UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) |
For the Quarterly Period Ended August 2, 2002
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TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) |
For the transition period from to
Commission File No. 0-23389
PAPER WAREHOUSE, INC.
(Exact name of registrant as specified in its charter)
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Minnesota |
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41-1612534 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
7630 Excelsior Boulevard
Minneapolis, Minnesota 55426
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (952) 936-1000
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, and (2) has been subject to such filing requirements for the past 90 days. YES ý NO ¨
On September 12, 2002 there were 1,886,192 shares of Common Stock, $.03 par value, of Paper Warehouse, Inc. outstanding.
PAPER WAREHOUSE, INC.
INDEX
PAPER WAREHOUSE, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
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August 2, 2002 |
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February 1, 2002 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
167,075 |
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$ |
203,975 |
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Merchandise inventories |
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14,870,814 |
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14,765,866 |
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Accounts receivable |
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818,769 |
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1,177,364 |
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Prepaid expenses and other current assets |
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875,401 |
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521,686 |
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Total current assets |
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16,732,059 |
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16,668,891 |
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Property and equipment, net |
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5,645,402 |
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6,207,849 |
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Other assets, net |
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1,504,783 |
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1,652,147 |
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Net assets of discontinued operations |
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— |
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2,545,786 |
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Total assets |
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$ |
23,882,244 |
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$ |
27,074,673 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Notes payable — line of credit |
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$ |
6,932,055 |
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$ |
7,731,966 |
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Note payable — other |
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— |
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1,000,000 |
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Convertible subordinated debt |
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4,000,000 |
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4,000,000 |
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Current maturities of long-term debt |
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517,248 |
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553,481 |
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Accounts payable |
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7,700,637 |
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8,087,854 |
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Accrued liabilities |
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1,409,470 |
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1,822,488 |
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Current portion — reserve for store closings |
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147,745 |
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311,383 |
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Total current liabilities |
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20,707,155 |
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23,507,172 |
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Other long-term debt, less current maturities |
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1,123,117 |
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1,328,979 |
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Reserve for store closings, less current portion |
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400,363 |
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383,908 |
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Deferred rent credits |
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1,181,118 |
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1,261,470 |
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Total liabilities |
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23,411,753 |
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26,481,529 |
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Commitments |
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— |
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— |
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Stockholders’ equity: |
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Serial preferred stock, $.03 par value; 3,333,333 shares authorized; none issued or outstanding |
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— |
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— |
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Common stock, $.03 par value; 13,333,333 shares authorized; 1,886,192 shares issued and outstanding |
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56,585 |
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56,585 |
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Additional paid-in capital |
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15,010,338 |
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15,010,548 |
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Accumulated deficit |
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(14,596,432 |
) |
(14,473,989 |
) |
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Total stockholders’ equity |
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470,491 |
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593,144 |
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Total liabilities and stockholders’ equity |
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$ |
23,882,244 |
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$ |
27,074,673 |
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See accompanying notes to consolidated financial statements.
1
PAPER WAREHOUSE, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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August 2, |
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August 3, |
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August 2, |
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August 3, |
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Revenues: |
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Retail sales |
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$ |
19,555,041 |
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$ |
19,010,049 |
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$ |
36,939,261 |
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$ |
36,467,167 |
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Franchise related fees |
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411,014 |
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365,375 |
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826,696 |
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753,580 |
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Total revenues |
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19,966,055 |
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19,375,424 |
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37,765,957 |
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37,220,747 |
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Costs and expenses: |
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Costs of products sold and occupancy costs |
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12,678,327 |
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12,364,656 |
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23,792,975 |
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23,724,283 |
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Store operating expenses |
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4,831,011 |
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4,486,365 |
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9,494,847 |
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8,733,784 |
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General and administrative expenses |
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2,658,101 |
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2,610,268 |
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5,047,285 |
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