BROWN SHOE COMPANY, INC.
(Exact name of registrant as specified in its charter)
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New York
(State or other jurisdiction of incorporation or organization)
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1-2191
(Commission File Number)
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43-0197190
(IRS Employer Identification Number)
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8300 Maryland Avenue
St. Louis, Missouri
(Address of principal executive offices)
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63105
(Zip Code)
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(314) 854-4000
(Registrant's telephone number, including area code)
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(c)
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Exhibit
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99.1
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Press Release issued November 26, 2013
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BROWN SHOE COMPANY, INC.
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||
(Registrant)
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||
Date: November 26, 2013
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/s/ Michael I. Oberlander
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Michael I. Oberlander
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||
Senior Vice President, General Counsel and Corporate Secretary
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Exhibit Number
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Description
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99.1
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Press Release dated November 26, 2013
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News
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Contacts: | ||
Investors | ||
Peggy Reilly Tharp, Brown Shoe Company | ||
(314) 854-4134, ptharp@brownshoe.com | ||
Media | ||
Kelly Malone, Brown Shoe Company | ||
(314) 854-4093, kmalone@brownshoe.com |
US$M, except per share (unaudited)
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13 Weeks
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3Q
|
|
3Q’13
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3Q’12
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Change
|
|
Consolidated net sales
|
$702.8
|
$696.0
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1.0%
|
Famous Footwear
|
439.6
|
436.8
|
0.6%
|
Wholesale Operations
|
205.3
|
196.4
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4.5%
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Specialty Retail
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57.9
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62.8
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(7.8%)
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Gross profit
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278.2
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279.3
|
(0.4%)
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Margin
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39.6%
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40.1%
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(50 bps)
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SG&A
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233.5
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236.2
|
(1.1%)
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% of net sales
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33.2%
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33.9%
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(70 bps)
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Restructuring and other special charges, net
|
–
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2.1
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n/m
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Operating earnings
|
44.7
|
41.0
|
9.0%
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% of net sales
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6.4%
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5.9%
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50 bps
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Net interest expense
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5.1
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5.3
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(3.8%)
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Earnings from continuing operations before income taxes
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39.5
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35.7
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10.9%
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Tax rate
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31.6%
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32.0%
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(40 bps)
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Net earnings (loss) from discontinued operations
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0.2
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–
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n/m
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Net earnings (loss)
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$27.3
|
$24.3
|
12.4%
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Per diluted share
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$0.63
|
$0.56
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12.5%
|
Adjusted net earnings
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$27.3
|
$25.9
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5.5%
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Per diluted share
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$0.63
|
$0.60
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5.0%
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Metric
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FY’13
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Consolidated net sales
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$2.53 to $2.54 billion
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Famous Footwear same-store sales
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Up low-single digits
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Wholesale Operations net sales
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Up mid-single digits for continuing operations
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Gross profit margin
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Up approximately 10 basis points for continuing operations
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SG&A
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$910 to $915 million
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Non-recurring costs
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$31 million
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Net interest expense
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$21 to $22 million
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Effective tax rate, on adjusted basis
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31% to 32%
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Earnings per diluted share
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$0.82 to $0.86
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Adjusted earnings per diluted share
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$1.36 to $1.40
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Depreciation and amortization
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$54 to $56 million
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Capital expenditures
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$54 to $56 million
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SCHEDULE 1
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||||||||||||||||
BROWN SHOE COMPANY, INC.
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||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
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||||||||||||||||
(Unaudited)
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(Unaudited)
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|||||||||||||||
13 Weeks Ended
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39 Weeks Ended
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|||||||||||||||
(Thousands, except per share data)
|
November 2,
2013
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October 27,
2012
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November 2,
2013
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October 27,
2012
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||||||||||||
Net sales
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$ | 702,788 | $ | 695,985 | $ | 1,913,150 | $ | 1,859,061 | ||||||||
Cost of goods sold
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424,548 | 416,650 | 1,140,268 | 1,117,818 | ||||||||||||
Gross profit
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278,240 | 279,335 | 772,882 | 741,243 | ||||||||||||
Selling and administrative expenses
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233,572 | 236,196 | 678,522 | 659,377 | ||||||||||||
Restructuring and other special charges, net
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– | 2,146 | 1,262 | 19,660 | ||||||||||||
Impairment of assets held for sale
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– | – | 4,660 | – | ||||||||||||
Operating earnings
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44,668 | 40,993 | 88,438 | 62,206 | ||||||||||||
Interest expense
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(5,254 | ) | (5,398 | ) | (16,167 | ) | (17,079 | ) | ||||||||
Interest income
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132 | 76 | 282 | 236 | ||||||||||||
Earnings before income taxes from continuing operations
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39,546 | 35,671 | 72,553 | 45,363 | ||||||||||||
Income tax provision
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(12,495 | ) | (11,418 | ) | (24,522 | ) | (15,275 | ) | ||||||||
Net earnings from continuing operations
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27,051 | 24,253 | 48,031 | 30,088 | ||||||||||||
Discontinued operations:
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||||||||||||||||
Earnings (loss) from discontinued operations, net of tax (expense) benefit of ($114), $19, $6,057 and $4,565, respectively
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233 | 34 | (4,784 | ) | (6,887 | ) | ||||||||||
Impairment of net assets/disposition of discontinued operations
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– | – | (11,512 | ) | – | |||||||||||
Net earnings (loss) from discontinued operations
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233 | 34 | (16,296 | ) | (6,887 | ) | ||||||||||
Net earnings
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27,284 | 24,287 | 31,735 | 23,201 | ||||||||||||
Net loss attributable to noncontrolling interests
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(30 | ) | (5 | ) | (174 | ) | (251 | ) | ||||||||
Net earnings attributable to Brown Shoe Company, Inc.
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$ | 27,314 | $ | 24,292 | $ | 31,909 | $ | 23,452 | ||||||||
Basic earnings (loss) per common share:
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||||||||||||||||
From continuing operations
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$ | 0.63 | $ | 0.57 | $ | 1.13 | $ | 0.72 | ||||||||
From discontinued operations
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– | – | (0.39 | ) | (0.17 | ) | ||||||||||
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||||||||||||||||
Basic earnings per common share attributable to Brown Shoe Company, Inc. shareholders
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$ | 0.63 | $ | 0.57 | $ | 0.74 | $ | 0.55 | ||||||||
Diluted earnings (loss) per common share:
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||||||||||||||||
From continuing operations
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$ | 0.62 | $ | 0.56 | $ | 1.12 | $ | 0.72 | ||||||||
From discontinued operations
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0.01 | - | (0.39 | ) | (0.17 | ) | ||||||||||
Diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders
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$ | 0.63 | $ | 0.56 | $ | 0.73 | $ | 0.55 | ||||||||
Basic number of shares
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41,447 | 40,745 | 41,288 | 40,618 | ||||||||||||
Diluted number of shares
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41,766 | 40,935 | 41,571 | 40,721 |
SCHEDULE 2
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BROWN SHOE COMPANY, INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||||||
(Unaudited)
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||||||||||||
(Thousands)
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November 2, 2013
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October 27, 2012
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February 2, 2013
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|||||||||
ASSETS
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||||||||||||
Cash and cash equivalents
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$ | 42,406 | $ | 40,884 | $ | 68,223 | ||||||
Receivables, net
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112,491 | 113,519 | 111,392 | |||||||||
Inventories, net
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544,589 | 512,206 | 503,688 | |||||||||
Prepaid expenses and other current assets
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52,234 | 30,511 | 42,016 | |||||||||
Current assets - discontinued operations
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181 | 56,365 | 47,109 | |||||||||
Total current assets
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751,901 | 753,485 | 772,428 | |||||||||
Property and equipment, net
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148,182 | 139,982 | 144,856 | |||||||||
Goodwill and intangible assets, net
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75,181 | 81,219 | 79,703 | |||||||||
Other assets
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111,647 | 134,664 | 119,695 | |||||||||
Non current assets - discontinued operations
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– | 54,754 | 54,577 | |||||||||
Total assets
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$ | 1,086,911 | $ | 1,164,104 | $ | 1,171,259 | ||||||
LIABILITIES AND EQUITY
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||||||||||||
Borrowings under revolving credit agreement
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$ | – | $ | 110,000 | $ | 105,000 | ||||||
Trade accounts payable
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200,706 | 173,856 | 213,660 | |||||||||
Other accrued expenses
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151,142 | 145,687 | 137,190 | |||||||||
Current liabilities - discontinued operations
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2,110 | 13,935 | 13,259 | |||||||||
Total current liabilities
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353,958 | 443,478 | 469,109 | |||||||||
Long-term debt
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198,963 | 198,773 | 198,823 | |||||||||
Deferred rent
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37,548 | 30,714 | 33,711 | |||||||||
Other liabilities
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44,483 | 51,999 | 36,719 | |||||||||
Non current liabilities - discontinued operations
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– | 7,203 | 6,996 | |||||||||
Total other liabilities
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280,994 | 288,689 | 276,249 | |||||||||
Total Brown Shoe Company, Inc. shareholders’ equity
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451,301 | 431,138 | 425,129 | |||||||||
Noncontrolling interests
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658 | 799 | 772 | |||||||||
Total equity
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451,959 | 431,937 | 425,901 | |||||||||
Total liabilities and equity
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$ | 1,086,911 | $ | 1,164,104 | $ | 1,171,259 |
SCHEDULE 3
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||||||||
BROWN SHOE COMPANY, INC.
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||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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||||||||
39 Weeks Ended
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||||||||
(Thousands)
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November 2, 2013
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October 27, 2012
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||||||
OPERATING ACTIVITIES:
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||||||||
Net earnings
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$ | 31,735 | $ | 23,201 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
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||||||||
Depreciation and amortization
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41,114 | 40,457 | ||||||
Amortization of debt issuance costs and debt discount
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1,885 | 1,885 | ||||||
Share-based compensation expense
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4,066 | 4,776 | ||||||
Tax benefit related to share-based plans
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(2,581 | ) | (889 | ) | ||||
Loss on disposal of facilities and equipment
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960 | 2,177 | ||||||
Impairment charges for facilities and equipment
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1,072 | 2,481 | ||||||
Impairment of assets held for sale
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4,660 | - | ||||||
Impairment of intangible assets
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- | 5,777 | ||||||
Impairment of net assets/disposition of discontinued operations
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11,512 | - | ||||||
Net loss on sale of subsidiaries
|
576 | - | ||||||
Deferred rent
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3,837 | (1,647 | ) | |||||
Provision for doubtful accounts
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388 | 398 | ||||||
Changes in operating assets and liabilities, net of dispositions:
|
||||||||
Receivables
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(385 | ) | 15,063 | |||||
Inventories
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(41,180 | ) | 22,523 | |||||
Prepaid expenses and other current and noncurrent assets
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(6,748 | ) | 17,852 | |||||
Trade accounts payable
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(12,933 | ) | (7,213 | ) | ||||
Accrued expenses and other liabilities
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23,848 | 18,113 | ||||||
Other, net
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159 | (1,431 | ) | |||||
Net cash provided by operating activities
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61,985 | 143,523 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
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(41,603 | ) | (44,517 | ) | ||||
Proceeds from sale of subsidiaries, net of cash balance of $4,370
|
69,347 | - | ||||||
Acquisition cost
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- | (5,000 | ) | |||||
Net cash provided by (used for) investing activities
|
27,744 | (49,517 | ) | |||||
FINANCING ACTIVITIES:
|
||||||||
Borrowings under revolving credit agreement
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966,000 | 582,000 | ||||||
Repayments under revolving credit agreement
|
(1,071,000 | ) | (673,000 | ) | ||||
Dividends paid
|
(9,073 | ) | (9,007 | ) | ||||
Issuance of common stock under share-based plans, net
|
(2,406 | ) | (1,860 | ) | ||||
Tax benefit related to share-based plans
|
2,581 | 889 | ||||||
Net cash used for financing activities
|
(113,898 | ) | (100,978 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
|
(1,648 | ) | 174 | |||||
Decrease in cash and cash equivalents
|
(25,817 | ) | (6,798 | ) | ||||
Cash and cash equivalents at beginning of period
|
68,223 | 47,682 | ||||||
Cash and cash equivalents at end of period
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$ | 42,406 | $ | 40,884 |
SCHEDULE 4
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||||||||||||||||||||||||
BROWN SHOE COMPANY, INC.
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||||||||||||||||||||||||
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) | |||||||||||||||||||||||
13 Weeks Ended November 2, 2013
|
13 Weeks Ended October 27, 2012
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|||||||||||||||||||||||
(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
|
$ | 27,314 | $ | 0.63 | $ | 24,292 | $ | 0.56 | ||||||||||||||||
Charges/Other Items - Continuing Operations:
|
||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||
Business exits and cost reductions
|
$ | – | – | – | $ | 2,282 | 1,425 | 0.04 | ||||||||||||||||
Charges/Other Items - Discontinued Operations:
|
||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||
Business exits and cost reductions
|
– | – | – | 274 | 180 | – | ||||||||||||||||||
Total charges/other items
|
$ | – | $ | – | $ | – | $ | 2,556 | $ | 1,605 | 0.04 | |||||||||||||
Adjusted earnings
|
$ | 27,314 | $ | 0.63 | $ | 25,897 | $ | 0.60 | ||||||||||||||||
39 Weeks Ended November 2, 2013
|
39 Weeks Ended October 27, 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
|
$ | 31,909 | $ | 0.73 | $ | 23,452 | $ | 0.55 | ||||||||||||||||
Charges/Other Items - Continuing Operations:
|
||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||
Business exits and cost reductions
|
$ | 1,262 | 803 | 0.02 | $ | 18,872 | 12,440 | 0.29 | ||||||||||||||||
Non-cash impairments/dispositions
|
4,660 | 4,660 | 0.11 | – | – | – | ||||||||||||||||||
Organizational change
|
– | – | – | 2,283 | 1,395 | 0.03 | ||||||||||||||||||
Total Continuing Operations
|
5,922 | 5,463 | 0.13 | 21,155 | 13,835 | 0.32 | ||||||||||||||||||
Charges/Other Items - Discontinued Operations:
|
||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||
Business exits and cost reductions
|
13,233 | 6,414 | 0.13 | 8,130 | 4,999 | 0.12 | ||||||||||||||||||
Non-cash impairments/dispositions
|
11,512 | 11,512 | 0.28 | – | – | – | ||||||||||||||||||
ASG integration-related costs
|
– | – | – | 675 | 441 | 0.01 | ||||||||||||||||||
Total Discontinued Operations
|
24,745 | 17,926 | 0.41 | 8,805 | 5,440 | 0.13 | ||||||||||||||||||
Total charges/other items
|
$ | 30,667 | 23,389 | 0.54 | $ | 29,960 | 19,275 | 0.45 | ||||||||||||||||
Adjusted earnings
|
$ | 55,298 | $ | 1.27 | $ | 42,727 | $ | 1.00 |
SCHEDULE 4
|
||||||||||||||||||||||||||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT
|
||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
13 Weeks Ended
|
13 Weeks Ended
|
13 Weeks Ended
|
13 Weeks Ended
|
13 Weeks Ended
|
||||||||||||||||||||||||||||||||||||
(Thousands)
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
||||||||||||||||||||||||||||||
Net Sales
|
$ | 439,605 | $ | 436,812 | $ | 205,269 | $ | 196,371 | $ | 57,914 | $ | 62,802 | $ | – | $ | – | $ | 702,788 | $ | 695,985 | ||||||||||||||||||||
Gross Profit
|
$ | 187,286 | $ | 186,659 | $ | 65,177 | $ | 64,725 | $ | 25,777 | $ | 27,951 | $ | – | $ | – | $ | 278,240 | $ | 279,335 | ||||||||||||||||||||
Adjusted Gross Profit
|
$ | 187,286 | $ | 186,659 | $ | 65,177 | $ | 64,761 | $ | 25,777 | $ | 28,051 | $ | – | $ | – | $ | 278,240 | $ | 279,471 | ||||||||||||||||||||
Gross Profit Rate
|
42.6% | 42.7% | 31.8% | 33.0% | 44.5% | 44.5% | – | – | 39.6% | 40.1% | ||||||||||||||||||||||||||||||
Adjusted Gross Profit Rate
|
42.6% | 42.7% | 31.8% | 33.0% | 44.5% | 44.7% | – | – | 39.6% | 40.2% | ||||||||||||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 37,047 | $ | 35,525 | $ | 16,782 | $ | 15,169 | $ | 221 | $ | 1,771 | $ | (9,382 | ) | $ | (11,472 | ) | $ | 44,668 | $ | 40,993 | ||||||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 37,047 | $ | 35,881 | $ | 16,782 | $ | 16,641 | $ | 221 | $ | 2,138 | $ | (9,382 | ) | $ | (11,385 | ) | $ | 44,668 | $ | 43,275 | ||||||||||||||||||
Operating Earnings (Loss) %
|
8.4% | 8.1% | 8.2% | 7.7% | 0.4% | 2.8% | – | – | 6.4% | 5.9% | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss) %
|
8.4% | 8.2% | 8.2% | 8.5% | 0.4% | 3.4% | – | – | 6.4% | 6.2% | ||||||||||||||||||||||||||||||
Same-store Sales % (on a 13-week basis)
|
4.9% | 6.8% | – | – | 0.6% | 8.4% | – | – | – | – | ||||||||||||||||||||||||||||||
Number of Stores
|
1,048 | 1,061 | – | – | 185 | 223 | – | – | 1,233 | 1,284 | ||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
13 Weeks Ended
|
13 Weeks Ended
|
13 Weeks Ended
|
13 Weeks Ended
|
13 Weeks Ended
|
||||||||||||||||||||||||||||||||||||
(Thousands)
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
||||||||||||||||||||||||||||||
Gross Profit
|
$ | 187,286 | $ | 186,659 | $ | 65,177 | $ | 64,725 | $ | 25,777 | $ | 27,951 | $ | – | $ | – | $ | 278,240 | $ | 279,335 | ||||||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Business exits and cost reductions
|
– | – | – | 36 | – | 100 | – | – | – | 136 | ||||||||||||||||||||||||||||||
Total charges/other items
|
– | – | - | 36 | – | 100 | – | – | – | 136 | ||||||||||||||||||||||||||||||
Adjusted Gross Profit
|
$ | 187,286 | $ | 186,659 | $ | 65,177 | $ | 64,761 | $ | 25,777 | $ | 28,051 | $ | – | $ | – | $ | 278,240 | $ | 279,471 | ||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 37,047 | $ | 35,525 | $ | 16,782 | $ | 15,169 | $ | 221 | $ | 1,771 | $ | (9,382 | ) | $ | (11,472 | ) | $ | 44,668 | $ | 40,993 | ||||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Business exits and cost reductions
|
– | 356 | – | 1,472 | – | 367 | – | 87 | – | 2,282 | ||||||||||||||||||||||||||||||
Total charges/other items
|
– | 356 | – | 1,472 | – | 367 | – | 87 | – | 2,282 | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 37,047 | $ | 35,881 | $ | 16,782 | $ | 16,641 | $ | 221 | $ | 2,138 | $ | (9,382 | ) | $ | (11,385 | ) | $ | 44,668 | $ | 43,275 |
SCHEDULE 5 - CONTINUED
|
||||||||||||||||||||||||||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT
|
||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
39 Weeks Ended
|
39 Weeks Ended
|
39 Weeks Ended
|
39 Weeks Ended
|
39 Weeks Ended
|
||||||||||||||||||||||||||||||||||||
(Thousands)
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
November 2,
2013
|
October 27,
2012
|
||||||||||||||||||||||||||||||
Net Sales
|
$ | 1,180,143 | $ | 1,134,237 | $ | 567,334 | $ | 551,896 | $ | 165,673 | $ | 172,928 | $ | – | $ | – | $ | 1,913,150 | $ | 1,859,061 | ||||||||||||||||||||
Gross Profit
|
$ | 523,022 | $ | 498,718 | $ | 178,859 | $ | 170,064 | $ | 71,001 | $ | 72,461 | $ | – | $ | – | $ | 772,882 | $ | 741,243 | ||||||||||||||||||||
Adjusted Gross Profit
|
$ | 523,022 | $ | 498,718 | $ | 178,859 | $ | 171,263 | $ | 71,001 | $ | 72,757 | $ | – | $ | – | $ | 772,882 | $ | 742,738 | ||||||||||||||||||||
Gross Profit Rate
|
44.3% | 44.0% | 31.5% | 30.8% | 42.9% | 41.9% | – | – | 40.4% | 39.9% | ||||||||||||||||||||||||||||||
Adjusted Gross Profit Rate
|
44.3% | 44.0% | 31.5% | 31.0% | 42.9% | 42.1% | – | – | 40.4% | 40.0% | ||||||||||||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 95,057 | $ | 74,365 | $ | 28,085 | $ | 25,833 | $ | (2,934 | ) | $ | (7,551 | ) | $ | (31,770 | ) | $ | (30,441 | ) | $ | 88,438 | $ | 62,206 | ||||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 95,057 | $ | 82,052 | $ | 33,991 | $ | 32,321 | $ | (2,934 | ) | $ | (3,647 | ) | $ | (31,754 | ) | $ | (27,365 | ) | $ | 94,360 | $ | 83,361 | ||||||||||||||||
Operating Earnings (Loss) %
|
8.1% | 6.6% | 5.0% | 4.7% | (1.8%) | (4.4%) | – | – | 4.6% | 3.3% | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss) %
|
8.1% | 7.2% | 6.0% | 5.9% | (1.8%) | (2.1%) | – | – | 4.9% | 4.5% | ||||||||||||||||||||||||||||||
Same-store Sales % (on a 39-week basis)
|
4.3% | 4.6% | – | – | 1.7 | % | 3.2% | – | – | – | – | |||||||||||||||||||||||||||||
Number of Stores
|
1,048 | 1,061 | – | – | 185 | 223 | – | – | 1,233 | 1,284 | ||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
|
||||||||||||||||||||||||||||||||||||||||
Famous Footwear
|
Wholesale Operations
|
Specialty Retail
|
Other
|
Consolidated
|
||||||||||||||||||||||||||||||||||||
39 Weeks Ended
|
39 Weeks Ended
|
39 Weeks Ended
|
39 Weeks Ended
|
39 Weeks Ended
|
||||||||||||||||||||||||||||||||||||
November 2,
|
October 27,
|
November 2,
|
October 27,
|
November 2,
|
October 27,
|
November 2,
|
October 27,
|
November 2,
|
October 27,
|
|||||||||||||||||||||||||||||||
(Thousands)
|
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Gross Profit
|
$ | 523,022 | $ | 498,718 | $ | 178,859 | $ | 170,064 | $ | 71,001 | $ | 72,461 | $ | – | $ | – | $ | 772,882 | $ | 741,243 | ||||||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Business exits and cost reductions
|
– | – | – | 1,199 | – | 296 | – | – | – | 1,495 | ||||||||||||||||||||||||||||||
Total charges/other items
|
– | – | – | 1,199 | – | 296 | - | – | – | 1,495 | ||||||||||||||||||||||||||||||
Adjusted Gross Profit
|
$ | 523,022 | $ | 498,718 | $ | 178,859 | $ | 171,263 | $ | 71,001 | $ | 72,757 | $ | – | $ | – | $ | 772,882 | $ | 742,738 | ||||||||||||||||||||
Operating Earnings (Loss)
|
$ | 95,057 | $ | 74,365 | $ | 28,085 | $ | 25,833 | $ | (2,934 | ) | $ | (7,551 | ) | $ | (31,770 | ) | $ | (30,441 | ) | $ | 88,438 | $ | 62,206 | ||||||||||||||||
Charges/Other Items:
|
||||||||||||||||||||||||||||||||||||||||
Portfolio realignment
|
||||||||||||||||||||||||||||||||||||||||
Non-cash impairment charges
|
– | – | 4,660 | – | – | – | – | – | 4,660 | – | ||||||||||||||||||||||||||||||
Business exits and cost reductions
|
– | 7,687 | 1,246 | 6,488 | – | 3,904 | 16 | 793 | 1,262 | 18,872 | ||||||||||||||||||||||||||||||
Organizational change
|
– | – | – | – | – | – | – | 2,283 | – | 2,283 | ||||||||||||||||||||||||||||||
Total charges/other items
|
- | 7,687 | 5,906 | 6,488 | - | 3,904 | 16 | 3,076 | 5,922 | 21,155 | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings (Loss)
|
$ | 95,057 | $ | 82,052 | $ | 33,991 | $ | 32,321 | $ | (2,934 | ) | $ | (3,647 | ) | $ | (31,754 | ) | $ | (27,365 | ) | $ | 94,360 | $ | 83,361 |
SCHEDULE 6
|
||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION
|
||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
13 Weeks Ended
|
39 Weeks Ended
|
|||||||||||||||
November 2,
|
October 27,
|
November 2,
|
October 27,
|
|||||||||||||
(Thousands, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net earnings attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Net earnings from continuing operations
|
$ | 27,051 | $ | 24,253 | $ | 48,031 | $ | 30,088 | ||||||||
Net loss attributable to noncontrolling interests
|
30 | 5 | 174 | 251 | ||||||||||||
Net earnings allocated to participating securities
|
(1,097 | ) | (1,210 | ) | (1,386 | ) | (1,166 | ) | ||||||||
Net earnings from continuing operations
|
25,984 | 23,048 | 46,819 | 29,173 | ||||||||||||
Net earnings (loss) from discontinued operations
|
233 | 34 | (16,296 | ) | (6,887 | ) | ||||||||||
Net earnings allocated to participating securities
|
(9 | ) | (2 | ) | – | – | ||||||||||
Net earnings (loss) from discontinued operations
|
224 | 32 | (16,296 | ) | (6,887 | ) | ||||||||||
Net earnings attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities
|
$ | 26,208 | $ | 23,080 | $ | 30,523 | $ | 22,286 | ||||||||
Basic and diluted common shares attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Basic common shares for continuing operations and discontinued operations
|
41,447 | 40,745 | 41,288 | 40,618 | ||||||||||||
Dilutive effect of share-based awards for continuing operations and discontinued operations
|
319 | 190 | 283 | 103 | ||||||||||||
Diluted common shares for continuing operations and discontinued operations attributable to Brown Shoe Company, Inc.
|
41,766 | 40,935 | 41,571 | 40,721 | ||||||||||||
Basic earnings (loss) per common share:
|
||||||||||||||||
From continuing operations
|
$ | 0.63 | $ | 0.57 | $ | 1.13 | $ | 0.72 | ||||||||
From discontinued operations
|
– | – | (0.39 | ) | (0.17 | ) | ||||||||||
Basic earnings per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.63 | $ | 0.57 | $ | 0.74 | $ | 0.55 | ||||||||
Diluted earnings (loss) per common share:
|
||||||||||||||||
From continuing operations
|
$ | 0.62 | $ | 0.56 | $ | 1.12 | $ | 0.72 | ||||||||
From discontinued operations
|
0.01 | - | (0.39 | ) | (0.17 | ) | ||||||||||
Diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.63 | $ | 0.56 | $ | 0.73 | $ | 0.55 |
SCHEDULE 7
|
||||||||||||||||
BROWN SHOE COMPANY, INC.
|
||||||||||||||||
BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION
|
||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
13 Weeks Ended
|
39 Weeks Ended
|
|||||||||||||||
November 2,
|
October 27,
|
November 2,
|
October 27,
|
|||||||||||||
(Thousands, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Adjusted net earnings attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Adjusted net earnings from continuing operations
|
$ | 27,051 | $ | 25,678 | $ | 53,493 | $ | 43,923 | ||||||||
Net loss attributable to noncontrolling interests
|
30 | 5 | 174 | 251 | ||||||||||||
Net earnings allocated to participating securities
|
(1,097 | ) | (1,281 | ) | (2,336 | ) | (2,114 | ) | ||||||||
Adjusted net earnings from continuing operations
|
25,984 | 24,402 | 51,331 | 42,060 | ||||||||||||
Adjusted net earnings (loss) from discontinued operations
|
233 | 214 | 1,630 | (1,447 | ) | |||||||||||
Net earnings allocated to participating securities
|
(9 | ) | (11 | ) | (71 | ) | – | |||||||||
Net earnings (loss) from discontinued operations
|
224 | 203 | 1,559 | (1,447 | ) | |||||||||||
Adjusted net earnings attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities
|
$ | 26,208 | $ | 24,605 | $ | 52,890 | $ | 40,613 | ||||||||
Basic and diluted common shares attributable to Brown Shoe Company, Inc.:
|
||||||||||||||||
Basic common shares for continuing operations and discontinued operations
|
41,447 | 40,745 | 41,288 | 40,618 | ||||||||||||
Dilutive effect of share-based awards for continuing operations and discontinued operations
|
319 | 190 | 283 | 103 | ||||||||||||
Diluted common shares for continuing operations and discontinued operations attributable to Brown Shoe Company, Inc.
|
41,766 | 40,935 | 41,571 | 40,721 | ||||||||||||
Basic adjusted earnings (loss) per common share:
|
||||||||||||||||
From continuing operations
|
$ | 0.63 | $ | 0.60 | $ | 1.24 | $ | 1.04 | ||||||||
From discontinued operations
|
– | – | 0.04 | (0.04 | ) | |||||||||||
Basic adjusted earnings per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.63 | $ | 0.60 | $ | 1.28 | $ | 1.00 | ||||||||
Diluted adjusted earnings (loss) per common share:
|
||||||||||||||||
From continuing operations
|
$ | 0.62 | $ | 0.60 | $ | 1.23 | $ | 1.04 | ||||||||
From discontinued operations
|
0.01 | – | 0.04 | (0.04 | ) | |||||||||||
Diluted adjusted earnings per common share attributable to Brown Shoe Company, Inc. shareholders
|
$ | 0.63 | $ | 0.60 | $ | 1.27 | $ | 1.00 |