Caldor Reports Fourth Quarter and Fiscal 1995 Results.NORWALK Norwalk (nôr`wôk'). 1 City (1990 pop. 94,279), Los Angeles co., S Calif.; settled in the 1850s, inc. 1957. With the arrival (1875) of the Southern Pacific RR, it became a center for the dairy and logging industries, but , Conn.--(BUSINESS WIRE)--May 3, 1996--The Caldor Caldor was a chain of discount department stores based in the Norwalk, CT. The chain declared bankruptcy in 1995 and closed all of its stores on May 15, 1999. History Beginning Corporation (NYSE NYSE See: New York Stock Exchange : CLD CLD Called CLD Cloud CLD Cleared CLD Chronic Lung Disease CLD Council for Learning Disabilities CLD Cooled CLD Chronic Liver Disease CLD Clear Direction Flag CLD Certified LabVIEW Developer CLD Causal Loop Diagram ) today announced its financial results for the fiscal year (53 weeks) and fourth quarter ended February February: see month. 3, 1996. For fiscal year 1995, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $2.77 billion compared to $2.75 billion for fiscal 1994. Comparable store sales declined by 5.2% on a 52 week basis from the previous year. For the fourth quarter of fiscal 1995, net sales were $939.1 million compared to $938.0 million. Comparable store sales declined by 3.7% on a 13 week basis from the previous year. Caldor's performance was negatively impacted by several factors, including the highly competitive retail environment and disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of merchandise flow due to the Company's Chapter 11 filing on September September: see month. 18, 1995. The Company's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. (earnings before interest, taxes and reorganization items) for fiscal year 1995 was $140.8 million versus operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $106.9 million in fiscal 1994. The Company's operating loss for the fourth quarter of fiscal 1995 was $112.7 million compared to operating earnings of $72.1 million in fiscal 1994. For the fiscal year 1995 and for the fourth quarter 1995, cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold includes provisions for anticipated losses on the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of inventory in fiscal 1996, and estimated amounts for increased creditor An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's Negligence claims, as a result of the Chapter 11 process. Selling, general and administrative expense rates for these periods increased compared to the same periods in fiscal 1994 due to lower than expected comparable store sales combined with increased insurance, advertising and new store costs. The Company's net loss for fiscal 1995 was $301.0 million or $17.79 per share, compared to net earnings of $44.4 million or $2.65 per share for fiscal 1994. The Company's net loss for the fourth quarter of fiscal 1995 was $257.4 million or $15.20 per share, compared to net earnings of $39.1 million or $2.33 per share in fiscal 1994. These losses include pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta reorganization charges of $170.7 million for the full year and $166.1 million for the fourth quarter, consisting principally of provisions for rejected leases for 26 properties, including the 12 previously announced store closings and the decision not to proceed with other planned facilities, as well as related asset write-offs. The charge also includes provisions for the employee retention program, professional fees, deferred financing costs and other bankruptcy-related items. The Company noted that it has financing in place to continue to meet its future obligations, with significant credit availability aggregating approximately $290 million under its debtor-in-possession credit facility, as of April 26, 1996. The Company also noted that the vendor community has steadily and significantly increased its support since the Chapter 11 filing through improved credit terms Credit Terms The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period. . Don R. Clarke Clarke , Arthur Charles Born 1917. British writer, scientist, and underwater explorer noted for his stories of space exploration. His works include 2001: A Space Odyssey (1968). , Chairman and Chief Executive Officer of Caldor noted that, "The Company's results for the year were adversely affected by the tough retail climate and the Chapter 11 filing. We have, however, made several moves to strengthen our senior management team, having recently announced the appointment of Warren Feldberg Feldberg: see Black Forest. , a seasoned retailing executive, as President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , and Jack Reen as Chief Financial Officer. Caldor has assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. a team of highly skilled and experienced executives to lead the reorganization process, and we have begun the process of reorganizing our business." Mr. Clarke also noted, "The business trend has improved, and the Company's operating results for February and March of fiscal 1996 have exceeded the Company's financial plan for this period." The Company opened four new stores in April and has plans to open three additional sites, including two previously announced stores and a third in Atlantic Center in Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. , New York New York, state, United StatesNew York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of during the balance of 1996. These stores are expected to contribute significant sales volume and fit into the Company's urban/suburban strategy. The Caldor Corporation is the fourth largest discount department store chain in the U.S., with annual sales of approximately $2.8 billion and approximately 24,000 Associates. It currently operates 170 stores in ten East Coast states and has announced the closing of 12 stores. With a strong consumer franchise in high density urban/suburban markets, Caldor offers a diverse merchandise selection, including both softline and hardline products. -0-
The Caldor Corporation and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Fourth Quarter Ended Fiscal Year Ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
1996 1995 1996 1995
(14 Weeks) (13 Weeks) (53 Weeks) (52 Weeks)
Net sales $939,059 $938,028 $2,765,525 $2,748,634 Cost of merchandise sold (LIFO) 799,854 673,145 2,147,539 1,976,332 SG&A expenses 228,752 177,277 697,658 616,948 Depreciation and amortization 23,147 15,501 61,081 48,478 Operating earnings (loss) (112,694) 72,105 (140,753) 106,876 Interest expense, net 10,519 8,738 40,973 34,948 Earnings (loss) before reorganization items, income taxes and extraordinary items (123,213) 63,367 (181,726) 71,928 Reorganization items 166,094 170,731 Earnings (loss) before income taxes and extraordinary items (289,307) 63,367 (352,457) 71,928 Income tax provision (benefit) (35,174) 24,272 (59,825) 27,569 Earnings (loss) before extraordinary items (254,133) 39,095 (292,632) 44,359 Extraordinary loss (3,232) (8,396) Net earnings (loss) ($257,365) $39,095 ($301,028) $44,359 Per Share Amounts: Earnings (loss) before extraordinary items ($15.01) $2.33 ($17.30) $2.65 Extraordinary loss ($0.19) ($0.49) Net earnings (loss) ($15.20) $2.33 ($17.79) $2.65 Weighted average common and common equivalent shares outstanding 16,929 16,752 16,918 16,753
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The Caldor Corporation and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
Feb. 3, Jan. 28,
1996 1995
ASSETS
Current assets:
Cash and cash equivalents $25,577 $21,100
Accounts receivable 18,059 8,226
Merchandise inventories 499,948 550,932
Assets held for disposal 25,265
Refundable income taxes 5,380
Prepaid expenses & other
current assets 17,047 12,430
Total current assets 591,276 592,688
Property and Equipment, net 551,977 541,573
Debt issuance costs 4,674 4,531
Deferred income taxes 16,626
Other assets 9,466 10,680
$1,174,019 $1,149,472
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $156,240 $307,643
Accrued expenses 70,835 38,653
Other accrued liabilities 52,836 49,568
Federal & state income
taxes payable 39,204
Current deferred income taxes 4,539
Borrowings under revolving
credit agreement 40,000 70,243
Current maturities of long-term debt 40,618
Total current liabilities 319,911 550,468
Long-term debt 260,785 236,699 Deferred income taxes 7,131 Other long-term liabilities 25,158 18,008 Liabilities subject to compromise 530,957
Stockholders' equity
Common stock, par value 170 167
Additional paid-in capital 205,047 199,456
Retained earnings (deficit) (163,485) 137,543
Unearned compensation (4,524)
Total stockholders' equity 37,208 337,166
$1,174,019 $1,149,472
CONTACT: Information Contacts: Wendi Kopsick/Jim Fingeroth Kekst and Company: (212) 593-2655 Fax report requests: (800) 711-1288 |
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