UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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(Mark One) |
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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 May 1, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
Commission file number 1-8978
LONGS DRUG STORES CORPORATION
(Exact name of registrant as specified in its charter)
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Maryland |
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68-0048627 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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141
North Civic Drive |
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94596 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (925) 937-1170 |
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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 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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Yes ý |
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No o |
Indicate by check mark whether the registrant is an accelerated filer (defined in Rule 12b-2 of the Exchange Act). Yes ý No o
There were 37,359,125 shares of common stock outstanding as of May 29, 2003.
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1 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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17 |
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17 |
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18 |
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19 |
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Certifications of Chief Executive Officer and Chief Financial Officer |
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PART I – FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Statements of Income (unaudited)
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For the 13 weeks ended |
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May 1, |
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May 2, |
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(Thousands Except Per Share Amounts) |
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Sales |
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$ |
1,103,130 |
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$ |
1,089,829 |
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Cost of sales |
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818,023 |
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813,801 |
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Gross profit |
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285,107 |
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276,028 |
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Operating and administrative expenses |
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250,520 |
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236,612 |
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Depreciation and amortization |
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21,796 |
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18,866 |
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Operating income |
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12,791 |
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20,550 |
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Interest expense |
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3,559 |
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3,331 |
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Interest income |
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(115 |
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(370 |
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Income before income taxes and cumulative effect of accounting change |
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9,347 |
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17,589 |
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Income taxes |
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3,514 |
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6,619 |
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Income before cumulative effect of accounting change |
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5,833 |
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10,970 |
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Cumulative effect of accounting change (net of tax benefit of $16,410) |
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— |
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(24,625 |
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Net income (loss) |
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$ |
5,833 |
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(13,655 |
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Basic earnings (loss) per common share: |
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Income before cumulative effect of accounting change |
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$ |
0.16 |
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$ |
0.29 |
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Cumulative effect of accounting change (net of tax benefit of $0.43) |
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— |
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(0.65 |
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Net income (loss) |
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$ |
0.16 |
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$ |
(0.36 |
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Diluted earnings (loss) per common share: |
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Income before cumulative effect of accounting change |
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$ |
0.16 |
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$ |
0.29 |
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Cumulative effect of accounting change (net of tax benefit of $0.43) |
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— |
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(0.65 |
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Net income (loss) |
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$ |
0.16 |
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$ |
(0.36 |
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Dividends per common share |
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$ |
0.14 |
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$ |
0.14 |
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Weighted average number of shares outstanding: |
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Basic |
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37,449 |
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37,770 |
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Diluted |
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37,601 |
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38,085 |
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See notes to condensed consolidated financial statements.
1
Condensed Consolidated Balance Sheets
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May 1, |
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May 2, |
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January 30, |
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(Thousands Except Share Information) |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
48,823 |
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$ |
60,392 |
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$ |
40,195 |
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Pharmacy and other receivables, net |
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133,143 |
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123,945 |
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135,610 |
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Merchandise inventories, net |
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428,882 |
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416,272 |
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443,435 |
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Deferred income taxes |
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30,821 |
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24,231 |
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32,131 |
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Other |
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9,165 |
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4,601 |
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11,290 |
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Total current assets |
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650,834 |
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629,441 |
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662,661 |
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Property: |
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Land |
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106,741 |
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107,563 |
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107,175 |
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Buildings and leasehold improvements |
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533,196 |
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494,027 |
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524,768 |
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Equipment and fixtures |
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500,307 |
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478,298 |
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487,888 |
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Total property at cost |
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1,140,244 |
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1,079,888 |
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1,119,831 |
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Less accumulated depreciation |
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536,338 |
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490,559 |
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523,813 |
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Property, net |
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603,906 |
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589,329 |
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596,018 |
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Goodwill |
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82,085 |
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82,276 |
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82,085 |
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Intangible assets, net |
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5,379 |
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5,632 |
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5,430 |
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Other assets |
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