-----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, T0Tf3rr9dSYD05M88FiN6ZtcYCSBhUAtrI7GLIb7ApC+iIK0G1CAREjmjWK9Xx/Z h6Ey75kAVFC8QrPl71z2sw== 0000890566-98-001585.txt : 19980917 0000890566-98-001585.hdr.sgml : 19980917 ACCESSION NUMBER: 0000890566-98-001585 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980801 FILED AS OF DATE: 19980915 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: STAGE STORES INC CENTRAL INDEX KEY: 0000006885 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 760407711 STATE OF INCORPORATION: DE FISCAL YEAR END: 0201 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-14035 FILM NUMBER: 98709959 BUSINESS ADDRESS: STREET 1: 10201 MAIN ST CITY: HOUSTON STATE: TX ZIP: 77025 BUSINESS PHONE: 7138384244 MAIL ADDRESS: STREET 1: 10201 MAIN STREET CITY: HOUSTON STATE: TX ZIP: 77025 FORMER COMPANY: FORMER CONFORMED NAME: APPAREL RETAILERS INC DATE OF NAME CHANGE: 19930908 10-Q 1 ================================================================================ FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (MARK ONE) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 1, 1998 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 001-14035 STAGE STORES, INC. (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction of 76-0407711 incorporation or organization) (I.R.S. Employer Identifications No.) 10201 MAIN STREET, HOUSTON, TEXAS 77025 (Address of principal executive offices) (Zip Code) (713) 667-5601 Registrant's telephone number, including area code 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 [ ] The number of shares of common stock of Stage Stores, Inc. outstanding as of September 14, 1998 was 26,636,786 shares of Common Stock and 1,250,584 shares of Class B Common Stock. ================================================================================ PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS STAGE STORES, INC. CONSOLIDATED CONDENSED BALANCE SHEET (in thousands, except par values) (unaudited)
August 1, 1998 January 31, 1998 -------------- ---------------- ASSETS Cash and cash equivalents ........................................................ $ 18,890 $ 23,315 Undivided interest in accounts receivable trust .................................. 57,285 61,211 Merchandise inventories, net ..................................................... 384,157 303,115 Prepaid expenses ................................................................. 42,373 20,417 Other current assets ............................................................. 52,379 57,788 --------- --------- Total current assets ....................................................... 555,084 465,846 Property, equipment and leasehold improvements, net .............................. 216,621 171,654 Goodwill, net .................................................................... 94,019 95,486 Other assets ..................................................................... 23,873 26,410 --------- --------- Total assets ............................................................... $ 889,597 $ 759,396 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable ................................................................. $ 108,674 $ 91,799 Accrued interest ................................................................. 3,082 2,044 Accrued expenses and other current liabilities ................................... 101,177 53,939 --------- --------- Total current liabilities .................................................. 212,933 147,782 108 Long-term debt ................................................................... 450,015 395,248 Other long-term liabilities ...................................................... 10,501 11,288 --------- --------- Total liabilities .......................................................... 673,449 554,318 --------- --------- Preferred stock, par value $1.00, non-voting, 3 shares authorized, no shares issued or outstanding .......................................................... -- -- Common stock, par value $0.01, 75,000 shares authorized, 26,637 and 26,500 shares issued and outstanding, respectively ........................................... 266 265 Class B common stock, par value $0.01, non-voting, 3,000 shares authorized, 1,250 shares issued and outstanding ......................................................... 13 13 Additional paid-in capital ....................................................... 265,393 264,679 Accumulated deficit .............................................................. (49,524) (59,324) Accumulated other comprehensive income ........................................... -- (555) --------- --------- Stockholders' equity .......................................................... 216,148 205,078 --------- --------- Commitments and contingencies .................................................... -- -- --------- --------- Total liabilities and stockholders' equity ................................. $ 889,597 $ 759,396 ========= =========
The accompanying notes are an integral part of this statement. 2 STAGE STORES, INC. CONSOLIDATED CONDENSED STATEMENT OF INCOME (in thousands, except per share amounts) (unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED ------------------------------ ------------------------------ AUGUST 1, 1998 AUGUST 2, 1997 AUGUST 1, 1998 AUGUST 2, 1997 -------------- -------------- -------------- -------------- Net sales ..................................... $271,805 $ 238,137 $544,593 $ 429,649 Cost of sales and related buying, occupancy and distribution expenses ........ 189,566 164,235 375,129 293,822 -------- --------- -------- --------- Gross profit .................................. 82,239 73,902 169,464 135,827 Selling, general and administrative expenses .. 67,853 53,405 129,483 94,663 Store opening and closure costs ............... 1,708 761 2,025 904 -------- --------- -------- --------- Operating income .............................. 12,678 19,736 37,956 40,260 Interest, net ................................. 11,423 9,449 21,890 18,391 -------- --------- -------- --------- Income before income tax and extraordinary item 1,255 10,287 16,066 21,869 Income tax expense ............................ 490 4,041 6,266 8,529 -------- --------- -------- --------- Income before extraordinary item .............. 765 6,246 9,800 13,340 Extraordinary item - early retirement of debt . -- (17,380) -- (17,380) -------- --------- -------- --------- Net income (loss) ............................. $ 765 $ (11,134) $ 9,800 $ (4,040) ======== ========= ======== ========= BASIC EARNINGS (LOSS) PER COMMON SHARE DATA: Basic earnings per common share before extraordinary item ....................... $ 0.03 $ 0.25 $ 0.35 $ 0.55 Extraordinary item - early retirement of debt . -- (0.70) -- (0.72) Basic earnings (loss) per common share ........ $ 0.03 $ (0.45) $ 0.35 $ (0.17) Basic weighted average common shares outstanding ........................ 27,874 24,841 27,833 24,066 ======== ========= ======== ========= DILUTED EARNINGS (LOSS) PER COMMON SHARE DATA: Diluted earnings per common share before extraordinary item ....................... $ 0.03 $ 0.25 $ 0.34 $ 0.54 Extraordinary item - early retirement of debt . -- (0.69) -- (0.70) -------- --------- -------- --------- Diluted earnings (loss) per common share ...... $ 0.03 $ (0.44) $ 0.34 $ (0.16) ======== ========= ======== ========= Diluted weighted average common shares outstanding ........................ 28,582 25,478 28,569 24,688 ======== ========= ======== =========
The accompanying notes are an integral part of this statement. 3 STAGE STORES, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (in thousands) (unaudited)
SIX MONTHS ENDED --------------------------------- AUGUST 1, 1998 AUGUST 2, 1997 ---------------- ---------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income .......................................................... $ 9,800 $ (4,040) --------- --------- Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization ..................................... 14,411 8,003 Deferred income taxes ............................................. 513 364 Accretion of discount ............................................. 527 579 Amortization of debt issue costs .................................. 1,205 1,016 Loss on early extinguishment of debt .............................. -- 17,380 Changes in operating assets and liabilities: Decrease in undivided interest in accounts receivable trust ..... 3,926 28,850 Increase in merchandise inventories ............................. (81,042) (17,267) (Increase) decrease in other assets ............................. (16,237) 360 Increase (decrease) in accounts payable and accrued liabilities . 15,286 (4,616) --------- --------- Total adjustments ............................................. (61,411) 34,669 --------- --------- Net cash provided by (used in) operating activities ............. (51,611) 30,629 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions, net of cash acquired .................................. -- (4,996) Additions to property, equipment and leasehold improvements ......... (56,837) (20,797) --------- --------- Net cash used in investing activities ........................... (56,837) (25,793) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from working capital facility .............................. 103,500 5,000 Proceeds from long-term debt ........................................ -- 299,720 Proceeds from issuance of common stock .............................. 715 224 Proceeds from long-term debt ........................................ (192) (296,805) Additions to debt issue costs ....................................... -- (12,332) --------- --------- Net cash provided by (used in) financing activities ............. 104,023 (4,193) --------- --------- Net decrease in cash and cash equivalents ........................... (4,425) 643 Cash and cash equivalents: Beginning of period ............................................... 23,315 18,286 --------- --------- End of period ..................................................... $ 18,890 $ 18,929 ========= ========= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Interest paid ....................................................... $ 17,484 $ 25,594 ========= ========= Income taxes paid (refunded) ........................................ $ (2,837) $ 3,175 ========= =========
The accompanying notes are an integral part of this statement. 4 STAGE STORES, INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (in thousands) (unaudited)
COMMON STOCK ---------------------------------------- CLASS B -------------------- ADDITIONAL ACCUMULATED SHARES SHARES PAID-IN ACCUMULATED COMPREHENSIVE OUTSTANDING AMOUNT OUTSTANDING AMOUNT CAPITAL DEFICIT INCOME TOTAL ------------ ------- ----------- ------- --------- ----------- ------------ ------- Balance, January 31, 1998 .... 26,500 $ 265 1,250 $ 13 $264,679 $(59,324) $ (555) $205,078 Net income ................... -- -- -- -- -- 9,800 -- 9,800 Adjustment for minimum pension liability .................... -- -- -- -- -- -- 555 555 Issuance of stock ............ 137 1 -- -- 714 -- -- 715 -------- -------- -------- -------- -------- -------- -------- -------- Balance, August 1, 1998 ...... 26,637 $ 266 1,250 $ 13 $265,393 $(49,524) -- $216,148 ======== ======== ======== ======== ======== ======== ======== ========
The accompanying notes are an integral part of this statement. 5 STAGE STORES, INC. NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. The accompanying unaudited consolidated condensed financial statements of Stage Stores, Inc. ("Stage Stores") have been prepared in accordance with Rule 10-01 of Regulation S-X and do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Those adjustments, which include only normal recurring adjustments that are in the opinion of management necessary for a fair presentation of the results of the interim periods, have been made. The results of operations for such interim periods are not necessarily indicative of the results of operations for a full year. The unaudited consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended January 31, 1998 filed with Stage Stores's Annual Report on Form 10-K. The fiscal years discussed herein end on the Saturday nearest to January 31 in the following calendar year. For example, references to "1998" mean the fiscal year ending January 30, 1999. Stage Stores conducts its business primarily through it's wholly owned subsidiary Specialty Retailers, Inc. ("SRI") which, as of August 1, 1998, operated 630 family apparel stores predominately located in the central United States. Stage Stores and SRI are collectively referred to herein as the "Company". 2. Pursuant to the accounts receivable securitization program (the "Accounts Receivable Program"), an indirect wholly owned subsidiary of the Company, SRI Receivables Purchase Co., Inc. ("SRPC") purchases the accounts receivable generated by the Company's private label credit card program. Such accounts receivable are transferred to a master trust (the "Trust") which has issued certain certificates to third parties representing undivided interests in the Trust. SRPC owns an undivided interest in the accounts receivable not supporting the certificates issued to third parties by the Trust (the "Retained Interest"). SRPC is a separate corporate entity from the Company and SRPC's creditors have a claim on its assets prior to those assets becoming available to any creditor of the Company. 3. During June 1997, SRI completed an offering of $300.0 million of long-term indebtedness consisting of $200.0 million in aggregate principal amount of 8 1/2% Senior Notes due 2005 and $100.0 million in aggregate principal amount of 9% Senior Subordinated Notes due 2007 (collectively, the "Note Offering"). The gross proceeds from the issuance of these notes (approximately $299.7 million) were used to: (i) retire the Company's existing 10% Senior Notes due 2000 and 11% Senior Subordinated Notes due 2003; (ii) to pay related fees and expenses; and (iii) to pay costs associated with the acquisition of C.R. Anthony Company ("CR Anthony"). Concurrently with this transaction, the Company entered into a new credit facility with a group of lenders (the "Credit Facility"). The Credit Facility provides for a $100.0 million working capital and letter of credit facility and a $100.0 million expansion revolving credit facility. The Credit Facility replaced the Company's existing $75.0 million credit facility. In connection with the above transactions, the Company recorded an extraordinary charge during the second quarter of 1997 of $17.4 million, net of applicable income taxes of $11.1 million, related to the tender premiums and write off of unamortized debt issue costs associated with the retired debt. 4. During June 1997, the Company acquired CR Anthony which operated 246 family apparel stores in small markets throughout the central and midwestern United States under the names "Anthony's" and "Anthony's Limited". The Company issued 3,607,044 shares in exchange for the outstanding common stock of CR Anthony. The purchase price for CR Anthony (including the common stock issued by the Company) was approximately $77.2 million, including acquisition costs and net of cash acquired. CR Anthony had net sales of $288.4 million and net income of $4.8 million for the year ended February 1, 1997. 5. During September 1997, the Company completed an offering of approximately 7.1 million shares of common stock, 6.4 million shares of which were secondary shares representing the shares owned by two venture capital firms. The remaining 650,000 shares were issued as primary shares, a result of an over-allotment provision. The shares sold by the Company resulted in net proceeds to the Company of approximately $20.7 million, which were used to reduce borrowings outstanding under the Company's Credit Facility. 6. During the first quarter of 1998, the Company adopted Statement of Financial Accounting Standards No. 130 "Reporting Comprehensive Income" ("SFAS 130"). SFAS 130 establishes standards for reporting and display of comprehensive income and its components (revenues, expenses, gains, and losses) in a full set of general-purpose financial statements. 6 7. The consolidating condensed financial information for Stage Stores and its wholly owned subsidiaries is presented to satisfy disclosure requirements pursuant to Sections 13 and 15(d) of the Securities Exchange Act of 1934 with respect to wholly owned subsidiaries of Stage Stores who are individually registrants with the SEC. SRI is the primary obligor under the 8 1/2% Senior Notes due 2005 and 9% Senior Subordinates Notes due 2007 (see Note 3). Stage Stores and Specialty Retailers, Inc. (NV), a wholly owned subsidiary of Stage Stores which was incorporated during June 1997, are guarantors under such indebtedness. Stage Stores has not presented separate financial statements and other disclosures concerning SRI and Specialty Retailers, Inc. (NV) because management has determined that such information is not material to investors. SRPC, a wholly owned subsidiary of Stage Stores, securitizes the credit receivables of the Company. The results of operations of SRPC are not indicative of the total operating performance of the Company's Accounts Receivable Program. For a summary of the total consolidated operating performance of the Company's Accounts Receivable Program, see Note 4 to the Company's Consolidated Financial Statements filed with Stage Stores's Annual Report on Form 10-K. The consolidating condensed financial information for Stage Stores and its wholly-owned subsidiaries are presented below. CONSOLIDATING CONDENSED BALANCE SHEET AUGUST 1, 1998 (in thousands, unaudited)
Specialty SRI Retailers, Receivables SRI SRI Inc. Purchase Co. Eliminations Consolidated -------------------------------------------------------- ASSETS Cash and cash equivalents........ $ 16,888 $ -- $ -- $ 16,888 Undivided interest in accounts receivable trust.............. (12,827) 70,112 -- 57,285 Merchandise inventories, net..... 384,157 -- -- 384,157 Prepaid expenses................. 41,934 439 -- 42,373 Other current assets............. 47,056 5,323 -- 52,379 -------------------------------------------------------- Total current assets.......... 477,208 75,874 -- 553,082 Property, equipment and leasehold improvements, net... 214,691 -- -- 214,691 Goodwill, net.................... 94,019 -- -- 94,019 Other assets..................... 18,755 5,118 -- 23,873 Investment in subsidiaries ...... 42,429 -- (42,429) -- -------------------------------------------------------- $ 847,102 $ 80,992 $(42,429) $885,665 ======================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable................. $ 108,674 $ -- $ -- $108,674 Accrued interest................. 2,599 483 -- 3,082 Accrued expenses and other current liabilities........... 99,579 1,438 -- 101,017 -------------------------------------------------------- Total current liabilities..... 210,852 1,921 -- 212,773 Long-term debt................... 420,015 30,000 -- 450,015 Intercompany notes/advances...... 161,343 6,642 -- 167,985 Other long-term liabilities ..... 8,710 -- -- 8,710 -------------------------------------------------------- Total liabilities............. 800,920 38,563 -- 839,483 -------------------------------------------------------- Preferred stock.................. -- -- -- -- Common stock..................... -- -- -- -- Class B common stock............. -- -- -- -- Additional paid-in capital....... 3,317 36,419 (36,419) 3,317 Accumulated earnings (deficit)... 42,865 6,010 (6,010) 42,865 -------------------------------------------------------- Stockholders' equity.......... 46,182 42,429 (42,429) 46,182 -------------------------------------------------------- $ 847,102 $ 80,992 $(42,429) $885,665 ======================================================== Specialty Stage Retailers, Stage Stores Stores, Inc. Inc. (NV) Eliminations Consolidated ------------------------------------------------------- ASSETS Cash and cash equivalents........ $ 2 $ 2,000 $ -- $ 18,890 Undivided interest in accounts receivable trust.............. -- -- -- 57,285 Merchandise inventories, net..... -- -- -- 384,157 Prepaid expenses................. -- -- -- 42,373 Other current assets............. -- -- -- 52,379 ------------------------------------------------------- Total current assets.......... 2 2,000 -- 555,084 Property, equipment and leasehold improvements, net... -- 1,930 -- 216,621 Goodwill, net.................... -- -- -- 94,019 Other assets..................... -- -- -- 23,873 Investment in subsidiaries ...... 215,474 -- (215,474) -- ------------------------------------------------------- $ 215,476 $ 3,930 $(215,474) $889,597 ======================================================= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable................. $ -- $ -- $ -- $108,674 Accrued interest................. -- -- -- 3,082 Accrued expenses and other current liabilities........... 160 -- -- 101,177 ------------------------------------------------------- Total current liabilities..... 160 -- -- 212,933 Long-term debt................... -- -- -- 450,015 Intercompany notes/advances...... (2,623) (165,362) -- -- Other long-term liabilities ..... 1,791 -- -- 10,501 ------------------------------------------------------- Total liabilities............. (672) (165,362) -- 673,449 ------------------------------------------------------- Preferred stock.................. -- -- -- -- Common stock..................... 266 -- -- 266 Class B common stock............. 13 -- -- 13 Additional paid-in capital....... 265,393 159,002 (162,319) 265,393 Accumulated earnings (deficit)... (49,524) 10,290 (53,155) (49,524) ------------------------------------------------------- Stockholders' equity.......... 216,148 169,292 (215,474) 216,148 ------------------------------------------------------- $ 215,476 $ 3,930 $(215,474) $889,597 =======================================================
7 CONSOLIDATING CONDENSED BALANCE SHEET JANUARY 31, 1998 (in thousands) - --------------------------------------------------------------------------------
Specialty SRI Retailers, Receivables SRI SRI Inc. Purchase Co. Eliminations Consolidated ----------------------------------------------------- ASSETS Cash and cash equivalents....... $ 23,299 $ -- $ -- $ 23,299 Undivided interest in accounts receivable trust............. (11,234) 72,445 -- 61,211 Merchandise inventories, net.... 303,115 -- -- 303,115 Prepaid expenses................ 19,944 473 -- 20,417 Other current assets............ 49,980 7,808 -- 57,788 ----------------------------------------------------- Total current assets......... 385,104 80,726 -- 465,830 Property, equipment and leasehold improvements, net.. 170,401 -- -- 170,401 Goodwill, net................... 95,486 -- -- 95,486 Other assets.................... 20,653 5,757 -- 26,410 Investment in subsidiaries...... 40,312 -- (40,312) -- ----------------------------------------------------- $711,956 $ 86,483 $ (40,312) $ 758,127 ===================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable................ $ 91,799 $ -- $ -- $ 91,799 Accrued interest................ 1,556 488 -- 2,044 Accrued expenses and other current liabilities.......... 53,545 142 -- 53,687 ----------------------------------------------------- Total current liabilities.... 146,900 630 -- 147,530 Long-term debt.................. 365,248 30,000 -- 395,248 Intercompany notes/advances..... 149,258 14,324 -- 163,582 Other long-term liabilities..... 9,874 1,217 -- 11,091 ----------------------------------------------------- Total liabilities............ 671,280 46,171 -- 717,451 Preferred stock................. -- -- -- -- Common stock.................... -- -- -- -- Class B common stock............ -- -- -- -- Additional paid-in capital...... 3,317 34,556 (34,556) 3,317 Accumulated earnings (deficit).. 37,914 5,756 (5,756) 37,914 Accumulated other comprehensive income....................... (555) -- -- (555) ----------------------------------------------------- Stockholders' equity......... 40,676 40,312 (40,312) 40,676 ----------------------------------------------------- $711,956 $ 86,483 $ (40,312) $ 758,127 ===================================================== Specialty Stage Retailers, Stage Stores Stores, Inc. Inc. (NV) Eliminations Consolidated ------------------------------------------------------- ASSETS Cash and cash equivalents....... $ 16 $ -- $ -- $ 23,315 Undivided interest in accounts receivable trust............. -- -- -- 61,211 Merchandise inventories, net.... -- -- -- 303,115 Prepaid expenses................ -- -- -- 20,417 Other current assets............ -- -- -- 57,788 ------------------------------------------------------- Total current assets......... 16 -- -- 465,846 Property, equipment and leasehold improvements, net.. -- 1,253 -- 171,654 Goodwill, net................... -- -- -- 95,486 Other assets.................... -- -- -- 26,410 Investment in subsidiaries...... 205,075 -- (205,075) -- ------------------------------------------------------- $ 205,091 $ 1,253 $(205,075) $ 759,396 ======================================================= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable................ $ -- $ -- $ -- $ 91,799 Accrued interest................ -- -- -- 2,044 Accrued expenses and other current liabilities.......... 252 -- -- 53,939 ------------------------------------------------------- Total current liabilities.... 252 -- -- 147,782 Long-term debt.................. -- -- -- 395,248 Intercompany notes/advances..... (436) (163,146) -- -- Other long-term liabilities..... 197 -- -- 11,288 ------------------------------------------------------- Total liabilities............ 13 (163,146) -- 554,318 Preferred stock................. -- -- -- -- Common stock.................... 265 -- -- 265 Class B common stock............ 13 -- -- 13 Additional paid-in capital...... 264,679 159,002 (162,319) 264,679 Accumulated earnings (deficit).. (59,324) 5,397 (43,311) (59,324) Accumulated other comprehensive income....................... (555) -- 555 (555) ------------------------------------------------------- Stockholders' equity......... 205,078 164,399 (205,075) 205,078 ------------------------------------------------------- $ 205,091 $ 1,253 $(205,075) $ 759,396 =======================================================
8 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 1, 1998 (in thousands, unaudited)
Specialty SRI Retailers, Receivables SRI SRI Inc. Purchase Co. Eliminations Consolidated --------------------------------------------------------- Net sales ....................... $ 544,593 $ -- $ -- $ 544,593 Cost of sales and related buying, occupancy and distribution expenses ........ 375,129 -- -- 375,129 --------------------------------------------------------- Gross profit .................... 169,464 -- -- 169,464 Selling, general and administrative expenses ...... 129,859 (440) -- 129,419 Store opening and closure costs . 2,025 -- -- 2,025 --------------------------------------------------------- Operating income (loss) ......... 37,580 440 -- 38,020 Interest expense, net ........... 31,004 (1,564) -- 29,440 --------------------------------------------------------- Income (loss) before income taxes....................... 6,576 2,004 -- 8,580 Income tax expense............... 2,887 743 -- 3,630 --------------------------------------------------------- Income (loss) before equity in net earnings of subsidiaries 3,689 1,261 -- 4,950 Equity in net earnings of subsidiaries ................. 1,261 -- (1,261) -- --------------------------------------------------------- Net income ..................... $ 4,950 $ 1,261 $ (1,261) $ 4,950 ========================================================= Specialty Stage Retailers, Stage Stores Stores, Inc. Inc. (NV) Eliminations Consolidated -------------------------------------------------------- Net sales ....................... $ -- $ -- $ -- $ 544,593 Cost of sales and related buying, occupancy and distribution expenses ........ -- -- -- 375,129 -------------------------------------------------------- Gross profit .................... -- -- -- 169,464 Selling, general and administrative expenses ...... 43 21 -- 129,483 Store opening and closure costs . -- -- -- 2,025 -------------------------------------------------------- Operating income (loss) ......... (43) (21) -- 37,956 Interest expense, net ........... -- (7,550) -- 21,890 -------------------------------------------------------- Income (loss) before income taxes....................... (43) 7,529 -- 16,066 Income tax expense............... -- 2,636 -- 6,266 -------------------------------------------------------- Income (loss) before equity in net earnings of subsidiaries (43) 4,893 -- 9,800 Equity in net earnings of subsidiaries ................. 9,843 -- (9,843) -- -------------------------------------------------------- Net income ..................... $ 9,800 $ 4,893 $ (9,843) $ 9,800 ========================================================
9 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 2, 1997 (in thousands, unaudited)
Specialty SRI Retailers, Receivables SRI SRI Inc. Purchase Co. Eliminations Consolidated --------------------------------------------------------- Net sales $ 429,649 $ -- $ -- $ 429,649 Cost of sales and related buying, occupancy and distribution expenses ........ 293,822 -- -- 293,822 --------------------------------------------------------- Gross profit .................... 135,827 -- -- 135,827 Selling, general and administrative expenses expenses expenses ...................... 97,507 (2,849) -- 94,658 Store opening and closure costs . 904 -- -- 904 --------------------------------------------------------- Operating income ................ 37,416 2,849 -- 40,265 Interest expense, net ........... 19,863 (211) -- 19,652 --------------------------------------------------------- Income (loss) before income taxes ......................... 17,553 3,060 -- 20,613 Income tax expense............... 6,946 1,138 -- 8,084 --------------------------------------------------------- Income (loss) before equity in net earnings of subsidiaries and extraordinary item ....... 10,607 1,922 -- 12,529 Equity in net earnings of subsidiaries ................. 1,922 -- (1,922) -- --------------------------------------------------------- Income (loss) before extraordinary item ........... 12,529 1,922 (1,922) 12,529 Extraordinary item - early retirement of debt ............ (17,380) -- -- (17,380) --------------------------------------------------------- Net income (loss) ............... $ (4,851) $ 1,922 $ (1,922) $ (4,851) ========================================================= Stage Stage Stores Stores, Inc. SRI (NV) Eliminations Consolidated ---------------------------------------------------------- Net sales $ -- $ -- $ -- $ 429,649 Cost of sales and related buying, occupancy and distribution expenses ........ -- -- -- 293,822 ---------------------------------------------------------- Gross profit .................... -- -- -- 135,827 Selling, general and administrative expenses expenses expenses ...................... 15 (10) -- 94,663 Store opening and closure costs . -- -- -- 904 ---------------------------------------------------------- Operating income ................ (15) 10 -- 40,260 Interest expense, net ........... -- (1,261) -- 18,391 ---------------------------------------------------------- Income (loss) before income taxes ......................... (15) 1,271 -- 21,869 Income tax expense............... -- 445 -- 8,529 ---------------------------------------------------------- Income (loss) before equity in net earnings of subsidiaries and extraordinary item ....... (15) 826 -- 13,340 Equity in net earnings of subsidiaries ................. (4,025) -- 4,025 -- ---------------------------------------------------------- Income (loss) before extraordinary item ........... (4,040) 826 4,025 13,340 Extraordinary item - early retirement of debt ............ -- -- -- (17,380) ---------------------------------------------------------- Net income (loss) ............... $ (4,040) 826 4,025 $ (4,040) ==========================================================
9 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS SIX MONTHS ENDED AUGUST 1, 1998 (in thousands, unaudited)
Specialty SRI Retailers, Receivables SRI SRI Inc. Purchase Co. Eliminations Consolidated --------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities ....... $ (45,964) $ (5,633) $ -- $ (51,597) --------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Intercompany notes/advances ..... (1,285) -- -- (1,285) Additions to property, equipment and leasehold improvements ... (56,837) -- -- (56,837) Proceeds from the sales of (6,640) 6,640 -- -- accounts receivable, net ..... 1,007 -- (1,007) -- Dividend from subsidiary......... --------------------------------------------------------- Net cash provided by (used in)investing activities ................. (63,755) 6,640 (1,007) (58,122) --------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from working capital facility ..................... 103,500 -- -- 103,500 Proceeds from issuance of common stock ........................ -- -- -- -- Payments on long-term debt ...... (192) -- -- (192) Dividend paid ................... -- (1,007) 1,007 -- --------------------------------------------------------- Net cash provided by (used in) financing activities ...... 103,308 (1,007) 1,007 103,308 --------------------------------------------------------- Net decrease in cash and cash equivalents .................. (6,411) -- -- (6,411) Cash and cash equivalents: Beginning of period .......... 23,299 -- -- 23,299 --------------------------------------------------------- End of period ................ $ 16,888 $ -- $ -- $ 16,888 ========================================================= Specialty Stage Retailers, Stage Stores Stores, Inc. Inc. (NV) Eliminations Consolidated --------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities ....... $ (14) $ -- $ -- $ (51,611) --------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Intercompany notes/advances ..... (715) 2,000 -- -- Additions to property, equipment and leasehold improvements ... -- -- -- (56,837) Proceeds from the sales of -- -- -- -- accounts receivable, net ..... -- -- -- -- Dividend from subsidiary......... --------------------------------------------------------- Net cash provided by (used in)investing activities ................. (715) 2,000 -- (56,837) --------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITI Proceeds from working capital facility ..................... -- -- -- 103,500 Proceeds from issuance of common stock ........................ 715 -- 715 Payments on long-term debt ...... -- -- -- (192) Dividend paid ................... -- -- -- -- --------------------------------------------------------- Net cash provided by (used in) financing activities ...... 715 -- -- 104,023 --------------------------------------------------------- Net decrease in cash and cash equivalents .................. (14) 2,000 -- (4,425) Cash and cash equivalents: Beginning of period .......... 16 -- -- 23,315 --------------------------------------------------------- End of period ................ $ 2 $ 2,000 $ -- $ 18,890 =========================================================
10 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS SIX MONTHS ENDED AUGUST 2, 1997 (in thousands, unaudited)
Specialty SRI Retailers, Receivables SRI SRI Inc. Purchase Co. Eliminations Consolidated -------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by (used in) Operating activities ........ $ 60,585 $ (29,956) $ -- $ 30,629 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions, net of cash acquired...................... (4,996) -- -- (4,996) Intercompany notes/advances ..... 224 -- -- 224 Additions to property, equipment and leasehold improvements ... (20,797) -- -- (20,797) Proceeds from the sales of accounts receivable, net ..... (30,015) 30,015 -- -- -------------------------------------------------------- Net cash provided by (used in) investing activities ............... (55,584) 30,015 -- (25,569) -------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from working capital facility ..................... 5,000 -- -- 5,000 Proceeds from issuance of long-term debt ............ 299,720 -- -- 299,720 Proceeds from issuance of common stock .............. -- -- -- -- Payments on long-term debt ...... (296,805) -- -- (296,805) Additions to debt issue costs ... (12,273) (59) -- (12,332) -------------------------------------------------------- Net cash provided by (used in) financing activities ....... (4,358) (59) -- (4,417) -------------------------------------------------------- Net decrease in cash and cash equivalents .................. 643 -- -- 643 Cash and cash equivalents: Beginning of period .......... 18,270 -- -- 18,270 -------------------------------------------------------- End of period ................ $ 18,913 $ -- $ -- $ 18,913 ======================================================== Stage Stage Stores Stores, Inc. SRI (NV) Eliminations Consolidated -------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by (used in) Operating activities ........ $ -- $ -- $ -- $ 30,629 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions, net of cash acquired...................... -- -- -- (4,996) Intercompany notes/advances ..... (224) -- -- -- Additions to property, equipment and leasehold improvements ... -- -- -- (20,797) Proceeds from the sales of accounts receivable, net ..... -- -- -- -- -------------------------------------------------------- Net cash provided by (used in) investing activities ............... (224) -- -- (25,793) -------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from working capital facility ..................... -- -- -- 5,000 Proceeds from issuance of long-term debt ............ -- -- -- 299,720 Proceeds from issuance of common stock .............. 224 -- -- 224 Payments on long-term debt ...... -- -- -- (296,805) Additions to debt issue costs ... -- -- -- (12,332) -------------------------------------------------------- Net cash provided by (used in) financing activities ....... 224 -- -- (4,193) -------------------------------------------------------- Net decrease in cash and cash equivalents .................. -- -- -- 643 Cash and cash equivalents: Beginning of period .......... 16 -- -- 18,286 -------------------------------------------------------- End of period ................ $ 16 $ -- $ 18,929 ========================================================
11 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Certain items discussed or incorporated by reference herein contain forward-looking statements that involve risks and uncertainties including, but not limited to, the seasonality of demand for apparel which can be affected by weather patterns, levels of competition, competitors' marketing strategies, changes in fashion trends and availability of product, the failure to achieve the expected results of merchandising and marketing plans or store opening or closing plans. The occurrence of any of the above could have a material adverse impact on the Company's operating results. Certain information herein contains estimates which represent management's best judgement as to the date hereof based on information currently available; however, the Company does not intend to update this information to reflect developments or information obtained after the date hereof and disclaims any legal obligation to the contrary. GENERAL OVERVIEW. The Company operates the store of choice for well known national brand name family apparel in over 500 small towns and communities predominately across the central United States. The Company has recognized the high level of brand awareness and demand for fashionable, quality apparel by consumers in small markets and has identified these markets as a profitable and underserved niche. The Company has developed a unique franchise focused on these small markets, differentiating itself from the competition by offering a broad range of brand name merchandise with a high level of customer service in convenient locations. The financial information, discussion and analysis that follow should be read in conjunction with the Company's Consolidated Financial Statements included in the Company's 1997 Annual Report on Form 10-K. RESULTS OF OPERATIONS Sales for the three months ended August 1, 1998 increased 14.1% to $271.8 million from $238.1 million in the comparable period of 1997. The increase in the three months ended August 1, 1998 sales was due to approximately a $15.5 million increase in sales from stores opened during 1998 and 1997 which are not included in comparable store sales and a $27.0 million increase in sales from the converted CR Anthony stores, offset by a 5% decline in comparable store sales due to the extreme hot weather and drought conditions affecting a majority of the Company's market area during late June and the entire month of July. Sales for the six months ended August 1, 1998 increased 26.8% to $544.6 million from $429.6 million in the comparable period of 1997. The increase in the six months ended August 1, 1998 sales was primarily due to approximately a $28.7 million increase in sales from stores opened during 1998 and 1997 which are not included in comparable store sales, a $88.8 million increase in sales from the converted CR Anthony stores offset by a 1% decline in comparable store sales due to the weather conditions discussed above. Gross profit increased 11.2% to $82.2 million for the second quarter of 1998 from $73.9 million in the comparable period of 1997. Gross profit as a rate of sales decreased to 30.3% for the second quarter of 1998 from 31.0% in 1997. The decline in the gross profit rate was largely the result of the merchandise mix sold during the quarter and the impact of the initiatives taken to stimulate traffic during the severe weather conditions discussed above resulting in higher levels of markdowns. Also, the gross margin rate was negatively impacted due to the reductions in sales volume experienced during the second quarter of 1998 without a corresponding reduction in the buying, occupancy and distribution expense components included in cost of goods sold. Gross profit increased 24.8% to $169.5 million for the first two quarters of 1998 from $135.8 million in the comparable period of 1997. Gross profit as a rate of sales decreased to 31.1% for the first two quarters of 1998 from 31.6% in 1997 as a result of the second quarter factors discussed above and the store occupancy cost associated with the 105 CR Anthony stores which was included in cost of goods sold with no offsetting sales volume while they were closed during their conversion to the Company's format and trade names during the first quarter of 1998. Selling, general and administrative expenses for the three months ended August 1, 1998 increased to $67.9 million from $53.4 million in the comparable period of 1997. Selling, general and administrative expenses as a percentage of sales for the second quarter of 1998 increased to 25.0% from 22.4% in the comparable period of 1997. Selling, general and administrative expense as a percent of sales for the quarter was negatively impacted by the decline in sales from planned levels due to the severe weather 12 conditions experienced during the second quarter while the increase in dollars is principally attributable to the increase in the number of stores open in the second quarter of the current year as compared to the prior year. Also, contributing to the increase was an increase in the level of advertising related to initiatives intended to increase customer traffic and higher utility costs due to the heat offset partially by a gain associated with the curtailment of the Company's defined benefit pension plan. Advertising expenses as a percentage of sales was 4.4% and 4.0% for the second quarters of 1998 and 1997, respectively, and 3.9% and 3.8% for the first six months of 1998 and 1997, respectively. Selling, general and administrative expenses for the six months ended August 1, 1998 increased to $129.5 million from $94.7 million in the comparable period of 1997. Selling, general and administrative expenses as a percentage of sales for the first two quarters of 1998 increased to 23.8% from 22.0% in the comparable period of 1997 due primarily to the sales decline in the second quarter discussed above as well as the cost associated with the 105 CR Anthony stores which were closed during a portion of the first quarter of 1998 in order to convert them to the Company's format and trade names. Store opening and closure costs were $1.7 million for the second quarter of 1998 as compared to $0.8 million for the same period of 1997. Store opening and closure costs for the first two quarters of 1998 increased to $2.0 million from $0.9 million for the same period of 1997. These increases are due to an increase in the number of stores opened during the first six months of 1998 as compared to the same period in 1997. Operating income for the three months ended August 1, 1998 decreased to $12.7 million from $19.7 million for the same period of 1997. Operating income as a percent of sales for the three months ended August 1, 1998 was 4.7% as compared to 8.3% for the same period of 1997 due to the factors discussed above. Operating income for the six months ended August 1, 1998 decreased to $38.0 million from $40.3 million for the same period of 1997. Operating income as a percent of sales for the six months ended August 1, 1998 was 7.0% as compared to 9.4% for the same period of 1997. Net interest expense for the second quarter of 1998 increased 21.3% to $11.4 million from $9.4 million for the comparable period in 1997 due to higher levels of borrowings associated with the Company's expansion program and the impact of the reduced sales volume in the second quarter of 1998 due to the severe weather conditions. Net interest expense for the first two quarters of 1998 increased 19.0% to $21.9 million from $18.4 million for the comparable period in 1997 due to higher levels of borrowings as noted above. As a result of the foregoing, the Company's net income before extraordinary items for the three months ended August 1, 1998 decreased to $0.8 million as compared to $6.2 million for the comparable period in 1997. The Company's net income before extraordinary items for the six months ended August 1, 1998 decreased to $9.8 million as compared to $13.3 million for the comparable period in 1997. SEASONALITY AND INFLATION The Company's business is seasonal and its quarterly sales and profits are traditionally lower during the first three quarters (February through October) and higher during the fourth quarter (November through January). In addition, working capital requirements fluctuate throughout the year, increasing substantially in October and November due to requirements for significantly higher inventory levels in anticipation of the holiday season. The following table shows certain unaudited financial information for the Company by quarter (in thousands):
1998 1997 -------------------------------- ---------------------------------------------------------------- Q1 Q2 Q1 Q2 Q3 Q4 --------------- --------------- -------------- --------------- -------------- --------------- Net sales..................... $272,788 $271,805 $191,512 $ 238,137 $ 274,269 $ 369,398 Gross profit.................. 87,225 82,239 61,925 73,902 86,822 120,488 Operating income.............. 25,278 12,678 20,524 19,736 15,789 38,391 Quarters' operating income as a percent of total....... -- -- 22% 21% 17% 40% Income before extraordinary items....................... $ 9,035 $ 765 $ 7,094 $ 6,246 $ 3,673 $ 17,527 Net income (loss) ............ $ 9,035 $ 765 $ 7,094 $ (11,134) $ 3,523 $ 16,762
The Company does not believe that inflation had a material effect on its results of operations during the past two years. However, there can be no assurance that the Company's business will not be affected by inflation in the future. 13 LIQUIDITY AND CAPITAL RESOURCES Total working capital increased $24.1 million to $342.2 million at August 1, 1998 from $318.1 million at January 31, 1998. The most significant changes in working capital were: (i) an increase in inventories associated with the 105 CR Anthony stores which the Company converted to its format and trade names during the first half of 1998 as well as the seasonal build of inventories in the Company's stores, (ii) a decrease in accounts receivable as a result of the liquidation of accounts receivable generated during the Christmas season, (iii) an increase in accounts payable associated with the increase in inventory; and (iv) the timing of interest payments on the Company's long-term debt. Prepaid expenses increased primarily due to the prepaid expenses associated with new store openings and the conversion of the CR Anthony stores. The increase in accrued and other current liabilities is principally due to the $49.2 million balance under the working capital facility and letter of credit component of the Company's credit facility in current maturities of debt under the working capital facility. The Company's primary capital requirements are for working capital, debt service and capital expenditures. Based upon the current capital structure, management anticipates cash interest payments to be approximately $43.0 million during each of 1998 and 1999. Capital expenditures are generally for new store openings, remodeling of existing stores and facilities and customary store maintenance. Capital expenditures for the first six months of 1998 were $56.8 million as compared to $20.8 million for the comparable period of 1997 as a result of an increase in the number of new stores opened as well as the conversion of the remaining CR Anthony stores to the Company's format and trade names. Management expects capital expenditures to be approximately $81.0 million during 1998, consisting primarily of at least 75 new store openings, remodeling of existing stores, the conversion of the majority of the remaining CR Anthony stores to the Company's format and the implementation of a new merchandising system. Required aggregate principal payments on debt total $2.7 million and $4.9 million for 1998 and 1999, respectively. The Company's current short-term liquidity needs are provided by (i) existing cash balances, (ii) operating cash flows, (iii) the Accounts Receivable Program and (iv) the Credit Facility. The Company expects to fund its long-term liquidity needs from its operating cash flows, the issuance of debt and/or equity securities, the securitization of its accounts receivable and bank borrowings. Outstanding borrowings under the Credit Facility were $149.2 million at August 1, 1998 as compared to $45.7 million at January 31, 1998. The Company had $50.8 million of availability under the Credit Facility at August 1, 1998. The outstanding balances under the revolver certificates associated with the Accounts Receivable Program were $74.1 million and $77.0 million at August 1, 1998 and January 31, 1998, respectively, while outstanding balances under term certificates were $165.0 million at both August 1, 1998 and January 31, 1998. Management believes that funds provided by operations, together with funds available under the Credit Facility and the Accounts Receivable Program will be adequate to meet the Company's anticipated requirements for working capital, interest payments, planned capital expenditures and principal payments on debt. Estimates as to working capital needs and other expenditures may be materially affected if the foregoing sources are not available or do not otherwise provide sufficient funds to meet the Company's obligations. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None. ITEM 2. CHANGES IN SECURITIES None. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. 14 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The 1998 Annual Meeting of Shareholders of the Company was held May 14, 1998. The following matters were submitted to a vote of the Company's shareholders: 1. The election of eight directors (constituting the entire board of directors) for the ensuing year and until their successors are duly elected and qualified. The results of the election for each such director were as follows: VOTES AGAINST DIRECTORS VOTES FOR OR WITHHELD -------------------- ------------------ Carl Tooker 22,761,786 37,882 Jack Bush 22,760,525 39,143 Harold Compton 22,761,786 37,882 Robert Huth 22,761,786 37,882 Richard Jolosky 18,214,137 4,585,531 James Marcum 22,761,786 37,882 David Thomas 22,747,748 51,920 John Wiesner 22,760,367 39,301 2. The ratification of the selection of PricewaterhouseCoopers LLP as the auditors to audit the consolidated financial statements of the Company and the financial statements of certain of its subsidiaries for the year ending January 30, 1999. The results of the vote with respect such proposal were as follows:
VOTES AGAINST ABSTENTIONS AND VOTES FOR OR WITHHELD BROKER NON-VOTES Ratification of Selection of Independent Auditors 22,780,488 259 18,921
ITEM 5. OTHER INFORMATION None. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits 27.1 Financial Data Schedule. (b) Reports on Form 8-K The Company filed a News Release on Form 8-K dated July 8, 1998 related to Stage Stores, Inc. anticipated earnings. The Company filed a News Release on Form 8-K dated August 6, 1998 related to Stage Stores, Inc. second quarter sales. The Company filed a News Release on Form 8-K dated August 20, 1998 related to Stage Stores, Inc. second quarter and six months 1998 results. 15 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. STAGE STORES, INC. SEPTEMBER 14, 1998 /s/ CARL E. TOOKER (Date) Carl E. Tooker Chairman, Chief Executive Officer and President (principal executive officer) SEPTEMBER 14, 1998 /s/ JAMES A. MARCUM (Date) James A. Marcum Vice Chairman and Chief Financial Officer (principal financial and accounting officer) EX-27 2
5 THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS JAN-30-1999 AUG-01-1998 18,890 0 0 0 384,157 555,084 216,621 0 889,597 212,933 450,015 279 0 0 215,869 889,597 544,593 544,593 375,129 375,129 0 0 21,890 16,066 6,266 9,800 0 0 0 9,800 0.35 0.34
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