BROWN SHOE COMPANY, INC.
(Exact name of registrant as specified in its charter)
|
|
New York
(State or other jurisdiction of incorporation or organization)
|
|
1-2191
(Commission File Number)
|
43-0197190
(IRS Employer Identification Number)
|
8300 Maryland Avenue
St. Louis, Missouri
(Address of principal executive offices)
|
63105
(Zip Code)
|
(314) 854-4000
(Registrant's telephone number, including area code)
|
|
(c)
|
Exhibit
|
|
99.1
|
Press Release issued March 15, 2013
|
|
BROWN SHOE COMPANY, INC.
|
||
(Registrant)
|
||
Date: March 15, 2013
|
/s/ Michael I. Oberlander
|
|
Michael I. Oberlander
|
||
Senior Vice President, General Counsel and Corporate Secretary
|
Exhibit Number
|
Description
|
|
99.1
|
Press Release dated March 15, 2013
|
News
|
Contacts: | |
Investors | |
Peggy Reilly Tharp, Brown Shoe Company
|
|
(314) 854-4134, ptharp@brownshoe.com | |
Kelly Malone, Brown Shoe Company | |
(314) 854-4093, kmalone@brownshoe.com |
US$M, except per share (unaudited)
|
14 Weeks
|
13 Weeks
|
4Q
|
53 Weeks
|
52 Weeks
|
FY
|
4Q’12
|
4Q’11
|
Change
|
4Q’12
|
4Q’11
|
Change
|
|
Consolidated net sales
|
$640.2
|
$628.9
|
1.8%
|
$2,598.1
|
$2,582.8
|
0.6%
|
Famous Footwear
|
380.1
|
352.4
|
7.9%
|
1,514.3
|
1,456.3
|
4.0%
|
Wholesale Operations
|
194.5
|
205.1
|
(5.2%)
|
845.2
|
870.9
|
(3.0%)
|
Specialty Retail
|
65.6
|
71.4
|
(8.1%)
|
238.5
|
255.6
|
(6.7%)
|
Gross profit
|
251.7
|
238.6
|
5.5%
|
1,010.4
|
996.6
|
1.4%
|
Margin
|
39.3%
|
37.9%
|
140 bps
|
38.9%
|
38.6%
|
30 bps
|
SG&A
|
238.5
|
230.0
|
3.7%
|
919.0
|
937.3
|
(2.0%)
|
% of net sales
|
37.3%
|
36.6%
|
70 bps
|
35.4%
|
36.3%
|
- 90 bps
|
Net restructuring, other special charges
|
2.7
|
16.5
|
(83.5%)
|
24.0
|
23.7
|
1.5%
|
Impairment of intangible assets
|
--
|
--
|
--
|
5.8
|
--
|
--
|
Operating earnings (loss)
|
10.5
|
(7.9)
|
n/m
|
61.6
|
35.6
|
73.3%
|
% of net sales
|
1.6%
|
(1.3%)
|
290 bps
|
2.4%
|
1.4%
|
100 bps
|
Net interest expense
|
5.9
|
5.8
|
0.4%
|
23.1
|
26.5
|
(13.0%)
|
Earnings (loss) before income tax
|
4.6
|
(13.7)
|
n/m
|
38.5
|
9.1
|
325.9%
|
Tax rate
|
13.7%
|
50.7%
|
29.4%
|
3.6%
|
||
Net earnings (loss) from discontinued operations
|
--
|
(1.4)
|
--
|
--
|
15.7
|
--
|
Net earnings (loss)
|
$4.0
|
$(8.2)
|
149.1%
|
$27.5
|
$24.6
|
11.8%
|
Per diluted share
|
$0.09
|
$(0.21)
|
142.9%
|
$0.64
|
$0.56
|
14.3%
|
Adjusted net earnings
|
$5.9
|
$4.1
|
43.0%
|
$48.6
|
$30.3
|
60.4%
|
Per diluted share
|
$0.14
|
$0.10
|
40.0%
|
$1.13
|
$0.70
|
61.4%
|
Metric
|
FY’13
|
Consolidated net sales
|
$2.55 to $2.58 billion
|
Famous Footwear same-store sales
|
Up low-single digits
|
Wholesale Operations net sales
|
Down low- to mid-single digits, reflecting brand exits
|
Gross profit margin
|
Up 10 to 40 basis points
|
SG&A
|
$900 to $910 million
|
Non-recurring costs
|
$1.0 to $2.0 million
|
Net interest expense
|
$21 to $23 million
|
Effective tax rate
|
33% to 35%
|
Earnings per diluted share
|
$1.16 to $1.23
|
Adjusted earnings per diluted share
|
$1.18 to $1.25
|
Depreciation and amortization
|
$54 to $56 million
|
Capital expenditures
|
$50 to $55 million
|
SCHEDULE 1
|
||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
14 Weeks Ended
|
13 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
|||||||||||||
(Thousands, except per share data)
|
February 2, 2013
|
January 28, 2012
|
February 2, 2013
|
January 28, 2012
|
||||||||||||
Net sales
|
$ | 640,176 | $ | 628,891 | $ | 2,598,065 | $ | 2,582,824 | ||||||||
Cost of goods sold
|
388,477 | 390,318 | 1,587,706 | 1,586,184 | ||||||||||||
Gross profit
|
251,699 | 238,573 | 1,010,359 | 996,640 | ||||||||||||
Selling and administrative expenses
|
238,465 | 229,943 | 918,957 | 937,419 | ||||||||||||
Restructuring and other special charges, net
|
2,730 | 16,523 | 24,018 | 23,671 | ||||||||||||
Impairment of intangible assets
|
- | - | 5,777 | - | ||||||||||||
Operating earnings (loss)
|
10,504 | (7,893 | ) | 61,607 | 35,550 | |||||||||||
Interest expense
|
(5,954 | ) | (6,238 | ) | (23,382 | ) | (26,141 | ) | ||||||||
Loss on early extinguishment of debt
|
- | - | - | (1,003 | ) | |||||||||||
Interest income
|
86 | 396 | 322 | 644 | ||||||||||||
Earnings (loss) before income taxes from continuing operations
|
4,636 | (13,735 | ) | 38,547 | 9,050 | |||||||||||
Income tax (provision) benefit
|
(633 | ) | 6,968 | (11,343 | ) | (326 | ) | |||||||||
Net earnings (loss) from continuing operations
|
4,003 | (6,767 | ) | 27,204 | 8,724 | |||||||||||
Discontinued operations:
|
||||||||||||||||
Earnings from operations of subsidiary, net of tax of $1,312 in 2011
|
- | - | - | 1,701 | ||||||||||||
(Loss) gain on sale of subsidiary, net of tax of $474 and $6,670 in 2011, respectively
|
- | (1,409 | ) | - | 13,965 | |||||||||||
Net (loss) earnings from discontinued operations
|
- | (1,409 | ) | - | 15,666 | |||||||||||
Net earnings (loss)
|
4,003 | (8,176 | ) | 27,204 | 24,390 | |||||||||||
Net (loss) earnings attributable to noncontrolling interests
|
(36 | ) | 46 | (287 | ) | (199 | ) | |||||||||
Net earnings (loss) attributable to Brown Shoe Company, Inc.
|
$ | 4,039 | $ | (8,222 | ) | $ | 27,491 | $ | 24,589 | |||||||
Basic earnings (loss) per common share:
|
||||||||||||||||
From continuing operations
|
$ | 0.09 | $ | (0.17 | ) | $ | 0.64 | $ | 0.20 | |||||||
From discontinued operations
|
- | (0.04 | ) | - | 0.37 | |||||||||||
|
||||||||||||||||
Basic earnings (loss) per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.09 | $ | (0.21 | ) | $ | 0.64 | $ | 0.57 | |||||||
Diluted earnings (loss) per common share:
|
||||||||||||||||
From continuing operations
|
$ | 0.09 | $ | (0.17 | ) | $ | 0.64 | $ | 0.20 | |||||||
From discontinued operations
|
- | (0.04 | ) | - | 0.36 | |||||||||||
|
||||||||||||||||
Diluted earnings (loss) per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.09 | $ | (0.21 | ) | $ | 0.64 | $ | 0.56 | |||||||
Basic number of shares
|
40,774 | 40,098 | 40,659 | 41,126 | ||||||||||||
Diluted number of shares
|
41,109 | 40,668 | 40,794 | 41,668 |
SCHEDULE 2
|
||||||||
BROWN SHOE COMPANY, INC.
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(Thousands)
|
February 2, 2013
|
January 28, 2012
|
||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 68,223 | $ | 47,682 | ||||
Receivables, net
|
125,683 | 154,022 | ||||||
Inventories, net
|
533,275 | 561,797 | ||||||
Deferred income taxes
|
- | 14,432 | ||||||
Income taxes
|
3,069 | 5,145 | ||||||
Prepaid expenses and other current assets
|
42,178 | 32,060 | ||||||
Total current assets
|
772,428 | 815,138 | ||||||
Property and equipment, net
|
146,089 | 131,471 | ||||||
Deferred income taxes
|
1,461 | - | ||||||
Goodwill and intangible assets, net
|
132,628 | 140,590 | ||||||
Other assets
|
118,653 | 140,277 | ||||||
Total assets
|
$ | 1,171,259 | $ | 1,227,476 | ||||
LIABILITIES AND EQUITY
|
||||||||
Borrowings under revolving credit agreement
|
$ | 105,000 | $ | 201,000 | ||||
Trade accounts payable
|
222,742 | 190,611 | ||||||
Deferred income taxes | 748 | - | ||||||
Other accrued expenses | 140,619 | 132,969 | ||||||
Total current liabilities
|
469,109 | 524,580 | ||||||
Long-term debt
|
198,823 | 198,633 | ||||||
Deferred rent
|
33,711 | 32,361 | ||||||
Deferred income taxes
|
13,862 | 31,136 | ||||||
Other liabilities
|
29,853 | 27,050 | ||||||
Total other liabilities
|
276,249 | 289,180 | ||||||
Total Brown Shoe Company, Inc. shareholders’ equity
|
425,129 | 412,669 | ||||||
Noncontrolling interests
|
772 | 1,047 | ||||||
Total equity
|
425,901 | 413,716 | ||||||
Total liabilities and equity
|
$ | 1,171,259 | $ | 1,227,476 |
SCHEDULE 3
|
||||||||
BROWN SHOE COMPANY, INC.
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
53 Weeks Ended
|
52 Weeks Ended
|
|||||||
(Thousands)
|
February 2, 2013
|
January 28, 2012
|
||||||
OPERATING ACTIVITIES:
|
||||||||
Net earnings
|
$ | 27,204 | $ | 24,390 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
54,783 | 59,111 | ||||||
Amortization of debt issuance costs
|
2,561 | 2,338 | ||||||
Loss on early extinguishment of debt
|
- | 1,003 | ||||||
Share-based compensation expense
|
6,489 | 5,633 | ||||||
Tax benefit related to share-based plans
|
(944 | ) | (1,000 | ) | ||||
Loss on disposal of facilities and equipment
|
3,103 | 1,560 | ||||||
Impairment charges for facilities and equipment
|
4,132 | 1,871 | ||||||
Impairment of intangible assets
|
5,777 | - | ||||||
Deferred rent
|
1,350 | (2,317 | ) | |||||
Deferred income taxes benefit
|
(3,555 | ) | (112 | ) | ||||
Provision for doubtful accounts
|
360 | 1,284 | ||||||
Gain on sale of subsidiary, net
|
- | (13,965 | ) | |||||
Changes in operating assets and liabilities, net of acquired and discontinued operations:
|
||||||||
Receivables
|
27,984 | (26,298 | ) | |||||
Inventories
|
28,623 | 3,502 | ||||||
Prepaid expenses and other current and noncurrent assets
|
(9,169 | ) | 2,286 | |||||
Trade accounts payable
|
32,091 | 13,660 | ||||||
Accrued expenses and other liabilities
|
10,436 | (35,117 | ) | |||||
Income taxes
|
2,076 | 12,512 | ||||||
Other, net
|
4,636 | (2,255 | ) | |||||
Net cash provided by operating activities
|
197,937 | 48,086 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Capital Expenditures
|
(63,729 | ) | (38,564 | ) | ||||
Acquisition cost
|
(5,000 | ) | (156,636 | ) | ||||
Cash recognized on initial consolidation
|
- | 3,121 | ||||||
Net proceeds from sale of subsidiary
|
- | 55,350 | ||||||
Net cash used for investing activities
|
(68,729 | ) | (136,729 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Borrowings under revolving credit agreement
|
805,000 | 1,595,500 | ||||||
Repayments under revolving credit agreement
|
(901,000 | ) | (1,592,500 | ) | ||||
Proceeds from issuance of 2019 Senior Notes
|
- | 198,633 | ||||||
Redemption of 2012 Senior Notes
|
- | (150,000 | ) | |||||
Dividends paid
|
(12,011 | ) | (12,076 | ) | ||||
Debt issuance costs
|
- | (6,428 | ) | |||||
Acquisition of treasury stock
|
- | (25,484 | ) | |||||
Issuance of common stock under share-based plans, net
|
(1,700 | ) | 918 | |||||
Tax benefit related to share-based plans
|
944 | 1,000 | ||||||
Contributions by noncontrolling interest
|
- | 378 | ||||||
Net cash (used for) provided by financing activities
|
(108,767 | ) | 9,941 | |||||
Effect of exchange rate changes on cash and cash equivalents
|
100 | (164 | ) | |||||
Increase (decrease) in cash and cash equivalents
|
20,541 | (78,866 | ) | |||||
Cash and cash equivalents at beginning of period
|
47,682 | 126,548 | ||||||
Cash and cash equivalents at end of period
|
$ | 68,223 | $ | 47,682 |
SCHEDULE 4
|
||||||||||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||||||||||
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)
|
||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
14 Weeks Ended February 2, 2013
|
13 Weeks Ended January 28, 2012
|
|||||||||||||||||||||||
(Thousands, except per share data)
|
Pre-Tax Impact
of Charges/
Other Items
|
Net Earnings
Attributable to
Brown Shoe
Company, Inc.
|
Diluted Earnings
Per Share
|
Pre-Tax Impact
of Charges/
Other Items
|
Net (Loss) Earnings Attributable to
Brown Shoe
Company, Inc.
|
Diluted (Loss)
Earnings Per Share
|
||||||||||||||||||
GAAP earnings (loss)
|
$ | 4,039 | $ | 0.09 | $ | (8,222 | ) | $ | (0.21 | ) | ||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||
Business exits and cost reductions
|
$ | 2,942 | 1,827 | 0.05 | $ | 14,649 | 9,285 | 0.23 | ||||||||||||||||
Loss on sale of subsidiary
|
- | - | - | 935 | 1,409 | 0.04 | ||||||||||||||||||
ASG integration-related costs
|
- | - | - | 2,917 | 1,629 | 0.04 | ||||||||||||||||||
Total charges/other items
|
$ | 2,942 | 1,827 | 0.05 | $ | 18,501 | 12,323 | 0.31 | ||||||||||||||||
Adjusted earnings
|
$ | 5,866 | $ | 0.14 | $ | 4,101 | $ | 0.10 | ||||||||||||||||
53 Weeks Ended February 2, 2013
|
52 Weeks Ended January 28, 2012
|
|||||||||||||||||||||||
(Thousands, except per share data)
|
Pre-Tax Impact
of Charges/
Other Items
|
Net Earnings
Attributable to
Brown Shoe
Company, Inc.
|
Diluted Earnings
Per Share
|
Pre-Tax Impact
of Charges/
Other Items
|
Net Earnings
Attributable to
Brown Shoe
Company, Inc.
|
Diluted Earnings
Per Share
|
||||||||||||||||||
GAAP earnings
|
$ | 27,491 | $ | 0.64 | $ | 24,589 | $ | 0.56 | ||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||
Gain on sale of subsidiary
|
$ | - | - | - | $ | (20,635 | ) | (13,965 | ) | (0.32 | ) | |||||||||||||
Business exits and cost reductions
|
29,944 | 19,266 | 0.45 | 19,154 | 12,036 | 0.28 | ||||||||||||||||||
Organizational change
|
2,283 | 1,395 | 0.03 | - | - | - | ||||||||||||||||||
ASG acquisition and integration-related costs
|
675 | 441 | 0.01 | 6,457 | 4,519 | 0.11 | ||||||||||||||||||
ASG cost of goods sold adjustment (1)
|
- | - | - | 4,189 | 2,477 | 0.05 | ||||||||||||||||||
Loss on early extinguishment of debt
|
- | - | - | 1,003 | 638 | 0.02 | ||||||||||||||||||
Total charges/other items
|
$ | 32,902 | 21,102 | 0.49 | $ | 10,168 | 5,705 | 0.14 | ||||||||||||||||
Adjusted earnings
|
$ | 48,593 | $ | 1.13 | $ | 30,294 | $ | 0.70 | ||||||||||||||||
(1) In accordance with GAAP, purchase accounting rules require the company to record inventory at fair value (i.e., expected selling price less costs to sell) on the acquisition date. This results in lower than typical gross margins when the acquired inventory is sold. This adjustment reflects the elimination of the unfavorable impact of lower gross margins for ASG product sold in the first and second quarters of 2011.
|
SCHEDULE 5
|
||||||||||||||||||||||||||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT
|
||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
|||||||||||||||||||||||||||||||
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
|||||||||||||||||||||||||||||||
(Thousands)
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||||||||||||||
Net Sales
|
$ | 380,112 | $ | 352,414 | $ | 194,452 | $ | 205,102 | $ | 65,612 | $ | 71,375 | $ | - | $ | - | $ | 640,176 | $ | 628,891 | ||||||||||||||||||||
Gross Profit
|
$ | 167,376 | $ | 151,269 | $ | 58,101 | $ | 59,686 | $ | 26,222 | $ | 27,618 | $ | - | $ | - | $ | 251,699 | $ | 238,573 | ||||||||||||||||||||
Adjusted Gross Profit
|
$ | 167,376 | $ | 151,269 | $ | 58,229 | $ | 60,346 | $ | 26,305 | $ | 28,000 | $ | - | $ | - | $ | 251,910 | $ | 239,615 | ||||||||||||||||||||
Gross Profit Rate
|
44.0% | 42.9% | 29.9% | 29.1% | 40.0% | 38.7% | - | - | 39.3% | 37.9% | ||||||||||||||||||||||||||||||
Adjusted Gross Profit Rate
|
44.0% | 42.9% | 29.9% | 29.4% | 40.1% | 39.2% | - | - | 39.4% | 38.1% | ||||||||||||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 19,731 | $ | 7,864 | $ | 2,753 | $ | (1,763 | ) | $ | (1,299 | ) | $ | (924) | $ | (10,681 | ) | $ | (13,070 | ) | $ | 10,504 | $ | (7,893 | ) | |||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 19,813 | $ | 10,616 | $ | 5,315 | $ | 8,272 | $ | (1,108 | ) | $ | 69 | $ | (10,574 | ) | $ | (9,284 | ) | $ | 13,446 | $ | 9,673 | |||||||||||||||||
Operating Earnings (Loss) %
|
5.2% | 2.2% | 1.4% | (0.9%) | (2.0%) | (1.3%) | - | - | 1.6 | % | (1.0%) | |||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss) %
|
5.2% | 3.0% | 2.7% | 4.0% | (1.7%) | 0.1% | - | - | 2.1 | % | 1.5% | |||||||||||||||||||||||||||||
Same-store Sales % (on a 13-week basis)
|
4.4% | (0.8%) | - | - | (7.1%) | 4.7% | - | - | - | - | ||||||||||||||||||||||||||||||
Number of Stores
|
1,055 | 1,089 | - | - | 222 | 234 | - | - | 1,277 | 1,323 | ||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
14 Weeks Ended
|
13 Weeks Ended
|
|||||||||||||||||||||||||||||||
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
|||||||||||||||||||||||||||||||
(Thousands)
|
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Gross Profit
|
$ | 167,376 | $ | 151,269 | $ | 58,101 | $ | 59,686 | $ | 26,222 | $ | 27,618 | $ | - | $ | - | $ | 251,699 | $ | 238,573 | ||||||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Business exits and cost reductions
|
- | - | 128 | 660 | 83 | 382 | - | - | 211 | 1,042 | ||||||||||||||||||||||||||||||
Total charges/other items
|
- | - | 128 | 660 | 83 | 382 | - | - | 211 | 1,042 | ||||||||||||||||||||||||||||||
Adjusted Gross Profit
|
$ | 167,376 | $ | 151,269 | $ | 58,229 | $ | 60,346 | $ | 26,305 | $ | 28,000 | $ | - | $ | - | $ | 251,910 | $ | 239,615 | ||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 19,731 | $ | 7,864 | $ | 2,753 | $ | (1,763 | ) | $ | (1,299 | ) | $ | (924 | ) | $ | (10,681 | ) | $ | (13,070 | ) | $ | 10,504 | $ | (7,893 | ) | ||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Business exits and cost reductions
|
82 | 2,752 | 2,562 | 7,542 | 191 | 993 | 107 | 3,362 | 2,942 | 14,649 | ||||||||||||||||||||||||||||||
ASG acquisition and integration-related costs
|
- | - | - | 2,493 | - | - | - | 424 | - | 2,917 | ||||||||||||||||||||||||||||||
Total charges/other items
|
82 | 2,752 | 2,562 | 10,035 | 191 | 993 | 107 | 3,786 | 2,942 | 17,566 | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 19,813 | $ | 10,616 | $ | 5,315 | $ | 8,272 | $ | (1,108 | ) | $ | 69 | $ | (10,574 | ) | $ | (9,284 | ) | $ | 13,446 | $ | 9,673 |
SCHEDULE 5 - CONTINUED
|
||||||||||||||||||||||||||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
|||||||||||||||||||||||||||||||
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
|||||||||||||||||||||||||||||||
(Thousands)
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||||||||||||||
Net Sales
|
$ | 1,514,349 | $ | 1,456,314 | $ | 845,176 | $ | 870,873 | $ | 238,540 | $ | 255,637 | $ | - | $ | - | $ | 2,598,065 | $ | 2,582,824 | ||||||||||||||||||||
Gross Profit
|
$ | 666,094 | $ | 635,221 | $ | 245,582 | $ | 256,346 | $ | 98,683 | $ | 105,073 | $ | - | $ | - | $ | 1,010,359 | $ | 996,640 | ||||||||||||||||||||
Adjusted Gross Profit
|
$ | 666,094 | $ | 635,221 | $ | 248,309 | $ | 262,092 | $ | 99,062 | $ | 105,455 | $ | - | $ | - | $ | 1,013,465 | $ | 1,002,768 | ||||||||||||||||||||
Gross Profit Rate
|
44.0% | 43.6% | 29.1% | 29.4% | 41.4% | 41.1% | - | - | 38.9% | 38.6% | ||||||||||||||||||||||||||||||
Adjusted Gross Profit Rate
|
44.0% | 43.6% | 29.4% | 30.1% | 41.5% | 41.3% | - | - | 39.0% | 38.8% | ||||||||||||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 94,096 | $ | 62,515 | $ | 17,581 | $ | 16,739 | $ | (8,850 | ) | $ | (7,627 | ) | $ | (41,220 | ) | $ | (36,077 | ) | $ | 61,607 | $ | 35,550 | ||||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 101,865 | $ | 65,267 | $ | 35,338 | $ | 35,468 | $ | (4,755 | ) | $ | (6,634 | ) | $ | (37,939 | ) | $ | (28,751 | ) | $ | 94,509 | $ | 65,350 | ||||||||||||||||
Operating Earnings (Loss) %
|
6.2% | 4.3% | 2.1% | 1.9% | (3.7%) | (3.0%) | - | - | 2.4% | 1.4% | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss) %
|
6.7% | 4.5% | 4.2% | 4.1% | (2.0%) | (2.6%) | - | - | 3.6% | 2.5% | ||||||||||||||||||||||||||||||
Same-store Sales % (on a 52-week basis)
|
4.5% | (1.2%) | - | - | 0.6% | 1.7% | - | - | - | - | ||||||||||||||||||||||||||||||
Number of Stores
|
1,055 | 1,089 | - | - | 222 | 234 | - | - | 1,277 | 1,323 | ||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
|||||||||||||||||||||||||||||||
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
February 2,
|
January 28,
|
|||||||||||||||||||||||||||||||
(Thousands)
|
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Gross Profit
|
$ | 666,094 | $ | 635,221 | $ | 245,582 | $ | 256,346 | $ | 98,683 | $ | 105,073 | $ | - | $ | - | $ | 1,010,359 | $ | 996,640 | ||||||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Business exits and cost reductions
|
- | - | 2,727 | 1,557 | 379 | 382 | - | - | 3,106 | 1,939 | ||||||||||||||||||||||||||||||
ASG cost of good sold adjustment
|
- | - | - | 4,189 | - | - | - | - | - | 4,189 | ||||||||||||||||||||||||||||||
Total charges/other items
|
- | - | 2,727 | 5,746 | 379 | 382 | - | - | 3,106 | 6,128 | ||||||||||||||||||||||||||||||
Adjusted Gross Profit
|
$ | 666,094 | $ | 635,221 | $ | 248,309 | $ | 262,092 | $ | 99,062 | $ | 105,455 | $ | - | $ | - | $ | 1,013,465 | $ | 1,002,768 | ||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 94,096 | $ | 62,515 | $ | 17,581 | $ | 16,739 | $ | (8,850 | ) | $ | (7,627 | ) | $ | (41,220 | ) | $ | (36,077 | ) | $ | 61,607 | $ | 35,550 | ||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Business exits and cost reductions
|
7,769 | 2,752 | 17,082 | 12,047 | 4,095 | 993 | 998 | 3,362 | 29,944 | 19,154 | ||||||||||||||||||||||||||||||
Organizational change
|
- | - | - | - | - | - | 2,283 | - | 2,283 | - | ||||||||||||||||||||||||||||||
ASG acquisition and integration-related costs
|
- | - | 675 | 2,493 | - | - | - | 3,964 | 675 | 6,457 | ||||||||||||||||||||||||||||||
ASG cost of good sold adjustment
|
- | - | - | 4,189 | - | - | - | - | - | 4,189 | ||||||||||||||||||||||||||||||
Total charges/other items
|
7,769 | 2,752 | 17,757 | 18,729 | 4,095 | 993 | 3,281 | 7,326 | 32,902 | 29,800 | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 101,865 | $ | 65,267 | $ | 35,338 | $ | 35,468 | $ | (4,755 | ) | $ | (6,634 | ) | $ | (37,939 | ) | $ | (28,751 | ) | $ | 94,509 | $ | 65,350 |
SCHEDULE 6
|
||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
14 Weeks Ended
|
13 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
|||||||||||||
February 2,
|
January 28,
|
February 2,
|
January 28,
|
|||||||||||||
(Thousands, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net earnings (loss) attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Net earnings (loss) from continuing operations
|
$ | 4,003 | $ | (6,767 | ) | $ | 27,204 | $ | 8,724 | |||||||
Net loss (earnings) attributable to noncontrolling interests
|
36 | (46 | ) | 287 | 199 | |||||||||||
Net earnings allocated to participating securities
|
(199 | ) | - | (1,365 | ) | (529 | ) | |||||||||
Net earnings (loss) from continuing operations
|
3,840 | (6,813 | ) | 26,126 | 8,394 | |||||||||||
Net (loss) earnings from discontinued operations
|
- | (1,409 | ) | - | 15,666 | |||||||||||
Net earnings allocated to participating securities
|
- | - | - | (668 | ) | |||||||||||
Net (loss) earnings from discontinued operations
|
- | (1,409 | ) | - | 14,998 | |||||||||||
Net earnings (loss) attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities
|
$ | 3,840 | $ | (8,222 | ) | $ | 26,126 | $ | 23,392 | |||||||
Basic and diluted common shares attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Basic common shares for continuing operations and discontinued operations
|
40,774 | 40,098 | 40,659 | 41,126 | ||||||||||||
Dilutive effect of share-based awards for continuing operations and discontinued operations
|
335 | 570 | 135 | 542 | ||||||||||||
Diluted common shares for continuing operations and discontinued operations attributable to Brown Shoe Company, Inc.
|
41,109 | 40,668 | 40,794 | 41,668 | ||||||||||||
Basic earnings (loss) per share:
|
||||||||||||||||
From continuing operations
|
$ | 0.09 | $ | (0.17 | ) | $ | 0.64 | $ | 0.20 | |||||||
From discontinued operations
|
- | (0.04 | ) | - | 0.37 | |||||||||||
Basic earnings (loss) per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.09 | $ | (0.21 | ) | $ | 0.64 | $ | 0.57 | |||||||
Diluted earnings (loss) per share:
|
||||||||||||||||
From continuing operations
|
$ | 0.09 | $ | (0.17 | ) | $ | 0.64 | $ | 0.20 | |||||||
From discontinued operations
|
- | (0.04 | ) | - | 0.36 | |||||||||||
Diluted earnings (loss) per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.09 | $ | (0.21 | ) | $ | 0.64 | $ | 0.56 |
SCHEDULE 7
|
||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||
BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
14 Weeks Ended
|
13 Weeks Ended
|
53 Weeks Ended
|
52 Weeks Ended
|
|||||||||||||
February 2,
|
January 28,
|
February 2,
|
January 28,
|
|||||||||||||
(Thousands, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Adjusted net earnings attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Adjusted net earnings from continuing operations
|
$ | 5,830 | $ | 4,147 | $ | 48,306 | $ | 28,394 | ||||||||
Net loss (earnings) attributable to noncontrolling interests
|
36 | (46 | ) | 287 | 199 | |||||||||||
Net earnings allocated to participating securities
|
(289 | ) | (182 | ) | (2,404 | ) | (1,234 | ) | ||||||||
Adjusted net earnings from continuing operations
|
5,577 | 3,919 | 46,189 | 27,359 | ||||||||||||
Adjusted net earnings from discontinued operations
|
- | - | - | 1,701 | ||||||||||||
Net earnings allocated to participating securities
|
- | - | - | (73 | ) | |||||||||||
Net earnings from discontinued operations
|
- | - | - | 1,628 | ||||||||||||
Adjusted net earnings attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities
|
$ | 5,577 | $ | 3,919 | $ | 46,189 | $ | 28,987 | ||||||||
Basic and diluted common shares attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Basic common shares for continuing operations and discontinued operations
|
40,774 | 40,098 | 40,659 | 41,126 | ||||||||||||
Dilutive effect of share-based awards for continuing operations and discontinued operations
|
335 | 570 | 135 | 542 | ||||||||||||
Diluted common shares for continuing operations and discontinued operations attributable to Brown Shoe Company, Inc.
|
41,109 | 40,668 | 40,794 | 41,668 | ||||||||||||
Basic adjusted earnings per share:
|
||||||||||||||||
From continuing operations
|
$ | 0.14 | $ | 0.10 | $ | 1.14 | $ | 0.67 | ||||||||
From discontinued operations
|
- | - | - | 0.04 | ||||||||||||
Basic adjusted earnings per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.14 | $ | 0.10 | $ | 1.14 | $ | 0.71 | ||||||||
Diluted adjusted earnings per share:
|
||||||||||||||||
From continuing operations
|
$ | 0.14 | $ | 0.10 | $ | 1.13 | $ | 0.66 | ||||||||
From discontinued operations
|
- | - | - | 0.04 | ||||||||||||
Diluted adjusted earnings per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.14 | $ | 0.10 | $ | 1.13 | $ | 0.70 |