-----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, N0URknDkTyCbopqUsUD57oKrqYHOmoQT3ZkWahP9lL/bTBJpRHlVqmsnFJ8EgG2D fcA1eSsJrxR5x9+eo53j2A== 0001157523-03-001233.txt : 20030423 0001157523-03-001233.hdr.sgml : 20030423 20030423080028 ACCESSION NUMBER: 0001157523-03-001233 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030423 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030423 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: 0101 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12381 FILM NUMBER: 03659062 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 8-K 1 a4381065.txt LINENS N THINGS 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) April 23, 2003 -------------- LINENS 'N THINGS, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 1-12381 22-3463939 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 6 Brighton Road, Clifton, New Jersey 07015 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (973) 778-1300 -------------- INFORMATION TO BE INCLUDED IN THE REPORT Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press Release of Linens 'n Things, Inc., dated April 23, 2003. Items 9 and 12. Attached and incorporated herein by reference and being furnished hereby as Exhibit 99.1 is a copy of a press release of Linens 'n Things, Inc. (the "Company") dated April 23, 2003, reporting Company's sales and earnings results for the first quarter of 2003. 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 hereunto duly authorized. LINENS 'N THINGS, INC. Dated: April 23, 2003 By: ------------------------------------- Name: William T. Giles Title: Senior Vice President, Chief Financial Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Press Release of Linens 'n Things, Inc., dated April 23, 2003. EX-99 3 a4381065_ex991.txt LINENS N THINGS EXHIBIT 99.1 Exhibit 99.1 Linens 'N Things Announces First Quarter 2003 Results CLIFTON, N.J.--(BUSINESS WIRE)--April 23, 2003--Linens 'n Things, Inc. (NYSE: LIN), one of the leading, national large format retailers of home textiles, housewares and home accessories, today announced net income for the first quarter ended April 5, 2003 of $2.1 million or $0.05 per share on a fully diluted basis, compared with $5.1 million or $0.12 per share for the same period last year. Net income for the first quarter ended April 5, 2003 includes the impact of a charge of $0.03 per share on a fully diluted basis in connection with the departure of the company's president earlier this year. Total net sales increased 5.2% to $480.5 million for the first quarter ended April 5, 2003, up from $456.9 million for the same period last year. Comparable store net sales for the first quarter of 2003 declined 3.2%. "Overall, sales for the first quarter of 2003, which covers the period January 5, 2003 through April 5, 2003, were difficult as a result of a series of external factors. Inclement weather significantly impacted sales in February, particularly during President's Day weekend, while the economy, weak consumer confidence and the official start of war in Iraq have continued to depress consumer traffic. In addition, the timing of the Easter selling season will occur in the second quarter of 2003 compared to the first quarter of 2002. Although the retail environment remains challenging, we are committed to those initiatives that are aimed at improving our guest shopping experience. These initiatives are on track and remain a priority for 2003," commented Norman Axelrod, chairman and chief executive officer. During the first quarter, the Company opened sixteen new stores, and closed seven stores, increasing its total square footage to 13.9 million as compared with opening seven stores and closing two stores during the same period last year. The Company currently expects to open approximately 55 new stores in the United States and Canada in 2003, further expanding its presence as a leading retailer of home furnishings. For 2003, capital expenditures are expected to be approximately $80 million to $85 million. 2003 Business Outlook For the second quarter of 2003, sales are targeted to grow between 13% and 15% and comparable sales are targeted to be flat to slightly positive. Assuming sales at these targeted levels, the Company is comfortable with the range of estimates of approximately $0.10 to $0.14 for diluted earnings per share for the second quarter. This outlook is based on current expectations and assumptions and includes "forward looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. The Company can give no assurances that such expectations and assumptions will prove correct. The Company does not intend to update such outlook other than in connection with regularly scheduled earnings releases. Linens 'n Things, with 2002 sales of $2,184.7 million, is one of the leading, national large format retailers of home textiles, housewares and home accessories. As of April 5, 2003, the Company was operating 400 stores in 45 states and four provinces across the United States and Canada. More information about Linens 'n Things can be found online at www.lnt.com. The foregoing contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The statements are made a number of times and may be identified by such forward-looking terminology as "expect," "believe," "may," "will," "could", "intend," "plan," "target" and terms or variations of such terms. All of our information and statements regarding our outlook for the future constitutes forward-looking statements. All our forward-looking statements are based on our current expectations, assumptions, estimates and projections about our Company and involve certain significant risks and uncertainties, including levels of sales, store traffic, acceptance of product offerings and fashions, the success of our new business concepts and seasonal concepts, the success of our new store openings, competitive pressures from other home furnishings retailers, the success of the Canadian expansion, availability of suitable future store locations, schedule of store expansion and of planned closings, the impact of the bankruptcies and consolidations in our industry, unusual weather patterns, the impact on consumer spending as a result of the slower consumer economy, a highly promotional retail environment, any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates as well as other significant accounting estimates made in the preparation of our financial statements, the impact of the hostilities in the Middle East and the possibility of hostilities in other geographic areas as well as other geopolitical concerns, including the potential impact of SARS health concerns particularly on manufacturing and production in Asia. Actual results may differ materially from such forward-looking statements. These and other important risk factors are included in the "Risk Factors" section of the Company's Registration Statement on Form S-3 as filed with the Securities and Exchange Commission on June 18, 2002, and may be contained in subsequent reports filed with the Securities and Exchange Commission. You are urged to consider all such factors. In light of the uncertainty inherent in such forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. The Company assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements. LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share data) First Quarter Ended ------------------------------------- April 05, 2003 March 30, 2002 ------------------------------------- (unaudited) Net sales $480,471 $456,911 Cost of sales, including buying and warehousing costs 282,806 275,712 --------- --------- Gross profit 197,665 181,199 Selling, general and administrative expenses 194,225 172,204 --------- --------- Operating profit 3,440 8,995 Interest expense, net 76 675 --------- --------- Income before provision for income taxes 3,364 8,320 Provision for income taxes 1,286 3,180 --------- --------- Net income $2,078 $5,140 ========= ========= Per share of common stock: Basic - ------ Net income per share $0.05 $0.13 Weighted average shares outstanding 40,098 40,645 Diluted - -------- Net income per share $0.05 $0.12 Weighted average shares outstanding 44,524 41,703 LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) April 05, 2003 March 30, 2002 -------------- -------------- Assets (unaudited) Current assets: Cash and cash equivalents $58,445 $10,064 Inventories 685,911 549,700 Other current assets, net 64,938 67,865 -------- --------- Total current assets 809,294 627,629 Property and equipment, net 362,332 327,813 Other non-current assets, net 28,821 29,347 -------- --------- Total assets $1,200,447 $984,789 ========== ======== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $306,996 $237,765 Accrued expenses and other current liabilities 135,375 124,959 Short-term borrowings 2,244 47,094 -------- --------- Total current liabilities 444,615 409,818 Other long-term liabilities 84,237 70,538 -------- --------- Total liabilities 528,852 480,356 Shareholders' equity 671,595 504,433 -------- --------- Total liabilities and shareholders' equity $1,200,447 $984,789 ========== ======== LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) First Quarter Ended --------------------------------- April 5, 2003 March 30, 2002 --------------------------------- (unaudited) Cash Flows From Operating Activities Net income $2,078 $5,140 Depreciation and amortization 12,842 10,453 Change in working capital (18,135) (13,574) -------- -------- Net cash (used in) provided by operating activities (3,215) 2,019 -------- -------- Cash Flows From Investing Activities Additions to property and equipment (25,666) (25,742) -------- -------- Cash Flows From Financing Activities Proceeds from common stock issued under stock incentive plans 282 970 Increase in short-term borrowings 303 17,425 Purchase of treasury stock (16) (43) -------- -------- Net cash provided by financing activities 569 18,352 -------- -------- Effect of exchange rate changes on cash and cash equivalents 152 (2) Net decrease in cash and cash equivalents (28,160) (5,373) Cash and cash equivalents at beginning of period 86,605 15,437 -------- -------- Cash and cash equivalents at end of period $58,445 $10,064 ======== ======== CONTACT: Linens 'n Things, Inc., Clifton William T. Giles Chief Financial Officer (973) 815-2929 or Visit our Web Site at www.lnt.com -----END PRIVACY-ENHANCED MESSAGE-----