-----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, HxvkkE9XVEHVwJoHbzY2oXqKlaOD0Y7os2fAc0/zr5yoS3HlP/xcp1Zx6OPvEDCt VT2XC93YkrhIn319pCP3/w== 0001157523-03-002477.txt : 20030618 0001157523-03-002477.hdr.sgml : 20030618 20030618143035 ACCESSION NUMBER: 0001157523-03-002477 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030617 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030618 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: 03748612 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 a4418153.txt PIER 1 IMPORTS 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) June 17, 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 number) (I.R.S. Employer incorporation or organization) 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 June 17, 2003 containing the financial results for the first quarter ended May 31, 2003. Item 9. Regulation FD Disclosure The information contained in this Item 9 of this Current Report is being furnished pursuant to "Item 12. Results of Operations and Financial Condition" in accordance with SEC Release No. 33-8216. 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 June 17, 2003, Pier 1 Imports, Inc. (the "Company") issued a press release announcing the Company's financial results for the first quarter ended May 31, 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: June 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 June 17, 2003 containing the financial results for the first quarter ended May 31, 2003. 4 EX-99 3 a4418153ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Pier 1 Imports Reports Fiscal 2004 First Quarter Earnings; Provides Sales and Earnings Guidance for Second Quarter and Fiscal Year FORT WORTH, Texas--(BUSINESS WIRE)--June 17, 2003--Pier 1 Imports, Inc. (NYSE:PIR) today reported diluted earnings per share of $0.21 for the first quarter ended May 31, 2003, compared to $0.23 per diluted share for the year ago period. Sales for the first quarter were $402,712,000, a 4.8% increase over last year's $384,429,000, and first fiscal quarter comparable store sales declined by 3.6%. Net income was $19,062,000, compared to last year's net income of $22,181,000. Marvin J. Girouard, the Company's Chairman and Chief Executive Officer, said, "Sales and earnings for the first quarter reflected a more cautious consumer due to continuing weakness in the economy, international and political instability, as well as adverse weather conditions delaying the beginning of the important spring selling season. Despite these factors and tough sales comparisons to last year during the quarter, we are pleased to report that Pier 1's sales strengthened each month with higher traffic and average ticket transactions building since the fiscal year began March 2nd. "During the first quarter, merchandise margins increased over last year and variable expenses were tightly managed. In addition, our balance sheet improved with cash balances at the end of the quarter of $220 million, up $24 million from a year ago. Inventory levels are on plan, up 11.6% and approximately the same as our square footage growth over the past year. In the first quarter, we repurchased 1.2 million shares of Pier 1 stock at a cost of $20.5 million. We will continue our buyback strategy, with $133.5 million remaining in our share repurchase program. "For the fiscal year, we are reiterating diluted earnings per share in the range of $1.45 to $1.50, and comparable store sales for the year are estimated to be between +1% and +3%. Projections for the second quarter remain cautious due to continuing uncertainties and tough sales comparisons to last year. Based on comparable store sales estimates for the second quarter of -2% to +2%, we now project diluted earnings per share in the range of $0.21 to $0.25 per share. "As we look ahead to the remainder of the year, the new tax bill that provides rebates as well as changes in overall tax rates will result in higher take-home pay for families. We believe this is a positive for Pier 1 and Cargokids stores as we begin our annual Back-to-School selling season in July. Barring any major unforeseen circumstances, we anticipate a slow but steady economic recovery over the next six to nine months with consumer sentiment and spending showing encouraging signs. "Pier 1's value pricing, unique merchandise offerings and superior customer service all provide positive influences on our customers. During the weekend of June 21st, our spring clearance event begins with 'The One Big Sale,' supported for the first time by a 4-page newspaper insert. It continues through July 26th, and we believe this event should be very successful." The Company will host a conference call to discuss fiscal 2004 first quarter earnings at 10:00 a.m. Central Time today. A web cast is available to all investors 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 1143193. 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 Company will hold its annual shareholders meeting at 10:00 a.m. local time on June 26, 2003, at the Renaissance Worthington Hotel, Brazos Room, 200 Main Street, Fort Worth, Texas. 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-K for fiscal year 2003. 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) stores in six states. (Financial Tables Follow) Pier 1 Imports, Inc. -------------------- COMPARATIVE OPERATING RESULTS FOR THE THREE MONTHS ENDED MAY 31, 2003 AND JUNE 1, 2002 (in thousands except per share amounts) (unaudited) Three Months Ended May 31, June 1, 2003 2002 -------------------- ------------------ Net Sales $402,712 $384,429 =============== ================== Net Income $19,062 $22,181 =============== ================== Earnings Per Share: Basic $0.21 $0.24 =============== ================== Diluted $0.21 $0.23 =============== ================== Pier 1 Imports, Inc. -------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except per share amounts) (unaudited) Three Months Ended May 31, June 1, 2003 2002 ------------ ------------- Net sales $402,712 $384,429 Operating costs and expenses: Cost of sales (including buying and store occupancy costs) 234,515 220,436 Selling, general and administrative expenses 125,778 118,333 Depreciation and amortization 12,161 10,731 --------------- ---------------- 372,454 349,500 --------------- ---------------- Operating income 30,258 34,929 Nonoperating (income) and expenses: Interest and investment income (637) (837) Interest expense 637 558 --------------- ---------------- - (279) --------------- ---------------- Income before income taxes 30,258 35,208 Provision for income taxes 11,196 13,027 --------------- ---------------- Net income $19,062 $22,181 =============== ================ Earnings per share: Basic $0.21 $0.24 =============== ================ Diluted $0.21 $0.23 =============== ================ Average shares outstanding during period: Basic 90,145 93,708 =============== ================ Diluted 92,198 96,613 =============== ================ Pier 1 Imports, Inc. -------------------- CONSOLIDATED BALANCE SHEETS (in thousands except per share amounts) May 31, March 1, June 1, 2003 2003 2002 ----------- ----------- ------------ (Unaudited) (Unaudited) ASSETS Current assets: Cash, including temporary investments of $204,632, $225,882 and $183,788, respectively $219,679 $242,114 $195,694 Beneficial interest in securitized receivables 42,311 40,538 40,880 Other accounts receivable, net 10,420 11,420 10,478 Inventories 338,508 333,350 303,394 Prepaid expenses and other current assets 44,702 36,179 46,927 ----------- ----------- ------------ Total current assets 655,620 663,601 597,373 Properties, net 230,165 254,503 224,295 Other noncurrent assets 50,203 49,383 47,162 ----------- ----------- ------------ $935,988 $967,487 $868,830 =========== =========== ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $6,000 $393 $728 Accounts payable 79,451 76,742 83,305 Gift cards, gift certificates and merchandise credits outstanding 38,446 37,924 30,418 Accrued income taxes payable 7,141 25,798 13,803 Other accrued liabilities 86,313 102,732 66,069 ----------- ----------- ------------ Total current liabilities 217,351 243,589 194,323 Long-term debt 19,000 25,000 25,000 Other noncurrent liabilities 57,044 54,962 44,346 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 144,262 144,247 143,800 Retained earnings 553,434 539,776 447,379 Cumulative other comprehensive income (loss) (278) (2,210) (3,483) Less -- 10,955,000, 10,045,000 and 7,046,000 common shares in treasury, at cost, respectively (155,604) (138,656) (83,314) ----------- ----------- ------------ 642,593 643,936 605,161 ----------- ----------- ------------ $935,988 $967,487 $868,830 =========== =========== ============ Pier 1 Imports, Inc. -------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended May 31, June 1, 2003 2002 -------------- -------------- Cash flow from operating activities: Net income $19,062 $22,181 Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 15,247 12,460 Gain on disposal fixed assets 219 48 Deferred compensation 1,785 1,500 Tax benefit from options exercised by employees 549 3,892 Other 1,397 574 Changes in cash from: Inventories (5,158) (27,961) Other accounts receivable and other current assets (2,534) (8,797) Accounts payable and accrued expenses (12,962) 1,902 Accrued income taxes payable (18,657) (15,935) Other noncurrent assets (807) (6) Other noncurrent liabilities (500) (500) -------------- -------------- Net cash used in operating activities (2,359) (10,642) -------------- -------------- Cash flow from investing activities: Capital expenditures (17,914) (25,606) Proceeds from disposition of properties 23,487 380 Beneficial interest in securitized receivables (2,373) 3,740 -------------- -------------- Net cash provided by (used in) investing activities 3,200 (21,486) -------------- -------------- Cash flow from financing activities: Cash dividends (5,404) (4,712) Purchases of treasury stock (20,490) (12,657) Proceeds from stock options exercised, stock purchase plan and other, net 3,008 9,582 Repayments of long-term debt (390) - -------------- -------------- Net cash used in financing activities (23,276) (7,787) -------------- -------------- Change in cash and cash equivalents (22,435) (39,915) Cash and cash equivalents at beginning of period 242,114 235,609 -------------- -------------- Cash and cash equivalents at end of period $219,679 $195,694 ============== ============== CONTACT: Pier 1 Imports, Inc., Fort Worth Cary Turner, 817/252-8400 -----END PRIVACY-ENHANCED MESSAGE-----