-----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, OJIfVgyJTQHGAKZS45GBs8+uvBPsZbclwR2dpSU9l0wC51jPxKTeAk9ShO7P6T2v yaa5VUoroXESxWAwKeeSOg== 0000276641-00-000003.txt : 20000517 0000276641-00-000003.hdr.sgml : 20000517 ACCESSION NUMBER: 0000276641-00-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000401 FILED AS OF DATE: 20000516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPIEGEL INC CENTRAL INDEX KEY: 0000276641 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CATALOG & MAIL-ORDER HOUSES [5961] IRS NUMBER: 362593917 STATE OF INCORPORATION: DE FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-16126 FILM NUMBER: 637243 BUSINESS ADDRESS: STREET 1: 3500 LACEY RD CITY: DOWNERS GROVE STATE: IL ZIP: 60515-5432 BUSINESS PHONE: 7089868800 MAIL ADDRESS: STREET 1: 3500 LACEY ROAD CITY: DOWNERS GROVE STATE: IL ZIP: 60515-5432 EX-27 1 ART. 5 FDS FOR 1ST QUARTER 10-Q
5 1,000 3-MOS DEC-30-2000 APR-01-2000 32,686 0 885,779 14,673 484,123 1,523,527 626,173 295,030 2,101,730 733,586 741,321 131,859 0 0 613,422 2,101,730 627,476 714,866 411,441 411,441 0 0 14,456 32,088 11,873 20,215 0 0 0 20,215 0.15 0.15
10-Q 2 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) /X/ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarter ended April 1, 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 0-16126 SPIEGEL, INC. (Exact name of registrant as specified in its charter) Delaware 36-2593917 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3500 Lacey Road, Downers Grove, Illinois 60515-5432 (Address of principal executive offices) (Zip Code) 630-986-8800 (Registrant's telephone number, including area code) (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 [ ] APPLICABLE ONLY TO CORPORATE ISSUERS The number of shares outstanding of each of the issuer's classes of common stock, as of May 12, 2000 are as follows: Class A non-voting common stock, $1.00 par value 14,849,244 shares Class B voting common stock, $1.00 par value 117,009,869 shares - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ SPIEGEL, INC. AND SUBSIDIARIES INDEX TO QUARTERLY REPORT ON FORM 10-Q THIRTEEN WEEKS ENDED APRIL 1, 2000 PAGE PART I - FINANCIAL INFORMATION Item 1 - Financial Statements Consolidated Balance Sheets, April 1, 2000, April 3, 1999 and January 1, 2000 3 Consolidated Statements of Earnings, Thirteen Weeks Ended April 1, 2000 and April 3, 1999 4 Consolidated Statements of Cash Flows, Thirteen Weeks Ended April 1, 2000 and April 3, 1999 5 Notes to Consolidated Financial Statements 6-7 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 8-13 Item 3 - Quantitative and Qualitative Disclosures About Market Risk 11-12 PART II - OTHER INFORMATION Item 5 - Other Information 14 2 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Spiegel, Inc. and Subsidiaries Consolidated Balance Sheets ($000s omitted, except per share amounts)
(unaudited) April 1, April 3, January 1, 2000 1999 2000 ------------ ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 32,686 $ 34,204 $ 46,023 Receivables, net 871,106 555,162 971,566 Inventories 484,123 502,985 499,413 Prepaid expenses 94,217 89,736 101,915 Refundable income taxes -- 10,877 3,830 Deferred income taxes 41,395 25,960 41,397 ------------ ------------ ------------ Total current assets 1,523,527 1,218,924 1,664,144 Property and equipment, net 331,143 349,279 333,852 Intangible assets, net 147,981 152,941 148,143 Other assets 99,079 87,945 95,901 ------------ ------------ ------------ Total assets $ 2,101,730 $ 1,809,089 $ 2,242,040 ------------ ------------ ------------ ------------ ------------ ------------ LIABILITIES and STOCKHOLDERS' EQUITY Current liabilities: Current maturities of debt $ 209,464 $ 35,714 $ 214,464 Accounts payable and other accrued liabilities 524,122 434,175 644,455 ------------ ------------ ------------ Total current liabilities 733,586 469,889 858,919 Long-term debt, excluding current maturities 531,857 684,322 566,572 Deferred income taxes 91,006 26,714 91,409 ------------ ------------ ------------ Total liabilities 1,356,449 1,180,925 1,516,900 Stockholders' equity: Class A non-voting common stock, $1.00 par value; authorized 16,000,000 shares; 14,849,244, 14,791,544 and 14,849,244 shares issued and outstanding at April 1, 2000, April 3, 1999 and January 1, 2000, respectively 14,849 14,792 14,849 Class B voting common stock, $1.00 par value; authorized 121,500,000 shares; 117,009,869 shares issued and outstanding at April 1, 2000, April 3, 1999 and January 1, 2000 117,010 117,010 117,010 Additional paid-in capital 328,984 328,712 328,984 Accumulated other comprehensive loss: Foreign currency translation adjustment (2,682) (3,913) (2,608) Retained earnings 287,120 171,563 266,905 ------------ ------------ ------------ Total stockholders' equity 745,281 628,164 725,140 ------------ ------------ ------------ Total liabilities and stockholders' equity $ 2,101,730 $ 1,809,089 $ 2,242,040 ------------ ------------ ------------ ------------ ------------ ------------
[FN] See accompanying notes to consolidated financial statements. 3 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Spiegel, Inc. and Subsidiaries Consolidated Statements of Earnings ($000s omitted, except per share amounts) (unaudited)
Thirteen Weeks Ended -------------------------- April 1, April 3, 2000 1999 ------------ ------------ Net sales and other revenues: Net sales $ 627,476 $ 564,525 Finance revenue 76,197 50,954 Other revenue 11,193 9,698 ------------ ------------ 714,866 625,177 Cost of sales and operating expenses: Cost of sales, including buying and occupancy expenses 411,441 384,255 Selling, general and administrative expenses 256,881 243,650 ------------ ------------ 668,322 627,905 ------------ ------------ Operating income (loss) 46,544 (2,728) Interest expense 14,456 14,242 ------------ ------------ Earnings (loss) before income taxes 32,088 (16,970) Income tax provision (benefit) 11,873 (6,958) ------------ ------------ Net earnings (loss) $ 20,215 $ (10,012) ------------ ------------ ------------ ------------ Net earnings (loss) per common share Basic and diluted $ 0.15 $ (0.08) ------------ ------------ ------------ ------------ Weighted average number of common shares outstanding: Basic 131,859,113 131,788,511 ------------ ------------ ------------ ------------ Diluted 131,985,828 131,892,452 ------------ ------------ ------------ ------------
[FN] See accompanying notes to consolidated financial statements. 4 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Spiegel, Inc. and Subsidiaries Consolidated Statements of Cash Flows ($000s omitted) (unaudited)
Thirteen Weeks Ended ---------------------------- April 1, April 3, 2000 1999 ------------ ------------ Cash flows from operating activities: Net earnings (loss) $ 20,215 $ (10,012) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 16,480 19,021 Net gains on sale of receivables (15,491) -- Change in assets and liabilities, net of effects of acquisition: (Increase) decrease in receivables, net 115,951 (11,016) (Increase) decrease in inventories 15,290 (12,070) Decrease in prepaid expenses 7,698 3,654 Decrease in accounts payable and accrued liabilities (123,840) (143,362) Increase (decrease) in income taxes 6,936 (7,986) ------------ ------------ Net cash provided by (used in) operating activities 43,239 (161,771) ------------ ------------ Cash flows from investing activities: Net additions to property and equipment (8,481) (4,613) Net additions to other assets (8,306) (2,807) ------------ ------------ Net cash used in investing activities (16,787) (7,420) ------------ ------------ Cash flows from financing activities: Issuance of debt 229,000 172,000 Payment of debt (268,715) (60,714) Exercise of stock options -- 267 ------------ ------------ Net cash provided by (used in) financing activities (39,715) 111,553 ------------ ------------ Effect of exchange rate on cash (74) 642 Net change in cash and cash equivalents (13,337) (56,996) Cash and cash equivalents at beginning of year 46,023 91,200 ------------ ------------ Cash and cash equivalents at end of period $ 32,686 $ 34,204 ------------ ------------ ------------ ------------ Supplemental cash flow information: Cash paid during the period for: Interest $ 10,729 $ 11,085 ------------ ------------ ------------ ------------ Income taxes $ 5,003 $ 979 ------------ ------------ ------------ ------------
[FN] See accompanying notes to consolidated financial statements. 5 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Spiegel, Inc. and Subsidiaries Notes to Consolidated Financial Statements ($000s omitted) (unaudited) (1) Basis of presentation The consolidated financial statements included herein are unaudited and have been prepared from the books and records of the Company in accordance with generally accepted accounting principles and the rules and regulations of the Securities and Exchange Commission. All adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of financial position and operating results for the interim periods are reflected. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's most recent Annual Report on Form 10-K, which includes financial statements for the year ended January 1, 2000. Due to the seasonality of the Company's business, the results for interim periods are not necessarily indicative of the results for the year. (2) Reclassifications Certain prior period amounts have been reclassified to conform with the 2000 presentation. (3) Comprehensive income The components of comprehensive income for the thirteen week periods ended April 1, 2000 and April 3, 1999 are as follows:
Thirteen Weeks Ended -------------------------- April 1, April 3, 2000 1999 ------------ ------------ Net income (loss) $ 20,215 $ (10,012) Foreign currency translation adjustment (74) 642 ------------ ------------ Comprehensive income (loss) $ 20,141 $ (9,370) ------------ ------------ ------------ ------------
6 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ (4) Accounts payable and accrued liabilities Accounts payable and accrued liabilities consist of the following:
April 1, April 3, January 1, 2000 1999 2000 ------------ ------------ ------------ Trade payables $ 154,745 $ 134,714 $ 225,859 Deposits 104,690 58,892 79,475 Gift certificates and other customer credits 42,407 36,820 49,183 Salaries, wages and employee benefits 49,622 32,642 91,377 General taxes 70,628 86,564 87,413 Allowance for future returns 24,849 21,434 34,525 Income taxes 3,507 -- -- Other liabilities 73,674 63,109 76,623 ------------ ------------ ------------ Total accounts and payable and accrued liabilities $ 524,122 $ 434,175 $ 644,455 ------------ ------------ ------------ ------------ ------------ ------------
(5) Segment reporting Segment revenues and operating profit, including a reconciliation to the Company's consolidated earnings before income taxes, follows:
Thirteen Weeks Ended --------------------------- April 1, April 3, 2000 1999 ------------ ------------- Revenue: Merchandising $ 682,227 $ 609,428 Bankcard 32,639 15,749 ------------ ------------ Total revenue $ 714,866 $ 625,177 ------------ ------------ Operating income (loss): Merchandising $ 29,899 $ (7,054) Bankcard 16,865 4,564 ------------ ------------ Total segment operating income (loss) 46,764 (2,490) Premium on acquisitions (220) (238) ------------ ------------ Total operating income (loss) 46,544 (2,728) Interest expense 14,456 14,242 ------------ ------------ Earnings (loss) before income taxes $ 32,088 $ (16,970) ------------ ------------ ------------ ------------
7 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ($000s omitted, except per share amounts) RESULTS OF OPERATIONS Net earnings for the thirteen week period ended April 1, 2000 were $20,215, or $0.15 per share basic and diluted, compared to a net loss of $10,012, or $0.08 per share, for the thirteen week period ended April 3, 1999. Net pretax gains related to the sale of receivables of $15,491 favorably impacted the first quarter 2000 results. There were no comparable gains recorded in the 1999 period. Excluding the impact of gains on the sale of receivables, first quarter net earnings increased $20,468, or $0.16 per share, over the comparable last year period. The improved performance was driven primarily by stronger customer response to merchandise offerings and gross margin improvements in the Company's merchandising segment and included a positive contribution from the bankcard segment. Merchandising segment:
Thirteen Weeks Ended -------------------------- April 1, April 3, 2000 1999 ------------ ------------ Catalog net sales $ 337,715 $ 300,407 E-commerce net sales 37,526 7,704 ------------ ------------ Total direct net sales 375,241 308,111 Retail net sales 252,235 256,414 ------------ ------------ Total net sales 627,476 564,525 Finance revenue 44,511 35,205 Other revenue 10,240 9,698 ------------ ------------ Total revenue $ 682,227 $ 609,428 ------------ ------------ Operating income (loss) $ 29,899 $ (7,054) ------------ ------------ % change Total net sales 11% 6% Comparable-store sales 0% 4% Total revenue 12% 6% ------------ ------------ Gross profit margin (% of total net sales) 34.5% 32.0% SG&A expenses (% of total revenue) 35.3% 38.1% Operating income (% of total revenue) 4.4% (1.2)% ------------ ------------
8 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Thirteen weeks ended April 1, 2000 compared to thirteen weeks ended April 3, 1999 - --------------------------------------------------------------------- Operating income for the merchandising segment increased $36,953 in the thirteen weeks ended April 1, 2000 compared to the thirteen weeks ended April 3, 1999. Eddie Bauer, Newport News and Spiegel each improved upon the prior year results, supported by profitable growth in the FCNB Preferred credit operations. Key factors contributing to the progress included improved gross margin performance on increased sales and an improved expense ratio relative to sales. Total merchandising revenue increased $72,799 in the thirteen weeks ended April 1, 2000 compared to the same period last year, driven by an 11 percent increase in net sales and a 26 percent increase in finance revenue. The net sales improvement included a 12 percent increase in total catalog net sales accompanied by a 387 percent increase in e-commerce net sales. Each merchant division achieved growth in catalog and e-commerce net sales, reflecting strong customer response to merchandise offerings on increased catalog circulation and expanded e-commerce marketing efforts. Retail net sales decreased 2 percent in the first quarter of 2000, reflecting flat Eddie Bauer comparable-store sales, a decline in outlet stores sales and the effect of financial adjustments. Finance revenue increased 26 percent in the thirteen weeks ended April 1, 2000 compared to the prior year period primarily due to an $8,643 net pretax gain recognized related to the sale of receivables as well as growth in the FCNB Preferred charge portfolio. There were no comparable gains recorded in the 1999 period. Higher sales at each merchant division accompanied by an increase in customer utilization of the private-label credit programs drove growth in the FCNB Preferred charge portfolio. Merchandising gross profit margin on net sales increased 250 basis points to 34.5 percent for the thirteen weeks ended April 1, 2000 from 32.0 percent for the comparable 1999 period. The favorable margin performance, driven by Eddie Bauer and Spiegel, resulted from stronger customer response to merchandise offerings and, in turn, lower markdowns compared to last year. The margin rate also benefited from a higher mix of apparel sales compared to last year, particularly private-label product, in addition to improvements in sourcing and inventory flows. Total inventories at quarter-end were down 4 percent compared to last year. The selling, general and administrative expense ratio benefited from the increase in revenue ending the period at 35.3 percent of total revenue compared to 38.1 percent in the comparable period last year. Ongoing cost control measures and higher productivity on catalog production costs contributed to the improvement. 9 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Bankcard segment:
Thirteen Weeks Ended --------------------------- April 1, April 3, 2000 1999 ------------ ------------ Total revenue $ 32,639 $ 15,749 Operating income $ 16,865 $ 4,564 ------------ ------------
Thirteen weeks ended April 1, 2000 compared to thirteen weeks ended April 3, 1999 - --------------------------------------------------------------------------- Bankcard revenue increased significantly in the thirteen weeks ended April 1, 2000 compared to the prior year period, driven by substantial growth in the receivable portfolio. Average bankcard receivables serviced in the first quarter increased 61 percent over the comparable period last year with a corresponding increase in average receivables sold. A higher level of receivables sold resulted in a volume-related increase in the net excess recognized as finance revenue from these off-balance-sheet receivables. The net excess was also positively impacted by a shift in the portfolio mix to lower-risk credit products which resulted in reduced delinquencies and, in turn, lower charge-off rates compared to the prior year. Net pretax gains on the sale of receivables of $6,848 were recognized in finance revenue in the first quarter of 2000. There were no comparable gains recorded in the 1999 period. Bankcard operating income improved in the first quarter of 2000 compared to the prior year period, reflecting the aforementioned increase in revenue. Contributing to the progress was the favorable impact of improved delinquency trends realized in the portfolio, offset slightly by an increase in costs associated with new customer acquisition. INTEREST EXPENSE Interest expense was $14,456 and $14,242 for the thirteen weeks ended April 1, 2000 and April 3, 1999, respectively. The slight increase in interest expense reflected higher average debt levels driven by funding requirements to support customer receivable growth, essentially offset by lower average borrowing rates. SEASONALITY AND QUARTERLY FLUCTUATIONS The Company, like other retailers, experiences seasonal fluctuations in revenue and net earnings. Historically, a significant amount of the Company's net sales and a majority of its net earnings have been realized during the fourth quarter. Accordingly, the results for the individual quarters are not necessarily indicative of the results to be expected for the entire year. 10 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ LIQUIDITY AND CAPITAL RESOURCES The Company has historically met its operating and cash requirements through funds generated from operations, the securitization of customer accounts receivable and the issuance of debt and common stock. Total customer receivables sold were $1,811,980 at April 1, 2000, $1,367,730 at April 3, 1999 and $1,639,981 at January 1, 2000. Net cash provided by operating activities totaled $43,239 for the thirteen weeks ended April 1, 2000 compared to net cash used by operating activities of $161,771 for the thirteen weeks ended April 3, 1999. The $205,010 improvement was due primarily to the securitization of customer receivables, offset somewhat by cash used to fund growth in the credit portfolios. In total, receivables and the related securitization activity increased cash provided by a net $126,967. Excluding receivables, net cash provided by operating activities increased $78,043 over the prior year period. Improved operating results and strong inventory controls drove the improvement. Total inventories at quarter-end were down 4 percent compared to last year despite an 11 percent increase in net sales. Net cash used in investing activities for the first quarter totaled $16,787 compared to $7,420 in the prior year period. Expenditures in the current year were comprised primarily of Eddie Bauer retail store expansion and remodeling, distribution facility upgrades and information technology related projects. Also included was the acquisition of Clifford & Wills, a women's apparel catalog, from J. Crew, Inc. in February 2000. Expenditures in the comparable 1999 period were primarily related to Eddie Bauer retail store expansion and remodeling. The Company believes that its cash on hand, together with cash flows anticipated to be generated from operations, borrowings under its existing credit facilities, securitizations of customer receivables and other available sources of funds, will be adequate to fund the Company's capital and operating requirements for the foreseeable future. MARKET RISK The Company is exposed to market risk from changes in interest rates, the securitization of customer receivables and, to a lesser extent, foreign currency exchange rate fluctuations. In seeking to minimize risk, the Company manages exposure through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The Company does not use financial instruments for trading or other speculative purposes and is not party to any leveraged financial instruments. Interest rates: The Company manages interest rate exposure through a mix of fixed- and variable-rate financings. The Company is generally able to meet certain targeted objectives through its direct borrowings. Substantially all of the Company's variable-rate exposure relates to changes in the one-month LIBOR rate. If the one-month LIBOR rate had changed by 50 basis points, the Company's first quarter 2000 interest expense would have changed by approximately $326. In addition, derivative financial instruments are utilized occasionally to reach the Company's targeted objectives. Interest rate swaps may be used to minimize interest rate exposure when appropriate based on market conditions. The notional principal amounts of the Company's interest rate swap agreements totaled $58,571 at April 1, 2000. The Company believes that its interest rate exposure management policies, including the use of derivative financial instruments, are adequate to limit any material market risk exposure to its consolidated financial statements at April 1, 2000. 11 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Securitizations: In conjunction with its asset-backed securitizations, the Company recognizes gains representing the present value of estimated future cash flows the Company will receive over the estimated outstanding period of the asset securitization. These future cash flows consist of an estimate of the excess of finance charges and fees over the sum of the return paid to certificate holders, contractual servicing fees, and credit losses along with the future finance charges and principal collections related to interests in the customer receivables retained by the Company. These estimates are calculated utilizing the current performance trends of the receivable portfolios. Certain estimates inherent in determining the present value of these estimated future cash flows are influenced by factors outside the Company's control, and, as a result, could materially change in the near term. Foreign currency exchange rates: The Company is subject to foreign currency exchange risk related to its Canadian operations, as well as its joint venture investments in Germany and Japan. The Company is party to certain transactions with the above joint ventures that are denominated in foreign currencies. The Company monitors the exchange rates related to these currencies on a continual basis and will enter into forward derivative contracts for foreign currency when deemed advantageous based on current pricing and historical information. The Company believes that its foreign exchange risk and the effect of this hedging activity are not material due to the size and nature of the above operations. ACCOUNTING STANDARDS Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities," establishes accounting and reporting standards for derivatives and for hedging activities. As issued, SFAS No. 133 was effective for all fiscal quarters of all fiscal years beginning after June 15, 1999. In June 1999, SFAS No. 137 was issued, effectively deferring the date of required adoption of SFAS 133 to fiscal quarters of all fiscal years beginning after June 15, 2000. The Company is studying the statement to determine its effect on the consolidated financial position or results of operations, if any. The Company will adopt SFAS No. 133, as required, in fiscal year 2001. 12 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ FORWARD-LOOKING STATEMENTS This report contains statements that are forward-looking within the meaning of applicable federal securities laws and are based upon the Company's current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Potential risks and uncertainties include, but are not limited to, factors such as the financial strength and performance of the retail and direct marketing industry, changes in consumer spending patterns, dependence on the securitization of accounts receivable to fund operations, state and federal laws and regulations related to offering and extending credit, risks associated with collections on the Company's credit card portfolios, interest rate fluctuations, postal rate increases, paper or printing costs, the success of planned merchandising, advertising, marketing and promotional campaigns, as well as other risks indicated in other filings with the Securities and Exchange Commission such as the Company's most recent Form 10-K. 13 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Spiegel, Inc. and Subsidiaries PART II - OTHER INFORMATION Item 5. Other information On April 25, 2000, the Company announced through press release the resumption of quarterly dividend payments to shareholders. The board of directors declared a quarterly dividend of four cents per share on the Company's common stock payable on May 15, 2000 to stockholders of record on May 8, 2000. 14 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SPIEGEL, INC.
Signature Title Date - ------------------------- -------------------------- ---------------- /s/ James W. Sievers Office of the President, May 16, 2000 James W. Sievers Chief Financial Officer (Principal Operating Executive Officer and Principal Financial Officer) /s/ D. Skip Behm Vice President - Controller May 16, 2000 D. Skip Behm (Principal Accounting Officer and duly authorized officer of the Registrant)
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