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) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2005 |
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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 |
Commission File No. 000 – 22207
GUITAR CENTER, INC.
(Exact Name of Registrant as Specified in its Charter)
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DELAWARE |
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95-4600862 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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incorporation or organization) |
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Identification Number) |
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5795 LINDERO CANYON ROAD |
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WESTLAKE VILLAGE, CALIFORNIA |
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91362 |
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(Address of principal executive offices) |
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(Zip Code) |
(818) 735-8800
Registrant’s telephone number, including area code
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.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
As of May 9, 2005, 25,866,109 shares of our Common Stock, $.01 par value, were outstanding.
Guitar Center, Inc. and subsidiaries
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Part I. |
Financial Information |
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Item 1. |
Consolidated Financial Statements (Unaudited) |
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Consolidated Balance Sheets – March 31, 2005 and December 31, 2004 |
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Consolidated Statements of Income – Three months ended March 31, 2005 and 2004 |
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Consolidated Statements of Cash Flows – Three months ended March 31, 2005 and 2004 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Part II. |
Other Information |
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2
(In thousands, except per share data)
(Unaudited)
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March 31, |
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December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
38,205 |
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$ |
60,453 |
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Investments in marketable securities |
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13,239 |
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3,810 |
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Accounts receivable, less allowance for doubtful accounts $2,400 and $3,489, respectively |
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20,968 |
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27,627 |
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Merchandise inventories |
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328,360 |
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314,961 |
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Prepaid expenses and deposits |
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15,216 |
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13,367 |
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Deferred income taxes |
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5,552 |
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5,552 |
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Total current assets |
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421,540 |
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425,770 |
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Property and equipment, net of accumulated depreciation of $105,633 and $99,915, respectively |
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114,378 |
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97,349 |
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Investments in marketable securities |
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33,031 |
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16,997 |
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Goodwill |
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26,474 |
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26,474 |
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Deposits and other assets, net |
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7,102 |
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8,003 |
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$ |
602,525 |
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$ |
574,593 |
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Liabilities and Stockholders’ equity |
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Current liabilities: |
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Accounts payable |
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$ |
74,948 |
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$ |
49,771 |
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Accrued expenses and other current liabilities |
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57,984 |
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83,606 |
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Merchandise advances |
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19,536 |
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22,534 |
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Total current liabilities |
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152,468 |
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155,911 |
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Other long-term liabilities |
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7,776 |
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6,943 |
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Deferred income taxes |
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5,057 |
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5,057 |
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Long-term debt |
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100,000 |
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100,000 |
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Total liabilities |
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265,301 |
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267,911 |
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Stockholders’ equity: |
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Preferred stock; 5,000 authorized, none issued and outstanding |
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— |
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— |
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Common Stock, $0.01 par value, authorized 55,000 shares, issued and outstanding 25,865 at March 31, 2005 and 25,359 at December 31, 2004 |
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259 |
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254 |
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Additional paid in capital |
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320,111 |
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305,305 |
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Retained earnings |
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17,007 |
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1,123 |
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Accumulated other comprehensive loss |
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(153 |
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— |
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Stockholders’ equity |
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337,224 |
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306,682 |
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$ |
602,525 |
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$ |
574,593 |
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See accompanying notes to consolidated financial statements.
3
(In thousands, except per share data)
(Unaudited)
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Three months ended March 31, |
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2005 |
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2004 |
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Net sales |
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$ |
396,386 |
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$ |
349,703 |
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Cost of goods sold, buying and occupancy |
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285,214 |
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255,020 |
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Gross profit |
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111,172 |
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94,683 |
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Selling, general and administrative expenses |
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84,471 |
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74,318 |
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Operating income |
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26,701 |
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20,365 |
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Interest expense, net |
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875 |
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1,363 |
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Income before income taxes |
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25,826 |
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19,002 |
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Income taxes |
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9,942 |
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7,222 |
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Net income |
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$ |
15,884 |
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$ |
11,780 |
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