Federated Reports Second Quarter Earnings of 51 Cents Per Diluted Share from Continuing Operations; Company Exceeds Second Quarter EPS Guidance, Raises EPS Guidance for Second Half of 2006.CINCINNATI Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. -- Federated Connected and treated as one. See federated database and federated directories. Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , Inc. (NYSE NYSE See: New York Stock Exchange :FD) (NYSE Arca For other uses of "ARCA", see ARCA. NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an entirely online securities exchange on which both stocks and options are traded. :FD) today reported earnings of 51 cents 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 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the second quarter of 2006, ended July July: see month. 29, 2006. This compares with diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations of 42 cents for the same 13-week period last year. Excluding May Company merger integration costs and related inventory valuation adjustments of $177 million ($111 million after tax or 19 cents per diluted share) and the gains on the sale of credit receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed of $191 million ($119 million after tax or 21 cents per diluted share), second quarter diluted earnings per share from continuing operations were 49 cents. This exceeds the company's prior guidance for earnings of 39 cents to 44 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. excluding merger integration costs, related inventory valuation adjustments and gain on sale of credit receivables. Second quarter results benefited from a previously announced cash refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies from the Internal Revenue Service. The refund reduced income tax expense by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $80 million and interest expense by approximately $17 million. In aggregate, this contributed 16 cents per diluted share to second quarter earnings. For the first half of 2006, Federated reported diluted earnings per share from continuing operations of 37 cents per share, compared with 78 cents per share in the first half of 2005. Excluding May Company merger integration costs and related inventory valuation adjustments of $306 million ($192 million after tax or 34 cents per diluted share) and the gains on the sale of credit receivables of $191 million ($119 million after tax or 21 cents per diluted share), diluted earnings per share from continuing operations were 50 cents in the first half of 2006. Terry J. Lundgren Terry J. Lundgren (b. 1952) is the CEO, Chairman of the Board, President, and Director at Macy's, Inc., the parent company of Macy*s and Bloomingdale's department stores. Lundgren is also the namesake of the Terry J. , Federated's chairman, president and chief executive officer, said, "We were pleased to have exceeded our earnings guidance this quarter, indicating that the Federated-May Company integration process remains solidly on track. In particular, we are pleased with the comp comp See comparison. store sales progress in existing Macy's Macy's formerly R.H. Macy & Co., Inc. Major U.S. department-store chain. Its former flagship, an 11-story store that occupies a city block in New York City's Herald Square, was for many years the largest single store in the country. Rowland H. and Bloomingdale's locations List of locations of Bloomingdale's, a chain of upscale American department stores. Current locations Future locations are in italic. California
"We are still in the process of transitioning the former May Company locations with significant 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 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. change-outs, clearance CLEARANCE, com. law. The name of a certificate given by the collector of a port, in which is stated the master or commander (naming him) of a ship or vessel named and described, bound for a port, named, and having on board goods described, has entered and cleared his ship or vessel sales of discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: inventory and remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling activity which is disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. to the business, and our sales performance in these stores continues to lag," Lundgren Lundgren is a Swedish surname and may refer to:
Federated's sales and earnings for the second quarter and first half of 2006 include results of The May Department Stores The May Department Stores Company was a department store chain founded in 1877 by David May in Leadville, Colorado. Its headquarters moved to St. Louis, Missouri in 1905, and the company went public in 1911. Company, which was acquired Aug. 30, 2005. Sales and earnings from the company's Lord & Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. and Bridal Group divisions, which the company intends to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. , are being treated as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Sales Sales in the second quarter totaled $5.995 billion, an increase of 65 percent compared to sales of $3.623 billion in the same period last year. On a same-store basis, Federated's second quarter sales were up 4.6 percent, within the company's guidance for a same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. increase of 4 percent to 6 percent in the second quarter. For the year to date, Federated's sales totaled $11.925 billion, up 64 percent from total sales of $7.264 billion in the first 26 weeks of 2005. On a same-store basis, Federated's year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales were up 2.2 percent. The company opened no new department stores in the second quarter of 2006. Aside from duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. locations being divested, two stores were closed - a Macy's store in Pocatello Pocatello (pōkətĕl`ō), city (1990 pop. 46,080), seat of Bannock co., SE Idaho, between mountains on the Portneuf River near its junction with the Snake (there dammed to form the American Falls Reservoir); inc. 1889. , ID, and a Macy's Furniture Gallery in Augusta Augusta, city, Italy Augusta (oug  `stä), city (1991 pop. 34,189), E Sicily, Italy, on an island (formerly a peninsula) in the Ionian Sea, connected by bridge with the Sicilian , GA.
Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Federated's operating income totaled $422 million or 7.0 percent of sales for the quarter ended July 29, 2006, compared to operating income of $291 million or 8.0 percent of sales for the same period last year. Federated's second quarter 2006 operating income included $177 million in May Company integration costs and related inventory valuation adjustments, and gains of $191 million on the sale of credit receivables. Excluding these items, operating income for the second quarter was $408 million. For the first half of 2006, Federated's operating income totaled $442 million or 3.7 percent of sales, compared to operating income of $543 million or 7.5 percent of sales for the same period last year. Federated's first half 2006 operating income includes $306 million in May Company integration costs and related inventory valuation adjustments, as well as gains of $191 million on the sale of credit receivables. Excluding these items, operating income was $557 million. Cash Flow Federated generated $2.281 billion in cash from continuing operating activities in the first half of 2006, compared to $665 million in the same period last year. Cash generated by continuing investing activities was $240 million in the first half of this year, compared with the use of $237 million in the same period last year, resulting in cash flow from continuing operating activities before continuing financing activities of $2.521 billion in the first half of this year and $428 million in the first half of last year. In addition, the company generated $35 million in net cash from discontinued operations in the first half of 2006. A series of major transactions contributed to cash flow in the first half of 2006. Cash generated from continuing operating activities includes $1.860 billion in proceeds from the sale of May Company credit receivables. Cash from continuing investing activities includes Federated's purchase of $1.141 billion in credit receivables from General Electric Capital Corporation, which then were sold to Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. for $1.323 billion (for a net increase of $182 million), as well as $443 million from the disposal of property and equipment, primarily from the sale of approximately 60 duplicate store locations. Additional transactions will contribute to cash flow in the second half of 2006. These are expected to include the sales of the Lord & Taylor and Bridal Group divisions, as well as the sale of at least three additional duplicate stores being divested. Proceeds from transactions to date in 2006 have been used to pay down short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings associated with the May Company acquisition and to begin repurchasing shares. The company used approximately $287 million of excess cash to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. approximately 8.1 million shares of Federated common stock in the second quarter of 2006. At the end of the second quarter, the company had remaining authorization The right or permission to use a system resource; the process of granting access. See access control. to purchase up to approximately $383 million of common stock. Management expects to request additional authorization from the Board of Directors. In the second quarter, the company redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. $200 million of principal amount senior bonds at a price of $208.3 million. Looking Ahead Federated is increasing its earnings and same-store sales guidance for the second half of 2006. Guidance for diluted earnings per share, excluding merger integration costs and related inventory valuation adjustments, now is 15 cents to 20 cents for the third quarter and $1.40 to $1.50 for the fourth quarter, compared with previous guidance of $1.50 to $1.62 per share in the two periods combined. For 2006 as a whole, Federated expects diluted earnings of $2.00 to $2.15 per share excluding merger integration costs, related inventory valuation adjustments and gain on the sale of credit receivables. The company now expects same-store sales to increase by 3 percent to 5 percent in each of the third and fourth quarters of 2006, compared with previous guidance for sales to grow by 2 percent to 4 percent in the third and fourth quarters combined. Federated reiterated total sales expectations of between $5.9 billion and $6.1 billion in the third quarter, and between $9.1 billion and $9.4 billion in the fourth quarter. All statements in this press release that are not statements of historical fact are 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. within the meaning of 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. Such statements are based upon the current beliefs and expectations of Federated's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates, competitive pressures from specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" , general merchandise stores, manufacturers' outlets, 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. and discount stores, new and established forms of home shopping Home Shopping commonly refers to the electronic retailing / home shopping channels industry, which includes such billion dollar companies as HSN, QVC, eBay, ShopNBC, Buy.com, and Amazon.com. (including the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , mail-order mail order n. An order for goods to be shipped through the mail.  -or catalogs and television) and general 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. levels, including
the impact of the availability and level of consumer debt, the effect of
weather and other factors identified in documents filed by the company
with the Securities and Exchange Commission.
Federated, with corporate offices in Cincinnati and New York New York, state, United States New 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 , is one of the nation's premier retailers, with fiscal 2006 sales expected to be more than $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , Guam Guam (gwäm), Chamorro Guåhan, the largest, most populous, and southernmost of the Mariana Islands (see also Northern Mariana Islands, an unincorporated territory of the United States (2005 est. pop. and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. under the names of Macy's, Bloomingdale's This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Famous-Barr Famous-Barr, St. Louis, Missouri, was a division of Federated Department Stores. It was formerly the hometown division of May Department Stores, which was acquired by Federated on August 30 2005. On February 1, 2006, it was subsumed into the newly created Macy's Midwest division. , Filene's Filene's was a Boston-based chain of department stores owned by Federated Department Stores. It operated throughout New England and in New York. History Filene's was founded in Boston in 1881 as William Filene's Sons Co. , Foley's Foley’s was a chain of department stores owned by Federated Department Stores and headquartered in Houston, Texas. As of February 1, 2006, the division was dissolved and operation of the stores was assumed by Federated's Macy's West and Macy's South divisions. , Hecht's Hecht's, also known as Hecht Brothers, Hecht Bros. and the Hecht Company, was a large chain of department stores located mainly in the mid-Atlantic region of the United States. , Kaufmann's Kaufmann's was a department store that originated in Pittsburgh, Pennsylvania. The store became a regional chain in the eastern United States, and was last owned by Federated Department Stores. , L.S. Ayres Ayres may refer to: People:
American architect noted for technically innovative designs that blend respectfully with their natural environments. His best-known works include the High Museum in Atlanta and the Getty Center in Los Angeles. & Frank, Robinsons-May Robinsons-May was a chain of department stores operating in Southern California, Arizona and Las Vegas, Nevada, previously with headquarters in North Hollywood, California. , Strawbridge's Strawbridge's (formerly Strawbridge & Clothier) was a department store found in the northeastern United States with stores in Delaware, Pennsylvania and New Jersey. It was part of May Department Stores until that company's August 30, 2005 acquisition by Macy's Inc.. and The Jones Store. The company also operates macys.com and Bloomingdale's By Mail. (NOTE: Additional information on Federated is available on the Internet at www.fds.com/pressroom. A webcast of Federated's second quarter earnings call with analysts will be held beginning at 10:30 a.m. ET on Wednesday Wednesday: see week. , August 9. Pre-registration is requested. Those unable to access the webcast at www.fds.com may call 1-866-552-7206 to listen to the audio in real time. The webcast will be archived for replay beginning approximately two hours after the conclusion of the live call.)
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)
13 Weeks Ended
-------------------------------------
July 29, 2006 July 30, 2005
------------------- -----------------
% to % to
$ Net sales $ Net sales
--------- --------- ------- ---------
Net sales $5,995 $3,623
Cost of sales - recurring (Note
2) 3,470 57.9% 2,126 58.7%
--------- --------- ------- ---------
Gross margin - recurring 2,525 42.1% 1,497 41.3%
Inventory valuation adjustments -
May integration (Note 3) (134) (2.2%) - -%
--------- --------- ------- ---------
Gross margin 2,391 39.9% 1,497 41.3%
Selling, general and
administrative expenses (2,117) (35.3%) (1,206) (33.3%)
May integration costs (Note 4) (43) (0.8%) - -%
Gains on sale of accounts
receivable (Note 5) 191 3.2% - -%
--------- --------- ------- ---------
Operating income 422 7.0% 291 8.0%
Interest expense - net (Note 6) (99) (54)
--------- -------
Income from continuing
operations before income taxes 323 237
Federal, state and local income
tax expense (Note 7) (41) (89)
--------- -------
Income from continuing
operations 282 148
Discontinued operations, net of
income taxes (Note 8) 35 -
--------- -------
Net income $317 $148
========= =======
Basic earnings per share:
Income from continuing
operations $.51 $.43
Income from discontinued
operations .06 -
--------- -------
Net income $.57 $.43
========= =======
Diluted earnings per share
(Note 9):
Income from continuing
operations $.51 $.42
Income from discontinued
operations .06 -
--------- -------
Net income $.57 $.42
========= =======
Average common shares:
Basic 552.2 342.4
Diluted 559.2 351.4
Depreciation and amortization
expense $314 $178
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited) (Note 1)
Notes:
(1) Because of the seasonal nature of the retail business, the results
of operations for the 13 weeks ended July 29, 2006 and
July 30, 2005 (which do not include the Christmas season) are not
necessarily indicative of such results for the fiscal year. The
May Department Stores Company ("May") was acquired
August 30, 2005. The results of operations of May have been
included in Federated's results of operations from the date of
acquisition. Share and per share amounts have been adjusted for
the two-for-one stock split effected in the form of a stock
dividend distributed after the close of trading on June 9, 2006 to
shareholders of record on May 26, 2006.
(2) Merchandise inventories are primarily valued at the lower of cost
or market using the last-in, first-out (LIFO) retail inventory
method. Application of this method did not impact cost of sales
for the 13 weeks ended July 29, 2006 or July 30, 2005.
(3) Represents inventory valuation adjustments associated with the
combination and integration of Federated and May merchandise
assortments.
(4) Represents costs and expenses associated with the integration
and consolidation of May's operations into Federated's operations,
primarily related to the closing of duplicate store locations,
partially offset by gains from the sale of Federated locations.
(5) Represents the gains recognized on the sale of the Company's
remaining proprietary and non-proprietary credit card accounts and
related receivables. For the 13 weeks ending July 29, 2006, the
after-tax net gain amounted to $.21 per diluted share.
(6) Interest expense for the 13 weeks ended July 29, 2006 includes
approximately $17 million of interest income related to the
settlement of various tax examinations (See Note 7).
(7) Income tax expense for the 13 weeks ended July 29, 2006 reflects
approximately $80 million of tax benefits related to the
settlement of various tax examinations, primarily attributable to
losses related to the disposition of a former subsidiary.
(8) Represents the results of operations of the acquired businesses of
Lord & Taylor and the Bridal Group, including David's Bridal,
After Hours Formalwear and Priscilla of Boston, which are being
divested.
(9) For the 13 weeks ended July 29, 2006, May integration costs and
related inventory valuation adjustments (See Notes 3 and 4)
amounted to $.19 per diluted share.
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)
26 Weeks Ended
-------------------------------------
July 29, 2006 July 30, 2005
------------------- -----------------
% to % to
$ Net sales $ Net sales
--------- --------- ------- ---------
Net sales $11,925 $7,264
Cost of sales - recurring (Note
2) 7,097 59.5% 4,302 59.2%
--------- --------- ------- ---------
Gross margin - recurring 4,828 40.5% 2,962 40.8%
Inventory valuation adjustments -
May integration (Note 3) (140) (1.2%) - -%
--------- --------- ------- ---------
Gross margin 4,688 39.3% 2,962 40.8%
Selling, general and
administrative expenses (4,271) (35.8%) (2,419) (33.3%)
May integration costs (Note 4) (166) (1.4%) - -%
Gains on sale of accounts
receivable (Note 5) 191 1.6% - -%
--------- --------- ------- ---------
Operating income 442 3.7% 543 7.5%
Interest expense - net (Note 6) (237) (108)
--------- -------
Income from continuing
operations before income taxes 205 435
Federal, state and local income
tax benefit (expense) (Note 7) 3 (164)
--------- -------
Income from continuing
operations 208 271
Discontinued operations, net of
income taxes (Note 8) 57 -
--------- -------
Net income $265 $271
========= =======
Basic earnings per share:
Income from continuing
operations $.38 $.80
Income from discontinued
operations .10 -
--------- -------
Net income $.48 $.80
========= =======
Diluted earnings per share
(Note 9):
Income from continuing
operations $.37 $.78
Income from discontinued
operations .10 -
--------- -------
Net income $.47 $.78
========= =======
Average common shares:
Basic 551.2 340.0
Diluted 558.6 348.5
Depreciation and amortization
expense $630 $356
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited) (Note 1)
Notes:
(1) Because of the seasonal nature of the retail business, the results
of operations for the 26 weeks ended July 29, 2006 and
July 30, 2005 (which do not include the Christmas season) are not
necessarily indicative of such results for the fiscal year. The
May Department Stores Company ("May") was acquired
August 30, 2005. The results of operations of May have been
included in Federated's results of operations from the date of
acquisition. Share and per share amounts have been adjusted for
the two-for-one stock split effected in the form of a stock
dividend distributed after the close of trading on June 9, 2006 to
shareholders of record on May 26, 2006.
(2) Merchandise inventories are primarily valued at the lower of cost
or market using the last-in, first-out (LIFO) retail inventory
method. Application of this method did not impact cost of sales
for the 26 weeks ended July 29, 2006 or July 30, 2005.
(3) Represents inventory valuation adjustments associated with the
combination and integration of Federated and May merchandise
assortments.
(4) Represents costs and expenses associated with the integration and
consolidation of May's operations into Federated's operations,
primarily related to the closing of duplicate store locations,
partially offset by gains from the sale of Federated locations.
(5) Represents the gains recognized on the sale of the Company's
remaining proprietary and non-proprietary credit card accounts and
related receivables. For the 26 weeks ended July 29, 2006, the
after-tax net gain amounted to $.21 per diluted share.
(6) Interest expense for the 26 weeks ended July 29, 2006 includes
approximately $17 million of interest income related to the
settlement of various tax examinations (See Note 7).
(7) The income tax benefit for the 26 weeks ended July 29, 2006
reflects approximately $80 million of tax benefits related to the
settlement of various tax examinations, primarily attributable to
losses related to the disposition of a former subsidiary.
(8) Represents the results of operations of the acquired businesses of
Lord & Taylor and the Bridal Group, including David's Bridal,
After Hours Formalwear and Priscilla of Boston, which are being
divested.
(9) For the 26 weeks ended July 29, 2006, May integration costs and
related inventory valuation adjustments (See Notes 3 and 4)
amounted to $.34 per diluted share.
FEDERATED DEPARTMENT STORES, INC.
Consolidated Balance Sheets (Unaudited)
(millions)
July 29, January 28, July 30,
2006 2006 2005
-------- ----------- --------
ASSETS:
Current Assets:
Cash and cash equivalents $1,062 $248 $1,399
Accounts receivable 460 2,522 3,271
Merchandise inventories 5,168 5,459 3,259
Supplies and prepaid expenses 255 203 121
Assets of discontinued operations 2,238 1,713 -
-------- ----------- --------
Total Current Assets 9,183 10,145 8,050
Property and Equipment - net 11,166 12,034 5,824
Goodwill 9,248 9,520 260
Other Intangible Assets - net 912 1,080 378
Other Assets 678 389 707
-------- ----------- --------
Total Assets $31,187 $33,168 $15,219
======== =========== ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Liabilities:
Short-term debt $428 $1,323 $1,229
Accounts payable and accrued
liabilities 4,712 5,246 2,715
Income taxes 433 454 178
Deferred income taxes 61 103 29
Liabilities of discontinued
operations 657 464 -
-------- ----------- --------
Total current liabilities 6,291 7,590 4,151
Long-Term Debt 8,205 8,860 2,634
Deferred Income Taxes 1,525 1,704 1,224
Other Liabilities 1,594 1,495 597
Shareholders' Equity 13,572 13,519 6,613
-------- ----------- --------
Total Liabilities and Shareholders'
Equity $31,187 $33,168 $15,219
======== =========== ========
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Cash Flows (Unaudited)
(millions)
26 Weeks Ended 26 Weeks Ended
July 29, 2006 July 30, 2005
-------------- --------------
Cash flows from continuing operating
activities:
Net income $265 $271
Adjustments to reconcile net income to
net cash provided by continuing
operating activities:
Income from discontinued operations (57) -
Gains on the sale of accounts
receivable (191) -
Stock-based compensation expense 43 9
May integration costs 306 -
Depreciation and amortization 630 355
Amortization of financing costs and
premium on acquired debt (37) 2
Changes in assets and liabilities:
Proceeds from the sale of
proprietary accounts receivable 1,860 -
Decrease in proprietary and other
accounts receivable not separately
identified 227 223
(Increase) decrease in merchandise
inventories 157 (139)
Increase in supplies and prepaid
expenses (45) (17)
(Increase) decrease in other assets
not separately identified (7) 10
Increase (decrease) in accounts
payable and accrued liabilities not
separately identified (727) 64
Decrease in current income taxes (21) (147)
Increase (decrease) in deferred
income taxes (203) 26
Increase in other liabilities not
separately identified 81 8
-------------- --------------
Net cash provided by continuing
operating activities 2,281 665
-------------- --------------
Cash flows from continuing investing
activities:
Purchase of property and equipment (353) (143)
Capitalized software (39) (32)
Increase in non-proprietary accounts
receivable - (76)
Proceeds from hurricane insurance
claims 7 -
Repurchase of accounts receivable (1,141) -
Proceeds from the sale of repurchased
accounts receivable 1,323 -
Disposition of property and equipment 443 14
-------------- --------------
Net cash provided (used) by
continuing investing activities 240 (237)
-------------- --------------
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Cash Flows (Unaudited)
(millions)
26 Weeks Ended 26 Weeks Ended
July 29, 2006 July 30, 2005
-------------- --------------
Cash flows from continuing financing
activities:
Debt issued 46 -
Debt repaid (1,512) (16)
Dividends paid (139) (46)
Decrease in outstanding checks (45) (55)
Acquisition of treasury stock (287) (7)
Issuance of common stock 195 227
-------------- --------------
Net cash provided (used) by
continuing financing
activities (1,742) 103
-------------- --------------
Net cash provided by continuing
operations 779 531
Net cash provided by discontinued
operating activities 99 -
Net cash used by discontinued investing
activities (41) -
Net cash used by discontinued financing
activities (23) -
-------------- --------------
Net cash provided by discontinued
operations 35 -
-------------- --------------
Net increase in cash and cash
equivalents 814 531
Cash and cash equivalents at beginning
of period 248 868
-------------- --------------
Cash and cash equivalents at end of
period $1,062 $1,399
============== ==============
Notes:
(1) Certain reclassifications were made to prior period amounts to
conform with the classifications of such amounts for the most
recent period.
(2) Stock-based compensation expense includes restricted stock
grants, stock credit plans and stock options.
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion