-----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, Dy4fq6RdeQfXds00reOUeTV23da6xUvk4eZLIpNrvWXnG3X08wBYH3HLya04s7eb 4sfO9eqqNaQNw3+zBlRVNQ== 0001157523-03-003163.txt : 20030723 0001157523-03-003163.hdr.sgml : 20030723 20030723080023 ACCESSION NUMBER: 0001157523-03-003163 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030723 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030723 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: 03797335 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 a4439341.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) July 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 July 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 July 23, 2003, reporting the Company's sales and earnings results for the second 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: July 23, 2003 By: --------------------------------- Name: William T. Giles Title: Executive Vice President, Chief Financial Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Press Release of Linens 'n Things, Inc., dated July 23, 2003. EX-99 3 a4439341_ex991.txt LINENS N THINGS EXHIBIT 99.1 Exhibit 99.1 Linens 'n Things Announces Second Quarter 2003 Results CLIFTON, N.J.--(BUSINESS WIRE)--July 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 second quarter ended July 5, 2003 of $5.7 million or $0.13 per share on a fully diluted basis, compared with $5.6 million or $0.13 per share for the same period last year. Net sales increased 13.4% to $523.7 million for the second quarter ended July 5, 2003, up from $461.9 million for the same period last year. Comparable store net sales for the second quarter increased approximately 0.1%. "We are pleased to see an improvement in the trend in our business. We feel we are delivering a better shopping experience for our guests and we believe that our initiatives are the driving force behind much of the improvements," said Norman Axelrod, Chairman and Chief Executive Officer. Net income for the 26-week period ended July 5, 2003 was $7.8 million, or $0.17 per share on a fully diluted basis, compared with $10.7 million, or $0.26 per share for the same period last year. Net sales increased 9.3% to $1,004.1 million for the 26-week period ended July 5, 2003, up from $918.8 million for the same period last year. Comparable store net sales for the 26-week period ended July 5, 2003 decreased approximately 1.5%. During the second quarter, the Company opened 16 new stores, and closed 1 store, as compared with opening 21 stores and closing 2 stores during the same period last year. Year to date, the Company opened 32 stores and closed 8 stores increasing its total square footage to 14.3 million, as compared with opening 28 stores and closing 4 stores during the same period last year. The Company currently expects to open approximately 55 stores in 2003, further expanding its presence as a leading retailer of home furnishings. For 2003, capital expenditures are expected to be approximately $80 to $85 million. 2003 Business Outlook For the third quarter of 2003, sales are targeted to grow between 9% and 12% and comp sales are targeted to be flat to low single digits. Based on the Company achieving this sales plan, the Company is comfortable with a current range of estimates of approximately $0.44 to $0.49 for diluted earnings per share for the third quarter of 2003. Fiscal 2003 is a 52-week year with the fourth quarter being a 13-week period versus a 14-week period last year. For the fourth quarter of 2003, the Company is targeting sales to grow between 8% and 10% while comp sales are targeted to be in the low to mid single digits. Based on the Company achieving this sales plan, the Company is comfortable with a range of estimates of approximately $0.98 to $1.04 for the fourth quarter of 2003. 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 July 5, 2003 the Company was operating 415 stores in 45 states and in 4 provinces across 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 including future revenues, comparable sales performance, earnings and other future financial and stores' performance, 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 and our ability to anticipate and successfully respond to changing consumer tastes and preferences, the success of our new business concepts and seasonal concepts, the performance of our new stores, 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 and our ability to successfully implement our strategic initiatives. 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 in our most recent Annual Report on Form 10-K and 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) Thirteen-Weeks Twenty-Six Weeks Ended Ended ------------------- --------------------- July 5, June 29, July 5, June 29, 2003 2002 2003 2002 --------- --------- --------- --------- (unaudited) (unaudited) Net sales $523,672 $461,918 $1,004,143 $918,829 Cost of sales, including buying and warehousing costs 304,974 269,052 587,780 544,764 --------- --------- ----------- --------- Gross profit 218,698 192,866 416,363 374,065 Selling, general and administrative expenses 209,180 183,076 403,405 355,280 --------- --------- ----------- --------- Operating profit 9,518 9,790 12,958 18,785 Interest expense, net 288 753 364 1,428 --------- --------- ----------- --------- Income before provision for income taxes 9,230 9,037 12,594 17,357 Provision for income taxes 3,526 3,451 4,812 6,631 --------- --------- ----------- --------- Net income $5,704 $5,586 $7,782 $10,726 ========= ========= =========== ========= Per share of common stock: Basic - ----- Net income per share $0.13 $0.14 $0.18 $0.26 Weighted average shares outstanding 44,118 40,940 44,108 40,792 Diluted - ------- Net income per share $0.13 $0.13 $0.17 $0.26 Weighted average shares outstanding 44,545 42,320 44,534 42,011 LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) July 5, June 29, 2003 2002 ----------- ----------- Assets (unaudited) Current assets: Cash and cash equivalents $9,446 $20,069 Inventories 715,644 624,431 Accounts receivable 39,027 32,054 Prepaid expenses and other 29,940 11,547 Current deferred taxes -- 21,268 ----------- ----------- Total current assets 794,057 709,369 Property and equipment, net 376,006 342,318 Other non-current assets, net 28,891 30,412 ----------- ----------- Total assets $1,198,954 $1,082,099 =========== =========== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $279,607 $253,896 Accrued expenses and other current liabilities 125,303 130,990 Short-term borrowings 16,874 15,884 Current deferred taxes 8,676 -- ----------- ----------- Total current liabilities 430,460 400,770 Other long-term liabilities 89,144 71,784 ----------- ----------- Total liabilities 519,604 472,554 Shareholders' equity 679,350 609,545 ----------- ----------- Total liabilities and shareholders' equity $1,198,954 $1,082,099 =========== =========== LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Twenty-Six Weeks Ended ----------------- July 5, June 29, 2003 2002 -------- -------- (unaudited) Cash Flows From Operating Activities Net income $7,782 $10,726 Depreciation and amortization 26,346 21,499 Change in working capital (75,816) (62,022) -------- -------- Net cash used in operating activities (41,688) (29,797) -------- -------- Cash Flows From Investing Activities Additions to property and equipment (51,965) (50,979) -------- -------- Cash Flows From Financing Activities Net proceeds from common stock issuance -- 95,814 Proceeds from common stock issued under stock incentive plans 1,305 3,890 Increase (decrease) in short-term borrowings 14,690 (14,578) Issuance of treasury stock 255 268 -------- -------- Net cash provided by financing activities 16,250 85,394 -------- -------- Effect of exchange rate changes on cash and cash equivalents 244 14 Net (decrease) increase in cash and cash equivalents (77,159) 4,632 Cash and cash equivalents at beginning of period 86,605 15,437 -------- -------- Cash and cash equivalents at end of period $9,446 $20,069 ======== ======== CONTACT: Linens 'n Things, Inc. For additional information: Chief Financial Officer William T. Giles, 973-815-2929 Visit our Web Site at www.lnt.com -----END PRIVACY-ENHANCED MESSAGE-----