-----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, MVN+ApfHGkVjl/ofX9/Cdg0Bb7UkhQaxYdHox75HTJDZbnJ2he7QrLlYJfxpOMc/ uneNABGkC8GSRbSJ4JU+kw== 0001157523-04-000951.txt : 20040204 0001157523-04-000951.hdr.sgml : 20040204 20040204080027 ACCESSION NUMBER: 0001157523-04-000951 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030204 ITEM INFORMATION: FILED AS OF DATE: 20040204 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: 04564706 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 a4564357.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) February 4, 2004 ________________ 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 12. Results of Operations and Financial Condition Attached and being furnished hereby as Exhibit 99.1 is a copy of a press release of Linens 'n Things, Inc. (the "Company") dated February 4, 2004, reporting Company's sales and earnings results for the fourth quarter of 2003 and for fiscal year 2003. The discussion of the Company's 2003 fourth quarter and 2003 full year results and its commentary regarding expected future results include and, where indicated, exclude the expected impact of EITF 02-16. The expected impact of EITF 02-16 is further detailed in, and reconciled to generally accepted accounting principles (GAAP), as part of the press release. Such information is supplemental to information presented in accordance with GAAP, is not intended to represent a presentation in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared and presented in accordance with GAAP. In discussing its historical and expected future results and financial condition, the Company believes it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparative basis, the expected impact of EITF 02-16 on operating results and financial condition. In addition, management internally uses these non-GAAP financial performance measures to evaluate performance on a comparative period-to-period basis in terms of absolute performance and trend performance. 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: February 4, 2004 By: /s/ William T. Giles __________________________ 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 February 4, 2004. EX-99 3 a4564357_ex991.txt LINENS N THINGS EXHIBIT 99.1 Exhibit 99.1 Linens 'n Things Announces Fourth Quarter and Full Year 2003 Results CLIFTON, N.J.--(BUSINESS WIRE)--Feb. 4, 2004-- Comparable Net Sales Increase 4.7% and Net Income Increases 14.5% for the Fourth Quarter 2003; Fourth Quarter Eps Exceeds Consensus Estimate Linens 'n Things, Inc. (NYSE: LIN) today announced net income increased to $46.1 million or $1.02 per share on a fully diluted basis for the thirteen-week period ended January 3, 2004 from $40.2 million or $0.90 per diluted share for the fourteen-week period ended January 4, 2003. Total net sales increased approximately 9.0% to $788.3 million for the fourth quarter of fiscal 2003 up from $723.3 million for the fourth quarter of fiscal 2002. Comparable net sales increased approximately 4.7%. Net income increased to $74.8 million or $1.67 per share on a fully diluted basis for the 52-week period ended January 3, 2004 from $69.2 million or $1.60 per diluted share for the 53-week period ended January 4, 2003. Total net sales increased approximately 9.6% to $2.4 billion for the fiscal year ended January 3, 2004 up from $2.2 billion for the fiscal year ended January 4, 2003. Comparable net sales increased 1.3%. "Overall, we are pleased with our results for the quarter," commented Norman Axelrod, Chairman and Chief Executive Officer. "The comparable net sales increase of 4.7% for the fourth quarter of 2003 represents our best quarterly comparable net sales performance in two years. A key indicator of our performance in the fourth quarter is that sales were generated from both an increase in guest traffic, as well as an increase in average transaction. As we enter 2004, we believe we have the initiatives and resources in place to deliver our financial targets," concluded Mr. Axelrod. During the fourth quarter, the Company opened five new stores. For the fiscal year ended January 3, 2004, the Company opened 58 new stores and closed nine stores compared with opening 55 new stores and closing seven stores during fiscal year 2002. Total square footage in 2003 increased 11.0% over last year to 15.1 million. The Company currently expects to open approximately 45 to 50 new stores in the U.S. and Canada in 2004, further expanding its presence as a leading retailer of home furnishings. 2004 Business Outlook This outlook is based on current expectations 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 will prove correct. The current estimates for the full year of 2004 are as follows: Sales are targeted to grow by approximately 11% to 14% with square footage increasing approximately 10%. Diluted earnings per share including the impact of EITF 02-16, "Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor," are currently targeted to be in the range of $1.66 to $1.71. Based on the Company's current evaluations, the estimated impact from the implementation of EITF 02-16 is expected to reduce diluted earnings per share on a non-cash basis by approximately $0.25 for fiscal 2004. Therefore, excluding the impact of EITF 02-16, diluted earnings per share are targeted in the range of $1.91 to $1.96. These plans assume comparable net sales to be in the low to mid single digits. Capital expenditures are expected to be approximately $80 million. For the first quarter of 2004, sales are targeted to grow between 13% and 15% and comparable net sales are targeted to be in the range of 3% to 5%. Diluted earnings per share including the impact of EITF 02-16 are currently targeted to be in the range of a loss of $0.02 to $0.03. Based on the Company's current evaluations, the estimated impact from the implementation of EITF 02-16 is expected to reduce diluted earnings per share on a non-cash basis by approximately $0.12 for the first quarter of 2004. Therefore, excluding the impact of EITF 02-16, the Company is comfortable with a range of estimates of approximately $0.09 to $0.10 for diluted earnings per share for the first quarter of 2004. Linens 'n Things, with 2003 sales of $2.4 billion, is one of the leading, national large format retailers of home textiles, housewares and home accessories. At the end of the 2003 fiscal year, the Company was operating 440 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," "intend," "plan," "target", "outlook", "comfortable with" and similar 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, seasonal concepts, and new brands, 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) Quarter Ended Year Ended --------------------- ---------------------- (unaudited) --------------------- ---------------------- January 3, January 4, January 3, January 4, 2004 2003 2004 2003 ---------- --------- ---------- ----------- Net sales $788,313 $723,322 $2,395,272 $2,184,716 Cost of sales, including buying and warehousing costs 471,950 432,963 1,430,422 1,311,370 --------- --------- ----------- ----------- Gross profit 316,363 290,359 964,850 873,346 Selling, general and administrative expenses 241,552 224,856 842,897 759,077 --------- --------- ----------- ----------- Operating profit 74,811 65,503 121,953 114,269 Interest expense, net 276 408 876 2,250 --------- --------- ----------- ----------- Income before provision for income taxes 74,535 65,095 121,077 112,019 Provision for income taxes 28,472 24,855 46,252 42,773 --------- --------- ----------- ----------- Net income $46,063 $40,240 $74,825 $69,246 ========= ========= =========== =========== Per share of common stock: Net income per share: - --------------------- Basic $1.03 $0.91 $1.69 $1.63 Diluted $1.02 $0.90 $1.67 $1.60 Shares outstanding: - --------------------- Basic 44,520 44,078 44,247 42,428 Diluted 45,336 44,543 44,869 43,314 LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) January 3, January 4, 2004 2003 ----------- ----------- Assets Current assets: Cash and cash equivalents $136,129 $86,605 Inventories 701,928 615,256 Accounts Receivable 55,786 41,168 Prepaid expenses and other 33,982 27,279 Current deferred taxes 1,295 2,671 ----------- ----------- Total current assets 929,120 772,979 Property and equipment, net 377,244 348,445 Other non-current assets 28,909 29,057 ----------- ----------- Total assets $1,335,273 $1,150,481 =========== =========== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $276,397 $233,877 Accrued expenses and other current liabilities 189,761 163,783 Short-term borrowings -- 1,831 ----------- ----------- Total current liabilities 466,158 399,491 Other long-term liabilities 107,396 82,269 ----------- ----------- Total liabilities 573,554 481,760 Shareholders' equity 761,719 668,721 ----------- ----------- Total liabilities and shareholders' equity $1,335,273 $1,150,481 =========== =========== LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Year Ended ------------------------- January 3, January 4, 2004 2003 ---------- ------------- Cash Flows From Operating Activities Net income $74,825 $69,246 Depreciation and amortization 54,404 45,914 Change in working capital (10,427) (34,401) --------- -------- Net cash provided by operating activities 118,802 80,759 --------- -------- Cash Flows From Investing Activities Additions to property and equipment (81,494) (82,187) --------- -------- Cash Flows From Financing Activities Proceeds from stock options exercised under stock incentive plans 13,623 4,594 Net proceeds from common stock issuance -- 95,833 Decrease in short-term borrowings (2,119) (27,930) Issuance of treasury stock 159 177 --------- -------- Net cash provided by financing activities 11,663 72,674 --------- -------- Effect of exchange rate changes on cash and cash equivalents 553 (78) Net increase in cash and cash equivalents 49,524 71,168 Cash and cash equivalents at beginning of year 86,605 15,437 --------- -------- Cash and cash equivalents at end of year $136,129 $86,605 ========= ======== CONTACT: Linens 'n Things, Inc. William T. Giles, 973-815-2929 -----END PRIVACY-ENHANCED MESSAGE-----