1) The company reported higher net sales and earnings per share in Q4 1997 compared to Q4 1996, but lower net income due to special charges. Excluding special items, net income and EPS were also higher.
2) In FY1997, the company reported higher net sales but lower net income and EPS compared to FY1996 due to special charges related to restructuring initiatives.
3) The special charges were taken to close underperforming stores and non-core businesses, impair assets, and position the company's brands for future growth.
The Timken Company maintained profitability in 1999 despite weaknesses in many markets. The company achieved its third highest sales ever and reduced inventory days for the third consecutive year. Looking ahead, Timken is transforming its organization into a more global business with new leadership and a broader product portfolio to fuel growth and take advantage of improving business conditions in 2000.
The company achieved record financial results in 1997, exceeding its long-term financial objectives for the sixth consecutive year. Consolidated net sales reached $1.6 billion, a 10% increase over 1996, driven by strong performances from core Institutional and Food & Beverage operations. Net income increased 18% to $134 million, or $1.00 per diluted share. The company continued generating strong operating cash flows and maintained a moderate debt level and investment grade balance sheet. Business acquisitions in 1997 and 1996 contributed approximately one-fourth to sales growth.
- GM reported preliminary first quarter 2007 results with GAAP EPS of $0.11 and adjusted EPS of $0.17.
- Adjusted total automotive results improved $0.3 billion versus Q1 2006 driven by improved results at GMNA, GMLAAM, and GMAP.
- GMAC reported a net loss of $115 million compared to net income of $495 million in Q1 2006 due to continued weakness in its mortgage business.
This document is Holly Corporation's 1999 Annual Report. It provides an overview of Holly's financial performance and operations for fiscal year 1999. Some key details include:
- Net income increased to $19.9 million in 1999 from $15.2 million in 1998, driven by improved refining margins and increased contributions from Holly's growing transportation business.
- Sales and other revenues were $598 million for 1999. Holly's refineries in New Mexico and Montana refined a total of 70,700 barrels per day.
- Holly's transportation business more than doubled its pipeline network over the past three years and continues pursuing growth opportunities in this segment.
- The report provides financial data, operating highlights, and information about Holly's
INTERNATIONAL FINANCIAL REPORTING STANDARDSRATHESH J
The document discusses the process of setting IFRS standards and provides an overview of IFRS 1-15. It summarizes key aspects of each standard such as their objectives, scope, and accounting requirements. IFRS 1 deals with first-time adoption, IFRS 2 addresses share-based payments, and IFRS 3 covers accounting for business combinations. The remaining standards pertain to insurance contracts, non-current assets, exploration expenses, financial instruments disclosures, operating segments, and revenue recognition.
This document summarizes a presentation given by Steven P. Eschbach, Vice President of Investor Relations for Midwest Utilities Seminar. The presentation provides an overview of Integrys Energy Group, a leading Midwest energy company serving over 2 million customers. Key points included Integrys' goals of long-term shareholder value and earnings growth, its diverse regulated utility businesses across six states, ongoing capital investment including the Weston 4 power plant project, and guidance for 2008 financial performance.
air products & chemicals 2008 Feb11 Lehmanfinance26
This document provides an overview of Air Products, including its business segments, financial performance, growth opportunities, and outlook. Some key points:
- Air Products has a diverse portfolio across gases, equipment, and technologies with long-term contracts providing stability.
- The company has delivered strong sales and earnings growth in recent years and aims to continue expanding margins and improving returns.
- Major growth opportunities exist in hydrogen, oxygen for gasification, and other energy and environmental applications.
- Air Products expects to sustain double-digit earnings growth through focus on productivity and margins while maintaining its leadership in industrial gases.
This document summarizes Mike Hilton's presentation at the Bank of America 37th Annual Investment Conference on September 18, 2007. The presentation provides an overview of Air Products, including its business segments, value proposition through long-term contracts and consistent cash flows, growth strategies focused on volume increases and productivity gains, and financial performance targets of 10-15% EPS growth through market expansion and margin improvements. Hilton commits to achieving an ORONA of 12.5% for fiscal year 2007 and outlines further growth opportunities in large projects, new markets, and productivity initiatives to drive sustainable double-digit returns.
The Timken Company maintained profitability in 1999 despite weaknesses in many markets. The company achieved its third highest sales ever and reduced inventory days for the third consecutive year. Looking ahead, Timken is transforming its organization into a more global business with new leadership and a broader product portfolio to fuel growth and take advantage of improving business conditions in 2000.
The company achieved record financial results in 1997, exceeding its long-term financial objectives for the sixth consecutive year. Consolidated net sales reached $1.6 billion, a 10% increase over 1996, driven by strong performances from core Institutional and Food & Beverage operations. Net income increased 18% to $134 million, or $1.00 per diluted share. The company continued generating strong operating cash flows and maintained a moderate debt level and investment grade balance sheet. Business acquisitions in 1997 and 1996 contributed approximately one-fourth to sales growth.
- GM reported preliminary first quarter 2007 results with GAAP EPS of $0.11 and adjusted EPS of $0.17.
- Adjusted total automotive results improved $0.3 billion versus Q1 2006 driven by improved results at GMNA, GMLAAM, and GMAP.
- GMAC reported a net loss of $115 million compared to net income of $495 million in Q1 2006 due to continued weakness in its mortgage business.
This document is Holly Corporation's 1999 Annual Report. It provides an overview of Holly's financial performance and operations for fiscal year 1999. Some key details include:
- Net income increased to $19.9 million in 1999 from $15.2 million in 1998, driven by improved refining margins and increased contributions from Holly's growing transportation business.
- Sales and other revenues were $598 million for 1999. Holly's refineries in New Mexico and Montana refined a total of 70,700 barrels per day.
- Holly's transportation business more than doubled its pipeline network over the past three years and continues pursuing growth opportunities in this segment.
- The report provides financial data, operating highlights, and information about Holly's
INTERNATIONAL FINANCIAL REPORTING STANDARDSRATHESH J
The document discusses the process of setting IFRS standards and provides an overview of IFRS 1-15. It summarizes key aspects of each standard such as their objectives, scope, and accounting requirements. IFRS 1 deals with first-time adoption, IFRS 2 addresses share-based payments, and IFRS 3 covers accounting for business combinations. The remaining standards pertain to insurance contracts, non-current assets, exploration expenses, financial instruments disclosures, operating segments, and revenue recognition.
This document summarizes a presentation given by Steven P. Eschbach, Vice President of Investor Relations for Midwest Utilities Seminar. The presentation provides an overview of Integrys Energy Group, a leading Midwest energy company serving over 2 million customers. Key points included Integrys' goals of long-term shareholder value and earnings growth, its diverse regulated utility businesses across six states, ongoing capital investment including the Weston 4 power plant project, and guidance for 2008 financial performance.
air products & chemicals 2008 Feb11 Lehmanfinance26
This document provides an overview of Air Products, including its business segments, financial performance, growth opportunities, and outlook. Some key points:
- Air Products has a diverse portfolio across gases, equipment, and technologies with long-term contracts providing stability.
- The company has delivered strong sales and earnings growth in recent years and aims to continue expanding margins and improving returns.
- Major growth opportunities exist in hydrogen, oxygen for gasification, and other energy and environmental applications.
- Air Products expects to sustain double-digit earnings growth through focus on productivity and margins while maintaining its leadership in industrial gases.
This document summarizes Mike Hilton's presentation at the Bank of America 37th Annual Investment Conference on September 18, 2007. The presentation provides an overview of Air Products, including its business segments, value proposition through long-term contracts and consistent cash flows, growth strategies focused on volume increases and productivity gains, and financial performance targets of 10-15% EPS growth through market expansion and margin improvements. Hilton commits to achieving an ORONA of 12.5% for fiscal year 2007 and outlines further growth opportunities in large projects, new markets, and productivity initiatives to drive sustainable double-digit returns.
This document provides an overview and financial summary of Illinois Tool Works Inc. for the years 1999, 1998 and 1997. It discusses the company's six business segments and highlights for each segment include revenue growth, operating income, and margins. Overall revenues increased 11% in 1999 due to acquisitions and base business growth. Cost of revenues declined and selling expenses remained steady as a percentage of revenues. Net income was impacted by $81 million in merger-related costs from the Premark acquisition. The leasing and investments segment saw increased revenues and income from gains on asset sales and higher mortgage income.
- ITW is a multinational manufacturer organized into six business segments: Engineered Products—North America; Engineered Products—International; Specialty Systems—North America; Specialty Systems—International; Consumer Products; and Leasing and Investments.
- In 1999, revenues increased across most segments due to acquisitions and base business growth, however margins were mixed as acquired businesses generally had lower margins.
- The document discusses factors affecting revenues and operating income for each business segment in 1999 and 1998, including the impact of acquisitions, base business trends, foreign currency fluctuations, and cost improvements.
This document provides a summary of a company's financial discussion and analysis for the years 1998, 1997, and 1996. Some key points:
- Net sales increased 15% in 1998 to nearly $1.9 billion, with double-digit growth in both US and international operations. Business acquisitions accounted for about half the growth.
- Operating income was a record $262 million in 1998, up 20% from 1997. The operating margin reached a new high of 13.9%.
- Income from continuing operations rose 15% to a record $155 million, or $1.15 per diluted share.
- Net income totaled $193 million, or $1.44 per diluted share, compared to
plains all american pipeline Annual Reports 1999finance13
The document summarizes Plains All American Pipeline, L.P.'s 1999 annual report. It discusses several positive events for the company in 1999, including four acquisitions that expanded its asset base, a 50% expansion of its Cushing terminal, and favorable asset sales. However, it also describes a major negative event - the discovery of $174 million in unauthorized trading losses by a former employee. Despite this setback, the summary discusses how the company took steps to address the financial issues and return to stable operations. It believes the fundamental business remains strong and the company is well-positioned to continue its growth strategy and generate increasing distributions for its unitholders.
This annual report summarizes Procter & Gamble's (P&G's) financial performance and strategic goals for 2001. Net sales declined slightly but core earnings grew. P&G aims to focus on core brands and businesses, improve performance in key markets like the US and Western Europe, and drive growth through innovation. The report highlights how P&G employees and brands help improve people's lives through stories like a dog saved by a specialized diet and a woman who used Olay for decades.
This document is a letter from the Chairman and CEO of General Motors Corporation to stockholders summarizing the company's performance in 2005. It discusses GM's $10.6 billion loss for the year due to challenges in the US market from legacy costs and inability to cut structural costs as revenue fell. It outlines GM's four-point turnaround plan to address costs, including plant closures and workforce reductions estimated to cut annual costs by $7 billion. It also discusses GM's continued investments in new vehicles and technology while growing its global business outside North America.
This document is a letter from the Chairman and CEO of General Motors Corporation to stockholders summarizing the company's performance in 2005. It discusses GM's $10.6 billion loss for the year due to challenges in the US market from legacy costs and inability to cut structural costs as revenue fell. It outlines GM's four-point turnaround plan to address costs, including plant closures and workforce reductions estimated to cut annual costs by $7 billion. It also discusses GM's continued investments in new vehicles and technology while growing its global business outside North America.
Republic Industries provides a discussion and analysis of its financial condition and results of operations. In 1997, the company reported net income of $439.7 million compared to a net loss in 1996. The company made various acquisitions in 1997-1998 in the automotive retail, rental, and solid waste industries. Restructuring charges were incurred in 1997-1998 to integrate acquired businesses. The company sold its electronic security services division in 1997. Revenue increased substantially in 1997 due to acquisitions in the automotive retail segment.
Republic Industries provides a discussion and analysis of its financial condition and results of operations. In 1997, the company reported net income of $439.7 million compared to a net loss in 1996 due to restructuring charges and gains from selling divisions. The company made numerous acquisitions accounted for using both the pooling of interests and purchase methods. Restructuring charges totaled $244.1 million in 1997 related to automotive retail and rental integration. Revenue increased substantially from 1996 to 1997 due to acquisitions and organic growth.
The document provides answers to 19 questions about ConAgra Foods' financial performance in Q1 FY09. Some key details include: brands in Consumer Foods that saw sales growth/declines; unit volume was flat for Consumer Foods; total depreciation was $76M; capital expenditures were $106M; net interest expense was $50M; corporate expense was $97M; dividends paid were $92M; diluted shares outstanding were 470M; gross/operating margins were 20%/10%; net debt was $3.09B; net debt to capital ratio was 39%; effective tax rate was 38%; projected capex for FY09 were $475M; expected net interest expense
- Hershey Foods Corporation produces and distributes a broad line of chocolate and non-chocolate confectionery and grocery products.
- Net sales rose in 2001 primarily due to acquisitions of mint and gum businesses and new product introductions. Net sales also rose in 2000 due to increased sales of base confectionery products.
- Gross margin was unchanged at 41.5% in 2000 and 2001. Excluding one-time charges, gross margin rose to 42.6% in 2001 due to lower costs and supply chain efficiencies.
- Hershey Foods Corporation produces and distributes a broad line of chocolate and non-chocolate confectionery and grocery products.
- Net sales rose in 2001 primarily due to acquisitions of mint and gum businesses and new product introductions. Net sales also rose in 2000 due to increased sales of base confectionery products.
- Gross margin was unchanged at 41.5% in 2000 and 2001. Excluding one-time charges, gross margin rose to 42.6% in 2001 due to lower costs and supply chain efficiencies.
1) Net sales for Hershey Foods Corporation increased 6% from 1999 to 2000 due to higher core confectionery and grocery product sales in North America, new product introductions, and lower returns and discounts. Net sales decreased 10% from 1998 to 1999 primarily due to the sale of the pasta business.
2) Gross margin increased from 40.7% in 1999 to 41.5% in 2000 due to lower raw material costs and returns/discounts, but was partially offset by higher distribution costs. Gross margin decreased from 40.8% in 1998 to 40.7% in 1999 due to product mix and higher distribution costs.
3) Net income decreased 27% from 1999 to 2000 due to the 1999
This document provides an analysis of Hershey Foods Corporation's financial condition and results of operations. It discusses increases in net sales and gross margin from 1999 to 2000 primarily due to lower raw material costs. Selling and administrative expenses also increased from 1999 to 2000 due to higher marketing and staffing costs. In 2000, Hershey acquired Nabisco's mint and gum businesses for $135 million. The acquisition increased assets but did not materially impact 2000 results. Cash flow from operations and prior asset sales exceeded capital expenditures, share repurchases and dividends. Liquidity remains strong with continued capital investments planned.
Alltrista sold off non-core businesses in 2001 to focus on consumer products, especially those related to home food preservation. This included brands for canning and vacuum packaging. The divestitures removed financial burdens and generated tax refunds. Alltrista also closed an office to reduce costs. Going forward, the strategy is to leverage leadership in niche consumer product markets to drive growth, with an acquisition of Tilia planned to expand into vacuum packaging.
Alltrista Corporation is a leading provider of niche consumer products used for home food preservation. In 2001, Alltrista undertook strategic initiatives to focus on its core consumer products business, including the divestiture of non-core businesses. As a result, Alltrista reported a net loss of $85.4 million for 2001 due to special charges associated with divestitures and restructuring costs. However, the divestitures and restructuring positioned Alltrista to focus on growing its consumer products business through the planned acquisition of Tilia International, which would make Alltrista the market leader in home vacuum packaging systems.
This document summarizes the financial performance of Burlington Northern Santa Fe Corporation for the years 1992-1996. It reports that in 1996:
- Operating income increased 14% to $1.75 billion compared to 1995 on a comparable basis.
- Revenues reached $8.19 billion despite a drop in agricultural commodities revenues.
- Operating expenses were $178 million below 1995 levels, lowering the operating ratio to 78.6%.
- Net income grew 21% to $889 million, or $5.70 per share, compared to $733 million in 1995.
Major brands in the Consumer Foods segment that posted sales growth included Egg Beaters, Healthy Choice, and Slim Jim. Brands that posted sales declines included ACT II and Blue Bonnet. Total depreciation and amortization from continuing operations was $88 million for the quarter and $177 million year-to-date. Capital expenditures were $66 million for the quarter and $111 million year-to-date. Net interest expense was $52 million for the quarter and $110 million year-to-date.
This document summarizes Office Depot's fourth quarter 2008 earnings conference call. Key points include:
- Total sales declined 15% year-over-year to $3.3 billion due to economic challenges.
- The company reported a GAAP loss of $1.54 billion or $5.64 per share. Excluding charges, the loss was $199 million or $0.73 per share.
- North American retail sales fell 18% with a comparable store sales decline of 18% and an operating loss of $119 million versus a $23 million profit in Q4 2007.
The document summarizes Office Depot's fourth quarter 2008 earnings conference call. It reported a GAAP loss of $1.54 billion or $5.64 per share due to impairment charges. Excluding charges, the loss was $199 million or $0.73 per share. Total sales declined 15% to $3.3 billion due to economic challenges. It is taking actions like store closures to improve profitability in 2009.
This document provides an overview and financial projections for Xcel Energy. It discusses Xcel Energy's integrated utility operations, forecasts steady customer and earnings growth, and outlines plans to reduce emissions and refurbish coal plants. It also summarizes Xcel Energy's liquidity and debt refinancing plans, provides 2003 earnings guidance, and outlines priorities including resolving its involvement with bankrupt company NRG.
This document provides an overview and financial projections for Xcel Energy. It discusses Xcel Energy's integrated utility operations, forecasts steady customer and earnings growth, and outlines plans to reduce emissions and refurbish coal plants. It also summarizes Xcel Energy's liquidity and debt refinancing plans, provides 2003 earnings guidance, and outlines priorities including resolving its NRG investment and maintaining its dividend.
This document provides an overview and financial summary of Illinois Tool Works Inc. for the years 1999, 1998 and 1997. It discusses the company's six business segments and highlights for each segment include revenue growth, operating income, and margins. Overall revenues increased 11% in 1999 due to acquisitions and base business growth. Cost of revenues declined and selling expenses remained steady as a percentage of revenues. Net income was impacted by $81 million in merger-related costs from the Premark acquisition. The leasing and investments segment saw increased revenues and income from gains on asset sales and higher mortgage income.
- ITW is a multinational manufacturer organized into six business segments: Engineered Products—North America; Engineered Products—International; Specialty Systems—North America; Specialty Systems—International; Consumer Products; and Leasing and Investments.
- In 1999, revenues increased across most segments due to acquisitions and base business growth, however margins were mixed as acquired businesses generally had lower margins.
- The document discusses factors affecting revenues and operating income for each business segment in 1999 and 1998, including the impact of acquisitions, base business trends, foreign currency fluctuations, and cost improvements.
This document provides a summary of a company's financial discussion and analysis for the years 1998, 1997, and 1996. Some key points:
- Net sales increased 15% in 1998 to nearly $1.9 billion, with double-digit growth in both US and international operations. Business acquisitions accounted for about half the growth.
- Operating income was a record $262 million in 1998, up 20% from 1997. The operating margin reached a new high of 13.9%.
- Income from continuing operations rose 15% to a record $155 million, or $1.15 per diluted share.
- Net income totaled $193 million, or $1.44 per diluted share, compared to
plains all american pipeline Annual Reports 1999finance13
The document summarizes Plains All American Pipeline, L.P.'s 1999 annual report. It discusses several positive events for the company in 1999, including four acquisitions that expanded its asset base, a 50% expansion of its Cushing terminal, and favorable asset sales. However, it also describes a major negative event - the discovery of $174 million in unauthorized trading losses by a former employee. Despite this setback, the summary discusses how the company took steps to address the financial issues and return to stable operations. It believes the fundamental business remains strong and the company is well-positioned to continue its growth strategy and generate increasing distributions for its unitholders.
This annual report summarizes Procter & Gamble's (P&G's) financial performance and strategic goals for 2001. Net sales declined slightly but core earnings grew. P&G aims to focus on core brands and businesses, improve performance in key markets like the US and Western Europe, and drive growth through innovation. The report highlights how P&G employees and brands help improve people's lives through stories like a dog saved by a specialized diet and a woman who used Olay for decades.
This document is a letter from the Chairman and CEO of General Motors Corporation to stockholders summarizing the company's performance in 2005. It discusses GM's $10.6 billion loss for the year due to challenges in the US market from legacy costs and inability to cut structural costs as revenue fell. It outlines GM's four-point turnaround plan to address costs, including plant closures and workforce reductions estimated to cut annual costs by $7 billion. It also discusses GM's continued investments in new vehicles and technology while growing its global business outside North America.
This document is a letter from the Chairman and CEO of General Motors Corporation to stockholders summarizing the company's performance in 2005. It discusses GM's $10.6 billion loss for the year due to challenges in the US market from legacy costs and inability to cut structural costs as revenue fell. It outlines GM's four-point turnaround plan to address costs, including plant closures and workforce reductions estimated to cut annual costs by $7 billion. It also discusses GM's continued investments in new vehicles and technology while growing its global business outside North America.
Republic Industries provides a discussion and analysis of its financial condition and results of operations. In 1997, the company reported net income of $439.7 million compared to a net loss in 1996. The company made various acquisitions in 1997-1998 in the automotive retail, rental, and solid waste industries. Restructuring charges were incurred in 1997-1998 to integrate acquired businesses. The company sold its electronic security services division in 1997. Revenue increased substantially in 1997 due to acquisitions in the automotive retail segment.
Republic Industries provides a discussion and analysis of its financial condition and results of operations. In 1997, the company reported net income of $439.7 million compared to a net loss in 1996 due to restructuring charges and gains from selling divisions. The company made numerous acquisitions accounted for using both the pooling of interests and purchase methods. Restructuring charges totaled $244.1 million in 1997 related to automotive retail and rental integration. Revenue increased substantially from 1996 to 1997 due to acquisitions and organic growth.
The document provides answers to 19 questions about ConAgra Foods' financial performance in Q1 FY09. Some key details include: brands in Consumer Foods that saw sales growth/declines; unit volume was flat for Consumer Foods; total depreciation was $76M; capital expenditures were $106M; net interest expense was $50M; corporate expense was $97M; dividends paid were $92M; diluted shares outstanding were 470M; gross/operating margins were 20%/10%; net debt was $3.09B; net debt to capital ratio was 39%; effective tax rate was 38%; projected capex for FY09 were $475M; expected net interest expense
- Hershey Foods Corporation produces and distributes a broad line of chocolate and non-chocolate confectionery and grocery products.
- Net sales rose in 2001 primarily due to acquisitions of mint and gum businesses and new product introductions. Net sales also rose in 2000 due to increased sales of base confectionery products.
- Gross margin was unchanged at 41.5% in 2000 and 2001. Excluding one-time charges, gross margin rose to 42.6% in 2001 due to lower costs and supply chain efficiencies.
- Hershey Foods Corporation produces and distributes a broad line of chocolate and non-chocolate confectionery and grocery products.
- Net sales rose in 2001 primarily due to acquisitions of mint and gum businesses and new product introductions. Net sales also rose in 2000 due to increased sales of base confectionery products.
- Gross margin was unchanged at 41.5% in 2000 and 2001. Excluding one-time charges, gross margin rose to 42.6% in 2001 due to lower costs and supply chain efficiencies.
1) Net sales for Hershey Foods Corporation increased 6% from 1999 to 2000 due to higher core confectionery and grocery product sales in North America, new product introductions, and lower returns and discounts. Net sales decreased 10% from 1998 to 1999 primarily due to the sale of the pasta business.
2) Gross margin increased from 40.7% in 1999 to 41.5% in 2000 due to lower raw material costs and returns/discounts, but was partially offset by higher distribution costs. Gross margin decreased from 40.8% in 1998 to 40.7% in 1999 due to product mix and higher distribution costs.
3) Net income decreased 27% from 1999 to 2000 due to the 1999
This document provides an analysis of Hershey Foods Corporation's financial condition and results of operations. It discusses increases in net sales and gross margin from 1999 to 2000 primarily due to lower raw material costs. Selling and administrative expenses also increased from 1999 to 2000 due to higher marketing and staffing costs. In 2000, Hershey acquired Nabisco's mint and gum businesses for $135 million. The acquisition increased assets but did not materially impact 2000 results. Cash flow from operations and prior asset sales exceeded capital expenditures, share repurchases and dividends. Liquidity remains strong with continued capital investments planned.
Alltrista sold off non-core businesses in 2001 to focus on consumer products, especially those related to home food preservation. This included brands for canning and vacuum packaging. The divestitures removed financial burdens and generated tax refunds. Alltrista also closed an office to reduce costs. Going forward, the strategy is to leverage leadership in niche consumer product markets to drive growth, with an acquisition of Tilia planned to expand into vacuum packaging.
Alltrista Corporation is a leading provider of niche consumer products used for home food preservation. In 2001, Alltrista undertook strategic initiatives to focus on its core consumer products business, including the divestiture of non-core businesses. As a result, Alltrista reported a net loss of $85.4 million for 2001 due to special charges associated with divestitures and restructuring costs. However, the divestitures and restructuring positioned Alltrista to focus on growing its consumer products business through the planned acquisition of Tilia International, which would make Alltrista the market leader in home vacuum packaging systems.
This document summarizes the financial performance of Burlington Northern Santa Fe Corporation for the years 1992-1996. It reports that in 1996:
- Operating income increased 14% to $1.75 billion compared to 1995 on a comparable basis.
- Revenues reached $8.19 billion despite a drop in agricultural commodities revenues.
- Operating expenses were $178 million below 1995 levels, lowering the operating ratio to 78.6%.
- Net income grew 21% to $889 million, or $5.70 per share, compared to $733 million in 1995.
Major brands in the Consumer Foods segment that posted sales growth included Egg Beaters, Healthy Choice, and Slim Jim. Brands that posted sales declines included ACT II and Blue Bonnet. Total depreciation and amortization from continuing operations was $88 million for the quarter and $177 million year-to-date. Capital expenditures were $66 million for the quarter and $111 million year-to-date. Net interest expense was $52 million for the quarter and $110 million year-to-date.
This document summarizes Office Depot's fourth quarter 2008 earnings conference call. Key points include:
- Total sales declined 15% year-over-year to $3.3 billion due to economic challenges.
- The company reported a GAAP loss of $1.54 billion or $5.64 per share. Excluding charges, the loss was $199 million or $0.73 per share.
- North American retail sales fell 18% with a comparable store sales decline of 18% and an operating loss of $119 million versus a $23 million profit in Q4 2007.
The document summarizes Office Depot's fourth quarter 2008 earnings conference call. It reported a GAAP loss of $1.54 billion or $5.64 per share due to impairment charges. Excluding charges, the loss was $199 million or $0.73 per share. Total sales declined 15% to $3.3 billion due to economic challenges. It is taking actions like store closures to improve profitability in 2009.
Similar to limited brands annual report 1997_mda (20)
This document provides an overview and financial projections for Xcel Energy. It discusses Xcel Energy's integrated utility operations, forecasts steady customer and earnings growth, and outlines plans to reduce emissions and refurbish coal plants. It also summarizes Xcel Energy's liquidity and debt refinancing plans, provides 2003 earnings guidance, and outlines priorities including resolving its involvement with bankrupt company NRG.
This document provides an overview and financial projections for Xcel Energy. It discusses Xcel Energy's integrated utility operations, forecasts steady customer and earnings growth, and outlines plans to reduce emissions and refurbish coal plants. It also summarizes Xcel Energy's liquidity and debt refinancing plans, provides 2003 earnings guidance, and outlines priorities including resolving its NRG investment and maintaining its dividend.
This document provides an overview and financial projections for Xcel Energy. It discusses Xcel Energy's integrated utility operations, forecasts steady customer and earnings growth, and outlines plans to reduce emissions and refurbish coal plants. It also summarizes Xcel Energy's liquidity and debt refinancing plans, provides 2003 earnings guidance, and outlines priorities including resolving its involvement with bankrupt company NRG.
This document summarizes Xcel Energy's presentation at the 2003 Banc of America Securities Investment Conference. It outlines Xcel Energy's operations as an integrated utility across multiple US states, financial metrics including earnings growth and dividend yield, efforts to divest from the unprofitable NRG Energy business, and capital expenditure plans including converting coal plants to natural gas to reduce emissions. It also provides guidance for 2003 earnings per share and outlines financing plans to redeem higher interest debt.
This document summarizes Xcel Energy's presentation at the 2003 Banc of America Securities Investment Conference. It outlines Xcel Energy's operations as an integrated utility across multiple US states, its financial performance and guidance, initiatives to reduce emissions in Minnesota, and capital expenditure and financing plans. It highlights Xcel Energy's regulated business model, commitment to dividends, efforts to resolve issues related to its former subsidiary NRG, and expectations for continued earnings growth.
This document summarizes an investor presentation by Xcel Energy on its business operations and financial outlook. It discusses Xcel Energy's integrated utility operations, positive cash flow generation, plans to divest its stake in NRG Energy through bankruptcy proceedings, financial guidance for 2003 including earnings per share, and capital expenditure plans. The presentation also provides comparisons of Xcel Energy's operating metrics to industry peers.
This document provides an overview of Xcel Energy's financial performance and objectives presented at the Edison Electric Institute Financial Conference in October 2003. Key points include: Xcel achieved several accomplishments in 2003 including settling with NRG creditors and maintaining investment grade ratings. Objectives are to invest in utility assets, provide competitive returns, and improve credit ratings. Earnings guidance for 2003 is $1.48-$1.53 per share and $1.15-$1.25 for 2004, driven by utility operations and tax benefits from NRG. The presentation outlines capital expenditures, financing plans, and regulatory strategies.
This document provides an overview of Xcel Energy's financial performance and objectives presented at the Edison Electric Institute Financial Conference in October 2003. Key points include: Xcel achieved several accomplishments in 2003 including settling with NRG creditors and maintaining investment grade ratings. Objectives are to invest in utility assets, provide competitive returns, and improve credit ratings. Earnings guidance for 2003 is $1.48-$1.53 per share and $1.15-$1.25 for 2004, driven by utility operations and tax benefits from NRG. The presentation outlines capital expenditures, financing plans, and regulatory strategies.
This document provides an overview of Xcel Energy from their presentation at the Edison Electric Institute Financial Conference in October 2003. Key points include Xcel achieving several accomplishments in 2003 including settling with NRG creditors, maintaining investment grade ratings, and refinancing debt. Projections for 2004 include earnings of $1.15-1.25 per share assuming NRG emerges from bankruptcy. The presentation outlines Xcel's objectives, investments, regulatory strategy, and earnings drivers to emphasize the company as a low-risk, integrated utility with a total return of 7-8%.
This document provides an overview of Xcel Energy from their presentation at the Banc of America Securities Energy & Power Conference in November 2003. Key points include that Xcel achieved several accomplishments in 2003 including settling with NRG creditors and maintaining investment grade ratings. Objectives for 2004 include investing additional capital in utilities, providing competitive returns to shareholders, and improving credit ratings. Earnings guidance for 2003 is $1.48-$1.53 per share and $1.15-$1.25 per share for 2004.
This document summarizes Xcel Energy's presentation at the Banc of America Securities Energy & Power Conference on November 17-19, 2003. It discusses Xcel Energy's accomplishments in 2003, objectives for investment, earnings growth, and credit ratings improvement. It also provides guidance on projected 2003 and 2004 earnings, cash flows, utility investments, and the expected timeline for NRG's emergence from bankruptcy.
This document summarizes Xcel Energy's presentation at the Banc of America Securities Energy & Power Conference on November 17-19, 2003. It discusses Xcel Energy's accomplishments in 2003, objectives for investment, earnings growth, and credit ratings improvement. It also provides guidance on projected 2003 and 2004 earnings, cash flows, utility investments, and the expected timeline for NRG's emergence from bankruptcy.
This document provides an overview of Xcel Energy Inc. for investors attending the EEI International Financial Conference. It summarizes Xcel's financial performance, business segments, generation assets, environmental commitments, regulatory strategy, and earnings guidance. The presentation outlines Xcel's strengths as a utility, investment merits, and objectives to invest additional capital in its utility business and improve credit ratings while providing competitive returns.
This document provides an overview of Xcel Energy Inc. for investors attending the EEI International Financial Conference. It summarizes Xcel's financial performance, business segments, generation assets, environmental commitments, regulatory strategy, and earnings guidance. The presentation outlines Xcel's strengths as a growing utility, its investment merits, and capital expenditure plans to improve its credit ratings and provide competitive returns.
This document provides an overview of Xcel Energy Inc. for investors attending the EEI International Financial Conference. It summarizes Xcel's business segments, strengths, investment merits, capital investment plans, power supply, environmental commitments, and financial performance. Projections for 2004 earnings per share and cash flow are also presented. Key points include Xcel being the 4th largest US electric and gas utility, a growing service area, low rates, and a goal of providing competitive total returns of 7-9% to shareholders.
Xcel Energy reported improved second quarter 2004 earnings compared to the second quarter of 2003. Net income for the quarter was $86 million, or $0.21 per share, compared to a net loss of $283 million, or $0.71 per share in 2003. Regulated utility earnings from continuing operations improved to $89 million in 2004 from $77 million in 2003. Results from discontinued operations were earnings of $5 million in 2004 compared to losses of $337 million in 2003. The company maintained its annual earnings guidance of $1.15 to $1.25 per share.
This document summarizes a presentation given by Dick Kelly, president and COO of Xcel Energy, at a Lehman Brothers energy conference on September 8, 2004. Kelly outlines Xcel Energy's strategy of investing $900-950 million annually in its utility assets to meet growth, while also pursuing specific generation projects, including a $1 billion coal plant expansion in Colorado. Kelly projects total shareholder return of 7-9% annually through earnings growth of 2-4% and a dividend yield of around 5%.
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Wayne Brunetti is the Chairman and CEO of Xcel Energy, a major electric and gas utility. The document discusses Xcel Energy's business strategy, which involves continued investment in its utility assets to meet growth. Key capital projects include a $1 billion emissions reduction program in Minnesota and a proposed $1.3 billion coal plant in Colorado. The summary also outlines Xcel Energy's financial metrics, earnings guidance, and dividend policy. Brunetti emphasizes that Xcel Energy needs clarity on public policy regarding energy and the environment to effectively plan and invest.
Wayne Brunetti is the Chairman and CEO of Xcel Energy, a major electric and gas utility. The document discusses Xcel Energy's business strategy, which involves continued investment in its utility assets to meet growth. Key capital projects include a $1 billion emissions reduction program in Minnesota and a proposed $1.3 billion coal plant in Colorado. The summary also provides Xcel Energy's earnings guidance for 2004 and discusses its dividend policy. Brunetti emphasizes that Xcel Energy needs clarity on public policy regarding energy and the environment to effectively plan and invest.
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limited brands annual report 1997_mda
1. Excluding the impact of special and nonrecurring items, gains in
Management’s Discussion and Analysis
connection with initial public offerings (“IPO”), and the Henri Ben-
Results of Operations
del inventory liquidation charges, the Company would have earned
Net sales for the fourth quarter of 1997 grew 10% to $3.268 billion
$1.24 per diluted share compared to last year’s $1.14. These exclud-
from $2.966 billion for the same period a year ago. Net income was
ed items consisted of: 1) $213.2 million related to the previously
$85.3 million versus $213.4 million in the fourth quarter of 1996,
described fourth quarter charges that was net of a third quarter net
and earnings per diluted share were $.31 versus $.78 in the fourth
gain of $62.8 million related principally to the sale of approximately
quarter of 1996. Excluding special and nonrecurring items and
one-half of the Company’s investment in Brylane, Inc. (“Brylane”),
inventory liquidation charges associated with the closing of five
a 26% owned (post- IPO) catalogue retailer; 2) in 1997, a pretax gain
Henri Bendel stores, net income was $252.5 million versus $220.2
of $8.6 million in connection with the IPO of Brylane; 3) $12 mil-
million in the fourth quarter of 1996, and earnings per diluted share
lion of special and nonrecurring charges in 1996 related to the April
were $.91 versus $.81 in the fourth quarter of 1996.
1997 sale of Penhaligon’s; and 4) in 1996, a gain of $118.2 million
As a result of an ongoing review of the Company’s retail busi-
resulting from the Abercrombie & Fitch (“A&F”) IPO.
nesses and investments as well as implementation of initiatives
Business highlights for 1997 include the following:
intended to promote and strengthen the Company’s various retail
• Intimate Brands, Inc. (“IBI”), led by strong performances at
brands (including closing businesses, identification and disposal
Bath & Body Works and Victoria’s Secret Stores, recorded earnings
of non-core assets and identification of store locations not consis-
per diluted share of $1.14, compared to $1.02 in 1996, including
tent with a particular brand) during the fourth quarter of 1997, the
special and nonrecurring charges of $.16 in 1997 and $.03 in 1996.
Company recognized total charges of $289 million (approximately
• A&F delivered 1997 earnings per diluted share of $.94, a 74%
$30 million after-tax cash impact) or $.60 per diluted share, con-
increase over 1996 as comparable store sales increased 21% on top
sisting of $276 million in special and nonrecurring charges and a
of 13% for 1996.
$13 million cost of sales charge for inventory liquidation at Henri
• However, much of the gains from IBI and A&F were offset by a
Bendel. These charges included:
decline in operating income for each of the women’s businesses,
• A $68 million charge for closing the 118 store Cacique lingerie
which finished the year with a pretax operating loss aggregating
business effective January 31, 1998. The amount includes $38 mil-
$268 million, including special and nonrecurring charges of $187
lion in cash charges relating to cancellation of merchandise on
million and the $13 million inventory liquidation charge related to
order and other exit costs such as severance, service contract ter-
the closing of five Henri Bendel stores.
mination fees and lease termination costs;
• Limited Too led the emerging businesses with a significant improve-
• $95 million in charges related to Henri Bendel, which include an
ment in operating income and 20% comparable store sales gains.
$82 million special and nonrecurring charge related to streamlining
• During the year, the Company also completed the sales of its
Henri Bendel from six stores to a one-store operation by Septem-
interests in the Newport Office Tower in Jersey City, New Jersey,
ber 1, 1998. The amount includes $56 million in cash charges that
and The Mall at Tuttle Crossing in Columbus, Ohio, and approx-
are recorded in other current liabilities. In addition, the Company
imately one-half of its interest in Brylane for cash proceeds of
incurred a $13 million cost of sales charge for inventory liquidation.
$343.2 million.
The charge to cost of sales is in accordance with Emerging Issues
• On February 17, 1998, a registration statement was filed with the
Task Force (“EITF”) Issue No. 96-9, “Classification of Inventory
Securities and Exchange Commission in connection with a plan to
Markdowns and Other Costs Associated with a Restructuring”;
establish A&F as a fully independent company via a tax-free ex-
• $86 million of impaired asset charges related principally to the
change offer pursuant to which The Limited shareholders will be
women’s apparel businesses, in accordance with Statement of Fi-
given an opportunity to tender some or all of their shares of The
nancial Accounting Standards (“SFAS”) No. 121, “Accounting for
Limited in return for shares of A&F. The transaction is subject to
the Impairment of Long-Lived Assets and for Long-Lived Assets
certain customary conditions.
to be Disposed Of.” This charge has no cash impact but is an SFAS
• On February 20, 1998, the Company entered into a definitive
No. 121 required accounting adjustment to measure the fair value
agreement with Pinault Printemps-Radoute to sell its remaining
of store assets, and will provide a noncash benefit in future periods
2.6 million shares of Brylane for $51 per share, generating net cash
from reduced depreciation and amortization;
proceeds of $131 million. The transaction is expected to close in
• A $28 million provision for closing or downsizing approximately
the first quarter of 1998.
80 oversized stores, primarily in the Limited, Lane Bryant, Lerner
The Company does not believe that the consummation of the
New York and Express women’s businesses, and a $12 million write-
transactions and the taking of the other actions outlined above will
down to net realizable value of a real estate investment previously
have a material effect on the Company’s liquidity (i.e., its ability to
acquired in connection with closing and downsizing certain stores.
provide the resources to support operations, projected growth, sea-
Net sales for the fiscal year ended January 31, 1998, increased 6%
sonal requirements and capital expenditures). Furthermore, although
to $9.189 billion from sales of $8.645 billion for the same period
the Company believes that such transactions and other actions should
ended February 1, 1997. Net income was $217.4 million, or $.79
have a favorable impact on the Company’s results of operations,
per diluted share, compared to $434.2 million, or $1.54 per diluted
there can be no assurance with respect to the effect of these actions.
share last year.
4
2. The following summarized financial data compares 1997 to the comparable periods The following summarized financial data compares 1997 to the comparable periods
for 1996 and 1995 (millions): for 1996 and 1995:
% Change 1997 1996 1995
1997 1996 1995 1997–96 1996–95
COMPARABLE STORE SALES:
(15%) (6%) (2%)
Express
NET SALES
(5%) 8% (1%)
Lerner New York
$1,189 $1,386 $1,445 (14%) (4%)
Express
1% 0% (8%)
Lane Bryant
946 1,045 1,005 (9%) 4%
Lerner New York
(7%) 3% (4%)
The Limited
907 905 903 — —
Lane Bryant
(13%) (5%) 6%
Henri Bendel
776 855 850 (9%) 1%
The Limited
(8%) 0% (3%)
Total Women’s Brands
83 91 91 (9%) —
Henri Bendel
$3,901 $4,282 $4,294 (9%) —
Total Women’s Brands
(3%) 7% (9%)
Structure
20% 8% (4%)
Limited Too
660 660 576 — 15%
Structure
Galyan’s Trading Co.
322 259 214 24% 21%
Limited Too
(since 7/2/96) 0% 12% —
Galyan’s Trading Co.
3% 7% (8%)
Total Emerging Brands
(since 7/2/95) 160 108 45 48% n/m
6 4 — n/m n/m
Other
11% 5% (1%)
Victoria’s Secret Stores
$1,148 $1,031 $835 11% 23%
Total Emerging Brands
11% 11% 21%
Bath & Body Works
10% 8% (20%)
Cacique
1,702 1,450 1,286 17% 13%
Victoria’s Secret Stores
11% 7% 1%
Total Intimate Brands
Victoria’s Secret
734 684 661 7% 3%
Catalogue
21% 13% 5%
Abercrombie & Fitch
1,057 753 475 40% 59%
Bath & Body Works
Total Comparable Store
95 88 80 8% 10%
Cacique
0% 3% (2%)
Sales Increase (Decrease)
30 22 15 n/m n/m
Other
Total Intimate
% Change
$3,618 $2,997 $2,517 21% 19%
Brands
1997 1996 1995 1997–96 1996–95
$522 $335 $235 56% 43%
Abercrombie & Fitch
STORE DATA:
$9,189 $8,645 $7,881 6% 10%
Total Net Sales
Retail Sales Increase
Attributable to New
6% 8% 9%
and Remodeled Stores
OPERATING INCOME
Retail Sales per
q $(268) q $54
$64 n/m 19%
Women’s Brands A E Average Selling
$295 $285 $272 4% 5%
Square Foot
Emerging Brands
q 159 q 149
68 134% (54%)
and Other B F Retail Sales per
Average Store
q 505 q 458 386 10% 19%
Intimate Brands C D
(thousands) $1,478 $1,453 $1,419 2% 2%
84 46 24 83% 92%
Abercrombie & Fitch
Average Store Size
$480 $636 $613 (25%) 4%
Total Operating Income at End of Year
(selling square feet) 5,035 5,043 5,172 — (2%)
Retail Selling Square
Feet at End of Year
(thousands)
q 1997 includes special and nonrecurring charges of approximately $187 million 28,400 28,405 27,403 — 4%
A
relating to the closure of five out of six Henri Bendel stores and charges
associated with asset valuation impairment and the closure and downsizing of NUMBER OF STORES:
certain stores, plus $13 million in inventory liquidation charges associated 5,633 5,298 4,867
Beginning of Year
with the Henri Bendel closings.
315 470 504
Opened
q 1997 includes $42 million of special and nonrecurring income relating to the
B
gain from the sale of approximately one-half of the Company’s interest in Brylane, (4) — 6
Acquired (Sold)
offset by a valuation adjustment on an investment.
(304) (135) (79)
Closed
q 1997 includes a $68 million charge related to the closing of the Cacique business
C
effective January 31, 1998. 5,640 5,633 5,298
End of Year
q 1996 includes a special and nonrecurring charge of $12 million for revaluation of
D
certain assets in connection with the sale of Penhaligon’s in April 1997.
q 1995 includes a special and nonrecurring charge of approximately $48 million,
E
Net Sales
primarily for store closings and downsizings.
q 1995 includes 100% of WFNNB’s operating income of $114 million before Fourth quarter 1997 sales as compared to sales for the fourth quar-
F
interest expense versus $4 million, representing 40% of net income of $11
ter 1996 increased 10% to $3.268 billion due to 5% comparable
million in 1996; 1995 also includes an approximate $73 million gain from
store sales gains with the balance of the increase attributable to new
the sale of a 60% interest in WFNNB, partially offset by $23 million of special
and nonrecurring charges representing write-downs to net realizable value
and remodeled stores and increased catalogue sales. Thirteen-week
of certain assets.
fourth quarter 1996 sales as compared to sales for the fourteen-week
n/m not meaningful
fourth quarter 1995 increased 7% to $2.966 billion due to a 9%
5
3. Gross Income
increase in sales attributable to new and remodeled stores and a 3%
Gross income increased to 35.4% as a percentage of sales for the
increase in comparable store sales, offset by a 5% decrease due to the
fourth quarter 1997 from 33.0% for the fourth quarter 1996. The
fifty-third week in 1995.
merchandise margin rate (representing gross income before deduc-
The 1997 retail sales increase of 6% was attributable to the Com-
tion of buying and occupancy costs), increased 2.3%, expressed as
pany adding 315 new stores, remodeling 206 stores and closing 186
a percentage of sales, due principally to improved initial markup
stores (excluding closing 118 Cacique stores in January 1998 and
(“IMU”), which was partially offset by a slightly higher markdown
the sale of four Penhaligon’s stores in the first quarter of 1997).
rate and the $13 million Henri Bendel inventory liquidation charge
This net addition of 129 stores represents over 365,000 square feet
(.4% of sales). Buying and occupancy costs, expressed as a percen-
of new retail selling space. For the year, average sales productivity
tage of sales, were flat for the fourth quarter as compared to last year.
increased 4% to $295 per square foot.
Gross income, expressed as a percentage of sales, was 33.0%
In 1997, IBI accounted for 114% of the Company’s total net
for the fourth quarter 1996 compared to 29.2% for the fourth quar-
sales increase and 39% of total Company sales. IBI posted a $620
ter 1995. The merchandise margin rate increased 3.4%, expressed
million sales gain over the prior year due to the net addition of 223
as a percentage of sales, due principally to improved IMU and low-
stores (before the impact of the Cacique store closings and the
er markdown rates, as the Company was less price-promotional
Penhaligon’s sale) representing over 650,000 new retail selling
than the year before. Buying and occupancy costs decreased .4%,
square feet, an 11% increase in comparable store sales and an 18%
expressed as a percentage of sales, primarily due to sales produc-
increase in catalogues mailed by Victoria’s Secret Catalogue. Addi-
tivity associated with the 3% increase in comparable store sales.
tionally, A&F reported a $186 million sales increase over the prior
The Company’s 1997 gross income rate increased 1.8% to 30.7%
year, bolstered by a 21% increase in comparable store sales, while
as compared to 1996. The merchandise margin rate increased 1.7%
Limited Too experienced a $63 million sales increase over the
due principally to improved IMU, while buying and occupancy costs,
prior year on a 20% increase in comparable store sales. However,
expressed as a percentage of sales, were flat to last year.
sales at the women’s businesses in 1997 declined $382 million from
The 1996 gross income rate of 28.9% increased 2.4% as com-
1996, primarily due to an 8% decrease in comparable store sales,
pared to 1995. Merchandise margins, expressed as a percentage of
as well as a net decrease of 131 stores representing over 705,000
sales, increased 1.7%, due principally to improved initial markup.
retail selling square feet, due principally to closures of underper-
Buying and occupancy costs decreased .7% expressed as a percent-
forming locations.
age of sales, primarily due to sales productivity associated with the
The 1996 retail sales increase of 10% was attributable to an 8%
3% increase in comparable store sales.
increase in sales due to the Company adding 470 new stores, re-
modeling 252 stores and closing 135 stores, and a 3% increase in
General, Administrative and Store Operating Expenses
comparable store sales, offset by a 1% decrease due to the fifty-third
General, administrative and store operating expenses increased to
week in 1995. This net addition of 335 stores represents approxi-
20.8%, expressed as a percentage of sales, in the fourth quarter
mately 1 million square feet of new retail selling space. For the year,
of 1997, compared to 18.7% in the fourth quarter of 1996. This
average sales productivity increased 5% to $285 per square foot.
increase was attributable to: 1) a 2.5% rate increase at the IBI bus-
In 1996, IBI accounted for 63% of the annual sales increase, and
inesses (discussed below) combined with an increase of IBI sales
nearly 35% of total Company sales, posting a $480 million sales
in the total Company mix to 42.7% from 39.1%; 2) the inability to
increase over the prior year due to the net addition of 316 stores
leverage these expenses at the women’s businesses due to disap-
representing over 817,000 selling square feet, a 7% increase in
pointing sales performance; and 3) additional compensation charges
comparable store sales and an 11% increase in catalogues mailed
for restricted stock plans.
by Victoria’s Secret Catalogue. Sales at the women’s businesses in
IBI’s increase is primarily the result of advertising costs at Vic-
1996 were flat to 1995, primarily due to flat comparable store sales.
toria’s Secret Stores, the growth of Bath & Body Works in the over-
Disappointing results at Express, which experienced a 6% decline
all mix of IBI net sales from 25.1% in fiscal 1996 to 29.2% in
in comparable store sales, were offset by improved results at the
fiscal 1997 and an increase in restricted stock plan compensation
Lerner New York and Limited businesses, which had 8% and 3%
expense. Due to an emphasis on point-of-sale marketing and sales
increases in comparable store sales. In addition, the overall sales
floor coverage for personal care products, Bath & Body Works has
increase for the Company included sales increases at Structure,
higher store operating expenses as a percentage of net sales, which
A&F and Limited Too, which experienced 7%, 13% and 8%
has been more than offset by higher gross margins.
increases in comparable store sales.
The Company anticipates that these expenses, expressed as a per-
centage of sales, will increase slightly in 1998, since the IBI busi-
nesses, in particular Bath & Body Works, will represent a greater
portion of total Company sales.
General, administrative and store operating expenses, expressed
as a percentage of sales, increased to 18.7% in the fourth quarter
of 1996 compared to 17.7% in the fourth quarter of 1995. This
6
4. Operating Income
increase as a percentage of sales was attributable to a 2.2% rate
Fourth quarter operating income, expressed as a percentage of sales,
increase at the IBI businesses and the inability to leverage expenses
was 6.1% in 1997, compared to 13.9% in 1996, and for the year was
due to disappointing sales performance at the women’s businesses,
5.2% in 1997 compared to 7.4% in 1996. Excluding charges for spe-
particularly Express.
cial and nonrecurring items in both years and the Henri Bendel
General, administrative and store operating expenses increased,
inventory liquidation charge in 1997, fourth quarter operating
expressed as a percentage of sales, to 23.1% in 1997, compared to
income, expressed as a percentage of sales, would have been 15.0%
21.4% in 1996. This increase was primarily attributable to the rea-
in 1997 compared to 14.3% in 1996, and for the year would have
sons discussed above for the 1997 fourth quarter. These costs
been 7.7% in 1997 compared to 7.5% in 1996. These increases were
increased, expressed as a percentage of sales, to 21.4% in 1996 com-
due to increases in the gross income rate, which more than offset the
pared to 20.0% in 1995, also primarily due to reasons discussed
general, administrative and store operating expense rate increase.
above for fourth quarter 1996.
The fourth quarter operating income rate increased 2.4% in
1996, from 11.5% on an adjusted basis in 1995, and for the year
Special and Nonrecurring Items
increased .9% in 1996 from 6.5% on an adjusted basis in 1995. The
As described in Note 2 to the Consolidated Financial Statements,
1995 rates were adjusted to reflect the 1995 sale of a 60% interest
the Company recognized special and nonrecurring charges of $276
in WFN as if the sale was consummated at the beginning of the
million during the fourth quarter of 1997 comprised of: 1) a $68 mil-
year. These increases were also due to increases in gross income,
lion charge for the closing of the Cacique lingerie business effective
which more than offset the general, administrative and store oper-
January 31, 1998; 2) an $82 million charge related to streamlining
ating expense rate increase.
the Henri Bendel business from six stores to one store; 3) an $86
million impaired-asset charge in accordance with SFAS No. 121,
Interest Expense
related principally to the women’s apparel businesses, covering
certain store locations where the asset carrying values are perma-
FOURTH QUARTER YEAR
nently impaired; and 4) a $28 million provision for closing and
downsizing approximately 80 oversized stores primarily within 1997 1996 1997 1996 1995
the Limited, Lerner New York, Lane Bryant and Express women’s Average Daily Borrowings
businesses and for a $12 million write-down to net realizable value (millions) $891.4 $1,039.5 $835.9 $964.3 $887.7
of a real estate investment previously acquired in connection with Average Effective
8.07% 7.49% 8.22% 7.82% 8.73%
Interest Rate
closing and downsizing certain stores. Additionally, the Company
Interest expense decreased by $1.5 million in the fourth quarter of
recognized a $13 million charge to cost of sales in the fourth
1997 and decreased by $6.6 million for the year. For the quarter,
quarter of 1997 for inventory liquidation in accordance with
lower average borrowing levels reduced interest expense by $2.8
EITF Issue No. 96-9. The Company, in accordance with EITF Issue
million, offset by a $1.3 million increase resulting from higher
No. 94-3, anticipates charges for severance and other associate ter-
rates. For the year, lower average borrowing levels reduced interest
mination costs for Henri Bendel in the first quarter of 1998 (the
expense by $10.0 million, offset by $3.4 million of increased
period the associates are notified). Additionally, the Company rec-
expense due to higher interest rates.
ognized a net $62.8 million pretax gain during the third quarter of
1997 relating to the sale of approximately one-half of its investment
Other Income
in Brylane, partially offset by valuation adjustments on certain
The $5.1 million decrease in other income for 1997 compared to
assets where the carrying values were permanently impaired.
1996 was primarily attributable to approximately $10.5 million of
In 1996, the Company recorded a $12 million pretax, special
interest income earned in the first quarter of 1996, which arose from
and nonrecurring charge in connection with the 1997 sale of Pen-
$1.615 billion of temporarily invested funds that were used to con-
haligon’s, a U.K.–based subsidiary of IBI.
summate the Company’s self-tender in March 1996. Excluding this
In the fourth quarter of 1995, the Company recognized a $73.2
$10.5 million in 1996, interest earnings increased $5.4 million from
million pretax gain in connection with the sale of a 60% interest
higher temporary investments in 1997, $3.5 million of which was
in the Company’s wholly-owned credit card bank, World Financial
realized in the fourth quarter.
Network National Bank (“WFN”). In addition, the Company rec-
ognized a special and nonrecurring charge during the fourth quar-
Gains in Connection with Initial Public Offerings
ter of 1995 of approximately $71.9 million. Of this amount, $25.8
As discussed in Note 1 to the Consolidated Financial Statements,
million was provided for the closing of 26 stores and $19.8 million
the Company recognized a pretax gain of $8.6 million during
was provided for the downsizing of 33 stores, primarily at Limited
the first quarter of 1997, in connection with the IPO of Brylane,
and Lerner New York. The remaining charge of approximately
a 26% owned (post-IPO) catalogue retailer. In 1996, the Company
$26.3 million represented the write-down to market or net realiz-
recognized a $118.2 million gain in connection with the IPO of
able value of certain assets arising from nonoperating activities.
a 15.8% interest (8.05 million shares) of A&F. In 1995, the Com-
The net pretax gain from these special and nonrecurring items was
pany recognized a $649.5 million gain in connection with the IPO
$1.3 million.
7
5. of 16.9% (42.7 million shares) of the stock of IBI. The gains re- Financial Condition
corded by the Company in 1996 and 1995 were not subject to tax. The Company’s balance sheet at January 31, 1998, provides con-
tinuing evidence of financial strength and flexibility. The Com-
Other Data pany’s long-term debt-to-equity ratio declined to 32% at the end of
There were a number of significant events in fiscal years 1997 and 1997 from 34% in 1996, and working capital increased 47% over
1996 that impacted the comparability of the Company’s net income 1996 to $938 million. A more detailed discussion of liquidity, capi-
per diluted share data. Although the following information is not tal resources and capital requirements follows.
intended to be presented in accordance with SEC guidelines for pro
forma financial information, it is provided to assist in investors’ Liquidity and Capital Resources
understanding of the Company’s results of operations. Cash provided by operating activities, commercial paper backed by
• In 1997 and 1996, the Company recognized $213.2 million and $12 funds available under committed long-term credit agreements, and
million in special and nonrecurring charges along with the $13 the Company’s capital structure continue to provide the resources
million Henri Bendel inventory liquidation charge in 1997 as more to support current operations, projected growth, seasonal require-
fully described in Note 2 to the Consolidated Financial Statements. ments and capital expenditures.
The impact of these charges also reduced earnings attributable to
A summary of the Company’s working capital position and capitalization follows
minority interest by $6.8 million and $1.0 million in 1997 and 1996. (thousands):
• The Company recognized pretax gains in connection with IPOs q Adjusted
A
1997 1996 1995 1995
of $8.6 million and $118.2 million in 1997 and 1996 (see Note 1 to
the Consolidated Financial Statements). Cash Provided by
$589,981 $712,069 $340,732 $340,732
Operating Activities
• The Company repurchased 85 million shares via a self-tender
$937,739 $638,204 $403,960 $2,018,960
Working Capital
and, as a result of investing funds used to facilitate the self-tender,
Capitalization:
recognized approximately $10.5 million of interest income in 1996
$650,000 $650,000 $650,000 $650,000
Long-Term Debt
up to the effective date.
2,044,957 1,922,582 1,586,041 3,201,041
Shareholders’ Equity
Adjusted for the income tax effect (an $87 million expense in
$2,694,957 $2,572,582 $2,236,041 $3,851,041
Total Capitalization
1997 and a $1.0 million expense in 1996), earnings per diluted share
Additional Amounts
would have increased $.45 per share in 1997 to $1.24 and would Available Under Long-
have decreased $.38 per share to $1.16 in 1996. $1,000,000 $1,000,000 $1,000,000 $1,000,000
Term Credit Agreements
q Adjusted 1995 reflects the impact of the $1.615 billion repurchase of 85 million
A
shares of common stock.
Acquisition
Effective July 2, 1995, the Company acquired all of the outstanding Net cash provided by operating activities totaled $590.0 million,
common stock of Galyan’s for $18 million in cash and stock. The $712.1 million and $340.7 million for 1997, 1996 and 1995 and con-
Company’s financial statements include the results of operations of tinued to serve as the Company’s primary source of liquidity.
Galyan’s since the acquisition date.
The Company considers the following to be several measures of liquidity and capital
resources:
q Adjusted
A
1997 1996 1995 1995
32% 34% 41% 20%
Debt-to-Equity Ratio
(Long-Term Debt Divided by
Shareholders’ Equity)
24% 25% 29% 17%
Debt-to-Capitalization Ratio
(Long-Term Debt Divided by
Total Capitalization)
11x 12x 12x 12x
Interest Coverage Ratio
(Income, Excluding Gain in
Connection with Initial Public Offerings,
Before Interest Expense, Depreciation,
Amortization and Income
Taxes Divided by Interest Expense)
146% 174% 91% 91%
Cash Flow to Capital Investment
(Net Cash Provided by
Operating Activities Divided by
Capital Expenditures)
q Adjusted 1995 reflects the impact of the $1.615 billion repurchase of 85 million
A
shares of common stock.
8
6. Stores and Selling Square Feet
Net cash provided from operating activities in 1997 decreased
$122.1 million from the prior year principally due to an increase in
A summary of actual stores and selling square feet by business for 1997 and 1996,
income tax payments, that was partially offset by slightly higher and the 1998 goals by business (including the impact of the estimated 280 stores that
will be closed/downsized during the year) follows:
income from operations adjusted for special and nonrecurring
End of Year Change From
items and gains from initial public offerings.
Goal 1998 1997 1996 1998–97 1997–96
Investing activities included capital expenditures of $405 mil-
lion, about half of which was for new and remodeled stores. Invest- EXPRESS
ing activities also included $235 million in net proceeds from the 712 753 753 (41) —
Stores
sales of the Newport Tower, an office building in Jersey City, New 4,481,000 4,739,000 4,726,000 (258,000) 13,000
Selling Square Ft.
Jersey, and the Company’s interest in The Mall at Tuttle Crossing LERNER NEW YORK
in Columbus, Ohio, and $108.3 million of net proceeds from the 668 746 784 (78) (38)
Stores
third quarter sale of slightly less than one-half of the Company’s 5,041,000 5,698,000 5,984,000 (657,000) (286,000)
Selling Square Ft.
investment in Brylane. In 1996, $41.3 million was invested in the
LANE BRYANT
Alliance Data Systems (formerly WFN) credit card venture. 1995 760 773 832 (13) (59)
Stores
reflects the acquisition of Galyan’s, the proceeds from the securiti- 3,666,000 3,735,000 3,980,000 (69,000) (245,000)
Selling Square Ft.
zation of WFN’s credit card receivables of $1.2 billion (see Note 3
THE LIMITED
to the Consolidated Financial Statements) and the transfer of
570 629 663 (59) (34)
Stores
$351.6 million to a restricted cash account (see Note 6 to the Con-
3,398,000 3,790,000 3,977,000 (392,000) (187,000)
Selling Square Ft.
solidated Financial Statements).
Cash used for financing activities for 1997 reflects an increase HENRI BENDEL
1 6 6 (5) —
Stores
in the quarterly dividend to $.12 per share from $.10 per share in
35,000 113,000 113,000 (78,000) —
Selling Square Ft.
1996. Financing activities in 1996 included proceeds from and
repayment of $150 million in short-term debt borrowed by A&F STRUCTURE
and net proceeds of $118.2 million from A&F’s initial public offer- 545 544 542 1 2
Stores
ing. Financing activities also included $1.615 billion used to repur- 2,161,000 2,143,000 2,117,000 18,000 26,000
Selling Square Ft.
chase 85 million shares of the Company’s common stock via the self- LIMITED TOO
tender consummated in March 1996. Cash dividends paid in 1996 317 312 308 5 4
Stores
and 1995 were $.40 per share. 1,002,000 979,000 967,000 23,000 12,000
Selling Square Ft.
At January 31, 1998, the Company had available $1 billion under GALYAN’S TRADING CO.
its long-term credit agreement. The Company also has the ability 15 11 9 4 2
Stores
to offer up to $250 million of additional debt securities under its 1,026,000 641,000 488,000 385,000 153,000
Selling Square Ft.
shelf registration statement.
VICTORIA’S SECRET STORES
874 789 736 85 53
Stores
3,795,000 3,555,000 3,326,000 240,000 229,000
Selling Square Ft.
BATH & BODY WORKS
1,101 921 750 180 171
Stores
2,183,000 1,773,000 1,354,000 410,000 419,000
Selling Square Ft.
CACIQUE
— — 119 — (119)
Stores
— — 365,000 — (365,000)
Selling Square Ft.
PENHALIGON’S
— — 4 — (4)
Stores
— — 2,000 — (2,000)
Selling Square Ft.
ABERCROMBIE & FITCH
186 156 127 30 29
Stores
1,453,000 1,234,000 1,006,000 219,000 228,000
Selling Square Ft.
ABERCROMBIE (KIDS)
13 — — 13 —
Stores
42,000 — — 42,000 —
Selling Square Ft.
TOTAL RETAIL BUSINESSES
5,762 5,640 5,633 122 7
Stores
28,283,000 28,400,000 28,405,000 (117,000) (5,000)
Selling Square Ft.
9
7. pany’s systems. Furthermore, no assurance can be given that any
Capital Expenditures
or all of the Company’s systems are or will be Year 2000 compliant,
Capital expenditures amounted to $404.6 million, $409.3 million
or that the ultimate costs required to address the Year 2000 issue
and $374.4 million for 1997, 1996 and 1995, of which $194.4 mil-
or the impact of any failure to achieve substantial Year 2000 com-
lion, $235.7 million and $274.5 million were for new stores and
pliance will not have a material adverse effect on the Company’s
remodeling and expanding existing stores. In 1997 and 1996 the
financial condition.
Company expended $55.3 million and $53.1 million on land acqui-
sition and development costs. Also, in 1997 and 1996 the Company
Impact of Inflation
expended $30.2 million and $42.1 million in connection with the
The Company’s results of operations and financial condition are
Bath & Body Works distribution center.
presented based upon historical cost. While it is difficult to accu-
The Company anticipates spending $480 to $500 million for cap-
rately measure the impact of inflation due to the imprecise nature
ital expenditures in 1998, of which $270 to $295 million will be for
of the estimates required, the Company believes that the effects of
new stores, the remodeling of existing stores and related improve-
inflation, if any, on the results of operations and financial condition
ments for the retail businesses, $50 to $60 million will be for infor-
have been minor.
mation technology related to Year 2000 expenditures and $30 to $40
million will be for land acquisition and development costs, princi-
Adoption of New Accounting Standards
pally the Easton development project in Columbus, Ohio. The
During the fourth quarter of 1997, the Company adopted SFAS
Company expects that substantially all 1998 capital expenditures
No. 128, “Earnings Per Share,” which requires the Company to dis-
will be funded by net cash provided by operating activities.
close basic and diluted earnings per share for all periods presented.
The Company intends to reduce selling square footage by
In June 1997, the Financial Accounting Standards Board issued
approximately 117,000 selling square feet in 1998, which represents
SFAS No. 131, “Disclosures about Segments of an Enterprise and
a .4% decrease from year-end 1997. It is anticipated that the
Related Information.” While the standard has no impact in deter-
decrease will result from the closing of 250 stores offset by the addi-
mining earnings and earnings per share, the Company will adopt the
tion of approximately 370 stores (over half of which are Bath &
disclosure standards in 1998.
Body Works stores averaging 2,300 square feet) and the remodeling
of approximately 125 stores.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995
Information Systems and “Year 2000” Compliance
The Company cautions that any forward-looking statements (as
The Company recently completed a comprehensive review of its
such term is defined in the Private Securities Litigation Reform Act
information systems and is involved in an enterprise-wide program
of 1995) contained in this Report, the Company’s Form 10-K or
to update computer systems and applications in preparation for
made by management of the Company involve risks and uncertain-
the year 2000. The Company will incur internal staff costs as well
ties, and are subject to change based on various important factors.
as outside consulting and other expenditures related to this initia-
The following factors, among others, in some cases have affected
tive. Total expenditures related to remediation, testing, conversion,
and in the future could affect the Company’s financial performance
replacement and upgrading system applications are expected to
and actual results and could cause actual results for 1998 and
range from $85 to $100 million from 1997 through 2000. Of the
beyond to differ materially from those expressed or implied in
total, approximately $50 to $60 million will be capital expendi-
any such forward-looking statements: changes in consumer spend-
tures related to acquisition and implementation of new package
ing patterns, consumer preferences and overall economic condi-
systems. The balance, approximately $35 to $40 million, will be
tions, the impact of competition and pricing, changes in weather
expenses associated with remediation and testing of existing
patterns, political stability, currency and exchange risks and
systems. Total incremental expenses, including depreciation and
changes in existing or potential duties, tariffs or quotas, postal rate
amortization of new package systems, remediation to bring current
increases and charges, paper and printing costs, availability of
systems into compliance and writing off legacy systems, are not
suitable store locations at appropriate terms, ability to develop
expected to have a material impact on the Company’s financial con-
new merchandise and ability to hire and train associates.
dition during any year during the conversion process from 1997
through 2000. However, incremental expenses could total approx-
imately $30 to $35 million in 1998, of which the majority will
impact the first three fiscal quarters of 1998, at a rate of $9 to $10
million per quarter.
The Company is attempting to contact vendors and others on
whom it relies to assure that their systems will be converted in a
timely fashion. However, there can be no assurance that the systems
of other companies on which the Company’s systems rely will also
be converted in a timely fashion, or that any such failure to convert
by another company would not have an adverse effect on the Com-
10