-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BNnkGC7v7CIbKrbIe83FoRngoDwt8PvSgM0lXwohJPEjgUMY0FmDbfafPpgE+BL2 IzEVZD1XqFF1aSKDbVTD4A== /in/edgar/work/20000815/0000927796-00-000152/0000927796-00-000152.txt : 20000922 0000927796-00-000152.hdr.sgml : 20000921 ACCESSION NUMBER: 0000927796-00-000152 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20000701 FILED AS OF DATE: 20000815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LINENS N THINGS INC CENTRAL INDEX KEY: 0001023052 STANDARD INDUSTRIAL CLASSIFICATION: [5700 ] IRS NUMBER: 223463939 STATE OF INCORPORATION: DE FISCAL YEAR END: 0101 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12381 FILM NUMBER: 702479 BUSINESS ADDRESS: STREET 1: 6 BRIGHTON RD CITY: CLIFTON STATE: NJ ZIP: 07015 BUSINESS PHONE: 9737781300 MAIL ADDRESS: STREET 1: 6 BRIGHTON RD CITY: CLIFTON STATE: NJ ZIP: 07015 10-Q 1 0001.txt QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 1, 2000 Commission File Number 1-12381 Linens 'n Things, Inc. (Exact name of Registrant as specified in its charter) Delaware 22-3463939 -------- ---------- (State or other jurisdiction of (I.R.S. Employer Identification Number) incorporation or organization) 6 Brighton Road, Clifton, New Jersey 07015 ------------------------------------ ----- (Address of principal executive offices) (Zip Code) (973) 778-1300 -------------- (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 X No ----- ----- Number of shares outstanding of the issuer's Common Stock: Class Outstanding at August 3, 2000 ----- ----------------------------- Common Stock, $0.01 par value 39,780,653 INDEX
Part I. Financial Information Page No. -------- Item 1. Financial Statements Consolidated Statements of Operations for the Thirteen and Twenty-Six Weeks Ended July 1, 2000 and July 3, 1999 3 Consolidated Balance Sheets as of July 1, 2000, January 1, 2000 and July 3, 1999 4 Consolidated Statements of Cash Flows for the Twenty-Six Weeks Ended July 1, 2000 and July 3, 1999 5 Notes to Consolidated Financial Statements 6-7 Independent Auditors' Review Report 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9-11 Item 3. Quantitative and Qualitative Disclosures about Market Risk 11 Part II. Other Information Item 4. Submission of Matters to a Vote of Security Holders 12 Item 6. Exhibits and Reports on Form 8-K 12 (a) Exhibit Index 12 (b) Reports on Form 8-K 12
PART I - FINANCIAL INFORMATION Item 1. Financial Statements.
LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share amounts) (Unaudited) Thirteen Weeks Ended Twenty-Six Weeks Ended -------------------------------- ----------------------------------- July 1, July 3, July 1, July 3, 2000 1999 2000 1999 ------------- -------------- -------------- ----------------- See accompanying notes to consolidated financial statements.
LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) July 1, January 1, July 3, 2000 2000 1999 ------------------- ------------------ ------------------- (Unaudited) (Unaudited) Assets Current assets: Cash and cash equivalents $ 6,608 $ 45,751 $ 3,901 Accounts receivable, net 19,674 20,836 22,368 Inventories 426,455 342,681 332,626 Prepaid expenses and other current assets 25,382 21,410 24,834 ------------------- ------------------ ------------------- Total current assets 478,119 430,678 383,729 Property and equipment, net 241,060 223,725 200,556 Goodwill, net 19,402 19,826 20,251 Deferred charges and other noncurrent assets, net 6,010 5,687 5,393 ------------------- ------------------ ------------------- Total assets $ 744,591 $ 679,916 $ 609,929 =================== ================== =================== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 192,891 $ 144,884 $ 157,156 Accrued expenses and other current liabilities 84,801 104,414 73,239 Short-term debt 14,500 -- -- ------------------- ------------------ ------------------- Total current liabilities 292,192 249,298 230,395 Deferred income taxes and other long-term liabilities 51,776 46,656 41,139 Shareholders' equity: Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued and outstanding -- -- -- Common stock, $0.01 par value; 135,000,000 shares authorized at July 1, 2000, January 1, 2000 and July 3, 1999; 39,842,595 shares issued and 39,766,118 outstanding at July 1, 2000; 39,555,259 shares issued and 39,478,782 outstanding at January 1, 2000; and 39,470,319 shares issued and 39,393,842 outstanding at July 3, 1999 398 396 395 Additional paid-in capital 225,574 220,751 218,539 Retained earnings 177,251 165,249 121,895 Accumulated other comprehensive income (166) -- -- Treasury stock, at cost, 76,477 shares at July 1, 2000, January 1, 2000 and July 3, 1999 (2,434) (2,434) (2,434) ------------------- ------------------ ------------------- Total shareholders' equity 400,623 383,962 338,395 ------------------- ------------------ ------------------- Total liabilities and shareholders' equity $ 744,591 $ 679,916 $ 609,929 =================== ================== =================== - ----------
See accompanying notes to consolidated financial statements. LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Twenty-Six Weeks Ended ----------------------------------------- July 1, July 3, 2000 1999 ------------------- ------------------ (Unaudited) Cash flows from operating activities: Net income $12,002 $ 8,698 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 15,598 12,637 Deferred income taxes 1,778 1,784 Loss on disposal of assets 791 542 Changes in assets and liabilities: Decrease in accounts receivable 1,162 446 Increase in inventories (83,774) (61,237) Increase in prepaid expenses and other current assets (2,387) (5,465) Increase in deferred charges and other noncurrent assets (620) (429) Increase in accounts payable 23,551 37,479 Decrease in accrued expenses and other liabilities (2,973) (5,303) ------------------- ------------------ Net cash used in operating activities (34,872) (10,848) ------------------- ------------------ Cash flows from investing activities: Additions to property and equipment (33,003) (33,163) ------------------- ------------------ Cash flows from financing activities: Increase in short-term debt 14,500 -- Proceeds and Federal tax benefit from common stock exercised under stock incentive plans 4,659 7,165 Increase in treasury stock -- (1,044) Increase (decrease) in book overdrafts 9,573 (847) ------------------- ------------------ Net cash provided by financing activities 28,732 5,274 ------------------- ------------------ Net decrease in cash and cash equivalents (39,143) (38,737) Cash and cash equivalents at beginning of year 45,751 42,638 ------------------- ------------------ Cash and cash equivalents at end of period $6,608 $ 3,901 =================== ================== - ----------
See accompanying notes to consolidated financial statements. LINENS 'N THINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation The accompanying consolidated financial statements, except for the January 1, 2000 consolidated balance sheet, are unaudited. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of the Company as of July 1, 2000 and July 3, 1999 and the results of operations for the respective thirteen and twenty-six weeks then ended and cash flows for the twenty-six weeks then ended. Because of the seasonality of the specialty retailing business, operating results of the Company on a quarterly basis may not be indicative of operating results for the full year. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the fiscal year ended January 1, 2000, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission. All significant intercompany accounts and transactions have been eliminated. The January 1, 2000 consolidated balance sheet amounts have been derived from the Company's audited consolidated balance sheet amounts. 2. Short-Term Borrowing Arrangements The Company has available a three-year, $90 million senior revolving credit facility agreement (the "Credit Agreement") with third party institutional lenders expiring March 31, 2001. The amount of borrowings can be increased up to $125 million provided certain terms and conditions contained in the Credit Agreement are met. The Credit Agreement contains certain financial covenants, including those relating to the maintenance of a minimum tangible net worth, a minimum fixed charge coverage ratio, and a maximum leverage ratio, as defined in the Credit Agreement. As of July 1, 2000, the Company was in compliance with the terms and conditions of the Credit Agreement. The Credit Agreement also allows for up to $25 million in borrowings from uncommitted lines of credit outside of the Credit Agreement. As of July 1, 2000, the Company had no borrowings under the Credit Agreement and had $14.5 million in borrowings against the uncommitted lines of credit. 3. Recent Accounting Pronouncement The Company is required to adopt Statement of Financial Standards ("SFAS") No. 133 "Accounting for Derivative Instruments and Hedging Activities" ("SFAS No. 133") effective July 1, 2000, and has determined that the effect SFAS No. 133 will not have a significant effect to its results of operations and financial position. This statement is not required to be applied retroactively to financial statements of prior periods. Financial Accounting Standards Board ("FASB") Interpretation No. 44, "Accounting for Certain Transactions Involving Stock Compensation" ("FIN No. 44") provides guidance for applying Accounting Pronouncements Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees". With certain exceptions, FIN No. 44 applies prospectively to new awards, exchanges of awards in a business combination, modifications to outstanding awards and changes in grantee status on or after July 1, 2000. The Company has determined that the implementation of FIN No. 44 will not have a significant effect on its results of operations. At a recent FASB Emerging Issues Task Force ("EITF") meeting, a consensus was reached with respect to the issue of "Accounting for Certain Sales Incentives," including point of sale coupons, rebates and free merchandise. The consensus included a conclusion that the value of such sales incentives that result in a reduction of the price paid by the customer should be netted against sales and not classified as a sales or marketing expense. The adoption of the EITF is required in the fourth quarter of the Company's current year. The Company already includes such sales incentives against sales and records free merchandise in cost of goods sold as required by the new EITF consensus. 4. Deferred Compensation Plan The Company has a deferred compensation plan (the "Plan") established to enable key employees of the Company, as designated by the Company, to defer compensation, including stock and stock denominated awards. Participation is voluntary and participants can elect to make contributions to the Plan. Participants are 100% vested in their own deferrals to the Plan at all times. At July 1, 2000, the liability under the Plan, which is reflected in other long-term liabilities, was $6.8 million. 5. Comprehensive Income Statement of Financial Accounting Standards No. 130, Reporting Comprehensive Income ("SFAS No. 130") requires that items defined as other comprehensive income, such as foreign currency translation adjustments, be separately classified in the financial statements and that the accumulated balance of other comprehensive income be reported separately from retained earnings and additional paid-in capital in the equity section of the balance sheet. The components of comprehensive income for the three and six months ended July 1, 2000 are as follows:
Three Months Ended Six Months Ended July 1, 2000 July 1, 2000 -------------------- ---------------- Comprehensive Income: Net Income $6,947 $12,002 Other comprehensive income-- Foreign currency translation adjustment (166) (166) -------------------- ---------------- Comprehensive income $6,781 $11,836 ==================== ================
Independent Auditors' Review Report The Board of Directors and Shareholders Linens 'n Things, Inc.: We have reviewed the consolidated balance sheets of Linens 'n Things, Inc. and subsidiaries as of July 1, 2000 and July 3, 1999, and the related consolidated statements of operations for the thirteen and twenty-six week periods then ended and the related consolidated statements of cash flows for the twenty-six week periods ended July 1, 2000 and July 3, 1999. These consolidated financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical review procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of Linens 'n Things, Inc. and subsidiaries as of January 1, 2000 and the related consolidated statements of operations, shareholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 2, 2000 we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of January 1, 2000, is fairly presented, in all material respects, in relation to the consolidated balance sheet from which it has been derived. KPMG LLP New York, New York July 19, 2000 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. LINENS 'N THINGS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the consolidated financial statements of the Company and the notes thereto appearing elsewhere in this document. Results of Operations Thirteen Weeks Ended July 1, 2000 Compared With Thirteen Weeks Ended July 3, 1999 - ----------------------------------------------- Net sales increased 25.0% to $339.7 million for the thirteen weeks ended July 1, 2000, up from $271.6 million for the same period in 1999, primarily as a result of new store openings since July 3, 1999. Comparable store net sales for the thirteen weeks ended July 1, 2000 increased 5.7% as compared with an increase of 6.4% for the same period last year. Comparable store net sales were benefited in part due to the Easter selling season, which shifted to the second quarter of 2000 as compared to the first quarter of 1999. This resulted in a transfer in sales from the first to the second quarter this year. During the thirteen weeks ended July 1, 2000, the Company opened five stores and closed one store, compared with opening 11 stores and closing three stores during the same period last year. At July 1, 2000, the Company operated 244 stores, compared with 204 stores at July 3, 1999. Store square footage increased 22.1% to 8,451,000 at July 1, 2000 compared with 6,924,000 at July 3, 1999. For the thirteen weeks ended July 1, 2000, the net sales of the "things" business increased approximately 33% over the prior year while the net sales of the "linens" business increased approximately 20% over the same period in 1999. Gross profit for the thirteen weeks ended July 1, 2000 was $139.7 million, or 41.1% of net sales, compared with $110.9 million, or 40.8% of net sales, for the same period last year. The increase in gross profit as a percent of sales was primarily due to improvements in the selling mix and increased penetration of seasonal product that has a higher markon. In addition, the Company lowered its markdown rate through improved inventory management. Logistics costs as a percent of sales were lower than last year as the Company continues to leverage its costs through the use of its distribution network. Selling, general and administrative expenses for the thirteen weeks ended July 1, 2000 were $127.7 million, or 37.6% of net sales, compared with $102.5 million, or 37.7% of net sales, for the same period last year. This decrease as a percentage of net sales is primarily due to the opening of fewer stores as compared with last year. However, these savings were offset in part by pre-opening and grand opening advertising costs incurred during the second quarter by several store openings which occurred in late March. Operating profit for the thirteen weeks ended July 1, 2000 increased to $11.9 million, or 3.5% of net sales, compared with $8.4 million, or 3.1% of net sales, for the same period last year. The Company incurred net interest expense of approximately $666,000 (including commitment fees in connection with the Company's $90 million credit agreement) for the thirteen weeks ended July 1, 2000, compared with approximately $143,000 for the same period in 1999. The Company's income tax expense for the thirteen weeks ended July 1, 2000 was approximately $4.3 million as compared with $3.2 million for the same period last year. The Company's effective tax rate was 38.4% for the thirteen weeks ended July 1, 2000 as compared with 38.5% for the thirteen weeks ended July 3, 1999. Net income for the thirteen weeks ended July 1, 2000 increased to $6.9 million, or $0.17 per share, compared with $5.1 million, or $0.12 per share, for the same period last year. LINENS 'N THINGS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued Twenty-Six Weeks Ended July 1, 2000 Compared With Twenty-Six Weeks Ended July 3, 1999 - -------------------------------------------------- Net sales increased 22.3% to $666.6 million for the twenty-six weeks ended July 1, 2000, up from $545.2 million for the same period in 1999, primarily as a result of new store openings since July 3, 1999. Comparable store net sales for the twenty-six weeks ended July 1, 2000 increased 4.5% as compared with an increase of 6.4% for the same period last year. During the twenty-six weeks ended July 1, 2000, the Company opened 17 stores and closed 3 stores, compared with opening 14 stores and closing 6 stores during the same period last year. For the twenty-six weeks ended July 1, 2000, the net sales of the "things" business increased approximately 30% over the prior year, while the net sales of the "linens" business increased approximately 20% over the same period in 1999. The Company continues to increase its penetration of the "things" business which represents approximately 40% of total sales. Gross profit for the twenty-six weeks ended July 1, 2000 was $268.0 million, or 40.2% of net sales, compared with $217.6 million, or 39.9% of net sales, for the same period last year. The increase in gross profit was due primarily to improvements in the selling mix, which included a higher penetration of seasonal merchandise, which has a higher markon. Improvements have also come from a lower markdown rate and the leveraging of logistics costs through the use of the Company's distribution network. Selling, general and administrative expenses for the twenty-six weeks ended July 1, 2000 were $248.0 million, or 37.2% of net sales, compared with $203.5 million, or 37.3% of net sales, for the same period last year. This decrease as a percentage of net sales related to three fewer store closings as compared with the same period last year. The decrease was partially offset by continued investment in store payroll in order to improve guest service levels. Operating profit for the twenty-six weeks ended July 1, 2000 increased to $20.0 million, or 3.0% of net sales, compared with $14.1 million, or 2.6% of net sales, for the same period last year. The Company incurred net interest expense of approximately $560,000 (including commitment fees in connection with the Company's $90 million credit agreement) for the twenty-six weeks ended July 1, 2000, compared with net interest income of approximately $55,000 for the same period in 1999. The Company's income tax expense for the twenty-six weeks ended July 1, 2000 was $7.5 million as compared with $5.4 million for the same period last year. The Company's effective tax rate was 38.3% for the twenty-six weeks ending July 1, 2000, as compared with 38.5% for the same period last year. Net income for the twenty-six weeks ended July 1, 2000 increased to $12.0 million, or $0.30 per share, compared with $8.7 million, or $0.21 per share, for the same period last year. Liquidity and Capital Resources The Company's capital requirements are primarily investments in new stores, new store inventory purchases and seasonal working capital. These requirements are funded through a combination of internally generated cash from operations, credit extended by suppliers and short-term borrowings. The Company has available a $90 million three-year revolving credit facility expiring March 31, 2001, which can be increased up to $125 million provided certain terms and conditions contained in the credit agreement are met. This agreement allows for up to $25 million in borrowings from uncommitted lines of credit. Management currently believes that the Company's cash flows from operations, credit extended by suppliers, the revolving credit facility and the uncommitted lines of credit will be sufficient to fund anticipated capital expenditures and working capital requirements in the foreseeable future. LINENS 'N THINGS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued Net cash used in operating activities for the twenty-six weeks ended July 1, 2000 was $34.9 million compared with $10.8 million for the same period last year. This increase was primarily due to an increase in inventory. The higher inventory level is predominately attributed to the additional store openings since July 3, 1999 as well as the build-up of inventory for the Company's "Back to Campus" selling season. Net cash used in investing activities during the twenty-six weeks ended July 1, 2000 was $33.0 million compared with $33.2 million for the same period last year. The net cash used in investing activities remained flat with last year due to the addition of three more store openings this year as compared with last year, which was offset by capital expenditures incurred through the second quarter of 1999 for the second distribution center. Net cash provided by financing activities during the twenty-six weeks ended July 1, 2000 was $28.7 million compared with $5.3 million for the same period last year. This increase was primarily the result of an increase in short-term borrowings of $14.5 million and the timing and settlement of vendor payments. Inflation The Company does not believe that its operating results have been materially affected by inflation during the preceding three years. There can be no assurance, however, that the Company's operating results will not be affected by inflation in the future. Seasonality The Company's business is subject to substantial seasonal variations. Historically, the Company has realized a significant portion of its net sales and net income for the year during the third and fourth quarters. The Company's quarterly results of operations may also fluctuate significantly as a result of a variety of other factors, including the timing of new store openings. The Company believes this is the general pattern associated with its segment of the retail industry and expects this pattern will continue in the future. Consequently, comparisons between quarters are not necessarily meaningful and the results for any quarter are not necessarily indicative of future results. Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The statements are made a number of times throughout the document and may be identified by forward-looking terminology such as "expect," "believe," "may," "will," "intend" or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties including levels of sales, store traffic, acceptance of product offerings and fashions, competitive pressures from other home furnishings retailers, availability of suitable future store locations and schedule of store expansion plans. These and other important factors that may cause actual results to differ materially from such forward-looking statements are included in the "Risk Factors" section of the Company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission on May 29, 1997, and may be contained in subsequent reports filed with the Securities and Exchange Commission. You are urged to consider such factors. The Company assumes no obligation for updating any such forward-looking statements. Item 3. Quantitative and Qualitative Disclosures About Market Risk. Not Applicable. PART II - OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders. On May 10, 2000 the Company held its Annual Meeting of Shareholders. At the Annual Meeting, Philip E. Beekman and Harold F. Compton were re-elected as directors of the Company, with 35,176,074 shares voted for and 1,778,194 shares withheld for Mr. Beekman and 35,174,325 shares voted for and 1,779,943 shares withheld for Mr. Compton. Directors whose term of office continued following the meeting were: Norman Axelrod, Stanley P. Goldstein and Charles C. Conaway. Mr. Conaway has since resigned as a director from the Company in connection with his recent appointment as Chairman and Chief Executive Officer of K-Mart. Morton E. Handel was appointed to the Company's Board of Directors at the May 31, 2000 Board meeting. Also at the Annual Meeting, the shareholders approved the proposal to adopt the 2000 Stock Award and Incentive Plan with 30,604,106 shares voted for the proposal, 3,188,153 shares voted against the proposal and 439,311 shares abstaining. Item 6. Exhibits and Reports on Form 8-K (a) EXHIBIT INDEX Exhibit Number Description 11 Computation of Net Income Per Common Share 15 Letter re unaudited interim financial information 27 Financial Data Schedule (filed electronically with SEC only) (b) Reports on Form 8-K: There were no Current Reports on Form 8-K filed with the Securities and Exchange Commission during the second quarter of 2000. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LINENS 'N THINGS, INC. (Registrant) By: WILLIAM T. GILES ----------------------------- William T. Giles Senior Vice President, Chief Financial Officer (Duly authorized officer and principal financial officer) Date: August 15, 2000 EX-11 2 0002.txt COMPUTATION OF NET INCOME PER COMMON SHARE
LINENS 'N THINGS, INC. AND SUBSIDIARIES COMPUTATION OF NET INCOME PER COMMON SHARE (in thousands, except per share amounts) Thirteen Weeks Ended Twenty-Six Weeks Ended July 1, 2000 July 3, 1999 July 1, 2000 July 3, 1999 -------------- -------------- --------------- ------------- (Unaudited) Basic Weighted-average number of shares outstanding 39,672 39,362 39,577 39,259 ============== ============== =============== ============ Net income applicable to common shares $6,947 $5,103 $12,002 $8,698 ============== ============== =============== ============ Per share amounts Net income per share $0.18 $0.13 $0.30 $0.22 ============== ============== =============== ============ Diluted Basic weighted-average number of shares outstanding 39,672 39,362 39,577 39,259 Effect of outstanding stock options and deferred stock grants 949 1,712 189 1,709 -------------- -------------- --------------- ------------ Diluted weighted-average number of shares outstanding 40,621 41,074 39,766 40,968 ============== ============== =============== ============ Net income applicable to common shares $6,947 $5,103 $12,002 $8,698 ============== ============== =============== ============ Per share amounts Net income per share $0.17 $0.12 $0.30 $0.21 ============== ============== =============== ============
EX-15 3 0003.txt ACCOUNTANTS' ACKNOWLEDGMENT Accountants' Acknowledgment Linens 'n Things, Inc. Clifton, New Jersey Board of Directors: Re: Registration Statement Numbers 333-26819, 333-26827, 333-55803, 333-71903 and 333-42874 on Forms S-8 With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated July 19, 2000 related to our review of interim financial information. Pursuant to Rule 436(c) under the Securities Act of 1933, such report is not considered a part of a registration statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of the Act. KPMG LLP New York, New York August 15, 2000 EX-27 4 0004.txt EX. 27 - FINANCIAL DATA SCHEDULE -- ARTICLE 5
5 Appendix A to item 601(c) of Regulation S-K Commercial and Industrial Companies Article 5 of Regulation S-X (in thousands, except per share data) 3-MOS DEC-30-2000 JUL-01-2000 6,608 0 19,674 0 426,455 478,119 345,090 104,030 744,591 292,192 14,500 0 0 398 400,225 744,591 666,631 666,631 398,647 247,970 0 0 560 19,454 7,452 12,002 0 0 0 12,002 0.30 0.30
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