EX-99.1 CHARTER 2 ex991.htm ex991.htm - Generated by SEC Publisher for SEC Filing

 

EXHIBIT 99.1

CONTACT:          JOSEPH MACNOW

                                (201) 587-1000

210 Route 4 East

Paramus, NJ, 07652

 
FOR IMMEDIATE RELEASE – April 23, 2012

 

Vornado Announces its Share of Toys “R” Us Fourth Quarter Financial Results

 

         PARAMUS, NEW JERSEY,..….Vornado Realty Trust (NYSE:VNO) announced today that it has recognized its 32.7% share of Toys “R” Us fourth quarter financial results in its first quarter ended March 31, 2012.  Vornado’s share of Toys’ fourth quarter net income is $116,471,000, or $0.57 per diluted share, compared to $112,944,000, or $0.55 per diluted share recognized in the quarter ended March 31, 2011. 

         Vornado’s share of Toys’ fourth quarter Funds From Operations (“FFO”) before income taxes is $183,988,000, or $0.90 per diluted share, compared to $199,692,000, or $0.98 per diluted share recognized in the quarter ended March 31, 2011.  Vornado’s share of Toys’ fourth quarter FFO after income taxes is $132,288,000, or $0.65 per diluted share, compared to $124,468,000, or $0.61 per diluted share in the quarter ended March 31, 2011. 

         The business of Toys is highly seasonal; historically, Toys’ fourth quarter net income accounts for more than 80% of its fiscal year net income.

         Attached is a summary of Toys’ financial results and Vornado’s 32.7% share of its equity in Toys’ net income, as well as reconciliations of net income to earnings before interest, taxes, depreciation and amortization (“EBITDA”) and FFO.

Vornado Realty Trust is a fully-integrated equity real estate investment trust. 

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

 

 

 

 

Toys "R" Us, Inc.
Condensed Consolidated Statements of Operations – Unaudited

 

 

 

For the Quarter Ended

 

 

 

January 28, 2012

 

 

 

January 29, 2011

 

(Amounts in thousands)

 

Results on a
Historical
Basis

 

 

 

Results on
Vornado’s
Purchase Price
Accounting
Basis

 

 

 

Results on
Vornado’s
Purchase Price
Accounting
Basis

 

Net sales

 

$

5,925,000

 

 

 

$

5,925,000

 

 

 

$

5,972,000

 

Cost of sales

 

 

3,944,000

 

 

 

 

3,944,000

 

 

 

 

3,938,000

 

Gross margin

 

 

1,981,000

 

 

 

 

1,981,000

 

 

 

 

2,034,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

1,274,000

 

 

 

 

1,289,600

 

 

 

 

1,274,500

 

Depreciation and amortization

 

 

104,000

 

 

 

 

106,200

 

 

 

 

106,000

 

Other (income) expense

 

 

(13,000

)

 

 

 

9,000

 

 

 

 

(16,000

)

Total operating expenses

 

 

1,365,000

 

 

 

 

1,404,800

 

 

 

 

1,364,500

 

Operating income

 

 

616,000

 

 

 

 

576,200

 

 

 

 

669,500

 

Interest expense

 

 

(96,000

)

 

 

 

(96,600

)

 

 

 

(122,700

)

Interest income

 

 

4,000

 

 

 

 

4,000

 

 

 

 

3,000

 

Earnings before income taxes

 

 

524,000

 

 

 

 

483,600

 

 

 

 

549,800

 

Income tax expense

 

 

(179,000

)

 

 

 

(132,200

)

 

 

(211,000

)

Net earnings

 

 

345,000

 

 

 

 

351,400

 

 

 

 

338,800

 

Less: Net earnings attributable to noncontrolling interest

 

 

(2,000

)

 

 

 

(2,000

)

 

 

 

-

 

Net earnings attributable to Toys “R” Us, Inc.

 

$

343,000

 

 

 

$

349,400

 

 

 

$

338,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vornado’s 32.7% equity in Toys’ net earnings

 

 

 

 

 

 

$

114,184

 

 

 

$

110,821

 

Management fee from Toys, net

 

 

 

 

 

 

 

2,287

 

 

 

 

2,123

 

Total Vornado net income from its investment in Toys

 

 

 

 

 

 

$

116,471

 

 

 

$

112,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See page 3 for a reconciliation of net income to FFO.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Vornado’s net income from its
investment in Toys to EBITDA (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

$

116,471

 

 

 

$

112,944

 

Interest and debt expense

 

 

 

 

 

 

 

31,569

 

 

 

 

40,135

 

Depreciation and amortization

 

 

 

 

 

 

 

34,706

 

 

 

 

34,673

 

Income tax expense

 

 

 

 

 

 

 

43,203

 

 

 

 

69,018

 

Vornado’s share of Toys’ EBITDA (1)

 

 

 

 

 

 

$

225,949

 

 

 

$

256,770

 

 

_________________

 

(1)     EBITDA represents “Earnings Before Interest, Taxes, Depreciation and Amortization.” Management considers EBITDA a supplemental measure for making decisions and assessing the unlevered performance of its segments as it relates to the total return on assets as opposed to the levered return on equity.  EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.

 

 

Toys "R" Us, Inc.
Funds From Operations - Unaudited

 

 

(Amounts in thousands)

 

For the Quarter Ended

 

 

 

January 28, 2012

 

 

 

January 29, 2011

 

Reconciliation of Vornado's net income from its investment in Toys to FFO (1):

 

 

 

 

 

 

 

 

 

Net income

 

$

116,471

 

 

 

$

112,944

 

Depreciation and amortization of real property

 

 

17,288

 

 

 

 

17,729

 

Real estate impairment losses

 

 

7,026

 

 

 

 

-

 

Income tax effect of above adjustments

 

 

(8,497

)

 

 

 

(6,205

)

Vornado's share of Toys’ FFO (1)

 

$

132,288

 

 

 

$

124,468

                     

 

 

     _________________

 

(1)       FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”).  NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets, extraordinary items and other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries.  FFO and FFO per diluted share are used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions.  FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flows as a liquidity measure.  FFO may not be comparable to similarly titled measures employed by other companies. 

 

 

 

 

 

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