-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, UHI7HRIa0fg07LqIXqU7qGHYyph9l+nJhiS3MjguEPwDCTohGMVHbpL23XPnDH4Y 41XP8y4EgnKrDl/aYP5R9Q== 0000950152-94-000920.txt : 19940915 0000950152-94-000920.hdr.sgml : 19940915 ACCESSION NUMBER: 0000950152-94-000920 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940730 FILED AS OF DATE: 19940913 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FABRI CENTERS OF AMERICA INC CENTRAL INDEX KEY: 0000034151 STANDARD INDUSTRIAL CLASSIFICATION: 5940 IRS NUMBER: 340720629 STATE OF INCORPORATION: OH FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06695 FILM NUMBER: 94548853 BUSINESS ADDRESS: STREET 1: 5555 DARROW RD CITY: HUDSON STATE: OH ZIP: 44236 BUSINESS PHONE: 2166562600 MAIL ADDRESS: STREET 1: 5555 DARROW ROAD CITY: HUDSON STATE: OH ZIP: 44236 FORMER COMPANY: FORMER CONFORMED NAME: CLEVELAND FABRIC SHOPS INC DATE OF NAME CHANGE: 19681216 FORMER COMPANY: FORMER CONFORMED NAME: CLEVELAND FABRIC SHOPS INC NUMBER THREE DATE OF NAME CHANGE: 19681216 10-Q 1 FABRI-CENTERS 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------------- FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 ----------------------- For the Quarter Ended Commission File No. 1-6695 - - --------------------- -------------------------- July 30, 1994 FABRI-CENTERS OF AMERICA, INC. ------------------------------------------------------------------------ (Exact name of Registrant as specified in its charter) Ohio 34-0720629 - - ------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 5555 Darrow Road Hudson, Ohio 44236 - - ---------------------------------------- --------------- (Address of principal executive offices) (Zip Code) 216 - 656 - 2600 - - ------------------------------- (Registrant's telephone number) 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 ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Shares of Common Stock outstanding at August 27, 1994: 9,135,252. Sequential page 1 of 16 2 CONSOLIDATED BALANCE SHEETS (UNAUDITED) Fabri-Centers of America, Inc. (Thousands of dollars)
July 30, January 29, 1994 1994 - - ------------------------------------------------------------------------------------------------------- Assets Current assets: Cash $ 6,082 $ 7,715 Merchandise inventories 239,406 224,803 Prepaid expenses and other current assets 9,045 11,009 Deferred income taxes 7,936 4,123 ---------------------------------- Total current assets 262,469 247,650 Property and equipment, at cost: Land 1,966 1,966 Buildings 20,238 20,052 Furniture and fixtures 74,564 72,088 Leasehold improvements 27,842 26,195 ---------------------------------- 124,610 120,301 Less accumulated depreciation and amortization 49,963 44,668 ---------------------------------- 74,647 75,633 Mortgage receivable 7,802 7,926 Other assets 8,620 9,164 ---------------------------------- Total assets $ 353,538 $ 340,373 ================================== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 77,384 $ 62,309 Accrued expenses 9,525 11,375 Accrued income taxes - 2,954 Net liabilities of discontinued operation - 3,557 ---------------------------------- Total current liabilities 86,909 80,195 Long-term debt 57,900 45,500 Convertible subordinated debentures 56,983 56,983 Deferred income taxes 8,499 8,499 Other long-term liabilities 97 184 Shareholders' equity: Common stock 979 975 Additional paid-in capital 71,129 70,598 Other (1,710) (1,896) Retained earnings 81,147 87,602 ---------------------------------- 151,545 157,279 Treasury stock, at cost (8,395) (8,267) ---------------------------------- Total shareholders' equity 143,150 149,012 ---------------------------------- Total liabilities and shareholders' equity $ 353,538 $ 340,373 ================================== See notes to consolidated financial statements
Page 2 of 16 3 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Fabri-Centers of America, Inc. (Thousands of dollars, except share and per share data)
Thirteen weeks ended Twenty-six weeks ended ----------------------------- ------------------------------ July 30, July 31, July 30, July 31, 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------- Net sales $ 112,851 $ 113,151 $ 245,527 $ 252,902 Costs and expenses: Cost of goods sold 63,968 64,877 140,392 148,677 Selling, general and administrative expenses 55,680 55,442 112,390 112,753 Interest expense, net 1,657 1,525 3,241 2,859 ------------------------------------------------------------------- 121,305 121,844 256,023 264,289 ------------------------------------------------------------------- Loss before income taxes and cumulative effect of accounting change (8,454) (8,693) (10,496) (11,387) Income tax benefit (3,255) (3,260) (4,041) (4,270) ------------------------------------------------------------------- Loss before cumulative effect of accounting change (5,199) (5,433) (6,455) (7,117) Cumulative effect of accounting change - - - 399 ------------------------------------------------------------------- Net loss $ (5,199) $ (5,433) $ (6,455) $ (6,718) =================================================================== Loss per common share: Loss before cumulative effect of accounting change $ (0.56) $ (0.59) $ (0.69) $ (0.76) Cumulative effect of accounting change - - - 0.04 ------------------------------------------------------------------- Net loss $ (0.56) $ (0.59) (0.69) (0.72) =================================================================== Average shares and equivalents outstanding 9,286,485 9,215,028 9,316,779 9,291,544 =================================================================== See notes to consolidated financial statements
Page 3 of 16 4 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Fabri-Centers of America, Inc. (Thousands of dollars)
July 30, July 31, Twenty-Six Weeks Ended 1994 1993 - - ----------------------------------------------------------------------------------- Operating activities: Net loss $ (6,455) $ (6,718) Additions (deductions) not requiring cash: Cumulative effect of accounting change - (399) Cancellation of restricted stock awards - (689) Depreciation and amortization and other noncash expenses 6,376 5,753 Loss on disposal of fixed assets 170 451 Deferred income taxes (3,813) (3,857) Working capital changes: Merchandise inventories (14,603) (18,989) Prepaid expenses and other current assets 1,964 1,245 Accounts payable 15,075 4,043 Accrued expenses (1,850) (464) Accrued income taxes (2,954) (971) Net liabilities of discontinued operation (3,557) (6,121) ----------------------------- Net cash used for operating activities (9,647) (26,716) Investing activities: Capital expenditures (4,751) (4,380) Mortgage receivable 124 227 Other, net 134 (61) ----------------------------- Net cash used for investing activities (4,493) (4,214) Financing activities: Proceeds from long-term debt 12,400 37,300 Repayment of long-term debt - (800) Other long-term liabilities (87) (46) Proceeds from exercise of stock options 322 258 Repurchase of common stock (128) (3,119) ----------------------------- Net cash provided by financing activities 12,507 33,593 Net (decrease) increase in cash (1,633) 2,663 Cash at beginning of period 7,715 6,627 ----------------------------- Cash at end of period $ 6,082 $ 9,290 ============================= Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 3,246 $ 3,314 Income taxes 2,615 486 See notes to consolidated financial statements
Page 4 of 16 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FABRI-CENTERS OF AMERICA, INC. JULY 30, 1994, JANUARY 29, 1994 AND JULY 31, 1993 1. Basis of Presentation: The accompanying consolidated financial statements include the accounts of Fabri-Centers of America, Inc. and its wholly owned subsidiaries (the "Company") and have been prepared without audit, pursuant to the rules of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures herein are adequate to make the information not misleading. The statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 1994. The statements present the Company's Cargo Express Stores division as a discontinued operation, accordingly, except as noted, the statements pertain to only the Company's continuing operations. In the opinion of Management, the accompanying consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary for a fair statement of results for the interim periods. 2. Significant Accounting Policies: A. Inventories are stated at the lower of cost determined by the last-in, first-out (LIFO) method or market. B. Store physical inventories are taken on a cycle basis throughout the fiscal year, with an approximate equal percentage of stores inventoried each fiscal quarter. Store inventories subsequent to the physical inventory are charged at cost for shipments of merchandise to the stores and are relieved at cost for the sale of merchandise. C. The expenses incurred in connection with the opening of new stores are charged to operations in the period the store is opened. D. Earnings per share are computed based on the weighted average number of shares and share equivalents outstanding during the fiscal period. Page 5 of 16 6 E. Depreciation of buildings, furniture and fixtures and leasehold improvements is provided by charges to operations on a straight-line basis over the estimated useful lives of the assets. Accelerated methods of depreciation are used for federal income tax purposes. F. Certain reclassifications have been made of amounts reported in fiscal 1994 in order to conform with the presentation for fiscal 1995. G. The Company is a national specialty retailer of fabric and related products through Company-operated retail stores. The stores sell a wide variety of fashion and decorator fabrics, related notions, patterns, crafts, seasonal and other merchandise. 3. Effective January 31, 1993, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes." As permitted by SFAS 109, the Company elected not to restate the financial statements for any prior years. The effect of the change on pre-tax earnings from continuing operations for the six months ended July 31, 1993, was not material; however, the cumulative effect of the change increased net earnings by $399,000, or $0.04 per share, for the first half of fiscal 1994. 4. As of January 29, 1994, the Company provided $5,201,000 net of tax benefit, for the liquidation of its housewares division, Cargo Express Stores (Cargo Express), primarily for the write-off of fixed assets, estimated costs to complete the liquidation and estimated operating losses to be incurred through completion of the liquidation. During the first quarter of fiscal 1995, the Company completed the liquidation of Cargo Express which did not require the recognition of any additional gain or loss. The Company has retained two Cargo Express store locations, which were converted to fabric and craft stores, in addition to certain store fixtures to be used in its continuing operations. As a result, certain leasehold improvements and fixtures of Cargo Express were transferred to the Company at net book value during the second quarter of fiscal 1995. 5. On August 24, 1994, the Company agreed to acquire the Cloth World Division (Cloth World) of Brown Group Inc. for its LIFO net book value, which at January 29, 1994 was approximately $62,000,000. The acquisition, which is subject to approvals of the appropriate authorities and certain other conditions, is expected to be completed by the end of the third quarter. The Company intends to fund the acquisition through borrowing facilities with its existing bank group. The transaction will be accounted for as a purchase of assets, accordingly, the results of operations of Cloth World will be included in the consolidated financial statements of the Company subsequent to the date of acquisition. Cloth World operates 343 stores in 26 states selling fabrics and related sewing accessories and had net sales of $224,100,000 for the fiscal year ending January 29, 1994. Page 6 of 16 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Except where otherwise noted, Management's Discussion and Analysis of Financial Condition and Results of Operations pertains to the Company's continuing operations. Assets and liabilities of Cargo Express have been reclassified on the balance sheets as net liabilities of discontinued operation. On August 24, 1994, the Company agreed to acquire the Cloth World Division (Cloth World) of Brown Group Inc. for its LIFO net book value, which at January 29, 1994 was approximately $62,000,000. The acquisition, which is subject to approvals of the appropriate authorities and certain other conditions, is expected to be completed by the end of the third quarter. The Company intends to fund the acquisition through borrowing facilities with its existing bank group. The transaction will be accounted for as a purchase of assets, accordingly, the results of operations of Cloth World will be included in the consolidated financial statements of the Company subsequent to the date of acquisition. Cloth World operates 343 stores in 26 states selling fabrics and related sewing accessories and had net sales of $224,100,000 for the fiscal year ending January 29, 1994. Management's Discussion and Analysis of Financial Condition and Results of Operations pertains to the Company's current financial condition and historical operating results without consideration to the acquisition of Cloth World unless otherwise noted. RESULTS OF OPERATIONS THE THIRTEEN WEEKS ENDED JULY 30, 1994 VS. JULY 31, 1993 Net sales for the second quarter of fiscal 1995 decreased 0.3%, or $0.3 million, to $112.9 million from $113.2 million in fiscal 1994. The decrease in sales was primarily attributable to lower levels of promotional discounting in the second quarter of fiscal 1995 as compared to the same quarter a year ago. Comparable store sales decreased 1.1% in the second quarter against the same quarter a year earlier. Gross profit increased $0.6 million in the second quarter of fiscal 1995 compared to the same quarter of fiscal 1994 primarily as a result of controlled promotions. As a percentage of net sales, fiscal 1995 second quarter gross profit was 43.3%, an increase of 0.6 percentage points from the gross profit of 42.7% for the same quarter a year earlier. Selling, general and administrative expenses for the second quarter of fiscal 1995 increased $0.2 million from the same quarter a year ago. This increase was primarily attributable to higher store-level spending directed at improving the level of customer service, offset in part by lower costs as a result of the implementation of new management information Page 7 of 16 8 systems. As a percentage of net sales, selling, general and administrative expenses increased 0.3 percentage points to 49.3% from 49.0% for the second quarter of fiscal 1994 for reasons previously discussed. Net interest expense increased $0.1 million to $1.7 million for the second quarter of fiscal 1995 compared to the second quarter of fiscal 1994. This increase was primarily attributable to a higher weighted average interest rate on bank borrowings. The Company's effective income tax rate was 38.5% for the second quarter of fiscal 1995 compared to 37.5% for the same period a year ago. The change in effective tax rate was attributable to the increase in the federal corporate tax rate from 34% to 35% as a result of the Revenue Reconciliation Act of 1993, as well as fluctuations in the Company's state income tax rates. The net loss in the second quarter of fiscal 1995 was $5.2 million, or $0.56 per share, which compares to the net loss of $5.4 million, or $0.59 per share, for the same quarter a year earlier. THE TWENTY-SIX WEEKS ENDED JULY 30, 1994 VS. JULY 31, 1993 Net sales for the first half of fiscal 1995 decreased 2.9%, or $7.4 million, to $245.5 million from $252.9 million in fiscal 1994. The decrease in sales was primarily attributable to lower levels of promotional discounting as previously discussed. Comparable store sales decreased 3.0% in the first half against the same period a year earlier. Gross profit increased $0.9 million in the first half of fiscal 1995 compared to the same period of fiscal 1994. As a percentage of net sales, fiscal 1995 first half gross profit was 42.8%, an increase of 1.6 percentage points from the gross profit of 41.2% for the same period a year earlier. The higher gross profit was the direct result of less aggressive promotional pricing by the Company and a general easing in the discounting practices of the fabric retailing industry. Selling, general and administrative expenses for the first half of fiscal 1995 decreased $0.4 million from the same period a year ago. This decrease was primarily attributable to lower costs as a result of the implementation of new management information systems, offset in part by higher store-level spending directed at improving the level of customer service. As a percentage of net sales, selling, general and administrative expenses increased 1.2 percentage points to 45.8% from 44.6% for the first half of fiscal 1994 primarily as a result of lower sales volume in the first half of fiscal 1995 compared to the same period in fiscal 1994. Net interest expense increased $0.4 million to $3.2 million for the first half of fiscal 1995 Page 8 of 16 9 compared to the first half of fiscal 1994. This increase was primarily attributable to a higher weighted average interest rate on bank borrowings. The Company's effective income tax rate was 38.5% for the first half of fiscal 1995 as compared to 37.5% for the same period a year ago as a result of the change in effective tax rate previously discussed. The net loss for the first half of fiscal 1995 was $6.5 million, or $0.69 per share, which compares to the net loss of $6.7 million, or $0.72 per share, for the same period a year earlier. The net loss in the first half of fiscal 1994 included a one-time credit of $0.4 million, or $0.04 per share, from the cumulative effect of adopting SFAS No. 109, "Accounting for Income Taxes." LIQUIDITY AND CAPITAL RESOURCES Fabri-Centers completed the first half of fiscal 1995 in sound financial condition. At July 30, 1994, the Company had working capital of $175.6 million compared to $167.5 million at January 29, 1994. The ratio of current assets to current liabilities at July 30, 1994 was 3.0:1 compared to 3.1:1 at January 29, 1994. Cash used by operations was $9.6 million for the first half of fiscal 1995 compared to $26.7 million for the first half of fiscal 1994. The improvement is primarily the result of the Company continuing to effectively manage inventory acquisition levels in relation to planned sales levels. Capital expenditures were $4.8 million for the first half of fiscal 1995 as compared to $4.4 million for the first half of fiscal 1994. These capital expenditures have been primarily used to open 14 superstores and close 17 smaller stores. Excluding the impact of the acquisition previously discussed, the Company expects capital expenditures to be less than $15.0 million to be used primarily to convert approximately 40 stores to the superstore format. It is anticipated that the capital required for these expenditures will be financed by internally generated funds, a revolving credit facility, and other existing lines of credit. The Company presently has borrowing capacity up to a maximum of $140.0 million available through a $125.0 million revolving credit facility which expires May 31, 1995, as well as through existing lines of credit. As of July 30, 1994, the Company had $57.9 million in borrowings outstanding under these facilities. The Company anticipates renewing and increasing its borrowing capacity to a maximum of approximately $200 million with its existing bank group to complete the acquisition of Cloth World. The Company continues to maintain excellent Page 9 of 16 10 vendor and banking relationships and has sufficient current resources, including unused lines of credit, to meet the financing needs of its operations. The Company may purchase from time to time in the open market or in private transactions shares of Company common stock. These shares will be used to satisfy obligations under the Company's employee benefit plans and for other corporate purposes. The number of shares that can be acquired pursuant to prior authorization by the Board of Directors is 1,028,325. In the highly competitive retail fabric business, the Company competes with other specialty fabric and craft stores and, to a lesser extent, department stores and mass merchants on the basis of assortment, price and convenience. The Company has been taking steps to improve margins through revised promotional pricing policies and better store operating procedures. Accordingly, sales results for the first half of fiscal 1995 have been somewhat weaker while overall gross profit in terms of dollars and as a percent to sales has improved as the Company has not been driving sales as hard through promotions. The Company's business exhibits seasonality which is typical of most retail companies, with much stronger sales in the second half of the fiscal year than the first half of the fiscal year. In general, net earnings are the highest during the months of September through December, when high sales volumes normally provide significant operating leverage. Conversely, net earnings are substantially lower during the relatively low sales volume months of January through August. With the acquisition of Cloth World, the Company anticipates that fiscal 1995 second half results may be significantly different from those of the comparable period in the prior year. Although the Company expects the second half results to trend favorably over the prior year, the impact of the acquisition on the results of operations of the Company currently cannot be fully determined by Management. As of July 30, 1994, the Company operated 652 stores in 36 states, primarily under the name Jo-Ann Fabrics, of which 510 are superstores. Page 10 of 16 11 PART II OTHER INFORMATION Item 4. Submission of Matters to a vote of Security Holders --------------------------------------------------- a) The Annual Meeting of Shareholders of Fabri-Centers of America, Inc. was held June 27, 1994 for the purpose of electing three members to the class of 1997 of the Board of Directors and considering and voting on certain proposals as described below. b) Ira Gumberg, Scott Cowen and Alan Rosskamm were elected to the Board of Directors for the term expiring in 1997. Robert Norton and Alma Zimmerman continued as Directors in the class whose term of office expires in 1995, in which class a vacancy remains, and Samuel Krasney, Frank Newman and Betty Rosskamm continued as Directors in the class whose term of office expires in 1996. c) The nominees for Directors as listed in the proxy statement were elected with the following vote: Votes Votes Nominee For Withheld ------------- --------- -------- Ira Gumberg 7,777,815 227,243 Scott Cowen 7,789,192 215,866 Alan Rosskamm 7,788,907 216,151 The proposal to approve an amendment to the Company's 1990 Employees Stock Option and Stock Appreciation Rights Plan increasing the number of shares with respect to which options may be granted and limiting the number of shares which may be granted to any one individual in any single year was approved by the following vote: Votes Votes Votes Non- For Against Withheld Votes --------- --------- -------- ------- 4,159,061 3,101,386 14,927 729,684 The proposal to approve the adoption of the 1994 Executive Incentive Plan was approved by the following vote: Votes Votes Votes Non- For Against Withheld Votes --------- --------- -------- ------- 4,147,851 3,105,439 22,084 729,684 d) Not applicable. Page 11 of 16 12 Item 6. Exhibits and Reports on Form 8-K -------------------------------- a) Exhibits -------- See the Exhibit Index at sequential page 14 of this report. b) Reports of Form 8-K ------------------- The Company was not required to file reports on Form 8-K for the 13-week period ended July 30, 1994. Page 12 of 16 13 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FABRI-CENTERS OF AMERICA, INC. DATE: September 12, 1994 /s/ Alan Rosskamm ----------------------- BY: Alan Rosskamm Chairman, President and Chief Executive Officer /s/ Robert Norton ----------------------- BY: Robert Norton Vice Chairman and Chief Financial Officer Page 13 of 16 14 FABRI-CENTERS OF AMERICA, INC. FORM 10-Q FOR THE THIRTEEN WEEK AND TWENTY-SIX WEEK PERIODS ENDED JULY 30, 1994 EXHIBIT INDEX Sequential Exhibit No. Description Page No. ----------- ----------- ---------- 10 1994 Executive Incentive Plan * 11 Statement re Computation of 15 Earnings per Common Share 27 Financial Data Schedule 16 * Incorporated by reference to Exhibit A in the Registrant's definitive proxy statement for its June 27, 1994 Annual Meeting of Shareholders filed with the Commission on May 26, 1994. Page 14 of 16 EX-11 2 EXHIBIT 1 COMPUTATION OF EARNINGS PER COMMON SHARE Exhibit 11 Fabri-Centers of America, Inc. (Thousands of dollars, except share and per share data)
Thirteen Weeks Ended Twenty-Six Weeks Ended ------------------------- ----------------------------- July 30, July 31, July 30, July 31, 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ PRIMARY EARNINGS PER SHARE: Loss before cumulative effect of accounting change $ (5,199) $ (5,433) $ (6,455) $ (7,117) Cumulative effect of accounting change - - - 399 ------------ ------------ ------------ ------------ Net loss $ (5,199) $ (5,433) $ (6,455) $ (6,718) ============ ============ ============ ============ Weighted average shares of common stock outstanding during the period 9,130,324 9,039,439 9,124,610 9,099,274 Incremental shares from assumed exercise of stock options (primary) 156,161 175,589 192,169 192,270 ------------ ------------ ------------ ------------ 9,286,485 9,215,028 9,316,779 9,291,544 ============ ============ ============ ============ Primary earnings (loss) per common share: Loss before cumulative effect of accounting change $ (0.56) $ (0.59) $ (0.69) $ (0.76) Cumulative effect of accounting change - - - 0.04 ------------ ------------ ------------ ------------ Net loss $ (0.56) $ (0.59) $ (0.69) $ (0.72) ============ ============ ============ ============ FULLY DILUTED EARNINGS PER SHARE: Loss before cumulative effect of accounting change $ (5,199) $ (5,433) $ (6,455) $ (7,117) Interest expense applicable to 6 1/4% convertible subordinated debentures, net of tax 548 556 1,095 1,113 ------------ ------------ ------------ ------------ (4,651) (4,877) (5,360) (6,004) Cumulative effect of accounting change - - - 399 ------------ ------------ ------------ ------------ Net loss $ (4,651) $ (4,877) $ (5,360) $ (5,605) ============ ============ ============ ============ Weighted average shares of common stock outstanding during the period 9,130,324 9,039,439 9,124,610 9,099,274 Incremental shares from assumed exercise of stock options (fully diluted) 158,136 196,996 194,961 172,031 Incremental shares from assumed conversion of 6 1/4% convertible subordinated debentures 1,168,882 1,168,882 1,168,882 1,168,882 ------------ ------------ ------------ ------------ 10,457,342 10,405,317 10,488,453 10,440,187 ============ ============ ============ ============ Fully diluted earnings (loss) per common share: Loss before cumulative effect of accounting change $ (0.44) $ (0.47) $ (0.51) $ (0.58) Cumulative effect of accounting change - - - 0.04 ------------ ------------ ------------ ------------ Net loss $ (0.44) $ (0.47) $ (0.51) $ (0.54) ============ ============ ============ ============ Note: This calculation is submitted in accordance with Regulation S-K Item 601(b)(11) although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti-dilutive result.
Page 15 of 16 EX-27 3 EXHIBIT
5 This schedule contains summary financial information extracted from the July 30, 1994 consolidated balance sheet and the consolidated income statement for the twenty-six weeks ended July 30, 1994 and is qualified in its entirety by reference to such financial statements. 6-MOS JAN-29-1994 JUL-30-1994 6,082 0 0 0 239,406 262,469 124,610 49,963 353,538 86,909 114,883 979 0 0 142,171 353,538 245,527 245,527 140,392 140,392 112,390 0 3,241 (10,496) (4,041) (6,455) 0 0 0 (6,455) (0.69) (0.51)
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