-----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, HwjdgS0/lKCT30XQI6Nhi+EjodDvnqSxbkJT2TWx9/PpPlHZIohvoxRvNrgYXmCL wwMF31KD/Z1SraKkcsNJSQ== 0000950134-03-012856.txt : 20030918 0000950134-03-012856.hdr.sgml : 20030918 20030918121113 ACCESSION NUMBER: 0000950134-03-012856 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030916 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030918 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PIER 1 IMPORTS INC/DE CENTRAL INDEX KEY: 0000278130 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES [5700] IRS NUMBER: 751729843 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07832 FILM NUMBER: 03900903 BUSINESS ADDRESS: STREET 1: 301 COMMERCE ST STE 600 CITY: FORT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8178788000 MAIL ADDRESS: STREET 1: 301 COMMERCE STREET STREET 2: SUITE 600 CITY: FORT WORTH STATE: TX ZIP: 76102 FORMER COMPANY: FORMER CONFORMED NAME: PIER 1 INC DATE OF NAME CHANGE: 19860921 FORMER COMPANY: FORMER CONFORMED NAME: PIER 1 IMPORTS INC/GA DATE OF NAME CHANGE: 19840729 FORMER COMPANY: FORMER CONFORMED NAME: NEWCORP INC DATE OF NAME CHANGE: 19800423 8-K 1 d09122e8vk.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Date of Report (Date of earliest event reported) September 16, 2003 PIER 1 IMPORTS, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-7832 75-1729843 - ------------------------------- ---------------- ---------------------- (State or other jurisdiction of (Commission File (I.R.S. Employer incorporation or organization) Number) Identification Number) 301 Commerce Street, Suite 600, Fort Worth, Texas 76102 - -------------------------------------------------------------------------------- (Address of principal executive offices, including zip code) (817) 252-8000 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits. Exhibit No. Description 99.1 Press release dated September 16, 2003 containing the financial results for the second quarter ended August 30, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION The information contained in this Current Report is being furnished pursuant to "Item 12. Results of Operations and Financial Condition". The information in this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed to be filed for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. On September 16, 2003, Pier 1 Imports, Inc. (the "Company") issued a press release announcing the Company's financial results for the second quarter ended August 30, 2003. A copy of this press release is attached hereto as Exhibit 99.1. 2 SIGNATURES 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 hereunto duly authorized. PIER 1 IMPORTS, INC. Date: September 17, 2003 By: /s/ J. Rodney Lawrence ------------------ -------------------------------- J. Rodney Lawrence, Executive Vice President and Secretary 3 EXHIBIT INDEX
Exhibit No. Description 99.1 Press release dated September 16, 2003 containing the financial results for the second quarter ended August 30, 2003.
4 EX-99.1 3 d09122exv99w1.txt PRESS RELEASE Exhibit 99.1 FORT WORTH, TEXAS, September 16, 2003 - Pier 1 Imports, Inc. (NYSE:PIR) today reported diluted earnings per share of $0.20 for the second quarter ended August 30, 2003, compared to $0.23 per diluted share for the year-ago period, in line with the Company's September 4th guidance. Net income was $18,436,000, compared to last year's net income of $22,073,000. Sales for the second quarter were $427,831,000, a 4.1% increase over last year's $410,902,000, and second fiscal quarter comparable store sales declined by 4.2%. For the six months ended August 30, 2003, diluted earnings per share amounted to $0.41, compared to $0.46 per diluted share for the year-ago period. Net income for the six months was $37,498,000, compared to last year's $44,254,000 for the six-month period. Sales for the fiscal 2004 first six months amounted to $830,543,000, up 4.4% from $795,331,000 for the year ago period. Comparable store sales declined 3.8% for the six-month period that ended August 30, 2003. As previously reported, projections for comparable store sales in September continue to be in a range of -2% to -5%, and third quarter comparable store sales are projected to be in a range of flat to -4%, resulting in third quarter diluted earnings estimates of $0.28 to $0.33 per share for the three months ending November 29, 2003. Fiscal 2004 fourth quarter diluted earnings are projected to be in a range of $0.62 to $0.66 per share. Marvin J. Girouard, the Company's Chairman and Chief Executive Officer, said, "Traffic and transactions were down, and average ticket grew during the second quarter over the year-ago period. Although the macroeconomic environment improved slowly throughout the summer, our customer traffic counts remained below last year. Merchandise margins during the second quarter increased over last year, primarily due to less clearance activity versus the year-ago period. Gross profit as a percentage of sales was lower during the second quarter compared to last year due to the effect of fixed store occupancy costs on negative comparable store sales for the period. Additionally, de-leveraging occurred on fixed selling, general and administrative expenses during the second quarter. "At the beginning of this year, due to global unrest and uncertain domestic economic conditions, we were intentionally conservative on inventories, which in hindsight cost us planned sales. We now have accelerated orders and encouraged vendors to ship early or on time in order to build inventories and increase the level of new, exciting merchandise in stores. In addition, we will closely evaluate our marketing initiatives for the future. Beginning in September and continuing throughout the fall and holiday season, our plans include increasing the frequency of newspaper inserts, featuring distinct well-priced promotional merchandise for each event. "Our balance sheet improved with cash balances at the end of the quarter of $186 million, up $36 million from last year's second quarter cash balances of $150 million. In the second quarter, we repurchased 1.1 million shares of Pier 1 stock at a cost of $21.1 million. Through the first six months of fiscal 2004 that ended August 30, 2003, we repurchased 2.2 million shares, or $41.6 million of Pier 1 Common Stock, with $112.4 million remaining in our share repurchase program." The Company will host a conference call to discuss fiscal 2004 second quarter earnings at 10:00 a.m. Central Time today. A web cast is available on our website at www.pier1.com linking through to the "About Us" page and the "Investing" page, or you can dial into the conference at 706-643-0435, ID number 2418962. The teleconference will be held in a "listen-only" mode for all participants other than the Company's current sell-side and buy-side investment professionals. The replay will be available at about 12:00 pm (Central) for 24 hours and replay access can be dialed at 800-642-1687 or if international dial 706-645-9291 and reference the conference ID number 2418962. Any forward-looking projections or statements made in this press release should be considered in conjunction with the cautionary statements contained in the Company's most recently filed Form 10-Q for fiscal year 2004. Management's expectations and assumptions regarding planned store openings, financing of Company obligations from operations and other future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Risks and uncertainties that may affect Company operations and performance include, among others, the effects of terrorist attacks or other acts of war, conflicts or war involving the United States or its allies or trading partners, labor strikes, weather conditions that may affect sales, volatility of fuel and utility costs, the general strength of the economy and levels of consumer spending, consumer confidence, the availability of new sites for expansion along with sufficient labor to facilitate growth, the strength of new home construction and sales of existing homes, the availability and proper functioning of technology and communications systems supporting the Company's key business processes, the ability of the Company to import merchandise from foreign countries without significantly restrictive tariffs, duties or quotas and the ability of the Company to source, ship and deliver items from foreign countries to its U.S. distribution centers at reasonable prices and rates and in a timely fashion. The Company assumes no obligation to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied will not be realized. Pier 1 Imports, Inc. is North America's largest specialty retailer of imported decorative home furnishings and gifts with Pier 1 Imports(R) stores in 50 states, Puerto Rico, Canada, and Mexico; The Pier(R) stores in the United Kingdom; and Cargokids(R). (Financial Tables Follow) Pier 1 Imports, Inc. COMPARATIVE OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED AUGUST 30, 2003 AND AUGUST 31, 2002 (in thousands except per share amounts)
Three Months Ended Six Months Ended August 30, August 31, August 30, August 31, 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Net Sales $ 427,831 $ 410,902 $ 830,543 $ 795,331 ========== ========== ========== ========== Net Income $ 18,436 $ 22,073 $ 37,498 $ 44,254 ========== ========== ========== ========== Earnings Per Share: Basic $ 0.21 $ 0.24 $ 0.42 $ 0.47 ========== ========== ========== ========== Diluted $ 0.20 $ 0.23 $ 0.41 $ 0.46 ========== ========== ========== ==========
Pier 1 Imports, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share amounts) (unaudited)
Three Months Ended Six Months Ended August 30, August 31, August 30, August 31, 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Net sales $ 427,831 $ 410,902 $ 830,543 $ 795,331 Operating costs and expenses: Cost of sales (including buying and store occupancy costs) 258,719 245,973 493,234 466,409 Selling, general and administrative expenses 127,725 118,612 253,503 236,945 Depreciation and amortization 12,263 11,329 24,424 22,060 ---------- ---------- ---------- ---------- 398,707 375,914 771,161 725,414 ---------- ---------- ---------- ---------- Operating income 29,124 34,988 59,382 69,917 Nonoperating (income) and expenses: Interest and investment income (524) (699) (1,161) (1,536) Interest expense 385 645 1,022 1,203 ---------- ---------- ---------- ---------- (139) (54) (139) (333) ---------- ---------- ---------- ---------- Income before income taxes 29,263 35,042 59,521 70,250 Provision for income taxes 10,827 12,969 22,023 25,996 ---------- ---------- ---------- ---------- Net income $ 18,436 $ 22,073 $ 37,498 $ 44,254 ========== ========== ========== ========== Earnings per share: Basic $ 0.21 $ 0.24 $ 0.42 $ 0.47 ========== ========== ========== ========== Diluted $ 0.20 $ 0.23 $ 0.41 $ 0.46 ========== ========== ========== ========== Average shares outstanding during period: Basic 89,410 93,032 89,778 93,370 ========== ========== ========== ========== Diluted 91,622 95,471 91,910 96,042 ========== ========== ========== ==========
Pier 1 Imports, Inc. CONSOLIDATED BALANCE SHEETS (in thousands except per share amounts)
August 30, March 1, August 31, 2003 2003 2002 ---------- ---------- ----------- (unaudited) (unaudited) ASSETS Current assets: Cash, including temporary investments of $175,685, $225,882 and $137,919, respectively $ 185,888 $ 242,114 $ 149,513 Beneficial interest in securitized receivables 41,856 40,538 40,831 Other accounts receivable, net 10,939 11,420 12,494 Inventories 369,215 333,350 357,252 Prepaid expenses and other current assets 44,129 36,179 40,482 ---------- ---------- ---------- Total current assets 652,027 663,601 600,572 Properties, net 245,118 254,503 233,497 Other noncurrent assets 50,373 49,383 47,144 ---------- ---------- ---------- $ 947,518 $ 967,487 $ 881,213 ========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 6,000 $ 393 $ 388 Accounts payable 94,434 76,742 90,346 Gift cards, gift certificates and merchandise credits outstanding 39,273 37,924 31,061 Accrued income taxes payable 1,446 25,798 12,263 Other accrued liabilities 91,936 102,732 76,920 ---------- ---------- ---------- Total current liabilities 233,089 243,589 210,978 Long-term debt 19,000 25,000 25,000 Other noncurrent liabilities 60,134 54,962 47,073 Shareholders' equity: Common stock, $1.00 par, 500,000,000 shares authorized, 100,779,000 issued 100,779 100,779 100,779 Paid-in capital 144,456 144,247 144,052 Retained earnings 564,728 539,776 464,808 Cumulative other comprehensive loss (1,222) (2,210) (2,797) Less -- 11,806,000, 10,045,000 and 8,426,000 common shares in treasury, at cost, respectively (173,446) (138,656) (108,680) ---------- ---------- ---------- 635,295 643,936 598,162 ---------- ---------- ---------- $ 947,518 $ 967,487 $ 881,213 ========== ========== ==========
Pier 1 Imports, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
Six Months Ended August 30, August 31, 2003 2002 ---------- ---------- Cash flow from operating activities: Net income $ 37,498 $ 44,254 Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 30,830 26,642 Loss on disposal of fixed assets 417 448 Deferred compensation 4,453 2,967 Tax benefit from options exercised by employees 1,312 4,498 Other 2,395 559 Changes in cash from: Inventories (35,865) (81,819) Other accounts receivable and other current assets (4,841) (6,126) Accounts payable and accrued expenses 7,545 21,917 Accrued income taxes payable (24,352) (17,475) Other noncurrent assets (1,014) (542) Other noncurrent liabilities (500) (500) ---------- ---------- Net cash provided by (used in) operating activities 17,878 (5,177) ---------- ---------- Cash flow from investing activities: Capital expenditures (46,387) (46,598) Proceeds from disposition of properties 23,506 629 Beneficial interest in securitized receivables (1,918) 3,789 ---------- ---------- Net cash used in investing activities (24,799) (42,180) ---------- ---------- Cash flow from financing activities: Cash dividends (12,546) (9,356) Purchases of treasury stock (41,554) (40,161) Proceeds from stock options exercised, stock purchase plan and other, net 5,185 11,142 Repayments of long-term debt (390) (364) ---------- ---------- Net cash used in financing activities (49,305) (38,739) ---------- ---------- Change in cash and cash equivalents (56,226) (86,096) Cash and cash equivalents at beginning of period 242,114 235,609 ---------- ---------- Cash and cash equivalents at end of period $ 185,888 $ 149,513 ========== ==========
Contact: Pier 1 Imports, Inc., Fort Worth Cary Turner, 817-252-8400 -----END PRIVACY-ENHANCED MESSAGE-----