La Senza Corporation Posts Improved Third Quarter Results, Comparative Store Sales Increase By 8.4%.MONTREAL Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. -- La Senza La Senza is a large Canadian lingerie chain which specialises in high street stores and internet shopping. Since its first store opened in 1990 the company has grown to include around 300 stores in Canada and another 300 stores in 30 other countries worldwide. Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :LSZ LSZ Limited Speed Zone (UK) LSZ Lëtzebuerger Studenten zu Zürech (Society of Luxembourg Students in Zurich) LSZ Least Zone Straight Line (parallel lines enclosing all points on a graph) .SV) today reported net earnings of $2.6 million or $0.19 per share for the quarter ended October October: see month. 29, 2005 compared to a net loss of $853,000 or $0.06 per share for the quarter ended October 30, 2004.For the nine month period, the Company posted net earnings of $6.4 million or $0.47 per share compared to a net loss of $6.7 million or $0.50 per share for the corresponding prior year period, for a $13.1 million turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. . The financial results arising from the closure of the Company's U.S. operations in the second quarter of fiscal 2006 are presented 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. for the applicable current and prior periods. With the closure of U.S. operations completed in the second quarter of fiscal 2006, the third quarter of fiscal 2006 recorded no loss from discontinued operations.Accordingly, excluding losses from discontinued operations, earnings 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 were $2.6 million or $0.19 per share for the third quarter of fiscal 2006 compared to $74,000 or $0.01 per share for the third quarter of fiscal 2005. For the nine month period, earnings from continuing operations amounted to $8.4 million or $0.62 per share compared to a loss of $3.7 million or $0.28 per share for the corresponding period of the prior year. Earnings before interest, income taxes, amortization, loss in a significantly influenced company, foreign exchange on investment activities and discontinued operations (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) amounted to $9.3 million for the current third quarter versus $7.9 million for the third quarter of the prior year.For the nine month period, EBITDA amounted to $29.1 million versus $19.9 million for the corresponding period in the prior year. Sales for the third quarter ended October 29, 2005 amounted to $97.1 million compared to $82.1 million for the third quarter of the prior year, an increase of 18.3%.Sales for the nine months ended October 29, 2005 amounted to $277.5 million compared to $239.5 million for the nine months of the prior year, representing an increase of 15.9%.Comparative store sales (stores open more than a year) increased by 8.4% in the third quarter of the current year over the third quarter of the prior year, and for the nine months the increase was 8.9%. Mr. Irving Irving, city (1990 pop. 155,037), Dallas co., N Tex., a suburb of Dallas; inc. as a city 1952. Building supplies, chemicals, electronic equipment, and airplane parts are manufactured in Irving. Teitelbaum Teitelbaum (טײטלבױם teytlboym) is a Jewish surname, which may refer to:
In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. for 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 flow has resulted in better merchandise availability this year in comparison to the prior year.The Company's increase in market share strengthens its position going into the fourth quarter where traditionally it produces its highest sales volume." The Board declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.16 per share, which is payable on January January: see month. 4, 2006 to shareholders of record as of December December: see month. 8, 2005. La Senza Corporation, headquartered in Montreal, is a 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. retailer with 300 corporate owned stores as at October 29, 2005, offering fashionable lingerie and sleepwear sold in its 224 "La Senza" and "Silk silk, fine, horny, translucent, yellowish fiber produced by the silkworm in making its cocoon and covered with sericin, a protein. Many varieties of silk-spinning worms and insects are known, but the silkworm of commerce is the larva of the Bombyx mori, & Satin" stores, and fashionable apparel for girls sold in its 76 "La Senza Girl" stores.Stores are located in every province in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of .In addition, 263 independently owned "La Senza" and "La Senza Girl" stores are operating in 26 other countries under license. Forward-looking statement 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. Except for historical information provided herein, this press release may contain information and statements of a 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. nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties, as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
La Senza Corporation - Corporation La Senza
Consolidated Balance Sheets
(thousands of dollars)
As at As at As at
October 29, October 30, January 29,
2005 2004 2005
Unaudited Unaudited Audited
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ASSETS
Current
Cash $7,539 $- $18,347
Short-term investments 19,740 17,484 23,216
Marketable securities 24,732 25,438 25,782
Accounts and sundry receivables 10,809 8,958 7,063
Income taxes recoverable - 5,002 1,428
Inventory 56,975 42,090 39,753
Prepaid expenses 3,856 4,907 2,190
Assets of discontinued
operations - - 2,286
Future income taxes 6,069 8,161 8,387
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129,720 112,040 128,452
Fixed Assets 79,232 89,082 82,844
Trademarks 1,220 1,201 1,199
Assets of Discontinued
Operations - - 359
Future Income Taxes 2,872 797 2,872
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213,044 203,120 215,726
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LIABILITIES
Current
Bank indebtedness - 8,825 -
Accounts payable and
accrued liabilities 33,317 25,013 35,169
Income taxes payable 715 - -
Current maturity of
obligations under
capital leases 10,964 10,589 11,588
Current maturity of
long-term debt 125 944 104
Liabilities of
discontinued operations - - 4,317
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45,121 45,371 51,178
Obligations Under Capital
Leases 22,981 22,579 25,326
Long-Term Debt 2,615 5,517 2,711
Deferred Lease Inducements 8,860 7,878 8,193
Future Income Taxes 70 - 70
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79,647 81,345 87,478
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Commitments and Contingencies
SHAREHOLDERS' EQUITY
Capital Stock 35,657 31,745 31,781
Contributed Surplus 9,157 9,230 9,423
Retained Earnings 88,583 80,800 87,044
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133,397 121,775 128,248
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$213,044 $203,120 $215,726
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See accompanying notes
La Senza Corporation - Corporation La Senza
Consolidated Statements of Retained Earnings
Unaudited (thousands of dollars)
Nine Months Ended
------------------------------------------------------------------
October 29, 2005 October 30, 2004
(restated)
Balance - Beginning of Period $87,044 $89,779
Retroactive effect of adopting fair
value-based method for share options - (667)
Net earnings (loss) 6,442 (6,697)
Dividends on subordinate voting shares (3,106) (1,216)
Dividends on multiple voting shares (1,797) (399)
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Balance - End of Period $88,583 $80,800
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See accompanying notes
La Senza Corporation - Corporation La Senza
Consolidated Statements of Earnings
Unaudited (thousands of dollars, except per share amounts)
Third Quarter Ended Nine Months Ended
--------------------------------------------------------------------
October 29, October 30, October 29, October 30,
2005 2004 2005 2004
(restated) (restated)
Sales $97,124 $82,067 $277,499 $239,483
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Cost, Expenses and Other
Cost of sales and store,
warehouse, general,
administrative and sales
support expenses 87,402 73,845 247,840 219,264
Amortization 5,191 5,156 15,556 13,990
Interest on obligations
under capital leases 509 512 1,532 1,518
Interest on long-term debt 41 101 156 234
Other interest (53) 35 (37) 305
Interest income - - (53) -
Foreign exchange loss 408 292 519 290
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93,498 79,941 265,513 235,601
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Operating Income 3,626 2,126 11,986 3,882
Interest income on
short-term investments 291 227 843 496
Other income 13 199 208 124
Foreign exchange loss on
investment activities (95) (2,798) (238) (2,577)
Loss in a significantly
influenced company - - - (6,480)
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Earnings (Loss) from
Continuing Operations
Before Income Taxes 3,835 (246) 12,799 (4,555)
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Income Taxes 1,211 (320) 4,410 (821)
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Earnings (Loss) from
Continuing Operations 2,624 74 8,389 (3,734)
Discontinued operations,
net of income taxes - (927) (1,947) (2,963)
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Net Earnings (Loss) $2,624 $(853) $6,442 $(6,697)
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Basic Earnings (Loss) per
Share from Continuing
Operations $0.19 $0.01 $0.62 $(0.28)
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Diluted Earnings (Loss) per
Share from Continuing
Operations $0.19 $0.01 $0.61 $(0.28)
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Basic and Diluted Earnings
(Loss) per Share $0.19 $(0.06) $0.47 $(0.50)
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Weighted Average Number of
Shares Outstanding
- Basic 13,710,960 13,440,384 13,577,195 13,427,812
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Weighted Average Number of
Shares Outstanding -
Diluted 13,806,830 13,440,384 13,656,274 13,427,812
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See accompanying notes
La Senza Corporation - Corporation La Senza
Consolidated Statements of Cash Flows
Unaudited (thousands of dollars)
Third Quarter Ended Nine Months Ended
--------------------------------------------------------------------
October 29, October 30, October 29, October 30,
2005 2004 2005 2004
(restated) (restated)
Funds Provided (Used)
Operating Activities
Earnings (loss) from
continuing operations $2,624 $74 $8,389 $(3,734)
Amortization 5,191 5,156 15,556 13,990
Amortization of deferred
lease inducements (563) (535) (1,181) (1,293)
Stock-based compensation
expense 452 200 808 711
Loss in a significantly
influenced company - - - 6,480
Future income taxes 882 - 2,320 (660)
Foreign exchange loss on
investment activities 95 2,697 238 2,577
Deferred lease inducements 650 1,001 1,847 2,150
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9,331 8,593 27,977 20,221
Changes in non-cash
operating elements of
working capital (9,444) (6,872) (23,053) (10,461)
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(113) 1,721 4,924 9,760
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Financing Activities
Issuance of subordinate
voting shares 1,119 45 2,802 139
Repayments of
obligations under
capital leases (3,204) (2,700) (9,060) (7,517)
Repayment of long-term
debt (30) (22) (75) (65)
Obligations under
capital leases 2,593 3,734 6,092 6,870
Dividends paid (2,196) (541) (4,903) (1,615)
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(1,718) 516 (5,144) (2,188)
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Investing Activities
Short-term investments
and marketable
securities 7,468 (22,235) 12,116 (20,188)
Additions to fixed
assets (2,646) (6,866) (11,805) (17,408)
Additions to trademarks (55) (44) (161) (210)
Net proceeds on sale of
a significantly
influenced company - - - 20,446
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4,767 (29,145) 150 (17,360)
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Cash provided by (used)
in continuing
operations 2,936 (26,908) (70) (9,788)
Cash used in
discontinued
operations (504) (2,233) (2,910) (8,997)
--------------------------------------------------------------------
Net Increase (Decrease)
in Cash and Cash
Equivalents 2,432 (29,141) (2,980) (18,785)
Cash and Cash Equivalents
Beginning of Period 12,935 20,316 18,347 9,960
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End of Period $15,367 $(8,825) $15,367 $(8,825)
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Represented by:
Cash (bank indebtedness) $7,539 $(8,825)
Short-term investments 19,740 17,484
Short-term investments
with maturity over 3 months (11,912) (17,484)
--------------------------------------------------------------------
$15,367 $(8,825)
--------------------------------------------------------------------
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See accompanying notes
Notes to the Consolidated Financial Statements
October 29, 2005
Unaudited
(tabular amounts are expressed in thousands of dollars, except per
share amounts)
1 - Financial Statement Presentation The interim consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statements have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") using the same accounting policies and methods of computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. as were used for the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the year ended January 29, 2005.They do not include all the disclosures required by GAAP in annual financial statements and, accordingly, should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the consolidated financial statements for the year ended January 29, 2005. 2 - Seasonal Variations Results of operations are subject to significant seasonal variations and, accordingly, the 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. for any given interim period is not necessarily indicative indicative: see mood. of the results of operations for a full year. 3 - Change in Accounting Policies Vendor Discounts In January 2004, the Emerging Issues Committee of the CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) released Abstract 144 (EIC EIC Editor-In-Chief EIC Euro Info Centre (DIN) EIC Earned Income Credit EIC Excellence in Cities (UK) EIC Enterprise Interaction Center (Interactive Intelligence) - 144) "Accounting By a Customer (Including a Reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. ) for Certain Consideration Received From a Vendor". EIC - 144 specifies the accounting method to be applied to considerations received from a vendor. EIC - 144 requires the Company to record cash considerations received from a vendor as a reduction in the price of the vendor's products and reflect them as a reduction of cost of sales and related inventory when they are recognized in the income statement and balance sheet. The Company applied this new recommendation in the fourth quarter of fiscal 2005. As a result of the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a application of this new standard, the financial statements for the three and nine months ended October 30, 2004 have been restated. The impact on previously reported balances is as follows:
Three Months Nine Months
Ended Ended
--------------------------------------------------------------------
October 30, October 30,
2004 2004
--------------------------------------------------------------------
$ $
Cost of sales and store, warehouse,
general, administration and sales
support expenses (84) (195)
Earnings from continuing operations
before income taxes 84 195
Income tax expense 31 71
Earnings from continuing operations 53 124
Net earnings 53 124
Retained earnings - end of period 124
Inventory 195
Income taxes recoverable 432
Future income tax asset (503)
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Reporting Segment
The Company assessed the long-term economic characteristics for the
La Senza and La Senza Girl segments and has determined that it meets
the criteria for aggregating the operating segments and, accordingly,
considers that it currently has a single reporting segment.
As a result, segmented results for La Senza and La Senza Girl are no
longer presented.
4 - Discontinued Operations
In January 2005, the Company approved a plan to discontinue the U.S.
operations of La Senza and, accordingly, the results and cash flows
of the U.S. operations for the current and prior periods have been
presented as discontinued operations. The net assets of these
operations are presented as assets/liabilities of discontinued
operations in the periods in which they qualify as held for sale. In
the second quarter of fiscal 2006, all of the U.S. stores were
closed.
The results of discontinued operations were as follows:
Third Quarter Ended Nine Months Ended
--------------------------------------------------------------------
October 29, October 30, October 29, October 30,
2005 2004 2005 2004
--------------------------------------------------------------------
$ $ $ $
Sales - 2,283 3,507 7,948
--------------------------------------------------------------------
Operating losses - (1,665) (3,198) (4,076)
Income taxes - (738) (1,251) (1,113)
--------------------------------------------------------------------
Loss from Discontinued
Operations, Net of
Income Taxes - (927) (1,947) (2,963)
--------------------------------------------------------------------
--------------------------------------------------------------------
Basic and Diluted Loss
Per Share from
Discontinued Operations - (0.07) (0.15) (0.22)
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The net assets of discontinued operations are summarized as follows:
As at As at As at
October 29, October 30, January 29,
2005 2004 2005
--------------------------------------------------------------------
$ $ $
Current assets - - 2,286
Fixed assets - - 359
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- - 2,645
Current liabilities - - 4,317
--------------------------------------------------------------------
Net assets from discontinued operations - - (1,672)
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The cash flows from discontinued operations are summarized as
follows:
Third Quarter Ended Nine Months Ended
--------------------------------------------------------------------
October 29, October 30, October 29, October 30,
2005 2004 2005 2004
--------------------------------------------------------------------
$ $ $ $
Cash flows used in
operating activities (504) (2,233) (2,910) (10,697)
Cash flows from
investing activities - - - 1,700
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(504) (2,233) (2,910) (8,997)
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5 - Earnings (Loss) Per Share
Basic and diluted per share amounts are based on the following
weighted average number of shares outstanding:
--------------------------------------------------------------------
Third Quarter Ended Nine Months Ended
--------------------------------------------------------------------
October 29, October 30, October 29, October 30,
2005 2004 2005 2004
Weighted Average Number
of Shares Outstanding
- Basic 13,710,960 13,440,384 13,577,195 13,427,812
Assumed exercise of
share options 95,870 - 79,079 -
--------------------------------------------------------------------
Weighted Average Number
of Shares Outstanding
- Diluted 13,806,830 13,440,384 13,656,274 13,427,812
--------------------------------------------------------------------
--------------------------------------------------------------------
Earnings from continuing operations have been used as a control number in determining if the inclusion of share options in the 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. per share calculation is dilutive. In addition, in periods where the inclusion of share options is dilutive, only those having an exercise price below the average market price of subordinate voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. during the period are included in the computation. The number of excluded share options was 45,714 and 21,282 for the three and nine months ended October 29, 2005, respectively. As a result of the anti-dilutive impact of calculating the diluted weighted average number of shares for the three months ended October 30, 2004 using the treasury stock method, and the loss from continuing operations for the nine months ended October 30, 2004, diluted loss per share was calculated using the basic weighted average shares outstanding because to do so otherwise would have been anti-dilutive. 6 - Contingent Liabilities Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. Class Action Suit On August 19, 2004, a class action suit was filed against the Company and certain of its officers in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. , Central District of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , alleging that the Company and two of its officers violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. section 20A of the US Securities Exchange Act of 1934 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc contemporaneous con·tem·po·ra·ne·ous adj. Originating, existing, or happening during the same period of time: the contemporaneous reigns of two monarchs. See Synonyms at contemporary. insider In the context of federal regulation of the purchase and sale of Securities, anyone who has knowledge of facts not available to the general public. Insider information trading in relation to the sale by the Company of its investment in The Wet Seal Wet Seal is a young women's clothing retailer headquartered in Foothill Ranch, California. It carries moderately priced brand name and company-designed apparel and accessories. The company was founded in Newport Beach, California by Lorne Huycke in 1962 as "Lorne's. , Inc. ("Wet Seal"). On September September: see month. 12, 2005, the Court granted a motion to dismiss dismiss v. the ruling by a judge that all or a portion (one or more of the causes of action) of the plaintiff's lawsuit is terminated (thrown out) at that point without further evidence or testimony. , which was filed by the Company and its officers. The plaintiffs were given leave to amend their complaint. The amended complaint amended complaint n. what results when the party suing (plaintiff or petitioner) changes the complaint he/she has filed. It must be in writing, and can be done before the complaint is served on any defendant, by agreement between the parties (usually their lawyers), is expected to be filed with the Court on November November: see month. 23, 2005. The Company and its officers deny all allegations of wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do made in
this suit, consider the allegations groundless and without merit, and
intend to vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. defend against this action. No provision has been made with respect to this matter. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission Inquiry On February February: see month. 4, 2005, the United States Securities and Exchange Commission ("SEC") announced an informal inquiry relating to Wet Seal and requesting Wet Seal to voluntarily provide the SEC with a detailed chronology chronology, n the arrangement of events in a time sequence, usually from the beginning to the end of an event. of events and certain documents pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to Wet Seal's public announcements on August 5, 9 and 19, 2004. The SEC inquiry also requested all information relating to the sale of Wet Seal shares by the Corporation during 2004 and by two of its officers and their holding companies during 2005. On April 22, 2005, the two officers of the Company each received a subpoena subpoena (səpē`nə) [Lat.,=under penalty], in law, an order to a witness to appear before a court. A subpoena ad testificandum [Lat. for documents only from the SEC pursuant to a formal order of investigation dated April 19, 2005. The subpoenas seek documents relating to the sale of Wet Seal shares by the Corporation in 2004 and by the two officers and their holding companies during 2005, and related topics. The Company and its officers have provided documents to the SEC in response to the subpoenas. At this early stage, it is not possible to give any opinion as to the likely outcome of the SEC investigation. No provision has been made with respect to this matter.
7 - Contributed Surplus
Nine Months Ended
--------------------------------------------------------------------
October 29, October 30,
2005 2004
--------------------------------------------------------------------
$ $
Balance - beginning of period 9,423 7,852
Stock-based compensation expense -
prior periods - 667
Stock-based compensation expense -
current period 808 711
Exercise of share options (1,074) -
--------------------------------------------------------------------
Balance - end of period 9,157 9,230
--------------------------------------------------------------------
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8 - Capital Stock
Quantity $
--------------------------------------------------------------------
Subordinate Voting Shares
Balance - January 30, 2005 8,460,266 30,387
Issuance of subordinate voting shares
upon exercise of options 299,800 2,802
Reclassification from contributed
surplus due to exercise of share options - 1,074
--------------------------------------------------------------------
Balance - October 29, 2005 8,760,066 34,263
Multiple Voting Shares 4,992,569 1,394
--------------------------------------------------------------------
13,752,635 35,657
--------------------------------------------------------------------
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Share Option Plan
On June 16, 2005, the Company amended the share option plan so that
the number of Subordinate Voting Shares that may be issued pursuant
to the share option plan is limited to 11% of the Subordinate Voting
Shares and Multiple Voting Shares outstanding.
Share option transactions during the nine-month period ending October
29, 2005 were as follows:
Weighted
Average
Exercise
Options Price
--------------------------------------------------------------------
$
Outstanding as at January 30, 2005 774,300 10.51
Granted 140,000 19.09
Exercised (299,800) 9.33
Forfeited (10,800) 10.62
--------------------------------------------------------------------
Outstanding as at October 29, 2005 603,700 13.62
--------------------------------------------------------------------
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9 - Comparative figures Certain comparative figures have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current period's presentation. La Senza Corporation (TSX:LSZ.SV) |
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