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Pier 1 Imports, Inc. Reports First Quarter Financial Results

Stocks in this article: PIR

Financial Disclosure Advisory

Management’s expectations and assumptions regarding future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements included in this press release. Any forward-looking projections or statements should be considered in conjunction with the cautionary statements and risks contained in the Company’s Annual Report on Form 10-K. Refer to the Company’s most recent SEC filings for any updates concerning these and other risks and uncertainties that may affect the Company’s operations and performance. The Company assumes no obligation to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied will not be realized.

Pier 1 Imports, Inc. is the original global importer of imported decorative home furnishings and gifts. Information about the Company is available on www.pier1.com.

         

Pier 1 Imports, Inc.

 
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
(unaudited)
 
Three Months Ended
May 26, % of May 28, % of
2012 Sales 2011 Sales
 
Net sales $ 361,119 100.0 % $ 334,603 100.0 %
 
Cost of sales   210,844   58.4 %   200,536   59.9 %
 
Gross Profit 150,275 41.6 % 134,067 40.1 %
 
Selling, general and administrative expenses 116,330 32.2 % 109,150 32.6 %
Depreciation and amortization   6,532   1.8 %   5,032   1.5 %
 
Operating income 27,413 7.6 % 19,885 5.9 %
 
Nonoperating (income) and expenses:
Interest, investment income and other (1,428 ) (2,629 )
Interest expense   814       825    
  (614 ) -0.2 %   (1,804 ) -0.5 %
 
Income before income taxes 28,027 7.8 % 21,689 6.5 %
Income tax provision   10,202   2.9 %   7,591   2.3 %
 
Net income $ 17,825   4.9 % $ 14,098   4.2 %
 
Earnings per share:
Basic $ 0.16   $ 0.12  
 
Diluted $ 0.16   $ 0.12  
 
Dividends declared per share: $ 0.04   $ 0.00  
 
Average shares outstanding during period:
Basic   108,597     117,300  
 
Diluted   110,564     119,235  

         
 

Pier 1 Imports, Inc.

 
CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts)
(unaudited)
 
 
May 26, February 25, May 28,
2012 2012 2011
ASSETS
 
Current assets:
Cash and cash equivalents, including temporary investments
of $178,679, $248,624 and $264,407, respectively $ 217,898 $ 287,868 $ 304,034
Accounts receivable, net 21,554 16,282 15,883
Inventories 333,523 322,482 315,099
Prepaid expenses and other current assets   31,838     23,682     27,578  
Total current assets 604,813 650,314 662,594
 
Properties, net 108,414 103,640 67,524
Other noncurrent assets   70,785     69,409     29,721  
$ 784,012   $ 823,363   $ 759,839  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Accounts payable $ 80,223 $ 63,827 $ 71,740
Gift cards and other deferred revenue 50,859 53,123 71,840
Accrued income taxes payable 9,260 16,759 5,283
Other accrued liabilities   96,841     111,679     93,417  
Total current liabilities 237,183 245,388 242,280
 
Long-term debt 9,500 9,500 9,500
Other noncurrent liabilities 75,091 74,832 77,247
 
Shareholders' equity:
Common stock, $0.001 par, 500,000,000 shares authorized,
125,232,000 issued 125 125 125
Paid-in capital 225,911 231,919 228,889
Retained earnings 476,228 462,751 307,911
Cumulative other comprehensive loss (5,066 ) (4,473 ) (567 )
Less -- 17,491,000, 15,512,000 and 6,725,000 common
shares in treasury, at cost, respectively   (234,960 )   (196,679 )   (105,546 )
  462,238     493,643     430,812  
$ 784,012   $ 823,363   $ 759,839  

 
 

Pier 1 Imports, Inc.

       
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Three Months Ended
May 26, May 28,
2012 2011
 
Cash flow from operating activities:
Net income $ 17,825 $ 14,098
Adjustments to reconcile to net cash provided by (used in)
operating activities:
Depreciation and amortization 8,722 9,745
Stock-based compensation expense 2,916 1,860
Deferred compensation 2,675 1,604
Amortization of credit card deferred revenue (2,771 ) (4,505 )
Amortization of deferred gains (1,881 ) (3,230 )
Other (564 ) 532
Changes in cash from:
Inventories (11,041 ) (3,329 )
Proprietary credit card receivables (2,892 ) (372 )
Prepaid expenses and other assets (12,217 ) (8,609 )
Accounts payable and accrued expenses 1,811 (825 )
Accrued income taxes payable, net of payments   (7,499 )   5,051  
Net cash (used in) provided by operating activities   (4,916 )   12,020  
 
Cash flow from investing activities:
Capital expenditures (12,224 ) (8,425 )
Proceeds from sale of restricted investments 211 311
Purchase of restricted investments   (1,488 )   (541 )
Net cash used in investing activities   (13,501 )   (8,655 )
 
Cash flow from financing activities:
Cash dividends (4,348 ) -
Purchases of treasury stock (48,711 ) (3,124 )
Proceeds from stock options exercised,
stock purchase plan and other, net 1,506 4,909
Debt issuance costs   -     (2,587 )
Net cash used in financing activities   (51,553 )   (802 )
 
Change in cash and cash equivalents (69,970 ) 2,563
Cash and cash equivalents at beginning of period   287,868     301,471  
 
Cash and cash equivalents at end of period $ 217,898   $ 304,034  




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