |
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expenses |
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39,149 |
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36,401 |
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108,811 |
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103,297 |
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Operating income |
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8,227 |
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8,958 |
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19,271 |
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19,894 |
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Interest expense |
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138 |
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160 |
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509 |
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502 |
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Income before income taxes |
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8,089 |
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8,798 |
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18,762 |
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19,392 |
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Income tax expense |
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3,155 |
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3,299 |
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7,317 |
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7,272 |
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Net income |
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$ |
4,934 |
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$ |
5,499 |
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$ |
11,445 |
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$ |
12,120 |
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Net income per share: |
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Basic |
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$ |
.38 |
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$ |
.43 |
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$ |
.89 |
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$ |
.96 |
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Diluted |
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$ |
.38 |
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$ |
.42 |
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$ |
.88 |
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$ |
.93 |
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Average shares outstanding: |
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Basic |
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12,831 |
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12,684 |
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12,812 |
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12,654 |
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Diluted |
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13,008 |
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13,062 |
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13,053 |
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13,014 |
See notes to condensed consolidated financial statements.
4
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
Unaudited
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Additional |
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Common Stock |
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Paid-In |
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Retained |
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Treasury |
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(In thousands) |
Issued |
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Treasury |
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Amount |
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Capital |
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Earnings |
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Stock |
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Total |
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Balance at January 31, 2004 |
13,363 |
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(601 |
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$ |
134 |
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$ |
66,252 |
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$ |
82,324 |
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$ |
(4,159 |
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$ |
144,551 |
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Exercise of stock options |
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62 |
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(44 |
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428 |
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384 |
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Stock option income tax benefit |
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708 |
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708 |
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Employee stock purchase |
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plan purchases |
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10 |
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52 |
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70 |
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122 |
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Net income |
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11,445 |
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11,445 |
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Balance at October 30, 2004 |
13,363 |
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(529 |
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$ |
134 |
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$ |
66,968 |
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$ |
93,769 |
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$ |
(3,661 |
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$ |
157,210 |
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See notes to condensed consolidated financial statements.
5
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
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Thirty-nine |
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Thirty-nine |
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Cash flows from operating activities: |
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Net income |
$ |
11,445 |
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$ |
12,120 |
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Adjustments to reconcile net income to net |
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cash provided by operating activities: |
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Depreciation and amortization |
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10,828 |
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10,287 |
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Stock option income tax benefit |
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708 |
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202 |
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Loss on retirement and impairment of assets |
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341 |
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435 |
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Deferred income taxes |
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1,806 |
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(516 |
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Other |
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(226 |
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378 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(1,606 |
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(1,362 |
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Merchandise inventories |
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(7,266 |
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(19,265 |
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Accounts payable and accrued liabilities |
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(12,575 |
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(9,531 |
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Other |
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4,672 |
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(2,822 |
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Net cash provided by (used in) operating activities |
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8,127 |
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(10,074 |
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Cash flows from investing activities: |
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Purchases of property and equipment |
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(11,620 |
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(17,532 |
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Lease incentives |
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529 |
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3,251 |
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Other |
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59 |
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367 |
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Net cash used in investing activities |
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(11,032 |
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(13,914 |
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Cash flows from financing activities: |
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Net borrowings under line of credit |
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2,300 |
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20,875 |
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Payments on capital lease obligations |
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(183 |
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(343 |
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Proceeds from issuance of stock |
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506 |
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746 |
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