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8-K - FORM 8-K - GENESCO INC | g26370e8vk.htm |
EX-99.2 - EX-99.2 - GENESCO INC | g26370exv99w2.htm |
Exhibit 99.1
Financial Contact:
|
James S. Gulmi (615) 367-8325 | |
Media Contact:
|
Claire S. McCall (615) 367-8283 |
GENESCO REPORTS FOURTH QUARTER FISCAL 2011 RESULTS
Fourth Quarter Comparable Store Sales Increase 9%
Fourth Quarter Comparable Store Sales Increase 9%
NASHVILLE, Tenn., March 4, 2011 Genesco Inc. (NYSE:GCO) today reported earnings from
continuing operations of $31.4 million, or $1.34 per diluted share for the fourth quarter ended January 29,
2011, compared to earnings from continuing operations of $25.8 million, or $1.08 per diluted
share, for the fourth quarter ended January 30, 2010. Fiscal 2011 fourth quarter earnings were
favorably impacted by $0.08 per share due to a lower effective tax rate offset by pretax items
totaling $2.8 million, or $0.07 per diluted share, after tax, primarily related to network
intrusion expenses, fixed asset impairments and purchase price accounting adjustments. Fiscal 2010
fourth quarter earnings reflected pretax charges of $2.9 million, or $0.08 per diluted share, after
tax, primarily related to asset impairments, loss on early retirement of debt and tax rate
adjustments, partially offset by a gain related to other legal matters.
Adjusted for the listed items in both periods, earnings from continuing operations were $31.3
million, or $1.33 per diluted share, for the fourth quarter of Fiscal 2011, compared to earnings
from continuing operations of $27.7 million, or $1.16 per diluted share, for the fourth quarter of
Fiscal 2010. For consistency with Fiscal 2011s previously announced earnings expectations and the
adjusted results for the prior period announced last year, neither of which reflected the listed
items, the Company believes that disclosure of earnings from continuing operations adjusted for
those items will be useful to investors. A reconciliation of the adjusted financial measures to
their corresponding measures as reported pursuant to U.S. Generally Accepted Accounting Principles
is included in Schedule B to this press release.
Net sales for the fourth quarter of Fiscal 2011 increased 17% to $560.5 million from $479.0
million in the fourth quarter of Fiscal 2010. Comparable store sales in the fourth quarter of
Fiscal 2011 increased by 9%. The Lids Sports Groups comparable store sales increased by 6%, the
Journeys Group increased by 12%, Johnston & Murphy Retail increased by 12%, and Underground Station
decreased by 4%.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, We are
very pleased with our fourth quarter results. Solid organic growth combined with contributions from
our recent acquisitions drove quarterly sales above $500 million. Our top-line performance also
helped us achieve our highest level of fourth quarter profitability in four years, representing a
great way to close out a successful Fiscal 2011.
Fiscal 2012 is off to a good start with February comparable store sales across all the
Companys retail businesses up 10%. While we expect these trends will moderate, we feel good about
our prospects for spring based on our merchandising strategies and solid inventory position.
Based on current visibility we expect Fiscal 2012 diluted earnings per share to be in the
range of $2.78 to $2.85, which represents a 12% to 15% increase over last years earnings.
Consistent with previous guidance, these expectations do not include expected non-cash asset
impairments and other charges, which are projected to total approximately $4 million to $5 million
pretax, or $0.10 to $0.13 per share, after tax, in Fiscal 2012. This guidance assumes comparable
sales of 3% for the full fiscal year. A reconciliation of the adjusted financial measures cited
in the guidance to their corresponding measures as reported pursuant to U.S. Generally Accepted
Accounting Principles is included in Schedule B to this press release.
Dennis concluded, Our Fiscal 2011 performance underscores our key competitive advantages,
especially in our two largest businesses, the Journeys Group and the Lids Sports Group and, with
regard to Lids Sports, is an early validation of our strategy to create a leading destination for
licensed sports merchandise and team apparel. We now have two very strong and differentiated
growth vehicles, supported by strong performances from Johnston & Murphy and Licensed Brands, and a
solid balance sheet to support our expansion plans. Looking ahead, we believe that our business
model will generate solid cash flow and put us in a position to pursue further growth
opportunities.
Fiscal Year 2011
The Company also reported earnings from continuing operations for the fiscal year ended
January 29, 2011, of $54.5 million, or $2.29 per diluted share, compared to earnings from
continuing operations of $29.1 million, or $1.31 per diluted share, for the fiscal year ended
January 30, 2010. Fiscal 2011 earnings reflected after-tax charges of $0.19 per diluted share,
including asset impairments, purchase price accounting adjustments, network intrusion-related
expenses, flood loss and other legal matters, partially offset by a lower effective tax rate.
Fiscal 2010 earnings reflected after-tax charges of $0.56 per diluted share, including asset
impairments, loss on early retirement of debt and tax rate adjustments, partially offset by a gain
related to other legal matters. In addition, Fiscal 2010 reflected additional interest expense due
to the adoption in the first quarter of Fiscal 2010 of FSP APB 14-1, a new accounting standard that
applied to the Companys convertible debt.
Adjusted for the listed items in both years, earnings from continuing operations were $59.0
million, or $2.48 per diluted share, for Fiscal 2011, compared to earnings from continuing
operations of $43.1 million, or $1.87 per diluted share, for Fiscal 2010. For consistency with
previously announced earnings expectations, which did not reflect the listed items, the Company
believes that disclosure of earnings from continuing operations adjusted for those items will be
useful to investors. A reconciliation of the adjusted financial measures to their corresponding
measures as reported pursuant to U.S. Generally Accepted Accounting Principles is included in
Schedule B to this press release. Net sales for Fiscal 2011 increased 13.7% to $1.79 billion from
$1.57 billion in Fiscal 2010.
Conference Call and Management Commentary
The Company has posted detailed, financial commentary in writing on its website,
www.genesco.com, in the investor relations section. The Companys live conference call on March 4,
2011 at 7:30 a.m. (Central time) may be accessed through the Companys internet website,
www.genesco.com. To listen live, please go to the website at least 15 minutes early to
register, download and install any necessary software.
Cautionary Note Concerning Forward-Looking Statements
This commentary contains forward-looking statements, including those regarding the performance
outlook for the Company and its individual businesses, and all other statements not addressing
solely historical facts or present conditions. Actual results could vary materially from the
expectations reflected in these statements. A number of factors could cause differences. These
include the costs of responding to and liability in connection with the network intrusion announced
in December 2010, adjustments to estimates reflected in forward-looking statements, including the
timing and amount of non-cash asset impairments; weakness in the consumer economy; competition in
the Companys markets; inability of customers to obtain credit; fashion trends that affect the
sales or product margins of the Companys retail product offerings; changes in buying patterns by
significant wholesale customers; bankruptcies or deterioration in financial condition of
significant wholesale customers; disruptions in product supply or distribution, unfavorable trends
in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors
affecting the cost of products; the Companys ability to continue to complete acquisitions, expand
its business and diversify its product base; and changes in the timing of holidays or in the onset
of seasonal weather affecting period-to-period sales comparisons. Additional factors that could
affect the Companys prospects and cause differences from expectations include the ability to
build, open, staff and support additional retail stores and to renew leases in existing stores and
maintain reductions in occupancy costs achieved in recent lease negotiations, and to conduct
required remodeling or refurbishment on schedule and at expected expense levels; deterioration in
the performance of individual businesses or of the Companys market value relative to its book
value, resulting in impairments of fixed assets or intangible assets or other adverse financial
consequences; unexpected changes to the market for the Companys shares; variations from expected
pension-related charges caused by conditions in the financial markets; and the outcome of
litigation, investigations and environmental matters involving the Company. Additional factors are
cited in the Risk Factors, Legal Proceedings and Managements Discussion and Analysis of
Financial Condition and Results of Operations sections of, and elsewhere in, our SEC filings,
copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor
relations department of Genesco via our website, www.genesco.com. Many of the factors that
will determine the outcome of the subject matter of this release are beyond Genescos ability to
control or predict. Genesco undertakes no obligation to release publicly the results of any
revisions to these forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking
statements reflect the expectations of the Company at the time they are made. The Company disclaims
any obligation to update such statements.
About Genesco Inc.
Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear, sports apparel
and accessories in more than 2,300 retail stores throughout the U.S. and Canada, principally under
the names Journeys, Journeys Kidz, Shi by Journeys, Lids and Lids Locker Room, Johnston & Murphy,
and Underground Station, and on internet websites www.journeys.com, www.journeyskidz.com,
www.shibyjourneys.com, www.undergroundstation.com, www.johnstonmurphy.com, www.dockersshoes.com,
and www.lids.com. The Companys Lids Sports division operates the Lids headwear stores and the
lids.com website, the Lids Locker Room and other team sports fan shops and single team clubhouse
stores, and the Lids Team Sports team dealer business. In addition, Genesco sells wholesale
footwear under its Johnston & Murphy brand, the licensed Dockers brand and other brands. For more
information on Genesco and its operating divisions, please visit www.genesco.com.
GENESCO INC.
Consolidated Earnings Summary
Fourth Quarter | Fiscal Year Ended | |||||||||||||||
January 29, | January 30, | January 29, | January 30, | |||||||||||||
In Thousands | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Net sales |
$ | 560,494 | $ | 479,026 | $ | 1,789,839 | $ | 1,574,352 | ||||||||
Cost of sales |
287,503 | 242,489 | 887,992 | 778,482 | ||||||||||||
Selling and
administrative expenses |
222,713 | 191,016 | 807,197 | 722,087 | ||||||||||||
Restructuring and
other, net |
2,003 | 2,497 | 8,567 | 13,361 | ||||||||||||
Earnings from operations |
48,275 | 43,024 | 86,083 | 60,422 | ||||||||||||
Loss on early
retirement of debt |
| 399 | | 5,518 | ||||||||||||
Interest expense, net |
354 | 383 | 1,122 | 4,416 | ||||||||||||
Earnings from
continuing operations
before income taxes |
47,921 | 42,242 | 84,961 | 50,488 | ||||||||||||
Income tax expense |
16,508 | 16,413 | 30,414 | 21,402 | ||||||||||||
Earnings from
continuing operations |
31,413 | 25,829 | 54,547 | 29,086 | ||||||||||||
Provision for
discontinued operations |
(552 | ) | 25 | (1,336 | ) | (273 | ) | |||||||||
Net Earnings |
$ | 30,861 | $ | 25,854 | $ | 53,211 | $ | 28,813 | ||||||||
Earnings Per Share Information
Fourth Quarter | Fiscal Year Ended | |||||||||||||||
January 29, | January 30, | January 29, | January 30, | |||||||||||||
In Thousands (except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Preferred dividend
requirements |
$ | 49 | $ | 50 | $ | 197 | $ | 198 | ||||||||
Average common shares
Basic EPS |
22,825 | 23,279 | 23,209 | 21,471 | ||||||||||||
Basic earnings per share: |
||||||||||||||||
Before discontinued
operations |
$ | 1.37 | $ | 1.11 | $ | 2.34 | $ | 1.35 | ||||||||
Net earnings |
$ | 1.35 | $ | 1.11 | $ | 2.28 | $ | 1.33 | ||||||||
Average common and common
equivalent shares
Diluted EPS |
23,500 | 23,981 | 23,716 | 23,500 | ||||||||||||
Diluted earnings per
share: |
||||||||||||||||
Before discontinued
operations |
$ | 1.34 | $ | 1.08 | $ | 2.29 | $ | 1.31 | ||||||||
Net earnings |
$ | 1.31 | $ | 1.08 | $ | 2.24 | $ | 1.30 |
GENESCO INC.
Consolidated Earnings Summary
Fourth Quarter | Fiscal Year Ended | |||||||||||||||
January 29, | January 30, | January 29, | January 30, | |||||||||||||
In Thousands | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Sales: |
||||||||||||||||
Journeys Group |
$ | 253,315 | $ | 225,356 | $ | 804,149 | $ | 749,202 | ||||||||
Underground Station Group |
29,405 | 32,223 | 94,351 | 99,458 | ||||||||||||
Lids Sports Group |
198,072 | 152,403 | 603,345 | 465,776 | ||||||||||||
Johnston & Murphy Group |
56,010 | 47,334 | 185,011 | 166,079 | ||||||||||||
Licensed Brands |
23,325 | 21,540 | 101,644 | 93,194 | ||||||||||||
Corporate and Other |
367 | 170 | 1,339 | 643 | ||||||||||||
Net Sales |
$ | 560,494 | $ | 479,026 | $ | 1,789,839 | $ | 1,574,352 | ||||||||
Operating Income (Loss): |
||||||||||||||||
Journeys Group |
$ | 28,756 | $ | 24,029 | $ | 55,628 | $ | 44,285 | ||||||||
Underground Station Group |
1,497 | 1,517 | (2,476 | ) | (4,584 | ) | ||||||||||
Lids Sports Group |
23,326 | 19,979 | 57,778 | 44,039 | ||||||||||||
Johnston & Murphy Group |
4,423 | 4,126 | 8,617 | 5,484 | ||||||||||||
Licensed Brands |
2,397 | 2,847 | 12,861 | 12,372 | ||||||||||||
Corporate and Other* |
(12,124 | ) | (9,474 | ) | (46,325 | ) | (41,174 | ) | ||||||||
Earnings from operations |
48,275 | 43,024 | 86,083 | 60,422 | ||||||||||||
Loss on early retirement of debt |
| 399 | | 5,518 | ||||||||||||
Interest, net |
354 | 383 | 1,122 | 4,416 | ||||||||||||
Earnings from continuing operations
before income taxes |
47,921 | 42,242 | 84,961 | 50,488 | ||||||||||||
Income tax expense |
16,508 | 16,413 | 30,414 | 21,402 | ||||||||||||
Earnings from continuing operations |
31,413 | 25,829 | 54,547 | 29,086 | ||||||||||||
Provision for discontinued operations |
(552 | ) | 25 | (1,336 | ) | (273 | ) | |||||||||
Net Earnings |
$ | 30,861 | $ | 25,854 | $ | 53,211 | $ | 28,813 | ||||||||
* | Includes $2.0 million of other charges in the fourth quarter of Fiscal 2011, which includes $1.3 million for intrusion expenses, and $0.8 million in asset impairments offset by $0.1 million in other legal matters. Includes $8.6 million of other charges in Fiscal 2011 which includes $7.2 million in asset impairments, $1.3 million for intrusion expenses and $0.1 million in other legal matters. | |
Includes $2.5 million of other charges in the fourth quarter of Fiscal 2010, which includes $2.9 million in asset impairments and $0.2 million in lease terminations offset by $0.6 million in other legal matters. Includes $13.4 million of other charges in Fiscal 2010 which includes $13.3 million in asset impairments and $0.4 million for lease terminations offset by $0.3 million in other legal matters. For Fiscal 2010, there is also an additional $0.1 million of charges related to lease terminations that are included in cost of sales in the consolidated earnings summary. |
GENESCO INC.
Consolidated Balance Sheet
January 29, | January 30, | |||||||
In Thousands | 2011 | 2010 | ||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 55,934 | $ | 82,148 | ||||
Accounts receivable |
44,512 | 27,217 | ||||||
Inventories |
359,736 | 290,974 | ||||||
Other current assets |
52,873 | 49,733 | ||||||
Total current assets |
513,055 | 450,072 | ||||||
Property and equipment |
198,691 | 216,293 | ||||||
Other non-current assets |
248,677 | 197,287 | ||||||
Total Assets |
$ | 960,423 | $ | 863,652 | ||||
Liabilities and Shareholders Equity |
||||||||
Accounts payable |
$ | 117,001 | $ | 92,699 | ||||
Other current liabilities |
116,703 | 76,958 | ||||||
Total current liabilities |
233,704 | 169,657 | ||||||
Long-term debt |
| | ||||||
Other long-term liabilities |
99,898 | 111,682 | ||||||
Shareholders equity |
626,821 | 582,313 | ||||||
Total Liabilities and Shareholders
Equity |
$ | 960,423 | $ | 863,652 | ||||
GENESCO INC.
Retail Units Operated Twelve Months Ended January 29, 2011
Balance | Acquisi- | Balance | Acquisi- | Balance | ||||||||||||||||||||||||||||||||
01/31/09 | Open | tions | Close | 01/30/10 | Open | tions | Close | 01/29/11 | ||||||||||||||||||||||||||||
Journeys Group |
1,012 | 19 | 0 | 6 | 1,025 | 9 | 0 | 17 | 1,017 | |||||||||||||||||||||||||||
Journeys |
816 | 9 | 0 | 6 | 819 | 6 | 0 | 12 | 813 | |||||||||||||||||||||||||||
Journeys Kidz |
141 | 9 | 0 | 0 | 150 | 3 | 0 | 4 | 149 | |||||||||||||||||||||||||||
Shi by Journeys |
55 | 1 | 0 | 0 | 56 | 0 | 0 | 1 | 55 | |||||||||||||||||||||||||||
Underground Station Group |
180 | 0 | 0 | 10 | 170 | 0 | 0 | 19 | 151 | |||||||||||||||||||||||||||
Lids Sports Group |
885 | 35 | 38 | 37 | 921 | 41 | 58 | 35 | 985 | |||||||||||||||||||||||||||
Johnston & Murphy Group |
157 | 7 | 0 | 4 | 160 | 3 | 0 | 7 | 156 | |||||||||||||||||||||||||||
Shops |
114 | 5 | 0 | 3 | 116 | 2 | 0 | 7 | 111 | |||||||||||||||||||||||||||
Factory Outlets |
43 | 2 | 0 | 1 | 44 | 1 | 0 | 0 | 45 | |||||||||||||||||||||||||||
Total Retail Units |
2,234 | 61 | 38 | 57 | 2,276 | 53 | 58 | 78 | 2,309 | |||||||||||||||||||||||||||
Retail Units Operated Three Months Ended January 29, 2011
Balance | Acquisi- | Balance | ||||||||||||||||||
10/30/10 | Open | tions | Close | 01/29/11 | ||||||||||||||||
Journeys Group |
1,021 | 2 | 0 | 6 | 1,017 | |||||||||||||||
Journeys |
815 | 1 | 0 | 3 | 813 | |||||||||||||||
Journeys Kidz |
150 | 1 | 0 | 2 | 149 | |||||||||||||||
Shi by Journeys |
56 | 0 | 0 | 1 | 55 | |||||||||||||||
Underground Station Group |
157 | 0 | 0 | 6 | 151 | |||||||||||||||
Lids Sports Group |
974 | 18 | 8 | 15 | 985 | |||||||||||||||
Johnston & Murphy Group |
159 | 0 | 0 | 3 | 156 | |||||||||||||||
Shops |
114 | 0 | 0 | 3 | 111 | |||||||||||||||
Factory Outlets |
45 | 0 | 0 | 0 | 45 | |||||||||||||||
Total Retail Units |
2,311 | 20 | 8 | 30 | 2,309 | |||||||||||||||
Comparable Store Sales
Three Months Ended | Twelve Months Ended | |||||||||||||||
January 29, | January 30, | January 29, | January 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Journeys Group |
12 | % | -3 | % | 7 | % | -3 | % | ||||||||
Underground Station Group |
-4 | % | -2 | % | -1 | % | -7 | % | ||||||||
Lids Sports Group |
6 | % | 6 | % | 9 | % | 3 | % | ||||||||
Johnston & Murphy Group |
12 | % | 2 | % | 8 | % | -8 | % | ||||||||
Total Comparable Store
Sales |
9 | % | 0 | % | 7 | % | -2 | % | ||||||||
Schedule B
Genesco Inc.
Adjustments to Reported Earnings from Continuing Operations
Three Months Ended January 29, 2011 and January 30, 2010
Adjustments to Reported Earnings from Continuing Operations
Three Months Ended January 29, 2011 and January 30, 2010
3 mos | Impact | 3 mos | Impact | |||||||||||||
In Thousands (except per share amounts) | Jan 2011 | on EPS | Jan 2010 | on EPS | ||||||||||||
Earnings from continuing operations, as reported |
$ | 31,413 | $ | 1.34 | $ | 25,829 | $ | 1.08 | ||||||||
Adjustments: (1) |
||||||||||||||||
Impairment & lease termination charges |
487 | 0.02 | 1,927 | 0.08 | ||||||||||||
Other legal matters |
(39 | ) | | (382 | ) | (0.01 | ) | |||||||||
Intrusion expenses |
816 | 0.03 | | | ||||||||||||
Purchase price accounting adjustment margin |
476 | 0.02 | | | ||||||||||||
Loss on early retirement of debt |
| | 247 | 0.01 | ||||||||||||
Convertible debt interest restatement (APB 14-1) |
| | 23 | | ||||||||||||
Higher (lower) effective tax rate |
(1,863 | ) | (0.08 | ) | 74 | | ||||||||||
Adjusted earnings from continuing operations (2) |
$ | 31,290 | $ | 1.33 | $ | 27,718 | $ | 1.16 | ||||||||
(1) | All adjustments are net of tax. The tax rate for the fourth quarter of Fiscal 2011 is 38.0% excluding a FIN 48 discrete item of $0.1 million. The tax rate for the fourth quarter of Fiscal 2010 is 38.2% excluding a FIN 48 discrete item of $0.2 million. | |
(2) | Reflects 23.5 million share count for Fiscal 2011 and 24.0 million share count for Fiscal 2010 which does include common stock equivalents in both years. |
The Company believes that disclosure of earnings and earnings per share from continuing operations
on a
pro forma basis adjusted for the items not reflected in the previously announced expectations will
be meaningful
to investors, especially in light of the impact of such items on the results.
Schedule B
Genesco Inc.
Adjustments to Reported Earnings from Continuing Operations
Twelve Months Ended January 29, 2011 and January 30, 2010
Adjustments to Reported Earnings from Continuing Operations
Twelve Months Ended January 29, 2011 and January 30, 2010
12 mos | Impact | 12 mos | Impact | |||||||||||||
In Thousands (except per share amounts) | Jan 2011 | on EPS | Jan 2010 | on EPS | ||||||||||||
Earnings from continuing operations, as reported |
$ | 54,547 | $ | 2.29 | $ | 29,086 | $ | 1.31 | ||||||||
Adjustments: (1) |
||||||||||||||||
Impairment & lease termination charges |
4,410 | 0.19 | 8,447 | 0.36 | ||||||||||||
Other legal matters |
56 | | (167 | ) | (0.01 | ) | ||||||||||
Loss on early retirement of debt |
| | 3,396 | 0.14 | ||||||||||||
Flood loss |
215 | 0.01 | | | ||||||||||||
Intrusion expenses |
816 | 0.03 | | | ||||||||||||
Purchase price accounting adjustment margin |
1,242 | 0.05 | | | ||||||||||||
Purchase price accounting adjustment expense |
266 | 0.01 | | | ||||||||||||
Expenses related to aborted acquisition |
127 | 0.01 | | | ||||||||||||
Convertible debt interest restatement (APB 14-1) |
| | 871 | | ||||||||||||
Higher (lower) effective tax rate |
(2,639 | ) | (0.11 | ) | 1,508 | 0.07 | ||||||||||
Adjusted earnings from continuing operations (2) |
$ | 59,040 | $ | 2.48 | $ | 43,141 | $ | 1.87 | ||||||||
(1) | All adjustments are net of tax. The tax rate for Fiscal 2011 is 38.4% excluding a FIN 48 discrete item of $0.5 million. The tax rate for Fiscal 2010 before a positive adjustment of $1.2 million for FIN 48 and other adjustments is 38.45% excluding a FIN 48 discrete item of $0.5 million. The tax rate for Fiscal 2010 excludes the non-deductibility of certain items incurred in connection with the inducement of the conversion of the 4 1/8% Debentures for common stock. | |
(2) | Reflects 23.7 million share count for Fiscal 2011 and 23.5 million share count for Fiscal 2010 which includes common stock equivalents in both years. |
The Company believes that disclosure of earnings and earnings per share from continuing operations
on a
pro forma basis adjusted for the items not reflected in the previously announced expectations will
be meaningful
to investors, especially in light of the impact of such items on the results.
Schedule B
Genesco Inc.
Adjustments to Forecasted Earnings from Continuing Operations
Fiscal Year Ending January 28, 2012
Adjustments to Forecasted Earnings from Continuing Operations
Fiscal Year Ending January 28, 2012
High Guidance | Low Guidance | |||||||||||||||
In Thousands (except per share amounts) | Fiscal 2012 | Fiscal 2012 | ||||||||||||||
Forecasted earnings from continuing operations |
$ | 64,808 | $ | 2.74 | $ | 63,004 | $ | 2.67 | ||||||||
Adjustments: (1) |
||||||||||||||||
Impairment and intrusion expenses |
2,698 | 0.11 | 2,698 | 0.11 | ||||||||||||
Adjusted forecasted earnings from continuing operations (2) |
$ | 67,506 | $ | 2.85 | $ | 65,702 | $ | 2.78 | ||||||||
(1) | All adjustments are net of tax. The forecasted tax rate for Fiscal 2012 is 39.5% excluding a FIN 48 discrete item of $0.6 million. | |
(2) | Reflects 23.6 million share count for Fiscal 2012 which includes common stock equivalents. |
This reconciliation reflects estimates and current expectations of future results. Actual results
may vary
materially from these expectations and estimates, for reasons including those included in the
discussion
of forward-looking statements elsewhere in this release. The Company disclaims any obligation to
update
such expectations and estimates.