COLUMBUS, Ohio, April 24 /PRNewswire-FirstCall/ -- Retail Ventures, Inc.
(NYSE: RVI) today announced its consolidated financial results for the fourth
quarter and year ended February 2, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20031208/CLM057LOGO )
-- Net sales for the thirteen weeks ended February 2, 2008 decreased 1.5%
to $452.0 million from $458.9 million for the fourteen weeks ended
February 3, 2007. The company's same store sales decreased 0.1% for
the comparable thirteen week period.
-- Net sales for the fifty-two weeks ended February 2, 2008 increased 9.7%
to $1.87 billion from $1.71 billion for the fifty-three weeks ended
February 3, 2007. The company's same store sales increased 0.3% for
the comparable fifty-two week period.
Fiscal Quarter Ended Fiscal Year Ended
February 2, February 3, February 2, February 3,
2008 2007 2008 2007
Total Sales (in thousands):
DSW $ 332,520 $ 329,052 $1,405,615 $1,279,060
Filene's Basement 119,513 129,835 466,289 427,473
$ 452,033 $ 458,887 $1,871,904 $1,706,533
Comparable Sales Percentage:
DSW (1.7)% 1.0% (0.8)% 2.5%
Filene's Basement 4.8 (1.3) 3.6 3.1
(0.1)% 0.3% 0.3% 2.7%
-- The loss from continuing operations for the quarter was $9.0 million,
or $0.19 per share on a diluted basis, compared to a loss from
continuing operations of $40.6 million, or $0.86 per share on a diluted
basis last year.
-- The income from continuing operations for the year ended February 2,
2008 was $202.1 million or $3.56 per share on a diluted basis, compared
to a loss from continuing operations of $128.6 million or $2.85 per
share on a diluted basis for the prior year.
The Company believes that the non-cash change in fair value of derivative
instruments is not directly related to its retail operations and is therefore
providing supplemental adjusted results that exclude this item. This non-GAAP
financial measure should facilitate analysis by investors and others who
follow the Company's financial performance. A reconciliation of non-GAAP
results follows:
Fiscal Quarter Ended Fiscal Year Ended
February 2, February 3, February 2, February 3,
2008 2007 2008 2007
Operating profit (loss)
(in thousands):
Non-GAAP operating
(loss) profit $(886) $26,187 $63,473 $99,489
Increase (decrease) in
fair value of derivatives 19,513 (65,229) 248,193 (175,955)
GAAP operating profit
(loss) $18,627 $(39,042) $311,666 $(76,466)
Fiscal Quarter Ended Fiscal Year Ended
February 2, February 3, February 2, February 3,
2008 2007 2008 2007
(Loss) income from
continuing operations
(in thousands):
Non-GAAP (loss) income
from continuing
operations $(28,505) $24,648 $(46,089) $47,313
Increase (decrease) in
fair value of derivatives 19,513 (65,229) 248,193 (175,955)
GAAP (loss) income from
continuing operations $(8,992) $(40,581) $202,104 $(128,642)
Diluted (loss) earnings per share from continuing operations:
Non-GAAP diluted (loss)
earnings per share from
continuing operations $(0.59) $0.40 $(0.96) $0.76
Change in weighted-average
shares 0.12 0.15 0.29
Increase (decrease) in
fair value of derivatives 0.40 (1.38) 4.37 (3.90)
GAAP diluted (loss) earnings
per share from continuing
operations $(0.19) $(0.86) $3.56 $(2.85)
Retail Ventures, Inc. is a leading off-price retailer operating as of
February 2, 2008, 36 Filene's Basement stores in major metropolitan areas in
the Northeast and Midwest and 259 DSW stores in major metropolitan areas
throughout the country. DSW also supplies shoes, under supply arrangements,
to 342 locations for other non-related retailers in the United States.
Webcast and Conference Call
To hear the Company's live fourth quarter earnings conference call, log on
to www.retailventuresinc.com at 4:30 p.m. ET on April 24, 2008. To hear a
replay of the earnings call, which will be available approximately four hours
after the conference call ends, dial (866) 439-4554 followed by pin number
360452#. An audio replay of the conference call, as well as additional
financial information, will also be available at www.retailventuresinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995
Any statements in this release that are not historical or current facts
are forward-looking statements. All forward-looking statements in this release
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown
risks, uncertainties and other factors that could cause our future financial
performance in fiscal 2008 and beyond to differ materially from those
expressed or implied in any such forward-looking statements. Certain of these
risks and uncertainties are described in the "Risk Factors" section of the
Company's latest quarterly or annual report, as filed with the SEC. These
factors include, but are not limited to: our success in opening new stores and
operating stores on a timely and profitable basis; maintaining good
relationships with our vendors; our ability to anticipate and respond to
fashion trends; fluctuation of our comparable store sales and quarterly
financial performance; impact of the disposition of a majority interest in
Value City and the reliance on remaining subsidiaries to pay indebtedness and
intercompany service obligations; the risk of Value City deciding to
discontinue operations or otherwise not pay its creditors; disruption of our
distribution operations; our dependence on DSW for key services; DSW's success
in the development and launch of a DSW e-commerce business; failure to retain
our key executives or attract qualified new personnel; our competitiveness
with respect to style, price, brand availability and customer service;
declining general economic conditions; liquidity risks related to our
investments; risks inherent to international trade with countries that are
major manufacturers of apparel and footwear; and security risks related to the
electronic processing and transmission of confidential customer information.
Additional factors that could cause our actual results to differ materially
from our expectations are described in the Company's latest annual or
quarterly report, as filed with the SEC. Any forward-looking statement speaks
only as of the date on which such statement is made. The Company undertakes
no obligation to revise the forward-looking statements included in this press
release to reflect any future events or circumstances.
RETAIL VENTURES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
February 2, February 3,
2008 2007
ASSETS
Cash and equivalents $112,951 $143,020
Restricted cash 257
Short-term investments 70,005 98,650
Accounts receivable, net 16,618 13,136
Inventories 339,320 328,560
Prepaid expenses and other current assets 31,232 27,508
Deferred income taxes 28,225 25,737
Current assets of discontinued operations 251,336
Total current assets 598,608 887,947
Property and equipment, net 254,659 179,468
Goodwill 25,899 25,899
Long-term investments 12,500
Note receivable from discontinued operations 34,441
Tradenames and other intangibles, net 19,927 26,401
Conversion feature of long-term debt 30,848
Deferred income taxes and other assets 9,524 35,040
Non-current assets of discontinued operations 112,462
Total assets $951,965 $1,301,658
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, net $152,331 $192,689
Accrued expenses 108,202 113,725
Warrant liability 42,213 216,400
Current liabilities of discontinued operations 90,694
Total current liabilities 302,746 613,508
Long-term obligations, net of current
maturities 157,793 168,053
Conversion feature of long-term debt 62,770
Other noncurrent liabilities 128,497 89,698
Deferred income taxes 29,657
Non-current liabilities of discontinued
operations 137,581
Minority interest 160,349 138,428
Total shareholders' equity 172,923 91,620
Total liabilities and shareholders' equity $951,965 $1,301,658
RETAIL VENTURES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
Thirteen Fourteen Fifty-two Fifty-three
weeks ended weeks ended weeks ended weeks ended
February 2, February 3, February 2, February 3,
2008 2007 2008 2007
Net sales $452,033 $458,887 $1,871,904 $1,706,533
Cost of sales (282,000) (274,188) (1,120,899) (997,667)
Gross profit 170,033 184,699 751,005 708,866
Selling, general and
administrative
expenses (172,554) (160,950) (694,108) (614,015)
Change in fair value of
derivative instruments 19,513 (65,229) 248,193 (175,955)
License fees and other
income 1,635 2,438 6,576 4,638
Operating profit (loss) 18,627 (39,042) 311,666 (76,466)
Interest (expense)
income, net (1,915) 253 (3,076) (2,137)
Income (loss) from
continuing operations
before income taxes and
minority interest 16,712 (38,789) 308,590 (78,603)
Income tax (expense)
benefit (25,306) 4,341 (86,607) (25,873)
(Loss) income from
continuing operations
before minority interest (8,594) (34,448) 221,983 (104,476)
Minority interest (398) (6,133) (19,879) (24,166)
(Loss) income from
continuing operations (8,992) (40,581) 202,104 (128,642)
(Loss) income from
discontinued operations,
net of tax (116,746) 4,691 (150,662) (22,271)
Net (loss) income $(125,738) $(35,890) $51,442 $(150,913)
Basic (loss) earnings
per share from
continuing operations $(0.19) $(0.86) $4.20 $(2.85)
Diluted (loss) earnings
per share from continuing
operations $(0.19) $(0.86) $3.56 $(2.85)
Basic (loss) earnings per
share from discontinued
operations $(2.40) $0.10 $(3.13) $(0.49)
Diluted (loss) earnings
per share from
discontinued operations $(2.40) $0.10 $(2.65) $(0.49)
Basic (loss) earnings
per share $(2.59) $(0.76) $1.07 $(3.35)
Diluted (loss) earnings
per share $(2.59) $(0.76) $0.91 $(3.35)
Basic shares used in
calculation 48,616 47,223 48,165 45,088
Diluted shares used in
calculation 48,616 47,223 56,794 45,088
Comparable Sales Percentage:
DSW (1.7)% 1.0% (0.8)% 2.5%
Filene's Basement 4.8 (1.3) 3.6 3.1
(0.1)% 0.3% 0.3% 2.7%
Store and supply arrangement locations count at end of period:
Stores:
DSW 259 223
Filene's Basement 36 31
295 254
Supply arrangement locations 342 330
Total 637 584
The tables below present segment statement of operations information (in
thousands):
As of and for the
year ended Filene's Intersegment
February 2, 2008 DSW Basement Corporate Eliminations Total
Net sales $1,405,615 $466,289 $1,871,904
Operating profit
(loss) 81,321 (17,848) $248,193 311,666
Depreciation and
amortization 25,055 12,487 3,243 40,785
Interest expense 1,178 7,936 12,718 $(8,284) 13,548
Interest income 7,148 124 11,484 (8,284) 10,472
Income tax expense (33,516) (14,205) (38,886) (86,607)
Capital expenditures 102,451 17,152 (715) 118,888
Total assets 693,882 162,099 222,361 (126,377) 951,965
As of and for the
year ended Filene's Intersegment
February 3, 2007 DSW Basement Corporate Eliminations Total
Net sales $1,279,060 $427,473 $1,706,533
Operating profit
(loss) 100,714 (1,225) $(175,955) (76,466)
Depreciation and
amortization 20,686 9,282 3,103 33,071
Interest expense 614 6,791 7,873 $(5,835) 9,443
Interest income 7,527 40 5,574 (5,835) 7,306
Income tax (expense)
benefit (42,164) 2,215 14,076 (25,873)
Capital expenditures 42,407 16,118 (317) 58,208
Total assets 603,785 175,287 437,750 (278,962) 937,860
SOURCE Retail Ventures, Inc.
