-----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, LiEgPnW368yS5x6cyCjxM0H04v3VKsUg/WlK8xuBIbAYkBNt6dWTULW4Gm+KudJ4 c4yehs99uK7jd5ETOxGqKg== 0000887557-97-000007.txt : 20040401 0000887557-97-000007.hdr.sgml : 20040401 19970210152200 ACCESSION NUMBER: 0000887557-97-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961229 FILED AS OF DATE: 19970210 DATE AS OF CHANGE: 20021220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STARBUCKS CORP CENTRAL INDEX KEY: 0000829224 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING & DRINKING PLACES [5810] IRS NUMBER: 911325671 STATE OF INCORPORATION: WA FISCAL YEAR END: 0928 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20322 FILM NUMBER: 97522496 BUSINESS ADDRESS: STREET 1: P O BOX 34067 CITY: SEATTLE STATE: WA ZIP: 98124-1067 BUSINESS PHONE: 2064471575 MAIL ADDRESS: STREET 1: 2401 UTAH AVENUE SOUTH CITY: SEATTLE STATE: WA ZIP: 98134 10-Q 1 1997 1ST QUARTER 10-Q - ----------------------------------------------------------- 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 December 29, 1996 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 0-20322 ----------------------------- STARBUCKS CORPORATION (Exact name of registrant as specified in its charter) Washington 91-1325671 State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2401 Utah Avenue South, Seattle, Washington 98134 (Address of principal executive office, including zip code) (206) 447-1575 (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 February 1, 1997, there were 78,033,307 shares of the registrant's Common Stock outstanding. - -------------------------------------------------------- STARBUCKS CORPORATION INDEX PART I. FINANCIAL INFORMATION Page No. Item 1. Financial Statements. . . . . . . . . . 3 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. . . . . . . . . . . . . . 9 PART II. OTHER INFORMATION Item 1. Legal Proceedings. . . . . . . . . . . 12 Item 6. Exhibits and Reports on Form 8-K.. . . 12 Signatures. . . . . . . . . . . . . . . . . . . 13 2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except earnings per share)
Three Months Ended December 29, December 31, 1996 1995 (13 Weeks) (13 Weeks) - --------------------------------------------------------------- Net revenues $239,142 $169,537 Cost of sales and related occupancy costs 115,559 86,518 Store operating expenses 70,101 47,234 Other operating expenses 7,779 5,787 Depreciation and amortization 11,476 7,555 General and administrative expenses 12,920 6,639 - --------------------------------------------------------------- Operating income 21,307 15,804 Interest and other income 3,895 2,258 Interest expense (1,804) (2,250) - --------------------------------------------------------------- Earnings before income taxes 23,398 15,812 Income taxes 9,008 6,246 - --------------------------------------------------------------- Net earnings $14,390 $9,566 =============================================================== Net earnings per common and common equivalent share - primary $0.18 $0.13 =============================================================== Net earnings per common and common equivalent share - fully diluted $0.18 $0.13 =============================================================== Weighted average common and common equivalent shares outstanding - primary 81,341 73,928 Weighted average common and common equivalent shares outstanding - fully diluted 88,439 79,415 See notes to consolidated financial statements
3 STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts)
December 29, September 29, 1996 1996 - --------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 127,754 $ 126,215 Short-term investments 121,522 103,221 Accounts and notes receivable 18,356 17,621 Inventories 63,410 83,370 Prepaid expenses and other current assets 6,899 6,534 Deferred income taxes, net 2,943 2,580 - --------------------------------------------------------------- Total current assets 340,884 339,541 Joint ventures and equity investments 3,118 4,401 Property, plant and equipment, net 394,140 369,477 Deposits and other assets 14,629 13,194 - --------------------------------------------------------------- Total $ 752,771 $ 726,613 =============================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 29,827 $ 38,034 Checks drawn in excess of bank balances 23,050 16,241 Accrued compensation and related costs 15,744 15,001 Accrued interest payable 1,212 3,004 Other accrued expenses 29,847 26,068 Income taxes payable 6,609 2,743 - --------------------------------------------------------------- Total current liabilities 106,289 101,091 Deferred income taxes, net 8,421 7,114 Capital lease obligation 1,411 1,728 Convertible subordinated debentures 165,020 165,020 Shareholders' equity: Common Stock, no par value -- 150,000,000 shares authorized; 77,983,963 and 77,583,868 shares, respectively, issued and outstanding 366,773 361,309 Retained earnings including cumulative translation adjustment of $(316) and $(776), respectively, and net unrealized holding gain on investments of $1,702 and $2,046, respectively 104,857 90,351 - --------------------------------------------------------------- Total shareholders' equity 471,630 451,660 - --------------------------------------------------------------- Total $ 752,771 $ 726,613 =============================================================== See notes to consolidated financial statements
4 STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Three Months Ended - --------------------------------------------------------------- December 29, December 31, 1996 1995 (13 Weeks) (13 Weeks) - --------------------------------------------------------------- Operating activities: Net earnings $ 14,390 $ 9,566 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 12,503 8,200 Provision for store remodels and asset disposals 127 592 Deferred income taxes, net 1,159 1,249 Equity in losses of investees 1,318 734 Cash provided (used) by changes in operating assets and liabilities: Accounts and notes receivable (733) 335 Inventories 19,976 14,580 Prepaid expenses and other current assets (362) 973 Accounts payable (8,104) (8,177) Income taxes payable 3,860 4,048 Accrued compensation and related costs 755 (3,076) Accrued interest payable (1,792) 2,254 Other accrued expenses 3,693 2,921 - --------------------------------------------------------------- Net cash provided by operating activities 46,790 34,199 Investing activities: Purchase of short-term investments (51,442) (49,098) Sale of short-term investments 882 23,595 Maturity of short-term investments 31,700 12,499 Investments in joint ventures (35) (1,500) Additions to property, plant and equipment (36,893) (38,347) Increase in deposits and other assets (1,578) (316) - --------------------------------------------------------------- Net cash used by investing activities (57,366) (53,167) Financing activities: Increase in cash provided by checks drawn in excess of bank balances 6,823 927 Proceeds from sale of convertible debentures 0 165,020 Debt issuance costs 0 (4,019 Proceeds from sale of common stock under employee stock purchase plan 684 375 Exercise of stock options 2,868 587 Tax benefit from exercise of non-qualified stock options 1,912 246 Payments on capital lease obligation (217) (62) -------------------------------------------------------------- Net cash provided by financing activities 12,070 163,074 - --------------------------------------------------------------- Balance, carried forward 1,494 144,106 (Continued on next page) 5 Balance, brought forward 1,494 144,106 Effect of exchange rate changes on cash and cash equivalents 45 (36) - --------------------------------------------------------------- Net increase in cash and cash equivalents 1,539 144,070 Cash and cash equivalents: Beginning of the period 126,215 20,944 - --------------------------------------------------------------- End of the period $ 127,754 $ 165,014 ================================================================ Supplemental cash flow information: Cash paid during the period for: Interest $ 3,555 $ 72 Income taxes 2,071 354 Noncash financing and investing transactions: Net unrealized holding(loss)gain on investments (344) 28 Conversions of convertible debt into common stock, net of unamortized issue costs and accrued interest 0 418 See notes to consolidated financial statements
6 STARBUCKS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the 13 Weeks Ended December 29,1996 and December 31,1995 (UNAUDITED) NOTE 1. FINANCIAL STATEMENT PREPARATION: The consolidated financial statements as of December 29, 1996 and September 29, 1996 and for the 13-week periods ended December 29, 1996 and December 31, 1995 have been prepared by Starbucks Corporation ("Starbucks" or the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The financial information for the 13-week periods ended December 29, 1996 and December 31, 1995 is unaudited, but, in the opinion of management, reflects all adjustments (consisting only of normal recurring adjustments and accruals) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of September 29, 1996 is derived from the Company's consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K/A for the year ended September 29, 1996 and should be read in conjunction with such financial statements. Certain reclassifications of prior year's balances have been made to conform to the current format. The results of operations for the 13-week period ended December 29,1996, are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 28, 1997. NOTE 2. EARNINGS PER SHARE: The computation of primary earnings per share is based on the weighted average number of shares outstanding during the period plus dilutive common stock equivalents consisting primarily of certain shares subject to stock options. The computation of fully-diluted earnings per share assumes conversion of the Company's convertible subordinated debentures using the "if converted" method, when such securities are dilutive, with net income adjusted for the after-tax interest expense and amortization of issuance costs applicable to these debentures. NOTE 3. INVENTORIES:
Inventories consist of the following (in thousands): December 29, September 29, 1996 1996 - --------------------------------------------------------------- Coffee: Unroasted $ 22,342 $ 37,127 Roasted 10,930 9,753 Other merchandise held for sale 23,661 29,518 Packaging and other supplies 6,477 6,972 - --------------------------------------------------------------- $ 63,410 $ 83,370 ===============================================================
As of December 29, 1996, the Company had fixed price purchase commitments for green coffee totaling approximately $30 million. 7 NOTE 4. PROPERTY, PLANT, AND EQUIPMENT:
Property, plant, and equipment consist of the following (in thousands): December 29, September 29, 1996 1996 - --------------------------------------------------------------- Land $ 3,602 $ 3,602 Building 8,338 8,338 Leasehold improvements 275,146 255,567 Roasting and store equipment 135,995 120,575 Furniture, fixtures and other 45,316 38,794 - --------------------------------------------------------------- 468,397 426,876 Less accumulated depreciation and amortization (100,105) (88,003) - --------------------------------------------------------------- 368,292 338,873 Construction in process 25,848 30,604 - --------------------------------------------------------------- $ 394,140 $ 369,477 ===============================================================
8 ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General During the 13-week period ending December 29, 1996, Starbucks Corporation ("Starbucks" or the "Company") derived approximately 86% of net revenues from its Company-operated retail stores. The Company's specialty sales operations, which include royalties, fees and product sales to wholesale customers, licensees, and joint ventures, account for approximately 10% of net revenues. Direct response operations account for the remainder of net revenues. The Company's fiscal year ends on the Sunday closest to September 30. Fiscal years ending on September 28, 1997 and September 29, 1996 each include 52 weeks. Some of the following information, including anticipated store openings, planned capital expenditures, and trends in the Company's operations, are forward-looking statements which are subject to risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, coffee and other raw materials prices and availability, successful execution of internal performance and expansion plans, impact of competition, availability of financing, legal proceedings, and other risks detailed herein and in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K/A for the year ended September 29, 1996. RESULTS OF OPERATIONS -- FOR THE 13 WEEKS ENDED DECEMBER 29, 1996, COMPARED TO THE 13 WEEKS ENDED DECEMBER 31, 1995 Revenues. Net revenues for the 13 weeks ended December 29, 1996, increased 41% to $239.1 million from $169.5 million for the corresponding period in fiscal 1996. Retail sales increased 41% to $205.3 million from $145.7 million, due to the opening of new retail stores combined with an increase in comparable store sales (sales from stores open 13 months or longer) of 3% for the period. The increase in comparable store sales resulted from an increase in the number of transactions. The Company anticipates its expansion strategy of clustering stores in existing markets, as well as increased competition and other factors, may put downward pressure on its comparable store sales growth in future periods. During the 13 weeks ended December 29, 1996, the Company opened 93 stores and licensees opened five stores in continental North America. The Company opened stores in the new markets of Phoenix, Arizona, Salt Lake City, Utah and Calgary, Alberta. The Company ended the period with 1,022 Company-operated stores and 80 licensed stores in continental North America. Specialty sales revenues increased 51% to $25.0 million for the 13 weeks ended December 29, 1996, compared to $16.6 million for the corresponding period in fiscal 1996. The increase in specialty sales revenues was broad-based across many industry categories, including hotels, airlines, and multi-unit retailers. Direct response revenues increased 22% to $8.8 million for the 13 weeks ended December 29, 1996, compared to $7.2 million for the corresponding period in fiscal 1996. Cost and Expenses. Cost of sales and related occupancy costs as a percentage of net revenues decreased to 48.3% for the 13 weeks ended December 29, 1996, compared to 51.0% for the corresponding period in fiscal 1996. This decrease was primarily the result of lower green coffee costs as a percentage of net revenues and a shift in the retail sales mix toward beverages, a higher margin product category. Store operating expenses as a percentage of retail sales increased to 34.1% for the 13 weeks ended December 29, 1996, from 32.4% for the corresponding period in fiscal 1996. The 1.7% increase was due primarily to higher store labor and higher regional overhead costs, partially offset by lower advertising costs as a percentage of retail sales. The increase in store labor costs as a percentage of retail sales was due in part to a shift in the retail sales mix towards the more labor- intensive beverage category. The increase in regional overhead costs as a percentage of retail sales was due to higher costs associated with opening three new markets during the 13-week period ending December 29, 1996 compared with the opening of no new markets during the corresponding period in fiscal 1996. Other operating expenses (those associated with the Company's specialty sales and direct response operations as well as the Company's share of profits and losses of its joint ventures)as a percentage of net revenues decreased to 3.3% for the 13 weeks ended December 29, 1996, from 3.4% for the corresponding period in 9 fiscal 1996. Depreciation and amortization as a percentage of net revenues increased 0.3% to 4.8% for the 13 weeks ended December 29, 1996. General and administrative expenses as a percentage of net revenues were 5.4% for the 13 weeks ended December 29, 1996, compared to 3.9% for the same period in fiscal 1996. This increase was primarily due to higher payroll- related costs and associated administrative occupancy costs as a percentage of net revenues. Operating Income. Operating income for the 13 weeks ended December 29, 1996 increased to $21.3 million (8.9% of net revenues) from $15.8 million (9.3% of net revenues) for the corresponding period in fiscal 1996. Operating income as a percentage of net revenues decreased due to higher general and administrative and store operating expenses as a percentage of net revenues, partially offset by lower cost of goods sold and related occupancy costs as a percentage of net revenues. Interest and Other Income. Interest and other income for the 13 weeks ended December 29, 1996 was $3.9 million compared to $2.3 million for the corresponding period in fiscal 1996. The increase was due primarily to higher average investment balances. Interest Expense. Interest expense for the 13 weeks ended December 29, 1996 was $1.8 million compared to $2.3 million for the corresponding period in fiscal 1996. The decrease was due primarily to the conversion of the Company's 4-1/2% Convertible Subordinated Debentures due 2003 to equity during the third quarter of fiscal 1996. Income Taxes. The Company's effective tax rate for the 13 weeks ended December 29, 1996 was 38.5% compared to 39.5% for the corresponding period in fiscal 1996. The decrease was due primarily to changes in state tax allocation and apportionment factors as well as the implementation of tax-saving strategies. Management expects the effective tax rate may increase as the Company expands activities in higher tax jurisdictions. LIQUIDITY AND CAPITAL RESOURCES The Company ended the period with $249.3 million in total cash and short-term investments and working capital of $234.6 million. Cash provided by operating activities totaled $46.8 million and resulted primarily from net income before non-cash charges of $29.5 million and a $20.0 million reduction in inventories. Cash provided from financing activities for the first 13 weeks of fiscal 1997 totaled $12.1 million and included an increase in cash provided by checks drawn in excess of bank balances, the exercise of employee stock options and the related income tax benefit available to the Company upon exercise of such options, and cash generated from the Company's employee stock purchase plan. As options granted under the Company's stock option plans vest, the Company will continue to receive proceeds and a tax deduction as a result of option exercises; however, neither the amounts nor the timing thereof can be predicted. Cash used by investing activities for the first 13 weeks of fiscal 1997 totaled $57.4 million. This included capital additions to property, plant, and equipment of $36.9 million related to opening 93 new Company-operated retail stores, remodeling certain existing stores, purchasing roasting and packaging equipment for the Company's roasting and distribution facilities, enhancing information systems, and expanding existing office space. The Company invested excess cash in short- term investment-grade marketable debt securities. Future cash requirements, other than normal operating expenses, are expected to consist primarily of capital expenditures related to the addition of new Company- operated retail stores. The Company also anticipates remodeling certain existing stores and incurring additional expenditures for enhancing its production capacity and information systems. While there can be no assurance that current expectations will be realized, and plans are subject to change upon further review, management expects capital expenditures for the remainder of fiscal 1997 to be approximately $135 million. Although the Company had minimal cash requirements for its joint ventures during the first 13 weeks of fiscal 1997, the Company currently anticipates additional cash requirements of approximately $30 million for its domestic joint ventures and international expansion during the remainder of fiscal 1997. In addition, under the 10 terms of the Company's corporate office lease, the Company has agreed to provide financing to the building owner to be used exclusively for facilities and leasehold development costs to accommodate the Company. During the first 13 weeks of fiscal 1997, the Company provided approximately $1.2 million under this agreement, bringing the total amount outstanding under this agreement to $5.8 million as of December 29, 1996. During the remainder of fiscal 1997, the Company intends to provide additional funds of approximately $2.8 million under this agreement. The maximum amount available under the agreement is $17 million. Any funds advanced by the Company will be repaid with interest over a term not to exceed 20 years. Management believes that existing cash and investments plus cash generated from operations should be sufficient to finance capital requirements for its core businesses through fiscal 1997. Any new joint ventures, other new business opportunities, or store expansion rates substantially in excess of that presently planned may require outside funding. COFFEE PRICES, AVAILABILITY, AND GENERAL RISK CONDITIONS Green coffee commodity prices are subject to substantial price fluctuations, generally a result of reports of adverse growing conditions in certain coffee-producing countries or other supply-related concerns. In addition, green coffee prices have been affected in the past, and may be affected in the future, by the actions of certain organizations and associations, such as the International Coffee Organization and the Association of Coffee Producing Countries, which have historically attempted to influence commodity prices of green coffee through agreement establishing export quotas or restricting coffee supplies worldwide. As a result of Brazilian frosts during 1994 and the ensuing green coffee commodity price increases, the Company had acquired higher cost coffees which negatively impacted gross margins during fiscal 1996. As of December 29, 1996, the Company had sold most of these higher-cost coffees. The Company enters into fixed price purchase commitments in order to secure an adequate supply of quality green coffee and fix costs for future periods. As of December 29, 1996 the Company had approximately $30 million in fixed price purchase commitments which, together with existing inventory, is expected to provide an adequate supply of green coffee for a substantial portion of fiscal 1997. The Company believes, based on relationships established with its suppliers in the past, that the risk of non-delivery on such purchase commitments is remote. In addition to fluctuating coffee prices, management believes that the Company's future results of operations and earnings could be significantly impacted by other factors such as increased competition within the specialty coffee industry, the Company's ability to find optimal store locations at favorable lease rates, the increased costs associated with opening and operating retail stores in new markets, the Company's continued ability to hire, train and retain qualified personnel, and the Company's ability to obtain adequate capital to finance its planned expansion. Due to the factors noted above, the Company's future earnings and the prices of the Company's securities may be subject to volatility. There can be no assurance that the Company will continue to generate increases in net revenues and net earnings, or growth in comparable store sales. Any variance in the factors noted above, or other areas, from what is expected by investors could have an immediate and adverse effect on the trading prices of the Company's securities. SEASONALITY AND QUARTERLY RESULTS The Company's business is subject to seasonal fluctuations. Significant portions of the Company's net revenues and profits are realized during the first quarter of the Company's fiscal year, which includes the December holiday season. Quarterly results are affected by the timing of the opening of new stores, and the Company's rapid growth may conceal the impact of other seasonal influences. Because of the seasonality of the Company's business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year. 11 PART II. OTHER INFORMATION Item 1. Legal Proceedings The Company is a party to various legal proceedings arising in the ordinary course of its business, but is not currently a party to any legal proceeding that the Company believes would have a material adverse effect on the financial position or results of operations of the Company. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit No. Description 11 Statement re: computation of per share earnings 27 Financial data schedule (b) Forms 8-K: No reports on Form 8-K were filed by the Company during the 13-week period ended December 29, 1996 12 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. STARBUCKS CORPORATION Dated: February 10, 1997 By: /s/ Michael Casey ---------------------- Michael Casey senior vice president and and chief financial officer Signing on behalf of the registrant and as principal financial officer 13 STARBUCKS CORPORATION --------------------- EXHIBIT 11 - COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
Three Months Ended December 29, December 31, 1996 1995 (13 Weeks) (13 Weeks) - --------------------------------------------------------------- NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE CALCULATION - PRIMARY: - --------------------------------------------------------------- Net earnings $14,390 $9,566 =============================================================== Weighted average shares outstanding calculation - primary: Weighted average number of common shares outstanding 77,725 71,115 Dilutive effect of outstanding common stock options 3,616 2,813 - --------------------------------------------------------------- Weighted average common and common equivalent shares - primary 81,341 73,928 =============================================================== Net earnings per common and common equivalent share - primary $ 0.18 $ 0.13 =============================================================== NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE CALCULATION - FULLY DILUTED Net earnings calculation: Net earnings $14,390 $9,566 Add after tax interest expense on debentures 1,075 547 Add after tax amortization of issuance costs related to debentures 89 39 - --------------------------------------------------------------- Net earnings - fully diluted $15,554 $10,152 =============================================================== Weighted average shares outstanding calculation - fully diluted: Weighted average number of common shares outstanding 77,725 71,115 Dilutive effect of outstanding common stock options 3,616 2,943 Assuming conversion of debentures 7,098 5,357 - --------------------------------------------------------------- Weighted average common and common equivalent shares outstanding - fully diluted 88,439 79,415 =============================================================== Net earnings per common and common equivalent share - fully diluted $ 0.18 $ 0.13 ===============================================================
14 EX-27 2 FDS
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE STARBUCKS CORPORATION FIRST QUARTER FISCAL 1997 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS SEP-28-1997 SEP-30-1996 DEC-29-1996 127,754 121,522 18,356 180 63,410 340,884 494,245 100,105 752,771 106,289 165,020 0 0 366,773 104,857 752,771 239,142 239,142 115,559 115,559 102,276 0 1,804 23,398 9,008 14,390 0 0 0 14,390 .18 .18
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