-----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, IWixm2SFen/3Rxppk8px2/eGPoUA7qF025tSo85u4yq4x3H1TJ/TgNhimka6L1IC 6kUoh3URuh317o038JL7dA== 0000740126-98-000014.txt : 19980506 0000740126-98-000014.hdr.sgml : 19980506 ACCESSION NUMBER: 0000740126-98-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980327 FILED AS OF DATE: 19980505 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FINGERHUT COMPANIES INC CENTRAL INDEX KEY: 0000740126 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CATALOG & MAIL-ORDER HOUSES [5961] IRS NUMBER: 411396490 STATE OF INCORPORATION: MN FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-08668 FILM NUMBER: 98610447 BUSINESS ADDRESS: STREET 1: 4400 BAKER RD CITY: MINNETONKA STATE: MN ZIP: 55343 BUSINESS PHONE: 6129323100 MAIL ADDRESS: STREET 2: 4400 BAKER ROAD CITY: MINNETONKA STATE: MN ZIP: 55343 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 EXCHANGE ACT OF 1934 For Fiscal Quarter Ended 1-8668 March 27, 1998 Commission File Number ___________________________ FINGERHUT COMPANIES, INC. (Exact name of registrant as specified in its charter) Minnesota 41-1396490 (State of Incorporation) (I.R.S. Employer Identification No.) 4400 Baker Road, Minnetonka, Minnesota 55343 (Address of principal executive offices) (612) 932-3100 (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 _____ As of April 24, 1998, 46,558,964 shares of the Registrant's Common Stock, $.01 par value, were outstanding. FINGERHUT COMPANIES, INC. FORM 10-Q March 27, 1998 TABLE OF CONTENTS Part I - Financial Information Page Item 1. Financial Statements Consolidated Statements of Earnings (Unaudited) - thirteen weeks ended March 27, 1998 and March 28, 1997..................................... 3 Consolidated Statements of Financial Position (Unaudited) - March 27, 1998 and December 26, 1997. ... 4 Consolidated Statements of Cash Flows (Unaudited) - thirteen weeks ended March 27, 1998 and March 28, 1997......................................... 5 Condensed Notes to Consolidated Financial Statements (Unaudited)................................. 6 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition ..................... 8 Part II - Other Information Item 6. Exhibits and Reports on Form 8-K .......................18 Signatures.......................................................19 FINGERHUT COMPANIES, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In thousands of dollars, except share and per share data) (Unaudited) Thirteen Weeks Ended March 27, March 28, 1998 1997 Revenues: Net sales $ 272,964 $ 289,537 Finance income and other securitization income, net 94,371 60,477 367,335 350,014 Costs and expenses: Product cost 128,651 146,294 Administrative and selling expense 178,553 157,037 Provision for uncollectible account 37,530 32,046 Interest expense, net 10,279 8,281 355,013 343,658 Earnings before income taxes and minority interest 12,322 6,356 Provision for income taxes 4,803 2,368 Net earnings before minority in 7,519 3,988 Minority interest (2,014) (1,427) Net earnings $ 5,505 $ 2,561 Earnings per share - Basic $ .12 $ .06 Diluted $ .11 $ .05 Dividends $ .04 $ .04 Weighted average shares Basic 46,383,255 46,169,024 Diluted 50,474,458 48,624,211
See accompanying Condensed Notes to Consolidated Financial Statements. FINGERHUT COMPANIES, INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In thousands of dollars) (Unaudited) March 27, December 26, 1998 1997 ASSETS Current assets: Cash and cash equivalents $ 167,494 $ 145,418 Accounts receivable 246,370 607,874 Retained interest in securitized receivables 656,450 406,650 Less: reserve for uncollectible accounts and unearned finance income (175,973) (190,777) Accounts receivable, net 726,847 823,747 Inventories, net 121,918 124,424 Promotional material 77,174 64,440 Deferred income taxes 214,560 197,355 Other 12,929 13,708 Total current assets 1,320,922 1,369,092 Property and equipment, net 266,903 272,190 Excess of cost over fair value of net assets acquired, net 74,895 77,161 Customer lists, net 8,401 8,401 Other assets 27,981 24,912 $1,699,102 $1,751,756 LIABILITIES Current liabilities: Accounts payable $ 139,999 $ 177,021 Accrued payroll and employee benefits 51,009 57,860 Other accrued liabilities 96,570 93,037 Revolving credit facility 130,000 144,000 Other payables due to credit card securitizations, net 176,423 134,562 Current portion of long-term debt 76 84 Current income taxes payable 14,331 71,659 Total current liabilities 608,408 678,223 Long-term debt, less current portion 345,187 345,187 Deferred income taxes 27,550 20,441 Other non-current liabilities 8,143 8,130 989,288 1,051,981 Minority interest 31,771 29,790 STOCKHOLDERS' EQUITY Preferred stock - - Common stock 465 463 Additional paid-in capital 296,630 292,407 Unearned compensation (555) (738) Earnings reinvested 381,503 377,853 Total stockholders' equity 678,043 669,985 $1,699,102 $1,751,756
See accompanying Condensed Notes to Consolidated Financial Statements. FINGERHUT COMPANIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of dollars) (Unaudited) Thirteen Weeks Ended March 27, March 28, 1998 1997 Cash flows from operating activities: Net earnings $ 5,505 $ 2,561 Adjustments to reconcile net earnings to net cash provided (used) by operating activities: Depreciation and amortization 20,033 13,120 Amortization of unearned compensation 183 511 Minority interest in earnings 1,981 1,427 Change in assets and liabilities: Accounts receivable, net 96,900 (17,558) Inventories, net 2,506 (4,181) Promotional material and other current assets (11,955) (8,042) Accounts payable (37,022) (32,174) Accrued payroll and employee benefits (6,851) (6,286) Accrued liabilities 3,533 (14,777) Other payables due to credit card securitizations, net 41,861 13,145 Current income taxes payable (56,469) (70,605) Deferred income taxes (10,096) 14,882 Other (8,208) 6,069 Net cash (used) provided by operating activities 41,901 (101,908) Cash flows from investing activities: Additions to property and equipment (7,328) (4,891) Net cash used by investing activities (7,328) (4,891) Cash flows from financing activities: Repayments of long-term debt (8) (8) Revolving credit facility (14,000) 135,000 Issuance of common stock 3,366 247 Repurchase of common stock - (924) Cash dividends paid (1,855) (1,847) Net cash (used) provided by financing activities (12,497) 132,468 Net increase in cash and cash equivalents 22,076 25,669 Cash and cash equivalents at beginning of period 145,418 61,003 Cash and cash equivalents at end of period $ 167,494 $ 86,672 Supplemental noncash investing and financing activities: Tax benefit from exercise of non-qualified stock options, disqualified dispositions of Employee Stock Purchase Plan Shares, and vesting of restricted stock $ 859 $ 71 Issuance of restricted stock, net of forfeitures $ (37) $ - Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 8,672 $ 10,007 Cash paid during the period for income taxes $ 71,259 $ 58,085
Included in cash and cash equivalents were liquid investments with original maturities of fifteen days or less. See accompanying Condensed Notes to Consolidated Financial Statements. FINGERHUT COMPANIES, INC. CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Unaudited 1. Consolidated financial statements The consolidated financial statements of Fingerhut Companies, Inc. (the "Company") reflect the financial position and results of operations of the Company and its wholly owned and majority owned subsidiaries, after elimination of all material intercompany transactions and balances. The consolidated financial statements as of March 27, 1998 and March 28, 1997, and for the thirteen weeks ended March 27, 1998 and March 28, 1997, included herein are unaudited and have been prepared by the Company pursuant to the rules and regulations 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 such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The interim financial statements reflect all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, necessary for a fair statement of the results for the interim periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 1997 Annual Report to Shareholders and incorporated by reference in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission. The results of operations for the interim period should not be considered indicative of the results to be expected for the entire year. During the first quarter of 1998, the Company implemented Statement of Financial Accounting Standards No. 130 (FAS 130), "Reporting Comprehensive Income." FAS 130 has no effect on the consolidated financial statements. 2. Earnings per share Basic earnings per share was computed by dividing net earnings by the weighted average shares of common stock outstanding during the periods. Diluted earnings per share was computed by dividing net earnings by the weighted average shares of common stock and common stock equivalents outstanding during the periods. The dilutive effect of the potential exercise of outstanding options to purchase shares of common stock was calculated using the treasury stock method. 3. Accounts receivable, net Accounts receivable, net of amounts sold, consisted of the following: (In thousands of dollars) March 28, December 26, 1998 1997 Customer receivables (Retail) $ 197,439 $ 339,553 Retained interest in securitized receivables 168,966 178,652 Reserve for uncollectible accounts, net of anticipated recoveries (87,857) (100,901) Reserve for returns and exchanges (11,674) (12,322) Other reserves (14,747) (22,765) Net collectible amount 252,127 382,217 Unearned finance income (20,229) (22,750) Accounts receivable 231,898 359,467 Credit card and other receivables (Metris) 48,931 268,321 Retained interest in securitized receivables 487,484 227,998 Reserve for uncollectible accounts, net of anticipated recoveries (41,466) (32,039) Credit card and other receivables, net 494,949 464,280 Accounts receivable, net $ 726,847 $ 823,747
During the quarter, the Retail segment accelerated its efforts to move customers from an installment-based lending program to revolving charge accounts. By the end of the quarter, approximately 350,000 customer accounts had been converted or were awaiting conversion. It is the intention of the Company to continue this practice over the coming years until substantially all of its customer accounts have been converted to revolving charge. 4. Stockholders' equity During the thirteen week period ended March 27, 1998, 234,608 shares of common stock were issued related to the exercise of employee stock options and 9,860 shares of common stock were issued under the Fingerhut Companies, Inc. Employee Stock Purchase Plan. The total shares of common stock outstanding as of March 27, 1998 was 46,518,607. 5. Subsequent events On April 23, 1998, the Company declared a cash dividend in the amount of $.04 per share, aggregating approximately $1.9 million, payable on May 21, 1998, to the shareholders of record as of the close of business on May 7, 1998. In April 1998, the Company issued 8,618 shares of common stock under the Fingerhut Companies, Inc. Employee Stock Purchase Plan. MANAGEMENT DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION THIRTEEN WEEKS ENDED MARCH 27, 1998 AND MARCH 28, 1997 RETAIL SEGMENT STATEMENTS OF EARNINGS (In thousands of dollars, except per share data) (Unaudited) Thirteen Weeks Ended March 27, March 28, 1998 1997 Revenues: Net sales $ 269,420 $ 290,156 Finance income and other securitization income, net 437 3,134 269,857 293,290 Costs and expenses: Product cost 128,590 146,433 Administrative and selling expenses 124,287 124,872 Provision for uncollectible accounts 17,488 20,992 Interest expense, net 5,420 7,219 275,785 299,516 Loss before income taxes (5,928) (6,226) Provision for income tax benefit (2,223) (2,476) Net loss $ (3,705) $ (3,750) Loss per share - Diluted* $ (.07) $ (.08)
* Loss per share computed on a "diluted" share basis which is consistent with the Consolidated Statement of Earnings and the use of "primary" shares for results of operations prior to the implementation of FAS 128 for the year ended December 26, 1997. RETAIL SEGMENT (Unaudited) Thirteen Weeks Ended March 27, March 28, 1998 1997 Fingerhut Key Statistics: Sales per mailing - existing customer list $ 2.62 $ 2.95 Cost per new customer $ 22.45 $ 16.29 Mailings (in 000's) New customers 33,849 32,962 Existing customers 70,970 68,013 Active customer list (in 000's) 4,219 4,598 Contribution margin per existing customer $ 15 $ 15 Reserves for bad debt as a percent of total managed receivables 17.4% 17.1% Reserves for bad debt as a percent of accounts 29 days plus delinquent 81% 76% Segment Key Statistics: (in 000's) Capital expenditures $ 5,367 $ 3,086 Depreciation $ 10,446 $ 12,818
RETAIL SEGMENT STATEMENTS OF EARNINGS (Managed Basis*) (In thousands of dollars, except per share data) (Unaudited) Thirteen Weeks Ended March 27, March 28, 1998 1997 Revenues: Net sales $ 269,420 $ 290,156 Finance income and other revenue 43,981 45,988 313,401 336,144 Costs and expenses: Product cost 128,590 146,433 Administrative and selling expenses 126,762 126,482 Provision for uncollectible accounts 44,170 47,438 Discount on sale of accounts receivable 14,387 14,798 Interest expense, net 5,420 7,219 319,329 342,370 Loss before income taxes (5,928) (6,226) Provision for income tax benefit (2,223) (2,476) Net loss $ (3,705) $ (3,750) Loss per share - Diluted** $ (.07) $ (.08)
* Presented in format consistent with prior periods. **Loss per share computed on a "diluted" share basis which is consistent with the Consolidated Statement of Earnings and the use of "primary" shares for results of operations prior to the implementation of FAS 128 for the year ended December 26, 1997. Results of Operations - Retail Segment Net sales for the current 13-week period were $269.4 million compared to net sales of $290.2 million for the related period in 1997, a decrease of 7 percent. Fingerhut Corporation ("Fingerhut"), the Company's core business in this segment, had first quarter net sales of $257.7 million compared to $276.6 million in the same period in 1997, a decrease of 7 percent. Net sales from Fingerhut's new customer acquisition programs decreased 3 percent to $49.6 million. Net sales from Fingerhut's existing customer list totaled $208.1 million, which was an 8 percent decrease from the first quarter of 1997. Both decreases were due to lower sales per mailing, which was partially driven by the tightening of credit screens to reduce the number of high risk orders. Finance income and other securitization income, net, for the quarter was $0.4 million, compared to $3.1 million in the first quarter of 1997. This decrease was primarily due to reduction of sales within the first quarter. Product cost for the current 13-week period was 47.7 percent of net sales, or $128.6 million, compared to 50.5 percent of net sales, or $146.4 million, during the comparable prior-year period. The decrease as a percent of net sales was primarily the result of negotiated vendor cost reductions, partially driven by foreign currency devaluation and refurbishing cost reductions. Administrative and selling expenses for the current 13-week period were $124.3 million, or 46.1 percent of net sales, compared to $124.9 million, or 43.0 percent of net sales, in the comparable prior-year period. Continued cost controls resulted in consistent expense levels, while lower sales per mailing contributed to the increase as a percent of net sales. The provision for uncollectible accounts relating to receivables sold is included in "Finance income and other securitization income, net." The provision for uncollectible accounts on a "managed" basis for the current 13-week period was 16.4 percent of net sales, compared to 16.3 percent of net sales for the first quarter of 1997. At the end of the first quarter, account balances 29 days or more delinquent as a percent of managed receivables stood at 21.6 percent, down from 22.5 percent at the end of the prior-year first quarter. Net interest expense for the current 13-week period was $5.4 million, compared with $7.2 million in the first quarter of 1997. The decrease in expense was due to lower working capital requirements which resulted in lower utilization of the revolving credit facility in the current year. The effective consolidated tax rate, which includes both the Retail Segment and Metris, for the first quarter of 1998 was 39.0 percent compared to 37.3 percent in the comparable prior-year period. The rate increase quarter over quarter was primarily driven by the increase in Metris profits having an applied tax rate of 38.5%. As a result of the items discussed above, the Retail Segment generated a net loss of $3.7 million, or ($0.07) per share, compared to a first quarter 1997 net loss of $3.8 million, or ($0.08) per share. METRIS COMPANIES INC. STATEMENTS OF EARNINGS (In thousands of dollars, except per share data) (Unaudited) Thirteen Weeks Ended March 31, March 31, 1998 1997 Revenues: Net sales $ 5,664 $ 1,068 Finance income and other securitization income, net 93,934 57,343 99,598 58,411 Costs and expenses: Product cost 61 32 Administrative and selling expenses 56,386 33,681 Provision for uncollectible accounts 20,042 11,054 Interest expense, net 4,859 1,062 81,348 45,829 Earnings before income tax and minority interest 18,250 12,582 Provision for income taxes 7,026 4,844 Net earnings before minority interest 11,224 7,738 Minority interest (2,014) (1,427) Net earnings $ 9,210 $ 6,311 Earnings per share - Diluted $ .18 $ .13 Key Statistics: Managed net charge-off ratio 8.8% 8.5% Period-end managed loans (in 000's) $3,617,276 $1,816,653 Total accounts (in 000's) 2,214 1,475 Managed loan loss reserves (in 000's) $ 291,102 $ 116,809 Managed delinquency ratio 7.4% 6.0% Reserves as a percent of 30-day plus receivables 109% 107%
Results of Operations - Financial Services Segment (Metris Companies Inc.) Metris contributed net income for the quarter ended March 31, 1998 of $9.2 million, or $.18 per share, up from $6.3 million, or $.13 per share, for the first quarter of 1997. The 46 percent increase in net income is the result of an increase in net interest income and other operating income partially offset by increases in the provision for loan losses and other operating expenses. Metris' managed credit card loan portfolio increased 2 percent, or $70 million, during the first quarter bringing the portfolio to over $3.6 billion at March 31, 1998. Also during the quarter, Metris added approximately 25,000 new accounts to end the quarter with 2.2 million credit card accounts. Liquidity and Capital Resources (Consolidated) The Company funds its operations through internally generated funds, the sale of accounts receivable pursuant to the Fingerhut Master Trust and the Metris Master Trust, borrowings under the Company's Amended and Restated Revolving Credit Facility and Metris' Revolving Credit Facility (the "Revolving Credit Facilities") and the issuance of long-term debt and common stock. The proceeds from the sale of Fingerhut accounts receivable were $1.090 billion and $1.205 billion at March 27, 1998 and December 26, 1997, respectively. Net proceeds received from the sale of credit card receivables were $3.093 billion at March 31, 1998 and $3.057 billion at December 31, 1997, of which $21.5 million and $29.3 million, respectively, was deposited in an investor reserve account held by the trustee of the Metris Master Trust for the benefit of the Metris Master Trust's certificateholders. During the first quarter, the Fingerhut Master Trust was amended to include certain revolving receivables and certain previously unsold, new customer installment receivables. As a result of this the Company terminated an agreement to sell revolving receivables to a third party conduit. In April 1998, the Company issued Series 1998-1 and Series 1998-2 securities to third parties. This generated net proceeds of $897.0 million of which $790.0 million was used to pay down the entire principal portion of the 1997-1 Series. Approximately $102.5 million of the remaining proceeds was used to reduce the Class A Variable Funding Certificate issued under Series 1994-2. The Revolving Credit Facilities provide for aggregate commitments of up to $500.0 million, of which $200.0 million represents the Company's credit facility and $300.0 million represents Metris' credit facility, which is currently guaranteed by the Company. The expiration date for both facilities is September 2001. As of March 27, 1998, outstanding revolving credit balances totaled $130.0 million, of which $130 million related to Metris and outstanding letters of credit totaled $7.8 million, of which $6.3 million and $1.5 million related to the Company and Metris, respectively. As of March 28, 1997, outstanding revolving credit balances totaled $208.0 million, of which $106.0 million and $102.0 million related to the Company and Metris, respectively and the Company's outstanding letters of credit totaled $7.4 million. Additional outstanding open letters of credit under a separate agreement aggregated $29.2 million and $28.4 million at March 27, 1998 and March 28, 1997, respectively. The Company had an aggregate amount of fixed rate notes outstanding of $345.0 million of which $245.0 and $100.0 related to the Company and Metris, respectively, as of March 27, 1998 and $270.0 million as of March 28, 1997. The Company generated $41.9 million in cash from operations during the 13- week period ended March 27, 1998 compared with $101.9 million used for operations during the related period in 1997. This $143.8 million net increase in cash generated by operations resulted primarily from a significant decrease in the Retail Segments accounts receivable, net, and an increase in payables due to Metris credit card securitizations, net. Net cash used by investing activities for the 13-week period ended March 27, 1998 was $7.3 million, compared to $4.9 million for the comparable period in 1997. Net cash used by financing activities for the 13-week period ended March 27, 1998 was $12.5 million, compared with $132.5 million generated for the comparable period in 1997. The $145.0 million net decrease was due to lower working capital requirements for the Retail Segment, which required lower utilization of the revolving credit facility in the current year. During 1994, the Company's Board of Directors authorized the repurchase of up to 2.5 million shares of the Company's common stock that may be made from time to time at prevailing prices in the open market or by block purchase and may be discontinued at any time. The purchases are made within certain restrictions relating to volume, price and timing in order to minimize the impact of the purchase on the market for the Company's common stock. During the current 13-week period, no stock was repurchased. Total purchases to date under this plan were 1,612,200 shares for an aggregate of $24.9 million. On April 23, 1998, the Company declared a cash dividend in the amount of $.04 per share, aggregating approximately $1.9 million, payable on May 21, 1998, to the shareholders of record as of the close of business on May 7, 1998. In April 1998, the Company issued 8,618 shares of common stock under the Fingerhut Companies, Inc. Employee Stock Purchase Plan. The Company believes it will have sufficient funds available to meet current and future commitments. FINGERHUT COMPANIES, INC. FORWARD LOOKING STATEMENTS This quarterly report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding intent, belief or current expectations of the Company and its management. Shareholders and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that may cause the Company's actual results to differ materially from the results discussed in the forward-looking statements, including: general economic conditions affecting disposable consumer income such as employment, business conditions, interest rates and taxation; risks associated with unsecured credit transactions; interest rate risks; seasonal variations in consumer purchasing activities; increases in postal and paper costs; competition in the retail and direct marketing industry; dependence on the securitization of accounts receivable and credit card loans to fund operations; state and federal laws and regulations related to advertising, offering and extending credit, charging and collecting state sales/use taxes; product safety; and risks of doing business with foreign suppliers. Each of these factors is more fully discussed in Exhibit 99 to the Company's Annual Report on Form 10-K for the fiscal year ended December 26, 1997. Part II. Other Information Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: 11 Computation of Earnings per Share 27 Financial Data Schedule (b) Reports on Form 8-K: None 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. FINGERHUT COMPANIES, INC. Date: May 5, 1998 By: /s/ Gerald T. Knight Gerald T. Knight Chief Financial Officer (Principal Financial Officer) Date: May 5, 1998 By: /s/ John C. Manning John C. Manning Vice President, Finance Date: May 5, 1998 By: /s/ Thomas C. Vogt Thomas C. Vogt Corporate Controller (Principal Accounting Officer) EX-27 2
5 This schedule contains summary financial information extracted from the consolidated financial statements of Fingerhut Companies, Inc. for the fiscal quarter ended March 27, 1998 and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS DEC-25-1998 MAR-27-1998 167,494 0 907,948 181,101 121,918 1,320,922 492,175 225,272 1,699,102 608,408 345,187 0 0 465 677,578 1,699,102 272,964 378,887 128,651 356,286 2,014 37,530 10,279 10,308 4,803 5,505 0 0 0 5,505 .12 .11
EX-11 3 Exhibit 11 FINGERHUT COMPANIES, INC. AND SUBSIDIARIES Computation of Earnings Per Share (In thousands of dollars, except per share data) Unaudited Thirteen Weeks Ended March 27, March 28, 1998 1997 Basic Net earnings (a) $ 5,505 $ 2,561 Weighted average shares of common stock outstanding 46,383,255 46,169,024 Basic earnings per share of common stock (a/b) $ .12 $ .06 Diluted Net earnings (c) $ 5,505 $ 2,561 Weighted average shares of common stock outstanding 46,383,255 46,169,024 Common stock equivalents 4,091,203 2,455,187 Weighted average shares of common stock and common stock equivalents (d) 50,474,458 48,624,211 Diluted earnings per share of common stock and common stock equivalents (c/d) $ .11 $ .05 Common stock equivalents for diluted earnings per share are computed by the treasury stock method using the average market price.
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