Dillard's, Inc. Reports Record First Quarter Earnings Per Share.LITTLE ROCK, Ark. -- Immediately prior to its annual meeting today, Dillard's
See: New York Stock Exchange :DDS (1) (Digital Data Storage) See DAT. (2) (Data Dictionary System) See QuickBuild and OpenDDS. (3) (Dataphone Digital S ) (the "Company" or "Dillard's") announced operating results for the 13 weeks ended April 29, 2006. This release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Please refer to the Company's cautionary statement regarding forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information included below under "Forward-Looking Information". Income Net income for the 13 weeks ended April 29, 2006 was $61.3 million ($0.77 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) compared to net income of $38.0 million ($0.46 per diluted share) for the 13 weeks ended April 30, 2005. Highlights Dillard's remains committed to providing a differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: shopping experience to position its merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain mix toward a more upscale and contemporary tone to continue to attract customers who are seeking exciting statements in fashion. Resulting successes in the first quarter include: --Same store sales increased 2% for the 13 weeks ended April 29, 2006 compared to the 13 weeks ended April 30, 2005. --Dillard's improved its gross margin performance by 70 basis points of sales compared to the 13 weeks ended April 30, 2005 as customers responded positively to the Company's improvements in its merchandise assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. . Revenues 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 for the 13 weeks ended April 29, 2006 were $1.838 billion compared to sales for the 13 weeks ended April 30, 2005 of $1.803 billion. During the 13 weeks ended April 29, 2006, net sales were strongest in the Eastern and Western regions, where performance exceeded the Company's total trend for the period. Net sales were slightly below trend in the Central region. Net sales in accessories/lingerie and furniture significantly exceeded the Company's average sales trend for the 13 weeks ended April 29, 2006, while performance in children's apparel was significantly below trend. Gross Margin Dillard's achieved gross margin improvement of 70 basis points of sales for the 13 weeks ended April 29, 2006 compared to the 13 weeks ended April 30, 2005. The Company attributes its improved gross margin performance to positive customer response to its merchandise mix as evidenced by a comparable store sales increase of 2% and lower levels of markdowns partially offset by lower markups. Total inventory as of April 29, 2006 declined 1% compared to April 30, 2005. Inventory in comparable stores declined 2% for the same period. Advertising, Selling, Administrative and General Expenses Advertising, selling, administrative and general ("S G & A") declined 70 basis points of sales ($2.7 million) for the 13 weeks ended April 29, 2006. S G & A expenses were $494.6 million and $497.3 million for the 13 weeks ended April 29, 2006 and April 30, 2005, respectively. Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). No. 123R was effective for the Company beginning in fiscal year 2006 and required the recording of the fair value of stock based compensation. Total stock compensation expense for the 13 weeks ended April 29, 2006 was $532,000. Interest and Debt Expense Interest and debt expense declined $2.6 million to $23.6 million for the 13 weeks ended April 29, 2006 compared to the 13 weeks ended April 30, 2005 as a result of lower debt levels. As of April 29, 2006, letters of credit totaling $71.4 million were outstanding under the Company's $1.2 billion revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Program During the 13 weeks ended April 29, 2006, Dillard's repurchased $3.3 million of Class A Common Stock under its $200 million share repurchase program approved by the board of directors in May of 2005. As of April 29, 2006, authorization The right or permission to use a system resource; the process of granting access. See access control. of $111.9 million remained under the share repurchase program. As of April 29, 2006, 79.2 million shares of Dillard's, Inc. Class A and Class B Common Stock were outstanding. Store Information Four stores in the Gulf Coast area which were damaged by Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. and Hurricane Rita Hurricane Rita was the fourth-most intense Atlantic hurricane ever recorded and the most intense tropical cyclone ever observed in the Gulf of Mexico. Rita caused $11.3 billion in damage on the U.S. Gulf Coast in September 2005. remained closed as of April 29, 2006.
Dillard's opened three new locations during the first quarter of 2006:
Center City Square Feet Month
----------------------------------------------------------------------
Southaven Towne Center Southaven, MS 155,000 March
The Summit Sierra Reno, NV 200,000 March
The Mall at Turtle Creek (1) Jonesboro, AR 155,000 March
(1) Replacement store.
During the 13 weeks ended April 29, 2006, Dillard's closed locations in Southglenn Mall Southglenn Mall is a mid-size shopping center located at 6911 South University Boulevard in Centennial, Colorado, at the southwest corner of Arapahoe Road and University Boulevard. in Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. (165,000 square feet) and Heritage Park Mall in Midwest City, Oklahoma Some of the information in this article may not be verified by . It should be checked for inaccuracies and modified to cite reliable sources. Midwest City is a city in Oklahoma County, Oklahoma, United States. (100,000 square feet). As of April 29, 2006, the Company operated 327 Dillard's locations spanning 29 states, net of the four locations closed at the time due to hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. damage.
Dillard's, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In Millions, Except Per Share Data)
13-Week Period Ended
----------------------------------------
April 29, 2006 April 30, 2005
----------------------------------------
% of Net % of Net
Amount Sales Amount Sales
------------ ------- ----------- -------
Net sales $ 1.837.5 - $ 1,803.0 -
Total revenues 1,879.0 102.3 % 1,838.7 102.0 %
Cost of sales 1,179.4 64.2 1,170.3 64.9
Advertising, selling,
administrative and general
expenses 494.6 26.9 497.3 27.6
Depreciation and amortization 73.4 4.0 74.6 4.1
Rentals 11.6 0.6 10.5 0.6
Interest and debt expense 23.6 1.3 26.2 1.5
Asset impairment and store
closing charges 0.0 0.0 0.4 0.0
------------ -----------
Total costs and expenses 1,782.6 1,779.3
------------ -----------
Income before income taxes 96.4 5.2 59.4 3.3
Income taxes 35.1 21.4
------------ ------- ----------- -------
Net Income $ 61.3 3.3 % $ 38.0 2.1 %
============ ======= =========== =======
Basic and diluted earnings per
share $ 0.77 $ 0.46
============ ===========
Basic weighted average shares 79.3 83.2
============ ===========
Diluted weighted average shares 79.4 83.5
============ ===========
Dillard's, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In Millions)
April 29, April 30,
2006 2005
---------- ---------
Assets
Current Assets:
Cash and cash equivalents $ 301.7 $ 455.5
Trade accounts receivable 11.5 9.0
Merchandise inventories 2,053.0 2,073.8
Other current assets 35.9 40.6
---------- ---------
Total current assets 2,402.1 2,578.9
Property and equipment, net 3,152.0 3,202.7
Goodwill 34.5 35.5
Other assets 175.1 184.6
---------- ---------
Total Assets $ 5,763.7 $ 6,001.7
========== =========
Liabilities and Stockholders' Equity
Current Liabilities:
Trade accounts payable and accrued expenses $ 1,064.8 $ 1,156.6
Current portion of long-term debt and capital
leases 204.1 96.3
Federal and state income taxes including current
deferred taxes 71.4 93.9
---------- ---------
Total current liabilities 1,340.3 1,346.8
Long-term debt and capital leases 1,089.4 1,326.3
Other liabilities 262.8 270.3
Deferred income taxes 473.2 498.0
Guaranteed preferred beneficial interests in the
Company's subordinated debentures 200.0 200.0
Stockholders' equity 2,398.0 2,360.3
---------- ---------
Total Liabilities and Stockholders' Equity $ 5,763.7 $ 6,001.7
========== =========
Other Information
(In Millions)
April 29, April 30,
2006 2005
---------- ---------
Square footage 56.8 56.1
========== =========
Capital expenditures
13 weeks ended $ 64.7 $ 101.5
Estimates for 2006 The Company is updating the following estimates for certain income statement items for the fiscal year ending February February: see month. 3, 2007 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change -- See "Forward-Looking Information".
In Millions
-----------
2006 2005
Estimated Actual
----------- --------
Depreciation and amortization $300 $302
Rental expense 57 48
Interest and debt expense 99 106
Capital expenditures
(net of asset trade in) 340 367
Forward-Looking Information The foregoing contains certain "forward-looking statements" within the definition of federal securities laws. Statements made in this release regarding the Company's execution of merchandise initiatives and estimates for 2006 are forward-looking statements. The Company cautions that forward-looking statements, as such term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, contained in this report are based on estimates, projections, beliefs and assumptions of management at the time of such statements and are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise. Forward-looking statements of the Company involve risks and uncertainties and are subject to change based on various important factors. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements made by the Company and its management as a result of a number of risks, uncertainties and assumptions. Representative examples of those factors (without limitation) include general retail industry conditions and macro-economic conditions; economic and weather conditions for regions in which the Company's stores are located and the effect of these factors on the buying patterns of the Company's customers; the impact of competitive pressures in the department store industry and other retail channels including specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. , off-price off-price adj. 1. Of, relating to, or being a retail store that sells merchandise at prices lower than usual. 2. For sale at prices lower than usual: off-price assortments of women's clothing. , discount, internet, and mail-order mail order n. An order for goods to be shipped through the mail.  -or retailers; changes in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. patterns and debt levels; adequate and stable availability of materials
and production facilities from which the Company sources its
merchandise; changes in operating expenses Operating expensesThe amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , including employee wages, commission structures and related benefits; possible future acquisitions of store properties from other department store operators and the continued availability of financing in amounts and at the terms necessary to support the Company's future business; potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. from terrorist activity and the effect on ongoing consumer confidence; potential disruption of international trade and supply chain efficiencies; events causing disruption or delays in the store construction schedule, world conflict and the possible impact on consumer spending patterns and other economic and demographic See demographics. changes of similar or dissimilar nature. |
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