-----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, Nlh88KuJdwRSmzIkSxXOpt3/Mk/zg7UPTL4dgRAgmXnA8l7FrOHKNuSORbl2LByE yuz9rW+uHmz0LYPp/ASsnA== 0000950144-00-014805.txt : 20001212 0000950144-00-014805.hdr.sgml : 20001212 ACCESSION NUMBER: 0000950144-00-014805 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001028 FILED AS OF DATE: 20001211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CATO CORP CENTRAL INDEX KEY: 0000018255 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-WOMEN'S CLOTHING STORES [5621] IRS NUMBER: 560484485 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-03747 FILM NUMBER: 786388 BUSINESS ADDRESS: STREET 1: 8100 DENMARK ROAD CITY: CHARLOTTE STATE: NC ZIP: 28273-5975 BUSINESS PHONE: 7045548510 MAIL ADDRESS: STREET 1: 8100 DENMARK ROAD CITY: CHARLOTTE STATE: NC ZIP: 28273-5975 FORMER COMPANY: FORMER CONFORMED NAME: CATO STORES INC DATE OF NAME CHANGE: 19701002 10-Q 1 g65918e10-q.txt THE CATO CORPORATION AND SUBSIDIARIES 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2000 ------------------------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________to__________________ Commission file number 0-3747 ------------------------------------- THE CATO CORPORATION AND SUBSIDIARIES ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 56-0484485 ------------------------------------------------------ (State or other jurisdiction (I.R.S. Employer of incorporation) Identification No.) 8100 Denmark Road, Charlotte, North Carolina 28273-5975 ------------------------------------------------------- (Address of principal executive offices) (Zip Code) (704) 554-8510 ---------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable ---------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] As of November 14, 2000, there were 19,538,223 shares of Class A Common Stock and 5,364,317 shares of Class B Common Stock outstanding. 2 THE CATO CORPORATION FORM 10-Q OCTOBER 28, 2000 TABLE OF CONTENTS Page No. ---- PART I - FINANCIAL INFORMATION (UNAUDITED) Condensed Consolidated Statements of Income 2 For the Three Months and Nine Months Ended October 28, 2000 and October 30, 1999 Condensed Consolidated Balance Sheets 3 At October 28, 2000, October 30, 1999 and January 29, 2000 Condensed Consolidated Statements of Cash Flows 4 For the Nine Months Ended October 28, 2000 and October 30, 1999 Notes to Condensed Consolidated Financial Statements 5 - 7 For the Three Months and Nine Months Ended October 28, 2000 and October 30, 1999 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 - 11 PART II - OTHER INFORMATION 12 - 13 3 Page 2 PART I FINANCIAL INFORMATION THE CATO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED NINE MONTHS ENDED ---------------------------- ---------------------------- OCTOBER 28, October 30, OCTOBER 28, October 30, 2000 1999 2000 1999 (UNAUDITED) (Unaudited) (UNAUDITED) (Unaudited) ------------- ------------- -------------- ------------ (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) REVENUES Retail sales $ 136,856 $ 127,367 $ 462,385 $ 429,196 Other income (principally finance and layaway charges) 4,764 4,990 15,157 14,844 ------------- ------------- -------------- ------------ Total revenues 141,620 132,357 477,542 444,040 ------------- ------------- -------------- ------------ COSTS AND EXPENSES Cost of goods sold 97,429 90,247 312,768 290,364 Selling, general and administrative 35,014 34,485 110,890 105,525 Depreciation 2,320 2,202 7,075 6,334 Interest 15 5 32 16 ------------- ------------- -------------- ------------ Total expenses 134,778 126,939 430,765 402,239 ------------- ------------- -------------- ------------ INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 6,842 5,418 46,777 41,801 Income tax expense 2,395 1,896 16,372 14,630 ------------- ------------- -------------- ------------ INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 4,447 3,522 30,405 27,171 CUMULATIVE EFFECT OF ACCOUNTING CHANGE, NET OF TAX ($79) -- -- -- 147 ------------- ------------- -------------- ------------ NET INCOME $ 4,447 $ 3,522 $ 30,405 $ 27,318 ============= ============= ============== ============ BASIC EARNINGS PER SHARE $ .18 $ .13 $ 1.22 $ 1.03 ============= ============= ============== ============ DILUTED EARNINGS PER SHARE $ .18 $ .13 $ 1.20 $ 1.01 ============= ============= ============== ============ DIVIDENDS PER SHARE $ .10 $ .075 $ .30 $ .205 ============= ============= ============== ============
See accompanying notes to condensed consolidated financial statements. 4 Page 3 THE CATO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
OCTOBER 28, October 30, January 29, 2000 1999 2000 (UNAUDITED) (Unaudited) --------------- --------------- --------------- (DOLLARS IN THOUSANDS) ASSETS Current Assets Cash and cash equivalents $ 6,940 $ 26,502 $ 30,389 Short-term investments 58,888 54,347 56,886 Accounts receivable - net 44,598 44,126 45,458 Merchandise inventories 94,734 90,355 69,497 Deferred income taxes 3,796 3,969 4,093 Prepaid expenses 1,780 1,520 2,494 --------------- --------------- --------------- Total Current Assets 210,736 220,819 208,817 Property and Equipment - net 82,236 67,032 69,338 Other Assets 8,442 6,524 7,634 --------------- --------------- --------------- Total $ 301,414 $ 294,375 $ 285,789 =============== =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 63,415 $ 62,209 $ 54,707 Accrued expenses 22,477 24,358 24,392 Income taxes 4,312 5,250 4,730 --------------- --------------- --------------- Total Current Liabilities 90,204 91,817 83,829 Deferred Income Taxes 5,550 5,801 5,806 Other Noncurrent Liabilities 7,930 7,413 7,374 Stockholders' Equity Preferred Stock, $100 par value per share, 100,000 shares authorized, none issued -- -- -- Class A Common Stock, $.033 par value per share, 50,000,000 shares authorized; issued 24,296,971 shares, 24,163,587 shares and 24,173,480 shares at October 28, 2000, October 30, 1999 and January 29, 2000, respectively 810 805 805 Convertible Class B Common Stock, $.033 par value per share, 15,000,000 shares authorized; issued 5,364,317 shares, 5,264,317 shares and 5,364,317 shares at October 28, 2000, October 30, 1999 and January 29, 2000, respectively 179 176 179 Additional paid-in capital 73,034 70,640 71,974 Retained earnings 169,651 142,230 146,881 Accumulated Other Comprehensive Loss (1,458) (1,108) (1,801) Unearned Compensation - Restricted Stock Awards (763) -- (984) --------------- --------------- --------------- 241,453 212,743 217,054 Less Class A Common Stock in treasury, at cost (4,759,148 shares at October 28, 2000, 2,883,948 shares at October 30, 1999 and 3,290,348 shares at January 29, 2000, respectively) (43,723) (23,399) (28,274) --------------- --------------- --------------- Total Stockholders' Equity 197,730 189,344 188,780 --------------- --------------- --------------- Total $ 301,414 $ 294,375 $ 285,789 =============== =============== ===============
See accompanying notes to condensed consolidated financial statements. 5 Page 4 THE CATO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED -------------------------------------------- OCTOBER 28, October 30, 2000 1999 (UNAUDITED) (Unaudited) -------------------------------------------- (DOLLARS IN THOUSANDS) OPERATING ACTIVITIES Net income $ 30,405 $ 27,318 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 7,075 6,334 Amortization of investment premiums 101 138 Compensation expense related to restricted stock award 221 -- Loss on disposal of property and equipment 881 405 Changes in operating assets and liabilities which provided (used) cash: Accounts receivable 860 410 Merchandise inventories (25,237) (29,243) Other assets (94) 500 Accrued income taxes (418) 5,053 Accounts payable and other liabilities 7,391 14,353 ----------------- ---------------- Net cash provided by operating activities 21,185 25,268 ----------------- ---------------- INVESTING ACTIVITIES Expenditures for property and equipment (20,854) (19,032) Purchases of short-term investments (9,447) (20,013) Sales of short-term investments 7,687 5,619 ----------------- ---------------- Net cash used in investing activities (22,614) (33,426) ----------------- ---------------- FINANCING ACTIVITIES Dividends paid (7,636) (5,454) Purchases of treasury stock (15,449) (4,697) Proceeds from employee stock purchase plan 445 436 Proceeds from stock options exercised 620 307 ----------------- ---------------- Net cash used in financing activities (22,020) (9,408) ----------------- ---------------- Net Decrease in Cash and Cash Equivalents (23,449) (17,566) Cash and Cash Equivalents at Beginning of Period 30,389 44,068 ----------------- ---------------- Cash and Cash Equivalents at End of Period $ 6,940 $ 26,502 ================= ================
See accompanying notes to condensed consolidated financial statements. 6 Page 5 THE CATO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS AND NINE MONTHS ENDED OCTOBER 28, 2000 AND OCTOBER 30, 1999 - -------------------------------------------------------------------------------- NOTE 1 - GENERAL: The consolidated financial statements have been prepared from the accounting records of The Cato Corporation and its wholly-owned subsidiaries (the Company), and all amounts shown at October 28, 2000 and October 30, 1999 are unaudited. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of the interim period may not be indicative of the entire year. The interim financial statements should be read in conjunction with the financial statements and notes thereto, included in the Company's Annual Report in Form 10-K for the fiscal year ended January 29, 2000. The Company's short-term investments are classified as available-for-sale securities, and therefore, are carried at fair value, with unrealized gains and losses, net of income taxes, reported as a component of other comprehensive income. Total comprehensive income for the third quarter and nine months ended October 28, 2000 was $4,636,000 and $30,748,000, respectively. Total comprehensive income for the third quarter and nine months ended October 30, 1999 was $3,277,000 and $25,986,000, respectively. Total comprehensive income is composed of net income and net unrealized gains and losses on available-for-sale securities. Merchandise inventories are stated at the lower of cost (first-in, first-out method) or market as determined by the retail inventory method. In the first quarter of fiscal 2000, the Company repurchased 1,468,800 shares of Class A Common Stock for $15,449,000, or an average price of $10.52 per share. In the first quarter of fiscal 1999, the Company repurchased 569,000 shares of Class A Common Stock for $4,577,000, or an average price of $8.04 per share. In March 1999, the Company transferred 63,000 shares of Class A Common Stock from treasury stock to its Employee Stock Ownership Plan as the contribution for the fiscal year ended January 30, 1999. The provisions for income taxes are based on the Company's estimated annual effective tax rate. Effective for fiscal 1999, the Company changed its policy for recognizing revenues related to layaway sales to comply with the Securities and Exchange Commissions Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" (SAB 101). Revenues for layaway sales and related fees are recognized when the layaway merchandise is delivered to the customer. Previously, revenues were recognized at the time of the sale. The Company accounted for the adoption of SAB 101 as a change in accounting principle and recorded a cumulative effect in the first quarter of fiscal 1999. The cumulative effect of this accounting 7 Page 6 THE CATO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS AND NINE MONTHS ENDED OCTOBER 28, 2000 AND OCTOBER 30, 1999 - -------------------------------------------------------------------------------- NOTE 1 - GENERAL CONTINUED: change resulted in an increase in net income of $147,000, net of income tax of $79,000, or $.01 per share. This increase was driven by the release of the Company's layaway reserve, which slightly exceeded the associated margin on previously recognized layaway sales. The proforma effect of retroactive application of the accounting change on fiscal 1998 is immaterial to the financial statements. NOTE 2 - EARNINGS PER SHARE: Earnings per share is calculated by dividing net income by the weighted-average number of Class A and Class B common shares outstanding during the respective periods. The weighted-average shares outstanding is used in the basic earnings per share calculation, while the weighted-average shares and equivalents outstanding is used in the diluted earnings per share calculation.
THREE MONTHS ENDED NINE MONTHS ENDED -------------------------------- -------------------------------- OCTOBER 28, October 30, OCTOBER 28, October 30, 2000 1999 2000 1999 -------------- --------------- -------------- --------------- Weighted-average shares outstanding (basic) 24,865,073 26,523,490 24,980,060 26,559,736 Dilutive effect of stock options 415,829 579,744 396,733 469,030 -------------- ------------- -------------- --------------- Weighted-average shares and equivalents outstanding (diluted) 25,280,902 27,103,234 25,376,793 27,028,766 ============== =============== ============== ===============
NOTE 3 - SUPPLEMENTAL CASH FLOW INFORMATION: Income tax payments, net of refunds received, for the nine months ended October 28, 2000 and October 30, 1999 were $17,435,000 and $10,021,000, respectively. NOTE 4 - FINANCING ARRANGEMENTS: At October 28, 2000, the Company had an unsecured revolving credit agreement which provides for borrowings of up to $35 million. The revolving credit agreement is committed until July 2003. The credit agreement contains various financial covenants and limitations, including the maintenance of specific financial ratios. The Company was in compliance with all financial covenants and ratios and there were no borrowings outstanding under the agreement at October 28, 2000, October 30, 1999 or January 29, 2000. 8 Page 7 THE CATO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS AND NINE MONTHS ENDED OCTOBER 28, 2000 AND OCTOBER 30, 1999 - -------------------------------------------------------------------------------- NOTE 5 - REPORTABLE SEGMENT INFORMATION: The Company has two reportable segments: retail and credit. The following schedule summarizes certain segment information (in thousands):
THREE MONTHS ENDED NINE MONTHS ENDED --------------------------------- ---------------------------------- OCTOBER 28, October 30, OCTOBER 28, October 30, 2000 1999 2000 1999 -------------- ---------------- --------------- ---------------- Revenues: Retail $ 138,142 $ 129,438 $ 467,421 $ 435,396 Credit 3,478 2,919 10,121 8,644 ============= ============ ============ ============= Total $ 141,620 $ 132,357 $ 477,542 $ 444,040 ============= ============ ============ ============= Income before taxes and cumulative effect of accounting change: Retail $ 5,591 $ 4,250 $ 43,356 $ 38,773 Credit 1,251 1,168 3,421 3,028 ============= ============ ============ ============= Total $ 6,842 $ 5,418 $ 46,777 $ 41,801 ============= ============ ============ =============
9 Page 8 THE CATO CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - -------------------------------------------------------------------------------- RESULTS OF OPERATIONS The following table sets forth, for the periods indicated, certain items in the Company's unaudited Condensed Consolidated Statements of Income as a percentage of total retail sales:
THREE MONTHS ENDED NINE MONTHS ENDED ------------------------------ ------------------------------- OCTOBER 28, October 30, OCTOBER 28, October 30, 2000 1999 2000 1999 -------------- -------------- -------------- --------------- Total retail sales 100.0% 100.0% 100.0% 100.0% Total revenues 103.5 103.9 103.3 103.4 Cost of goods sold 71.2 70.9 67.7 67.6 Selling, general and administrative 25.6 27.0 24.0 24.6 Income before income taxes 5.0 4.3 10.1 9.7 Net income 3.2 2.8 6.6 6.3
COMPARISON OF THIRD QUARTER AND FIRST NINE MONTHS OF 2000 WITH 1999. OPERATING RESULTS Total retail sales for the third quarter were $136.9 million compared to last year's third quarter sales of $127.4 million, a 7% increase. Same-store sales increased 2% in the third quarter. For the nine months ended October 28, 2000, total retail sales were $462.4 million compared to last year's first nine months sales of $429.2 million, an 8% increase, and same-store sales increased 1% for the comparable nine month period. The increase in retail sales for the first nine months of 2000 resulted from the Company's continued everyday low pricing strategy, improved merchandise offerings, and an increase in store development activity. The Company operated 847 stores at October 28, 2000 compared to 794 stores at the end of last year's third quarter. Other income for the third quarter decreased 5% over the prior year's comparable period. The decrease in the third quarter resulted primarily from a reduction of interest income. Cost of goods sold were 71.2% and 67.7% of total retail sales for the third quarter and first nine months of 2000, respectively, compared to 70.9% and 67.6% for last year's comparable three and nine month periods. The slight increase in cost of goods sold as a percentage of retail sales for the third quarter was attributable to an increase in freight and distribution costs. 10 Page 9 THE CATO CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - -------------------------------------------------------------------------------- OPERATING RESULTS - CONTINUED Selling, general and administrative (SG&A) expenses were $35.0 million and $110.9 million for the third quarter and first nine months of this year, compared to $34.5 million and $105.5 million for last year's comparable three and nine month periods, respectively. SG&A expenses as a percentage of retail sales for the third quarter and first nine months of 2000 declined 140 and 60 basis points, respectively, over the prior year as expenses remained well controlled and under plan. Effective for fiscal 1999, the Company changed its policy for recognizing revenues related to layaway sales to comply with the Securities and Exchange Commissions Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" (SAB 101). Revenues for layaway sales and related fees are recognized when the layaway merchandise is delivered to the customer. Previously, revenues were recognized at the time of the sale. The Company accounted for the adoption of SAB 101 as a change in accounting principle and recorded a cumulative effect in the first quarter of fiscal 1999. The cumulative effect of this accounting change resulted in an increase in net income of $147,000, net of income tax of $79,000, or $.01 per share. This increase was driven by the release of the Company's layaway reserve, which slightly exceeded the associated margin on previously recognized layaway sales. The proforma effect of retroactive application of the accounting change on fiscal 1998 is immaterial to the financial statements. LIQUIDITY AND CAPITAL RESOURCES At October 28, 2000, the Company had working capital of $120.5 million, compared to $129.0 million at October 30, 1999 and $125.0 million at January 29, 2000. Cash provided by operating activities was $21.2 million for the nine months ended October 28, 2000, compared to $25.3 million for last year's comparable nine month period. The decrease resulted primarily from a decrease in the change of accounts payable and other liabilities and accrued income taxes offset by a decrease in the change of merchandise inventories and an increase in net income. At October 28, 2000, the Company had cash, cash equivalents, and short-term investments of $65.8 million, compared to $80.8 million at October 30, 1999 and $87.3 million at January 29, 2000. Net cash used in investing activities totaled $22.6 million for the first nine months of 2000 compared to $33.4 million for the comparable period of 1999. Cash was used primarily to fund capital expenditures for new, relocated and remodeled stores and for new technology. The decrease in cash used was primarily related to a decrease in purchases of short-term investments in fiscal 2000 as compared to fiscal 1999. Expenditures for property and equipment totaled $20.9 million for the nine months ended October 28, 2000, compared to $19.0 million of expenditures in last year's first nine months. The Company expects total capital expenditures to be approximately $28 million for the current 11 Page 10 THE CATO CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - -------------------------------------------------------------------------------- LIQUIDITY AND CAPITAL RESOURCES - CONTINUED fiscal year. The Company intends to open approximately 65 new stores, relocate 32 stores, remodel 100 stores and close 13 stores during the current fiscal year. For the nine months ended October 28, 2000, the Company had opened 47 new stores, relocated 29 stores, remodeled 80 stores and closed nine stores. Net cash used in financing activities totaled $22.0 million for the first nine months of 2000 compared to $9.4 million for the comparable period of 1999. The increase was due primarily from its share buyback program and an increase in dividends paid in fiscal 2000 as compared to fiscal 1999. At October 28, 2000, the Company had an unsecured revolving credit agreement which provides for borrowings of up to $35 million. The revolving credit agreement is committed until July 2003. The credit agreement contains various financial covenants and limitations, including the maintenance of specific financial ratios. The Company was in compliance with all financial covenants and ratios and there were no borrowings outstanding under the agreement at October 28, 2000, October 30, 1999 or January 29, 2000. In February 2000, the Board of Directors increased the quarterly dividend by 33% from $.075 per share to $.10 per share. In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities". In June 2000, the FASB issued SFAS No. 138, which amended certain provisions of SFAS 133. The Company will adopt SFAS 133 and the corresponding amendments under SFAS 138 on February 4, 2001. The Company has performed an inventory of embedded derivatives and does not believe that it has any derivatives (embedded or otherwise) that would have to be disclosed and fair valued under SFAS 133, as amended by SFAS 138. This statement should have no impact on the Company's consolidated results of operations and financial position. At October 28, 2000, October 30, 1999 and January 29, 2000, the Company's investment portfolio consisted of governmental debt securities with maturities of up to 36 months. These securities are classified as available-for-sale, and are recorded on the balance sheet at fair value with unrealized gains and losses reported as accumulated other comprehensive loss. The Company believes that its cash, cash equivalents and short-term investments, together with cash flows from operations and borrowings available under its revolving credit agreement, will be adequate to fund the Company's proposed capital expenditures and other operating requirements during fiscal 2000. 12 Page 11 THE CATO CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - -------------------------------------------------------------------------------- LIQUIDITY AND CAPITAL RESOURCES - CONTINUED Form 10-Q includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical facts included in the Form 10-Q and located elsewhere herein regarding the Company's financial position and business strategy may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. 13 Page 12 PART II OTHER INFORMATION THE CATO CORPORATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS None ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) None (B) No Reports on Form 8-K were filed during the quarter ended October 28, 2000. 14 Page 13 PART II OTHER INFORMATION (CONTINUED) THE CATO CORPORATION 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 thereunto duly authorized. THE CATO CORPORATION December 6, 2000 /s/ Wayland H. Cato, Jr. - -------------------------- -------------------------------------- Date Wayland H. Cato, Jr. Chairman of the Board December 6, 2000 /s/ John P. Derham Cato - -------------------------- -------------------------------------- Date John P. Derham Cato Vice Chairman of the Board President and Chief Executive Officer December 6, 2000 /s/ Michael O. Moore - -------------------------- -------------------------------------- Date Michael O. Moore Executive Vice President Chief Financial Officer and Secretary December 6, 2000 /s/ Robert M. Sandler - -------------------------- -------------------------------------- Date Robert M. Sandler Senior Vice President Controller EX-27 2 g65918ex27.txt FINANCIAL DATA SCHEDULE
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND INCOME STATEMENT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS FEB-03-2001 OCT-28-2000 6,940 58,888 49,919 5,321 94,734 210,736 145,881 63,646 301,414 90,204 0 0 0 989 197,730 301,414 462,385 477,542 312,768 312,768 0 2,516 32 46,777 16,372 30,405 0 0 0 30,405 1.22 1.20
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