-----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, RPJz0fdeiu45Qap1CfW+qFH4WyQnoOl+vYvwzWLZQ2vhguxbwr5s2HVM+FJCB30q q3CpFCsV6/FqV0fzRsvqTA== 0001157523-05-003192.txt : 20050408 0001157523-05-003192.hdr.sgml : 20050408 20050408132557 ACCESSION NUMBER: 0001157523-05-003192 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050407 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050408 DATE AS OF CHANGE: 20050408 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: 05740982 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 a4860235.txt PIER 1 IMPORTS, INC. 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) April 7, 2005 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) 100 Pier 1 Place, Fort Worth, Texas 76102 ------------------------------------------------------------------------------ (Address of principal executive offices, including zip code) 817-252-8000 ------------------------------------------------------------------------------ (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-.13e-4(c)) Item 2.02 Results of Operations and Financial Condition The information contained in this Current Report is being furnished pursuant to "Item 2.02 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 April 7, 2005, Pier 1 Imports, Inc. (the "Company") issued a press release announcing the Company's earnings for the fourth quarter and year ended February 26, 2005. The press release contains certain non-GAAP financial information. The reconciliation of such non-GAAP financial information to GAAP financial measures is included in the press release. A copy of this press release is attached hereto as Exhibit 99.1. Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits. Exhibit No. Description - ----------- ----------- 99.1 Press release dated April 7, 2005 containing the financial results for the fourth quarter and year ended February 26, 2005. 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: April 8, 2005 By: /s/ J. Rodney Lawrence --------------- -------------------------- J. Rodney Lawrence, Executive Vice President and Secretary EXHIBIT INDEX Exhibit No. Description - ---------- ----------- 99.1 Press release dated April 7, 2005 containing the financial results for the fourth quarter and year ended February 26, 2005. EX-99.1 2 a4860235ex991.txt EXHIBIT 99.1 Exhibit 99.1 Pier 1 Imports Reports Fourth Quarter and Fiscal Year 2005 Earnings FORT WORTH, Texas--(BUSINESS WIRE)--April 7, 2005--Pier 1 Imports, Inc. (NYSE:PIR) today reported diluted earnings per share of $0.21 for the fourth quarter ended February 26, 2005, including a non-recurring, after-tax charge of $3.9 million, or $0.05 per diluted share, due to the cumulative correction of certain lease-related expenses for free rent periods on leases entered into from fiscal years 1996 to 2004. Free rent periods for store operating leases begin when the Company takes possession of the property and continue until rent payments begin, usually at the store opening date. This cumulative adjustment will have no effect on historical or future net cash flows or the timing of payments under the related leases. Excluding the lease accounting adjustment, fourth quarter earnings per diluted share would have been $0.26. Reported net income for the fourth fiscal quarter was $18,799,000, compared to last year's net income of $48,309,000. Sales for the fourth quarter were $525,826,000, a 5.3% decrease from last year's $555,256,000, and comparable store sales declined 10.7% for the period. Fiscal year 2005 diluted earnings per share for the twelve-month period ended February 26, 2005, amounted to $0.68, including the non-recurring, after-tax cumulative charge for a lease accounting adjustment recorded in the fourth quarter. Excluding this lease accounting adjustment, the fiscal year diluted earnings per share would have been $0.72 per share, versus $1.29 per diluted share last year. Reported net income for fiscal year 2005 was $60,457,000, compared to last year's $118,001,000. Sales for the fiscal year were $1,897,853,000, up 1.6% over last year's $1,868,243,000. Fiscal year 2005 comparable store sales declined 5.8% from the prior year. Marvin J. Girouard, the Company's Chairman and Chief Executive Officer, said, "Fiscal year 2005 was a challenging year for Pier 1. Although net income declined, we believe that critical investments were made in longer-term strategies with major changes in merchandising, marketing and store operations. Despite negative comparable store sales in fiscal 2005, the Company generated $142 million of cash from operations, ending the fiscal year with cash and cash equivalents of $189 million. We returned $93 million of excess cash to shareholders through cash dividends of $35 million and $58 million, representing 3.2 million shares of Company stock repurchased during the year. Currently, there is $111 million remaining in the Board-authorized repurchase program." The Company will host a conference call to discuss fiscal 2005 fourth quarter and year-end 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 "Investor Relations" page and the "Events" page, or you can dial into the conference at 706-643-0435, ID number 4453535. The teleconference will be held in a "listen-only" mode for all participants other than the Company's current sell-side analysts and buy-side investors. The replay will be available at about 12:00 p.m. (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 4453535. This press release includes non-GAAP diluted earnings per share information due to the exclusion of the cumulative lease accounting adjustment charge recorded during the fourth quarter of fiscal year 2005. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business operations, and facilitate comparisons to our historical operating results and to our guidance for fiscal year 2006. See the last page of this release for the reconciliation of the non-GAAP financial measures. 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 2005. Management's expectations and assumptions regarding planned store openings, financing of Company obligations from operations, results from its new marketing, merchandising and store operations strategies, 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 primarily in the United Kingdom; and Pier 1 kids(R) and Cargokids(R) stores. (Financial Tables Follow) Pier 1 Imports, Inc. -------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except per share amounts) (unaudited) Three Months Ended Twelve Months Ended Feb. 26, Feb. 28, Feb. 26, Feb. 28, 2005 2004 2005 2004 ----------- --------- ----------- ----------- Net sales $525,826 $555,256 $1,897,853 $1,868,243 Operating costs and expenses: Cost of sales (including buying and store occupancy) 330,660 319,043 1,170,588 1,086,623 Selling, general and administrative expenses 148,940 147,036 573,213 544,536 Depreciation and amortization 16,252 13,363 58,290 50,927 ----------- --------- ----------- ----------- 495,852 479,442 1,802,091 1,682,086 ----------- --------- ----------- ----------- Operating income 29,974 75,814 95,762 186,157 Nonoperating (income) and expenses: Interest and investment income (1,519) (1,228) (2,723) (2,851) Interest expense 846 348 1,644 1,692 ----------- --------- ----------- ----------- (673) (880) (1,079) (1,159) ----------- --------- ----------- ----------- Income before income taxes 30,647 76,694 96,841 187,316 Provision for income taxes 11,848 28,385 36,384 69,315 ----------- --------- ----------- ----------- Net income $18,799 $48,309 $60,457 $118,001 =========== ========= =========== =========== Earnings per share: Basic $0.22 $0.55 $0.69 $1.32 =========== ========= =========== =========== Diluted $0.21 $0.53 $0.68 $1.29 =========== ========= =========== =========== Average shares outstanding during period: Basic 86,454 88,617 87,037 89,294 =========== ========= =========== =========== Diluted 87,965 91,089 88,838 91,624 =========== ========= =========== =========== Pier 1 Imports, Inc. -------------------- CONSOLIDATED BALANCE SHEETS (in thousands except per share amounts) (unaudited) February 26, February 28, 2005 2004 ------------ ------------- ASSETS Current assets: Cash and cash equivalents, including temporary investments of $178,289 and $208,984, respectively $189,081 $225,101 Beneficial interest in securitized receivables 35,690 44,331 Other accounts receivable, net 11,744 14,226 Inventories 380,730 373,870 Prepaid expenses and other current assets 43,445 40,623 ------------ ------------- Total current assets 660,690 698,151 Properties, net 337,630 290,420 Other noncurrent assets 77,429 63,602 ------------ ------------- $1,075,749 $1,052,173 ============ ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $113,502 $100,640 Gift cards and other deferred revenue 61,347 59,385 Accrued income taxes payable 11,866 25,982 Other accrued liabilities 102,294 93,881 ------------ ------------- Total current liabilities 289,009 279,888 Long-term debt 19,000 19,000 Other noncurrent liabilities 103,371 69,654 Shareholders' equity: Common stock, $1.00 par, 500,000,000 shares authorized, 100,779,000 issued 100,779 100,779 Paid-in capital 141,850 145,384 Retained earnings 656,692 630,997 Cumulative other comprehensive (loss) income (1,426) 1,667 Less -- 14,459,000 and 12,473,000 common shares in treasury, at cost, respectively (233,526) (195,196) ------------ ------------- 664,369 683,631 ------------ ------------- $1,075,749 $1,052,173 ============ ============= Pier 1 Imports, Inc. -------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) February 26, February 28, 2005 2004 ------------ ------------- Cash flow from operating activities: Net income $60,457 $118,001 Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 75,624 64,606 Loss on disposal of fixed assets 1,056 143 Deferred compensation 7,710 6,573 Lease termination expense 2,243 3,258 Deferred income taxes 2,035 184 Tax benefit from options exercised by employees 3,668 4,897 Other 7,279 4,894 Changes in cash from: Inventories (6,860) (40,520) Other accounts receivable, prepaid expenses and other current assets (11,302) (16,927) Accounts payable and accrued expenses 14,071 34,410 Accrued income taxes payable (14,116) 184 Other noncurrent assets 336 (2,027) ------------ ------------- Net cash provided by operating activities 142,201 177,676 ------------ ------------- Cash flow from investing activities: Capital expenditures (99,239) (121,190) Proceeds from disposition of properties 3,852 34,450 Net change in restricted cash (10,807) (8,752) Beneficial interest in securitized receivables 8,641 (5,143) ------------ ------------- Net cash used in investing activities (97,553) (100,635) ------------ ------------- Cash flow from financing activities: Cash dividends (34,762) (26,780) Purchases of treasury stock (58,210) (76,009) Proceeds from stock options exercised, stock purchase plan and other, net 12,304 15,125 Repayments of long-term debt and notes payable - (6,390) ------------ ------------- Net cash used in financing activities (80,668) (94,054) ------------ ------------- Change in cash and cash equivalents (36,020) (17,013) Cash and cash equivalents at beginning of period 225,101 242,114 ------------ ------------- Cash and cash equivalents at end of period $189,081 $225,101 ============ ============= Pier 1 Imports, Inc. -------------------- RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE (unaudited) Periods Ended February 26, 2005 Three Months Twelve Months ------------ ------------- Reported Diluted Earnings per Share $0.21 $0.68 Impact of Lease Accounting Adjustment (1) 0.05 0.04 --------- --------- Non-GAAP Diluted Earnings per Share $0.26 $0.72 ========= ========= (1) The per share amounts of the lease accounting adjustment are different for the quarter and year-to-date periods because of differences in the weighted average number of diluted shares outstanding for the two periods. CONTACT: Pier 1 Imports, Inc., Fort Worth Cary Turner, 817-252-8400 -----END PRIVACY-ENHANCED MESSAGE-----