| (Mark
One) þ |
Form 10-Q Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended August 3, 2002 |
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| o |
Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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Securities and Exchange Commission Washington, D.C. 20549 Commission File No. 1-3083 |
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| Genesco Inc. A Tennessee Corporation I.R.S. No. 62-0211340 Genesco Park 1415 Murfreesboro Road Nashville, Tennessee 37217-2895 Telephone 615/367-7000 |
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| 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 such shorter period that the registrant was
required to file such reports with the commission) and (2) has
been subject to such filing requirements for the past
90 days. Yes þ No o |
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| Common Shares Outstanding September 6, 2002 – 21,857,089 |
INDEX
| Page | |||||
Part I. Financial Information |
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Item 1. Financial Statements: |
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Consolidated Balance Sheet -August 3, 2002, February 2, 2002 and
August 4, 2001 |
3 | ||||
Consolidated Earnings — Three Months Ended and Six Months Ended
August 3, 2002 and August 4, 2001 |
4 | ||||
Consolidated Cash Flows — Three Months Ended and Six Months Ended
August 3, 2002 and August 4, 2001 |
5 | ||||
Consolidated Shareholders’ Equity — Year Ended
February 2, 2002 and Six Months Ended August 3, 2002 |
6 | ||||
Notes to Consolidated Financial Statements |
7 | ||||
Item 2. Management’s Discussion and Analysis of Financial Condition and
Results of Operations |
21 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
33 | ||||
Item 4. Controls and Procedures |
33 | ||||
Part II. Other Information |
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Item 4. Submission of Matters to a Vote of Security Holders |
34 | ||||
Item 6. Exhibits and Reports on Form 8-K |
34 | ||||
Signatures |
35 | ||||
2
| PART I — FINANCIAL INFORMATION Item 1. Financial Statements Genesco Inc. and Consolidated Subsidiaries Consolidated Balance Sheet In Thousands |
| August 3, | February 2, | August 4, | ||||||||||||||
| 2002 | 2002 | 2001 | ||||||||||||||
Assets |
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Current Assets |
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Cash and cash equivalents |
$ | 32,214 | $ | 46,384 | $ | 24,513 | ||||||||||
Accounts receivable |
16,785 | 19,857 | 27,053 | |||||||||||||
Inventories |
202,062 | 142,856 | 182,216 | |||||||||||||
Deferred income taxes |
7,276 | 7,942 | 15,263 | |||||||||||||
Other current assets |
12,276 | 12,717 | 11,402 | |||||||||||||
Total current assets |
270,613 | 229,756 | 260,447 | |||||||||||||
Plant, equipment and capital leases |
128,617 | 112,550 | 95,971 | |||||||||||||
Deferred income taxes |
15,730 | 15,730 | 3,396 | |||||||||||||
Other noncurrent assets |
4,702 | 5,019 | 16,591 | |||||||||||||
Noncurrent
assets of discontinued operations |
1,085 | 499 | 605 | |||||||||||||
Total
Assets |
$ | 420,747 | $ | 363,554 | $ | 377,010 | ||||||||||
Liabilities and Shareholders’ Equity |
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Current Liabilities |
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Accounts payable |
$ | 82,305 | $ | 26,113 | $ | 61,554 | ||||||||||
Accrued liabilities |
32,709 | 41,384 | 38,391 | |||||||||||||
Provision for discontinued operations |
3,190 | 6,729 | 3,954 | |||||||||||||
Total current liabilities |
118,204 | 74,226 | 103,899 | |||||||||||||
Long-term debt |
103,245 | 103,245 | 103,245 | |||||||||||||
Other long-term liabilities |
24,591 | 24,391 | 7,898 | |||||||||||||
Provision for discontinued operations |
-0- | 505 | 3,327 | |||||||||||||
Total liabilities |
246,040 | 202,367 | 218,369 | |||||||||||||
Contingent liabilities (see Note 8) |
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Shareholders’ Equity |
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Non-redeemable preferred stock |
7,600 | 7,634 | 7,669 | |||||||||||||
Common shareholders’ equity: |
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Common stock, $1 par value: |
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Authorized: 80,000,000 shares
Issued: August 3, 2002 – 22,350,553;
February 2, 2002 – 22,330,914;
August 4, 2001 – 22,475,128 |
22,351 | 22,331 | 22,475 | |||||||||||||
Additional paid-in capital |
99,099 | 98,622 | 101,534 | |||||||||||||
Retained earnings |
79,810 | 67,793 | 45,391 | |||||||||||||
Accumulated other comprehensive loss |
(16,296 | ) | (17,336 | ) | (571 | ) | ||||||||||
Treasury shares, at cost |
(17,857 | ) | (17,857 | ) | (17,857 | ) | ||||||||||
Total shareholders’ equity |
174,707 | 161,187 | 158,641 | |||||||||||||
Total
Liabilities and Shareholders’ Equity |
$ | 420,747 | $ | 363,554 | $ | 377,010 | ||||||||||
The accompanying Notes are an integral part of these Consolidated Financial Statements.
3
|
Genesco Inc. and Consolidated Subsidiaries Consolidated Earnings In Thousands, except per share amounts |
| Three Months Ended | Six Months Ended | ||||||||||||||||
| August 3, | August 4, | August 3, | August 4, | ||||||||||||||
| 2002 | 2001 | 2002 | 2001 | ||||||||||||||
Net sales |
$ | 174,842 | $ | 166,483 | $ | 365,435 | $ | 338,145 | |||||||||
Cost of sales |
91,991 | 88,178 | 192,436 | 177,999 | |||||||||||||
Selling and administrative expenses |
74,666 | 66,744 | 149,892 | 133,700 | |||||||||||||
Restructuring credit |
-0- | (205 | ) | -0- | (205 | ) | |||||||||||
Earnings from operations before interest |
8,185 | 11,766 | 23,107 | 26,651 | |||||||||||||
Interest expense |
2,114 | 2,157 | 4,079 | 4,315 | |||||||||||||
Interest income |
(192 | ) | (269 | ) | (485 | ) | (892 | ) | |||||||||
Total interest expense, net |
1,922 | 1,888 | 3,594 | 3,423 | |||||||||||||
Pretax earnings |
6,263 | 9,878 | 19,513 | 23,228 | |||||||||||||
Income taxes |
2,300 | 3,695 | 7,348 | 8,707 | |||||||||||||
Net Earnings |
$ | 3,963 | $ | 6,183 | $ | 12,165 | $ | 14,521 | |||||||||
Basic earnings per common share |
$ | .18 | $ | .28 | $ | .55 | $ | .66 | |||||||||
Diluted earnings per common share |
$ | .17 | $ | .26 | $ | .51 | $ | .60 | |||||||||
The accompanying Notes are an integral part of these Consolidated Financial Statements.
4
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Genesco Inc. and Consolidated Subsidiaries Consolidated Cash Flows In Thousands |
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| August 3, | August 4, | August 3, | August 4, | ||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | ||||||||||||||||
OPERATIONS: |
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Net earnings |
$ | 3,963 | $ | 6,183 | $ | 12,165 | $ | 14,521 | |||||||||||
Adjustments to reconcile net income to net cash provided
by operating activities: |
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Depreciation and amortization |
4,593 | 3,938 | 8,955 | 7,770 | |||||||||||||||
Provision for losses on accounts receivable |
(45 | ) | (167 | ) | (6 | ) | (53 | ) | |||||||||||
Restructuring charge (gain) |
-0- | (269 | ) | -0- | (269 | ) | |||||||||||||
Other |
263 | 86 | 548 | 316 | |||||||||||||||
Effect on cash of changes in working capital and other assets
and liabilities: |
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Accounts receivable |
5,773 | 90 | 3,078 | (3,939 | ) | ||||||||||||||
Inventories |
(58,614 | ) | (35,193 | ) | (59,206 | ) | (47,917 | ) | |||||||||||
Other current assets |
308 | (55 | ) | 441 | (598 | ) | |||||||||||||
Accounts payable |
44,062 | 26,142 | 56,192 | 23,962 | |||||||||||||||
Accrued liabilities |
(7,355 | ) | (1,061 | ) | (14,816 | ) | (19,249 | ) | |||||||||||
Other assets and liabilities |
3,801 | 338 | 3,779 | 984 | |||||||||||||||
Net cash provided by (used in) operating activities |
(3,251 | ) | 32 | 11,130 | (24,472 | ) | |||||||||||||
INVESTING ACTIVITIES: |
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Capital expenditures |
(7,853 | ) | (10,025 | ) | (25,216 | ) | (16,433 | ) | |||||||||||
Proceeds from businesses divested and asset sales |
1 | 147 | 1 | 203 | |||||||||||||||
Net cash provided by (used in) investing activities |
(7,852 | ) | (9,878 | ) | (25,215 | ) | (16,230 | ) | |||||||||||
FINANCING ACTIVITIES: |
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Stock Repurchase |
(913 | ) | -0- | (913 | ) | -0- | |||||||||||||
Dividends paid |
(74 | ) | (73 | ) | (148 | ) | (147 | ) | |||||||||||
Deferred note expense |
-0- | (356 | ) | -0- | (356 | ) | |||||||||||||
Options exercised and shares issued in employee stock purchase plan |
44 | 655 | 976 | 5,336 | |||||||||||||||
Other |
(6 | ) | -0- | -0- | -0- | ||||||||||||||
Net cash provided by (used in) financing activities |
(949 | ) | 226 | (85 | ) | 4,833 | |||||||||||||
Net Cash Flow |
(12,052 | ) | (9,620 | ) | (14,170 | ) | (35,869 | ) | |||||||||||
Cash and cash equivalents at
beginning of period |
44,266 | 34,133 | 46,384 | 60,382 | |||||||||||||||
Cash and cash equivalents at end of period |
$ | 32,214 | $ | 24,513 | $ | 32,214 | $ | 24,513 | |||||||||||
Supplemental Cash Flow Information: |
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Net cash paid for: |
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Interest |
$ | 639 | $ | 464 | $ | 4,128 | $ | 3,983 | |||||||||||
Income taxes |
8,678 | 8,275 | 9,041 | 12,876 | |||||||||||||||
The accompanying Notes are an integral part of these Consolidated Financial Statements.
5
|
Genesco Inc. and Consolidated Subsidiaries Consolidated Shareholders’ Equity In Thousands |
| Total | Accumulated | Total | ||||||||||||||||||||||||||||||
| Non-Redeemable | Additional | Other | Share- | |||||||||||||||||||||||||||||
| Preferred | Common | Paid-In | Treasury | Retained | Comprehensive | Comprehensive | holders' | <|||||||||||||||||||||||||