-----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, OcCv3s/ndC3Ts0EJtoTxCC1NrzAEg0EGd8jT5/9gJXSjmqLZIty8gtY0vSNmPast zD+YIyvvh17Fj8pYQURjiQ== 0000276641-97-000008.txt : 19970821 0000276641-97-000008.hdr.sgml : 19970821 ACCESSION NUMBER: 0000276641-97-000008 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970628 FILED AS OF DATE: 19970820 SROS: NASD 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: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-16126 FILM NUMBER: 97666721 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 10-Q/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMMISSION Washington, D.C. 20549 FORM 10-Q/A1 (Mark One) /X/ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarter ended June 28, 1997 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 August 8,1997 are as follows: Class A non-voting common stock, $1.00 par value 14,627,104 shares Class B voting common stock, $1.00 par value 103,483,298 shares. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ SPIEGEL, INC. AND SUBSIDIARIES PART I - FINANCIAL INFORMATION Item 1 - Financial Statements Consolidated Balance Sheets, June 28, 1997 and December 28, 1996 Consolidated Statements of Earnings, Three and Six Months Ended June 28, 1997 and June 29, 1996 Consolidated Statements of Cash Flows, Six Months Ended June 28, 1997 and June 29, 1996 Notes to Consolidated Financial Statements - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Consolidated Balance Sheets ($000s omitted, except per share amounts)
(unaudited) June 28, December 28, 1997 1996 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 44,398 $ 86,917 Receivables, net 380,801 485,242 Inventories 514,207 502,209 Prepaid expenses 84,106 84,634 Refundable income taxes 49,275 16,991 Deferred income taxes 35,532 35,542 ------------ ------------ Total current assets 1,108,319 1,211,535 Property and equipment, net 388,964 399,910 Intangibles, net 165,098 166,275 Other assets 189,535 167,905 ------------ ------------ Total Assets $ 1,851,916 $ 1,945,625 ------------ ------------ ------------ ------------ LIABILITIES and STOCKHOLDERS' EQUITY Current liabilities: Current maturities of debt $ 52,850 $ 89,292 Indebtedness to related parties -- 20,000 Accounts payable 172,553 270,973 Accrued liabilities: Salaries and wages 22,414 36,636 General taxes 107,360 127,170 Allowance for returns 24,474 41,691 Other accrued liabilities 97,224 109,634 ------------ ------------ Total current liabilities 476,875 695,396 ------------ ------------ Long-term debt, excluding current maturities 771,150 676,656 Indebtedness to related parties 5,000 -- Deferred income taxes 52,036 52,024 ------------ ------------ Total liabilities 1,305,061 1,424,076 Stockholders' equity: Class A non-voting common stock, $1.00 par value; authorized 16,000,000 shares; 14,624,104 shares issued and outstanding at June 28, 1997 and 14,618,404 at December 28, 1996 14,624 14,618 Class B voting common stock, $1.00 par value; authorized 104,000,000 shares; 103,483,298 shares issued and outstanding at June 28, 1997 and 93,141,654 at December 28, 1996 103,483 93,142 Additional paid-in capital 271,480 211,828 Minimum pension liability (9,365) (9,365) Retained earnings 166,633 211,326 ------------ ------------ Total stockholders' equity 546,855 521,549 ------------ ------------ Total liabilities and stockholders' equity $ 1,851,916 $ 1,945,625 ------------ ------------ ------------ ------------
[FN] See accompanying notes to consolidated financial statements. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Consolidated Statements of Earnings ($000s omitted, except per share amounts) (unaudited)
Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, 1997 1996 1997 1996 ----------- ----------- ----------- ----------- Net sales and other revenues: Net sales $ 646,090 $ 623,870 $1,215,875 $1,213,331 Finance revenue 38,715 33,266 61,243 61,607 Other revenue 11,438 11,465 20,937 28,344 ----------- ----------- ----------- ----------- 696,243 668,601 1,298,055 1,303,282 Cost of sales and operating expenses: Cost of sales, including buying and occupancy expenses 434,764 408,225 835,699 812,117 Selling, general and administrative expenses 264,844 246,465 505,584 481,096 ----------- ----------- ----------- ----------- 699,608 654,690 1,341,283 1,293,213 ----------- ----------- ----------- ----------- Operating income (loss) (3,365) 13,911 (43,228) 10,069 Interest expense 16,152 21,195 32,522 42,701 ----------- ----------- ----------- ----------- Earnings (loss) before income taxes (19,517) (7,284) (75,750) (32,632) Income benefit (6,034) (3,987) (31,058) (15,014) ----------- ----------- ----------- ----------- Net earnings (loss) $ (13,483) $ (3,297) $ (44,692) $ (17,618) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net earnings (loss) per common share $ (0.11) $ (0.03) $ (0.39) $ (0.16) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average number of common shares outstanding 118,106,457 107,746,760 114,184,116 107,746,629 ------------ ----------- ----------- ----------- ------------ ----------- ----------- -----------
[FN] See accompanying notes to consolidated financial statements. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Consolidated Statements of Cash Flows ($000s omitted) (unaudited)
Six Months Ended June 28, June 29, 1997 1996 ------------ ------------ Cash flows from operating activities Net earnings (loss) $ (44,692) $ (17,618) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 41,583 41,248 Gain on sale of receivables (19,672) -- Change in assets and liabilities: Increase (decrease) in sold customer receivables (149,734) 30,000 Decrease in receivables, net 254,175 125,855 (Increase) decrease in inventories (11,998) 49,236 Decrease in prepaid expenses 527 12,487 Decrease in accounts payable (98,419) (80,365) Decrease in accrued liabilities (63,660) (42,546) Decrease in income taxes (32,262) (13,294) ----------- ------------ Total adjustments (79,460) 122,621 ----------- ------------ Net cash provided by (used in) operating activities (124,152) 105,003 ------------ ------------ Cash flows from investing activities: Net additions to property and equipment (18,899) (18,352) Net additions to other assets (12,519) (19,312) ------------ ------------ Net cash used in investing activities (31,418) (37,664) ------------ ------------ Cash flows from financing activities: Issuance of debt 124,500 300,250 Payment of debt (81,448) (373,786) Issuance of Class B common stock 69,972 -- Exercise of stock options 27 11 ------------ ------------ Net cash provided by (used in) financing activities 113,051 (73,525) ------------ ------------ Net change in cash and cash equivalents (42,519) (6,186) Cash and cash equivalents at beginning of period 86,917 42,302 ------------ ------------ Cash and cash equivalents at end of period $ 44,398 $ 36,116 ------------ ------------ ------------ ------------ Supplemental cash flow information: Cash paid during the year for: Interest $ 32,856 $ 43,360 Income taxes $ 4,533 $ 2,077 ------------ ------------ ------------ ------------
[FN] See accompanying notes to consolidated financial statements. - ------------------------------------------------------------------------- - ------------------------------------------------------------------------- Spiegel, Inc. and Subsidiaries Notes to Consolidated Financial Statements ($000s omitted, except per share amounts) (unaudited) (1) Basis of Presentation The consolidated financial statements at June 28, 1997 are unaudited and have been prepared from the books and records of the registrant 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 registrant's most recent Annual Report on Form 10-K, which includes financial statements for the year ended December 28, 1996. Due to the seasonality of the registrant'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 to the current presentation. (3) Indebtedness to related parties In the second quarter of 1997, the Company made the final $20,000 principal payment on the loan from the Company's majority shareholder, Spiegel Holdings, Inc., which existed as of December 28, 1996. In addition, the Company replaced $20,000 of the $25,000 loan from 3 Suisses BVG (a wholly owned subsidiary of Otto Versand) received in the first quarter of 1997 with a term loan from an unrelated party. As of June 28, 1997, the total indebtedness to related parties outstanding was $5,000, bearing interest at a variable rate based on LIBOR plus a margin, due in its entirety in August, 1999. (4) Issuance of Class B common stock On March 7, 1997, the Company issued 10,341,644 shares of Class B voting common stock to its majority shareholder, Spiegel Holdings, Inc. The net proceeds of $69,972 are being used primarily to fund capital needs, including the continued expansion of Eddie Bauer. (5) Gains on sale of customer receivables In 1997, the Company implemented Statement of Financial Accounting Standards No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities". Due to the revolving nature of sales of customer receivables held by trusts, a pretax gain of $19,672 was recognized under the provisions of this new accounting standard in the second quarter. This gain is recorded as Finance Revenue in the Consolidated Statements of Earnings. - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- 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 Senior Vice President August 19, 1997 James W. Sievers (Chief Financial Officer) /s/ D. L. Skip Behm Vice President - Controller August 19, 1997 D. L. Skip Behm (Chief Accounting Officer)
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