-----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, p5/tus8YFZz/LcA/L3fdDvIeTMmRRt7OaBzu82rArlPVDsEvVYp3H8z80pY7qPrd JcEoWvJ1MK+ZvrNeNTY07w== 0000051734-95-000003.txt : 19950613 0000051734-95-000003.hdr.sgml : 19950613 ACCESSION NUMBER: 0000051734-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950429 FILED AS OF DATE: 19950612 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TOYS R US INC CENTRAL INDEX KEY: 0000051734 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOBBY, TOY & GAME SHOPS [5945] IRS NUMBER: 135159250 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01117 FILM NUMBER: 95546464 BUSINESS ADDRESS: STREET 1: 461 FROM RD CITY: PARAMUS STATE: NJ ZIP: 07652 BUSINESS PHONE: 2012627800 FORMER COMPANY: FORMER CONFORMED NAME: INTERSTATE STORES INC DATE OF NAME CHANGE: 19780525 FORMER COMPANY: FORMER CONFORMED NAME: INTERSTATE DEPARTMENT STORES INC DATE OF NAME CHANGE: 19700702 10-Q 1 1ST QUARTER 10-Q FILING UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 1995 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 1-1117 TOYS "R" US, INC. (Exact name of registrant as specified in its charter) Delaware 13-5159250 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 461 From Road, Paramus, New Jersey 07652 (Address of principal executive offices) (Zip Code) (201) 262-7800 (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 Sections 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. As of May 22, 1995, 276,354,608 shares of common stock were outstanding. INDEX PAGE PART I - FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets 3 Consolidated Statements of Earnings 4 Consolidated Statements of Cash Flows 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion - Results of Operations and Financial Condition 7 PART II - OTHER INFORMATION 8 SIGNATURES 9 Page 3 TOYS "R" US, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)
April 29, April 30, January 28, 1995 1994 1995 ASSETS Current assets: Cash and cash equivalents $ 248,828 $ 238,189 $ 369,833 Accounts and other receivables 100,945 92,912 115,914 Merchandise inventories 2,393,629 2,025,726 1,999,148 Prepaid expenses and other 63,629 57,472 45,818 Total current assets 2,807,031 2,414,299 2,530,713 Property, equipment and other assets 4,233,609 3,557,299 4,040,480 $ 7,040,640 $ 5,971,598 $ 6,571,193 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 902,168 $ 410,456 $ 122,661 Accounts payable 1,186,448 1,055,931 1,339,081 Accrued expenses and other 401,434 348,822 472,653 Income taxes payable 74,506 67,437 202,548 Total current liabilities 2,564,556 1,882,646 2,136,943 Deferred income taxes 242,085 221,906 219,927 Long-term debt 828,405 738,725 785,448 Stockholders' equity: Common stock 29,795 29,794 29,795 Additional paid-in capital 516,383 449,325 521,295 Retained earnings 3,563,013 3,050,386 3,544,573 Foreign currency translation adjustments 20,964 (45,754) (25,121) Treasury shares, at cost (724,561) (355,430) (641,667) 3,405,594 3,128,321 3,428,875 $ 7,040,640 $ 5,971,598 $ 6,571,193 See notes to consolidated financial statements.
Page 4 TOYS "R" US, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In thousands except per share information)
13 Weeks Ended April 29, April 30, 1995 1994 Net sales $1,492,965 $1,461,933 Costs and expenses: Cost of sales 1,017,300 1,001,203 Selling, advertising, general & administrative 385,946 350,232 Depreciation and amortization 44,512 36,445 Interest expense - net 15,938 14,402 1,463,696 1,402,282 Earnings before taxes on income 29,269 59,651 Taxes on income 10,829 22,071 Net earnings $ 18,440 $ 37,580 Earnings per share $.07 $.13 Common and common equivalent shares 280,860 292,741 See notes to consolidated financial statements.
Page 5 TOYS "R" US, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
13 Weeks Ended April 29, April 30, 1995 1994 Cash flows from operating activities: Net earnings $ 18,440 $ 37,580 Adjustments to reconcile net earnings to net cash used by operating activities: Depreciation and amortization 44,512 36,445 Deferred income taxes 4,889 4,926 Changes in operating assets and liabilities: Accounts and other receivables 14,969 5,622 Merchandise inventories (394,481) (248,157) Prepaid expenses and other operating assets (16,898) (20,622) Accounts payable, accrued expenses and taxes (352,813) (362,999) Total adjustments (699,822) (584,785) Net cash used by operating activities (681,382) (547,205) Cash flows from investing activities: Capital expenditures-net (95,893) (100,437) Other assets (23,497) (5,869) Net cash used by investing activities (119,390) (106,306) Cash flows from financing activities: Short-term borrowings, net 779,507 170,594 Long-term borrowings 7,387 1,218 Long-term debt repayments (1,404) (221) Exercise of stock options 3,600 3,194 Share repurchase program (91,406) (71,002) Net cash provided by financing activities 697,684 103,783 Effect of exchange rate changes on cash and cash equivalents (17,917) (3,976) Cash and cash equivalents: Decrease during period (121,005) (553,704) Beginning of period 369,833 791,893 End of period $ 248,828 $ 238,189 Supplemental disclosures of cash flow information: The Company considers all highly liquid investments purchased as part of its daily cash management activities to be cash equivalents. During the thirteen weeks ended April 29, 1995 and April 30, 1994, the Company made income tax payments of $134,121 and $154,727 and interest payments (net of amounts capitalized) of $22,171 and $18,896, respectively. See notes to consolidated financial statements.
Page 6 TOYS "R" US, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Interim Reporting The interim financial statements are unaudited and are subject to year-end adjustments. However, in the opinion of management, all known adjustments (which consist only of normal recurring accruals) have been made to present fairly the consolidated operating results for the unaudited periods. Because of the seasonal nature of the Company's business, results for interim periods are not indicative of results to be expected for the fiscal year. 2. Earnings Per Share Earnings per share for the thirteen weeks ended April 29, 1995 and April 30, 1994 are computed by dividing net earnings by the weighted average number of common shares outstanding, after reduction for treasury shares and assuming exercise of dilutive stock options computed by the treasury stock method using the average market price during the period. Page 7 MANAGEMENT'S DISCUSSION - RESULTS OF OPERATIONS AND FINANCIAL CONDITION Results of Operations Sales increased by $31 million or 2.1% in the first quarter over the prior year's comparable period due primarily to sales from new toy and children's clothing stores, offset by the closing of 19 children's clothing stores since the beginning of 1994. Comparable USA toy store sales decreased by 10% for the quarter, and excluding consumables, video game products and hanging clothing, have declined 3%. International toy stores also experienced a decline in comparable sales due primarily to the continued poor retail environment in Central Europe. Kids "R" Us had comparable store sales decreases due to the weak apparel sales environment. Cost of sales, as a percentage of sales, decreased from 68.5% in the first quarter of 1994 to 68.1% in the first quarter of 1995 due to a more favorable product mix. Selling, advertising, general and administrative expenses as a percentage of sales increased to 25.9% for the first quarter versus 24.0% for the prior year's comparable period as a result of overall comparable store sales declines and new store growth. Net interest expense increased in the quarter compared to the prior year's quarter, principally as a result of higher average short-term borrowings due primarily to higher inventories and the share repurchase program. The effective tax rate remained constant at 37% for the first quarter of 1995 as compared to the first quarter of 1994. Since January 28, 1995, foreign currency exchange rates have experienced fluctuations, however, the impact on net earnings was not significant. Financial Condition Plans are underway for approximately 40 USA and 50 international toy stores, and 10 Kids "R" Us children's clothing stores. Annual capital expenditures for new and existing facilities are estimated to be approximately $575 million. Cash requirements for operations, capital expenditures, lease commitments and the share repurchase program will be met primarily through operating activities, borrowings under the $1 billion revolving credit facility, issuance of short-term commercial paper and bank borrowings for foreign subsidiaries. Page 8 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibit 27 - Financial Data Schedule. (b) The Company was not required to file any reports on Form 8-K during the 13 weeks ended April 29, 1995. Page 9 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 thereunto duly authorized. Date: June 5, 1995 Toys "R" Us, Inc. (Registrant) s/Louis Lipschitz (Signature) Louis Lipschitz Senior Vice President - Finance and Chief Financial Officer INDEX TO EXHIBITS The following is a list of all exhibits filed as part of this document:
Exhibit Page No. No. Document 27 Financial Data Schedule
EX-27 2
5 This schedule contains summary financial information extracted from the Conslidated Balance Sheets and Consolidated Statements of Earnings as reported in the Form 10-Q and is qualified in its entirety by reference to such financial statements. 0000051734 TOYS "R" US, INC. 1,000 3-MOS FEB-03-1996 APR-29-1995 248,828 0 100,945 0 2,393,629 2,807,031 4,643,679 851,252 7,040,640 2,564,556 828,405 29,795 0 0 3,375,799 7,040,640 1,492,965 1,492,965 1,017,300 385,946 44,512 0 15,938 29,269 10,829 18,440 0 0 0 18,440 0.07 0.07
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