-----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, FsCV8g9ko/QmUY4EDCOcK+Obb//UvfGcxiwCM5W3reuo62qXRxctYyQjTUiC3um2 rBwXrOfsnx5ZlmstPjbIlA== 0000927796-98-000136.txt : 19980513 0000927796-98-000136.hdr.sgml : 19980513 ACCESSION NUMBER: 0000927796-98-000136 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19980328 FILED AS OF DATE: 19980512 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LINENS N THINGS INC CENTRAL INDEX KEY: 0001023052 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES [5700] IRS NUMBER: 223463939 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12381 FILM NUMBER: 98617028 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 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 March 28, 1998 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 May 8, 1998 Common Stock, $0.01 par value 38,893,306 INDEX Part I. - Financial Information Page No. -------- Consolidated Statements of Operations for the Thirteen Weeks Ended March 28,1998 and March 29, 1997 3 Consolidated Balance Sheets as of March 28, 1998, December 31, 1997 and March 29, 1997 4 Consolidated Statements of Cash Flows for the Thirteen Weeks Ended March 28, 1998 and March 29, 1997 5 Notes to Consolidated Financial Statements 6-7 Independent Auditors' Review Report 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9-11 Part II. - Other Information 12 Item 4 - Submission of Matters to a Vote of Security Holders 12 Item 6 - Exhibits and Reports on Form 8-K 12 Exhibit Index 12
LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Thirteen Weeks Ended ---------------------------------------- March 28, March 29, 1998 1997 ------------------- ---------------- (Unaudited) Net sales $ 218,037 $ 179,911 Cost of sales, including buying and warehousing costs 134,707 111,596 ------------------- ---------------- Gross profit 83,330 68,315 Selling, general and administrative expenses 81,133 67,371 ------------------- ---------------- Operating profit 2,197 944 Interest (income) expense, net (203) 336 ------------------- ---------------- Income before provision for income taxes 2,400 608 Provision for income taxes 925 256 ------------------- ---------------- Net income $ 1,475 $ 352 =================== ================ Per share of common stock: Basic Net income $ 0.04 $ 0.01 ------------------- ---------------- Weighted average shares outstanding 38,763 38,536 Diluted Net income $ 0.04 $ 0.01 ------------------- ---------------- Weighted average shares outstanding 40,206 39,197
See accompanying notes to consolidated financial statements.
LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of March 28, 1998, December 31, 1997 and March 29, 1997 (in thousands, except share amounts) March 28, December 31, March 29, 1998 1997 1997 (Unaudited) (Unaudited) ----------------- ----------------- ---------------- ASSETS Current assets: Cash and cash equivalents $ 26,118 $ 39,882 $ 3,048 Accounts receivable, net 13,076 13,764 15,738 Inventories 233,245 223,188 202,166 Prepaid expenses and other current assets 11,260 13,058 9,785 ----------------- ----------------- ---------------- Total current assets 283,699 289,892 230,737 Property and equipment, net 154,424 154,480 137,862 Goodwill, net 21,313 21,526 22,163 Deferred charges and other noncurrent assets, net 6,032 6,201 6,117 ================= ================= ================ Total assets $ 465,468 $ 472,099 $ 396,879 ================= ================= ================ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 102,678 $ 98,418 $ 67,971 Accrued expenses and other current liabilities 52,255 68,099 40,143 Short-term debt -- -- 5,720 ----------------- ----------------- ---------------- Total current liabilities 154,933 166,517 113,834 Long-term note -- -- 13,500 Deferred income taxes and other long-term liabilities 26,025 25,547 19,466 Shareholders' equity: Preferred stock, $.01 par value; 1,000,000 shares authorized; none issued and outstanding -- -- -- Common stock, $.01 par value; 60,000,000 shares authorized; 38,862,808 issued and outstanding at March 28, 1998, 38,633,840 at December 31, 1997 and 38,535,516 at March 29, 1997 388 386 386 Additional paid-in capital 207,512 204,514 199,996 Retained earnings 76,610 75,135 49,697 ----------------- ----------------- ---------------- Total shareholders' equity 284,510 280,035 250,079 Total liabilities and shareholders' equity $ 465,468 $ 472,099 $ 396,879 ================= ================= ================
See accompanying notes to consolidated financial statements.
LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Thirteen Weeks Ended --------------------------- March 28, March 29, 1998 1997 ----------- ---------- (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,475 $ 352 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 5,004 4,264 Deferred income taxes 215 450 Loss on disposal of assets 214 634 Changes in assets and liabilities: Decrease in accounts receivable 688 1,646 Increase in inventories (10,057) (32) Decrease in prepaid expenses and other current assets 1,592 1,099 Decrease in accounts payable (4,965) (19,241) Decrease in accrued expenses and other liabilities (7,624) (3,161) --------------- ------------- Net cash used in operating activities (13,458) (13,989) --------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property and equipment (4,780) (3,875) --------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of short-term debt -- 5,720 Proceeds from common stock exercised under stock incentive plans 3,000 -- Increase (decrease) in book overdrafts 1,474 (11,722) --------------- ------------- Net cash provided by (used in) financing activities 4,474 (6,002) --------------- ------------- Net decrease in cash and cash equivalents (13,764) (23,866) Cash and cash equivalents at beginning of year 39,882 26,914 --------------- ------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 26,118 $ 3,048 =============== =============
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 December 31, 1997 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 March 28, 1998 and March 29, 1997 and the results of operations and cash flows for the respective thirteen 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 year ended December 31, 1997, 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 December 31, 1997 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, as amended, (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. Interest on all borrowings is determined based upon several alternative rates as stipulated in the Credit Agreement. As of March 28, 1998, the Company was in compliance with all 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 March 28, 1998, the Company had no borrowings under the Credit Agreement or against the uncommitted lines of credit. 3. Long-Term Note In conjunction with the initial public offering, the Company issued a four-year, $13.5 million subordinated note (the "Note") to CVS. The Note provided for forgiveness by CVS, at varying amounts, based upon the proceeds from any sales by CVS of the Company's common stock together with the market value of any common stock that CVS continued to own at December 31, 1997. In May 1997, CVS sold 6,267,658 of its remaining shares of Common Stock, on a pre-split basis, representing substantially all of its holdings (at December 31, 1997, CVS owned no shares of the Company's common stock). As a result of the net proceeds received, $3.5 million was forgiven and contributed as equity by CVS. In July 1997, the Company prepaid the remaining $10.0 million to CVS utilizing cash flows from operations. The Note contained no pre-payment penalties. 4. Recent Accounting Pronouncement Effective December 31, 1997, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share" which requires a dual presentation of earnings per share--basic and diluted. Basic earnings per share has been computed by dividing net income by the weighted average number of shares outstanding of 38,763,054 and 38,535,516 for the thirteen weeks ended March 28, 1998 and March 29, 1997, respectively. Diluted earnings per share has been computed by dividing net income by the weighted average number of shares outstanding including the dilutive effects of stock options and deferred stock grants. The total shares outstanding for the diluted earnings per share calculation were 40,206,136 and 39,196,902 for the thirteen weeks ended March 28, 1998 and March 29, 1997, respectively. LINENS 'N THINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Cont.'d 5. Subsequent Event On April 14, 1998, the Board of Directors of the Company approved a two-for-one split of its common stock to be effected in the form of a stock dividend. The stock dividend was one additional share of common stock for each outstanding share of common stock and was distributable on May 7, 1998 to shareholders of record on April 24, 1998. Unless otherwise stated, all references to common shares outstanding and earnings per share in the financial statements, notes to consolidated financial statements, and management's discussion and analysis of financial condition and results of operations are on a post-split basis. 6. The Year 2000 Issue The Company has conducted a comprehensive review of its computer systems to identify the systems that could be affected by the "Year 2000" issue and has developed an implementation plan to resolve the issue. The Year 2000 problem is the result of computer programs being written using two digits rather than four to define the applicable year. Any of the Company's programs that have time-sensitive software may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a major system failure or miscalculations. The Company presently believes that, with modifications to existing software and conversions to new software for certain applications, the Year 2000 problem will not pose significant operational problems for the Company's computer systems. However, if such modifications and conversions are not completed timely, the Year 2000 problem may have a material impact on the operations of the Company. Also, there can be no assurance that the systems of other companies on which the Company's systems rely also will be timely converted or that any such failure to convert by another company would not have an adverse effect on the Company's systems or operations. 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 March 28, 1998 and March 29, 1997, and the related consolidated statements of operations and cash flows for the thirteen week periods ended March 28, 1998 and March 29, 1997. 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 December 31, 1997 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 4, 1998, 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 December 31, 1997, is fairly presented, in all material respects, in relation to the consolidated balance sheet from which it has been derived. KPMG Peat Marwick LLP New York, New York April 14, 1998 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 March 28, 1998 Compared with Thirteen Weeks Ended March 29, 1997 Net sales increased 21.2% to $218.0 million for the thirteen weeks ended March 28, 1998, up from $179.9 million for the same period last year, primarily as a result of new store openings since March 29, 1997. The thirteen weeks ended March 28, 1998 contained one less selling day compared with the thirteen weeks ended March 29, 1997. Traditional store net sales were less than 4% of total net sales during the thirteen weeks ended March 28, 1998, and will continue to represent a declining percentage of total net sales as more superstores are opened and traditional stores are closed. First quarter comparisons were favorable despite having been moderated by a shift in the Easter selling season, which falls into the second quarter this year versus the first quarter last year. Comparable store net sales for the thirteen weeks ended March 28, 1998 increased 7.5% for the entire chain as compared with 5.7% for the same period last year. Comparable store net sales were strong across all major geographic regions. During the thirteen weeks ended March 28, 1998, the Company opened three superstores and closed five stores, as compared with opening one superstore and closing five stores during the thirteen weeks ended March 29, 1997. At March 28, 1998, the Company operated 174 stores, of which 156 were superstores, as compared with 165 stores, of which 132 were superstores, at March 29, 1997. Store square footage increased approximately 18% to 5,552,000 at March 28, 1998 compared with 4,696,000 at March 29, 1997. For the thirteen weeks ended March 28, 1998, net sales of "things" merchandise increased approximately 25% over net sales of "things" merchandise during the same period in 1997, while net sales of "linens" merchandise increased approximately 20% over net sales of "linens" merchandise during the same period in 1997. This is consistent with the Company's strategy to increase the penetration of "things" merchandise. The increase in net sales of "things" merchandise resulted primarily from the growth in the number of superstore locations, which carry a larger line of "things" merchandise, as well as the overall expansion of the product categories in existing stores. Gross profit for the thirteen weeks ended March 28, 1998 was $83.3 million, or 38.2% of net sales, compared with $68.3 million, or 38.0% of net sales, for the same period in 1997. The increase in gross profit was due to improvements in the selling mix and slightly lower markdowns. These improvements were offset by a slight increase in freight expense as a percent of net sales, due to the timing of receipts, which was moderated by a shift in the Easter selling season, which falls into the second quarter this year versus the first quarter last year. Selling, general and administrative expenses ("SG&A") for the thirteen weeks ended March 28, 1998 were $81.1 million, or 37.2% of net sales, compared with $67.4 million, or 37.5% of net sales, for the same period in 1997. This decrease as a percentage of net sales is primarily a function of better leveraging of expenses. Operating profit for the thirteen weeks ended March 28, 1998 increased to $2.2 million, or 1.0% of net sales, compared with $0.9 million, or 0.5% of net sales, for the same period in 1997. LINENS 'N THINGS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Company earned net interest income of approximately $203,000 (net of commitment fees in connection with the Credit Agreement) for the thirteen weeks ended March 28, 1998 compared with net interest expense of approximately $336,000 for the same period in 1997. The Company was in a net average investment position of $26.7 million (in cash equivalents) for the thirteen weeks ended March 28, 1998 as compared with net average borrowings of $7.7 million for the same period in 1997. The reduction in net average borrowings is a result of the elimination of the $13.5 million note to CVS ($10.0 million payment and $3.5 million forgiveness from CVS), as well as improved operating performance. See "Liquidity and Capital Resources." The Company's income tax expense for the thirteen weeks ended March 28, 1998 was $0.9 million as compared with $0.3 million for the same period in 1997. Through tax planning initiatives, the Company expects to reduce its effective tax rate to approximately 38.5% for the year ending December 31, 1998, as compared with 42.0% for the year ended December 31, 1997. The effect of this reduction in tax rate is expected to be maintained going forward. Net income for the thirteen weeks ended March 28, 1998 increased to $1.5 million or $0.04 per share, compared with $0.4 million, or $0.01 per share, for the same period in 1997. Both per share amounts are adjusted for the stock split as indicated in Note 5. 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, as amended, expiring March 31, 2001, which can be increased up to $125 million provided certain terms and conditions contained in the Credit Agreement are met, and $25 million 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 handle anticipated capital expenditures and working capital requirements in the foreseeable future. Net cash used in operating activities for the thirteen weeks ended March 28, 1998 was $13.5 million compared with $14.0 million for the same period in 1997. The slight decrease in net cash used in operating activities was due to improved working capital management as well as an increase in net income. The Company has reduced inventory per square foot by 2% compared with last year. Total inventory only increased 15% compared to a sales increase of 21.2%. Accounts payable also increased over last year due to increased inventory levels and the timing of vendor payments. Net cash used in investing activities during the thirteen weeks ended March 28, 1998 was $4.8 million compared with $3.9 million for the same period in 1997. The increase from the thirteen week period in 1997 is associated with the timing and number of the Company's new store openings. Net cash provided by financing activities during the thirteen weeks ended March 28, 1998 was $4.5 million compared with net cash used in financing activities of $6.0 million for the same period in 1997. Net cash provided during the thirteen weeks ended March 28, 1998 was primarily the result of proceeds received from common stock exercised under stock incentive plans as well as the timing of the settlement of vendor payments. Net cash used during the thirteen weeks ended March 29, 1997 was primarily the result of the timing of the settlement of vendor payments offset by short-term borrowings of $5.7 million. 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. LINENS 'N THINGS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 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. 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 to Shareholders 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 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 superstore retailers and from department stores which carry other products including certain designer products not carried by the Company's stores, 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. PART II - OTHER INFORMATION Item 4 - Submission of Matters to a Vote of Security Holders - ------------------------------------------------------------- On May 5, 1998, the Company held its Annual Meeting of Shareholders. At the Annual Meeting, Stanley P. Goldstein was re-elected as a director, with 33,642,340 shares voted for and 319,950 shares withheld. Directors whose term of office continued following the meeting were: Norman Axelrod, Philip E. Beekman, Harold F. Compton and Charles C. Conaway. 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: No Current Reports on Form 8-K were filed by the Company during the thirteen week period ended March 28, 1998. 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) WILLIAM T. GILES By:------------------------------- William T. Giles Chief Financial Officer (Duly authorized officer and principal financial officer) Date: May 12, 1998 EX-11 2 COMPUTATION OF NET INCOME OF COMMON SHARE EXHIBIT 11 LINENS 'N THINGS, INC. AND SUBSIDIARIES COMPUTATION OF NET INCOME PER COMMON SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THIRTEEN WEEKS ENDED -------------------------------------------- MARCH 28, MARCH 29, 1998 1997 -------------------- -------------------- (UNAUDITED) Basic Weighted-average number of shares outstanding 38,763 38,536 ==================== ==================== Net income applicable to common shares $1,475 $ 352 ==================== ==================== Per-share amounts Net income per share $0.04 $0.01 ==================== ==================== Diluted Weighted-average number of shares outstanding 40,206 39,197 ==================== ==================== Net income applicable to common shares $1,475 $ 352 ==================== ==================== Per-share amounts Net income per share $0.04 $0.01 ==================== ====================
EX-15 3 LETTER RE UNAUDITED INTERIM FINANCIAL INFORMATION EXHIBIT 15 Accountants' Acknowledgment Linens 'n Things, Inc. Clifton, New Jersey Board of Directors: Re: Registration Statements Numbers 333-26819 and 333-26827 on Form S-8 With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated April 14, 1998 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 Peat Marwick LLP New York, New York May 12, 1998 EX-27 4 EXHIBIT 27 - FDS FILED WITH FORM 10-Q
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-31-1997 MAR-28-1998 26,118 0 13,076 0 233,245 283,699 208,610 54,186 465,468 154,933 0 0 0 388 284,122 465,468 218,037 218,037 134,707 81,133 0 0 (203) 2,400 925 1,475 0 0 0 1,475 0.04 0.04
EX-27 5 EXHIBIT 27 - FDS FILED WITH FORM 10-Q
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-31-1996 MAR-29-1997 3,048 0 15,738 0 202,166 230,737 178,289 40,427 396,879 113,834 0 0 0 386 249,693 396,879 179,911 179,911 111,596 67,371 0 0 336 608 256 352 0 0 0 352 0.01 0.01
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