-----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, TEeQ2BjzMxFnnDacXxgvACMZx+K8eShgUafZkIsElxZnGPcguF3E4IuktcW9VRd1 Ae45giWS81xmutZn/5TL3A== 0000895447-03-000030.txt : 20030819 0000895447-03-000030.hdr.sgml : 20030819 20030819113746 ACCESSION NUMBER: 0000895447-03-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030819 ITEM INFORMATION: FILED AS OF DATE: 20030819 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHOE CARNIVAL INC CENTRAL INDEX KEY: 0000895447 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-SHOE STORES [5661] IRS NUMBER: 351736614 STATE OF INCORPORATION: IN FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21360 FILM NUMBER: 03854770 BUSINESS ADDRESS: STREET 1: 8233 BAUMGART ROAD CITY: EVANSVILLE STATE: IN ZIP: 47725 BUSINESS PHONE: 8128674039 MAIL ADDRESS: STREET 1: 8233 BAUMGART RD CITY: EVANSVILLE STATE: IN ZIP: 47725 8-K 1 scvl8k2003q2.txt SHOE CARNIVAL 2ND QUARTER 2003 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 19, 2003 SHOE CARNIVAL, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Indiana 0-21360 35-1736614 - -------------------------------------------------------------------------------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 8233 Baumgart Road Evansville, Indiana 47725 ------------------------- (Address of principal executive offices) (Zip Code) (812) 867-6471 -------------- (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On August 19, 2003, Shoe Carnival, Inc. (the "Company") issued a press release announcing its operating and financial results for the quarter ended August 2, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. 2 SIGNATURE 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 hereunto duly authorized. Dated: August 19, 2003 SHOE CARNIVAL, INC. By: /s/ W. Kerry Jackson ------------------------------- W. Kerry Jackson Senior Vice President and Chief Financial Officer 3 INDEX TO EXHIBITS Exhibit No. Description - ----------- ----------- 99.1 Earnings Release - Quarter Ended August 2, 2003. 4 EX-99 3 scvl8k2003q2exhibit99.txt SHOE CARNIVAL 2ND QUARTER 2003 PRESS RELEASE Exhibit 99.1 8233 Baumgart Road Contact Mark L. Lemond Evansville, Indiana 47725 President and Chief Executive Officer www.shoecarnival.com or W. Kerry Jackson (812) 867-4034 Senior Vice President, Chief Financial Officer and Treasurer FOR IMMEDIATE RELEASE - -------------------------------------------------------------------------------- SHOE CARNIVAL REPORTS SECOND QUARTER RESULTS Evansville, Indiana, August 19, 2003 - Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories, today announced sales and earnings for the second quarter ended August 2, 2003. Net income for the second quarter of fiscal 2003 was $1.5 million, or $0.12 per diluted share, compared with net income of $3.6 million, or $0.27 per diluted share, in the second quarter of fiscal 2002. Net sales for the second quarter of 2003 increased 7.9 percent to a second quarter Company record of $134.5 million from $124.6 million last year. Comparable store sales decreased by 3.0 percent for the 13-week period. Gross profit margins for the second quarter of 2003 decreased to 27.5 percent from 28.7 percent last year. Selling, general and administrative expenses, as a percentage of sales, increased to 25.5 percent from 24.0 percent in the second quarter of 2002. New store pre-opening costs incurred in the second quarter of 2003 were $828,000, or 0.6 percent of sales, compared with $663,000, or 0.5 percent of sales last year. Interest costs decreased to $176,000 in the second quarter from $200,000 last year. Mark Lemond, president and chief executive officer stated, "Our results came in below our expectations due to a decrease in customer traffic during the quarter, which necessitated increased promotional activity in order to liquidate seasonal merchandise. The lower customer traffic, combined with increased promotional activity, resulted in lower comparable stores sales and gross profit margins for the quarter. The increase in selling, general and administrative expenses for the quarter, as a percentage of sales, was primarily due to the deleveraging effect of lower comparable store sales. "While the first half results were disappointing, it appears that the U.S. economy and retail environment are beginning to show signs of a recovery. We have seen an improved sales trend in the back-to-school selling period, and if these trends continue, we expect to report better results in the second half of 2003." Net income for the first half of 2003 was $6.6 million, or $0.51 per diluted share, compared with net income of $9.2 million, or $.71 per diluted share, last year. Net sales increased 6.8 percent to $271.3 million for the first six months from sales of $254.0 million last year. Comparable store sales decreased 4.3 percent for the six-month period. Gross profit margin for the first six months of 2003 decreased to 28.7 percent from 29.5 percent last year. Selling, general and administrative expenses, as a percentage of sales, increased to 24.7 percent in the first six months of 2003 from 23.5 percent last year. Pre-opening costs for first six months of 2003 were $1.6 million, or 0.6 percent of sales, as compared to $1.1 million, or 0.4 percent of sales, in the first half of 2002. Interest expense incurred in the first half of 2003 decreased to $342,000 from $464,000 in the same period in 2002. The Company also issued guidance for the second half of 2003. With an expectation of an improving sales trend in the second half of 2003, comparable store sales are now expected to be in the range of flat to up two percent for the third and fourth quarters. Earnings per diluted share are expected to range from $0.41 to $0.46 in the third quarter and $0.15 to $0.18 in the fourth quarter. During the first half of 2003, 24 new stores were opened, 11 of which were opened in the second quarter. An additional 13 stores will be opened in the second half of 2003 bringing the total new stores to 37 for the year. The 11 stores opened during the second quarter included locations in: City Market/Stores ---------------------- ------------------ Colorado Springs, CO Colorado Springs/1 Knoxville, TN Knoxville/1 Brooksville, FL Tampa/5 Houston, TX Houston/2 San Antonio, TX San Antonio/1 Lansing, MI Lansing/1 Noblesville, IN Indianapolis/11 Grandville, MI Grand Rapids/7 Baton Rouge, LA Baton Rouge/2 E. Wichita, KS Wichita/2 Orlando, FL Orlando/5 Today, at 2:00 p.m. Eastern time, the Company will host a conference call to discuss the second quarter results. The public can listen to the live webcast of the call by visiting Shoe Carnival's Investor Relations page at www.shoecarnival.com. While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional analysts and investors. A replay of the webcast will be available on our website for two weeks beginning approximately two hours after the conclusion of the conference call. This press release contains forward-looking statements that involve a number of risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, but are not limited to: general economic conditions in the areas of the United States in which our stores are located; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; the potential impact of national and international security concerns on the retail environment; changes in our relationships with key suppliers; the impact of competition and pricing; changes in weather patterns, consumer buying trends and our ability to identify and respond to emerging fashion trends; risks associated with the seasonality of the retail industry; the availability of desirable store locations at acceptable lease terms and our ability to open new stores in a timely manner; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; and changes in the trade relations between the United States and countries which are the major manufacturers of footwear. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as "believes," "expects," "may," "will," "should," "seeks," "pro forma," "anticipates," "intends" or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments. Shoe Carnival is a chain of 229 footwear stores located in the Midwest, South and Southeast. Combining value pricing with an entertaining store format, Shoe Carnival is a leading retailer of name brand and private label footwear for the entire family. Headquartered in Evansville, IN, Shoe Carnival trades on the Nasdaq Stock Market under the symbol SCVL. Shoe Carnival's press releases and annual report are available on the Company's website at www.shoecarnival.com. Financial Tables Follow ### SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share) (Unaudited)
13 Weeks Ended 26 Weeks Ended August 2, August 3, August 2, August 3, 2003 2002 2003 2002 ------------- -------------- ------------ ------------- Net sales $ 134,463 $ 124,626 $ 271,313 $ 254,010 Cost of sales (including buying, distribution and occupancy costs) 97,512 88,865 193,481 179,167 ------------ -------------- ------------ ------------- Gross profit 36,951 35,761 77,832 74,843 Selling, general and administrative expenses 34,309 29,873 66,896 59,634 ------------ -------------- ------------ ------------- Operating income 2,642 5,888 10,936 15,209 Interest expense 176 200 342 464 ------------ -------------- ------------ ------------- Income before income taxes 2,466 5,688 10,594 14,745 Income taxes 925 2,133 3,973 5,529 ------------ -------------- ------------ ------------- Net income $ 1,541 $ 3,555 $ 6,621 $ 9,216 ============ ============== ============ ============= Net income per share: Basic $ .12 $ .28 $ .52 $ .74 ============ ============== ============ ============ Diluted $ .12 $ .27 $ .51 $ .71 ============ ============== ============ ============ Average shares outstanding: Basic 12,652 12,566 12,638 12,518 ============ ============== ============ ============ Diluted 13,018 13,065 12,989 12,995 ============ ============== ============ ============
SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
ASSETS August 2, February 1, August 3, 2003 2003 2002 ------------ ------------ ------------ Current Assets: Cash and cash equivalents $ 10,190 $ 5,782 $ 6,316 Accounts receivable 1,772 1,134 954 Merchandise inventories 171,979 146,091 146,615 Deferred income tax benefit 909 901 316 Other 3,388 1,890 3,275 ----------- ----------- ----------- Total Current Assets 188,238 155,798 157,476 Property and equipment-net 67,701 63,477 62,016 ----------- ----------- ----------- TOTAL ASSETS $ 255,939 $ 219,275 $ 219,492 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 63,906 $ 49,847 $ 49,432 Accrued and other liabilities 10,806 9,276 10,728 Current portion of long-term debt 298 427 586 ----------- ----------- ----------- Total Current Liabilities 75,010 59,550 60,746 Long-term debt 27,949 15,503 23,447 Deferred lease incentives 6,992 5,262 4,513 Accrued rent 2,623 2,458 2,242 Deferred income taxes 4,440 4,971 4,041 Other 927 640 511 ----------- ----------- ----------- TOTAL LIABILITIES 117,941 88,384 95,500 SHAREHOLDERS' EQUITY 137,998 130,891 123,992 ----------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 255,939 $ 219,275 $ 219,492 =========== =========== ===========
SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Twenty-six Twenty-six Weeks Ended Weeks Ended August 2, 2003 August 3, 2002 -------------- -------------- Cash Flows From Operating Activities Net income $ 6,621 $ 9,216 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,808 5,970 Stock option income tax benefit 106 655 Loss on retirement of assets 147 6 Deferred income taxes (539) (49) Other 246 169 Changes in operating assets and liabilities: Accounts receivable (854) 344 Merchandise inventories (25,888) (10,967) Accounts payable and accrued liabilities 15,577 9,652 Other (1,478) (1,459) ------------- ------------ Net cash provided by operating activities 746 13,537 ------------- ------------ Cash Flows From Investing Activities Purchases of property and equipment (11,337) (10,693) Lease incentives 1,936 514 Other 367 0 ------------- ------------ Net cash used in investing activities (9,034) (10,179) ------------- ------------ Cash Flows From Financing Activities Net borrowings (payments) under line of credit 12,575 (4,000) Payments on long-term debt (259) (520) Proceeds from issuance of stock 380 2,019 ------------- ------------ Net cash provided by (used in) financing activities 12,696 (2,501) ------------- ------------ Net increase in cash and cash equivalents 4,408 857 Cash and cash equivalents at beginning of period 5,782 5,459 ------------- ------------ Cash and Cash Equivalents at end of period $ 10,190 $ 6,316 ============= ============
-----END PRIVACY-ENHANCED MESSAGE-----