COLUMBUS, Ohio, Sept. 8 /PRNewswire-FirstCall/ -- Retail Ventures, Inc.
(NYSE: RVI) today announced its consolidated financial results for the second
quarter ended August 2, 2008.
-- Total sales for the three months ended August 2, 2008 decreased 1.0% to
$459.8 million from $464.6 million for the three months ended August 4,
2007. The Company's same store sales decreased 5.1% for the comparable
three months.
Three months ended
August 2, August 4,
2008 2007
(in thousands)
Total Sales:
DSW $357,175 $348,718
Filene's Basement 102,611 115,920
$459,786 $464,638
Comparable Sales Percentage:
DSW (6.9)% 5.9%
Filene's Basement 1.4 % 7.0%
Total Retail Ventures (5.1)% 6.2%
-- Total sales for the six months ended August 2, 2008 decreased 0.5% to
$926.1 million from $930.5 million for the six months ended August 4,
2007. The Company's same store sales decreased 4.7% for the comparable
six months.
Six months ended
August 2, August 4,
2008 2007
(in thousands)
Total Sales:
DSW $ 723,439 $705,715
Filene's Basement 202,631 224,762
$926,070 $930,477
Comparable Sales Percentage:
DSW (6.2)% 0.9%
Filene's Basement 0.6 % 4.3%
Total Retail Ventures (4.7)% 1.7%
-- The income from continuing operations for the three months ended August
2, 2008 was $7.2 million, or $0.15 per share on a diluted basis,
compared to an income from continuing operations of $115.6 million, or
$1.97 per share on a diluted basis last year.
-- The income from continuing operations for the six months ended August
2, 2008 was $40.0 million, or $0.80 per share on a diluted basis,
compared to an income from continuing operations of $128.7 million, or
$2.18 per share on a diluted basis last year.
The Company believes the non-cash accounting reduction of expenses
associated with the 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:
Three months ended Six months ended
August 2, August 4, August 2, August 4,
2008 2007 2008 2007
(in thousands)
Operating profit:
Non-GAAP operating profit $5,326 $6,252 $14,061 $34,731
Increase in fair value of
derivative instruments 16,733 124,784 53,901 137,333
GAAP operating profit $22,059 $131,036 $67,962 $172,064
(Loss) income from continuing
operations:
Non-GAAP loss from continuing
operations $(9,493) $(9,223) $(13,889) $(8,670)
Increase in fair value of
derivative instruments 16,733 124,784 53,901 137,333
GAAP income from continuing
operations $7,240 $115,561 $40,012 $128,663
Diluted (loss) earnings per share
from continuing operations:
Non-GAAP diluted loss per share
from continuing operations $(0.19) $(0.15) $(0.27) $(0.15)
Increase in fair value of
derivative instruments 0.34 2.12 1.07 2.33
GAAP diluted earnings per share
from continuing operations $0.15 $1.97 $0.80 $2.18
On January 23, 2008, Retail Ventures, Inc. disposed of an 81% ownership
interest in its Value City operations.
Retail Ventures, Inc. is a holding company whose subsidiaries, DSW and
Filene's Basement, operate retail stores. DSW is a leading United States
branded footwear specialty retailer operating, as of August 2, 2008, 274 shoe
stores in major metropolitan areas throughout the country. DSW also supplies
shoes, under supply arrangements, to 348 locations for other non-related
retailers in the United States and operates dsw.com. Filene's Basement is an
off-price retailer operating, as of August 2, 2008, 36 Filene's Basement
stores in major metropolitan areas in the northeastern and midwestern United
States.
Webcast and Conference Call
To hear the Company's live second quarter earnings conference call, log on
to www.retailventuresinc.com at 5:00 p.m. ET on, September 8, 2008. To hear a
replay of the earnings call, which will be available approximately four hours
after the conference call ends, dial 1-866-551-4520, followed by pin number
233302#. 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 and operating
new 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 shared 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; the success of dsw.com; 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)
August 2, February 2,
2008 2008
ASSETS
Cash and equivalents $110,774 $112,951
Restricted cash 260 257
Short-term investments 75,480 70,005
Accounts receivable, net 8,559 16,618
Inventories 372,458 339,320
Prepaid expenses and other current assets 31,541 31,232
Deferred income taxes 22,185 28,225
Total current assets 621,257 598,608
Property and equipment, net 267,551 254,659
Goodwill 25,899 25,899
Long-term investments 5,760 12,500
Tradenames and other intangibles, net 18,333 19,927
Conversion feature of long-term debt 57,632 30,848
Other assets 9,762 9,524
Total assets $1,006,194 $951,965
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $164,398 $152,331
Accrued expenses 100,377 108,202
Warrant liability 15,097 42,213
Total current liabilities 279,872 302,746
Long-term obligations 171,444 157,793
Deferred income taxes and other
noncurrent liabilities 163,702 158,154
Minority interest 169,260 160,349
Total shareholders' equity 221,916 172,923
Total liabilities and shareholders' equity $1,006,194 $951,965
RETAIL VENTURES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
August 2, August 4, August 2, August 4,
2008 2007 2008 2007
Net Sales $459,786 $464,638 $926,070 $930,477
Cost of Sales (260,477) (288,028) (533,534) (554,454)
Gross Profit 199,309 176,610 392,536 376,023
Selling, general and
administrative expenses (195,736) (171,674) (381,792) (344,361)
Change in fair value of
derivative instruments 16,733 124,784 53,901 137,333
License fees and other income 1,753 1,316 3,317 3,069
Operating profit 22,059 131,036 67,962 172,064
Interest expense, net (3,183) (187) (6,030) (615)
Income from continuing
operations before income
taxes and minority interest 18,876 130,849 61,932 171,449
Income tax expense (7,682) (12,877) (14,160) (31,600)
Income from continuing operations
before minority interest 11,194 117,972 47,772 139,849
Minority interest (3,954) (2,411) (7,760) (11,186)
Income from continuing operations 7,240 115,561 40,012 128,663
Income (loss) from discontinued
operations, net of tax 10,494 (9,343) 6,873 (19,705)
Net income $17,734 $106,218 $46,885 $108,958
Basic and diluted earnings (loss)
per share:
Basic earnings per share from
continuing operations $0.15 $2.40 $0.82 $2.70
Diluted earnings per share from
continuing operations $0.15 $1.97 $0.80 $2.18
Basic earnings (loss) per share
from discontinued operations $0.22 $(0.19) $0.14 $(0.41)
Diluted earnings (loss) per share
from discontinued operations $0.21 $(0.16) $0.14 $(0.33)
Basic earnings per share $0.36 $2.21 $0.96 $2.28
Diluted earnings per share $0.36 $1.81 $0.93 $1.84
Basic shares used in calculations 48,675 48,157 48,657 47,714
Diluted shares used in
calculations 48,970 58,776 50,296 59,073
Same store sales:
DSW (6.9)% 5.9 % (6.2)% 0.9 %
Filene's Basement 1.4 % 7.0 % 0.6 % 4.3 %
Total (5.1)% 6.2 % (4.7)% 1.7 %
Store and supply arrangement
locations count at end of period:
DSW 274 236
Filene's Basement 36 34
310 270
Supply arrangement locations 348 331
Total 658 601
The tables below present segment information (in thousands):
For the three months ended Filene's Intersegment
August 2, 2008 DSW Basement Corporate Eliminations Total
Net sales $357,175 $102,611 $459,786
Operating profit
(loss) 17,679 (12,353) $16,733 22,059
Depreciation and
amortization 8,213 3,220 602 12,035
Interest income
(expense), net 420 (2,209) (1,394) (3,183)
Income tax expense (7,142) (66) (474) (7,682)
Capital expenditures 24,264 1,288 2 25,554
As of August 2, 2008
Total assets 738,624 149,853 242,151 $(124,434) 1,006,194
For the three months ended Filene's Intersegment
August 4, 2007 DSW Basement Corporate Eliminations Total
Net sales $348,718 $115,920 $464,638
Operating profit
(loss) 8,326 (2,074) $124,784 131,036
Depreciation and
amortization 5,684 3,383 847 9,914
Interest income
(expense), net 1,948 (1,859) (276) (187)
Income tax (expense)
benefit (3,753) 1,117 (10,241) (12,877)
Capital expenditures 20,546 2,703 50 23,299
As of February 2, 2008
Total assets 693,882 162,099 222,361 $(126,377) 951,965
For the six months ended Filene's Intersegment
August 2, 2008 DSW Basement Corporate Eliminations Total
Net sales $723,439 $202,631 $926,070
Operating profit
(loss) 33,685 (19,624) $53,901 67,962
Depreciation and
amortization 15,711 5,862 1,260 22,833
Interest income
(expense), net 1,143 (4,413) (2,760) (6,030)
Income tax (expense)
benefit (13,583) 79 (656) (14,160)
Capital expenditures 43,926 1,482 11 45,419
For the six months ended Filene's Intersegment
August 4, 2007 DSW Basement Corporate Eliminations Total
Net sales $705,715 $224,762 $930,477
Operating profit
(loss) 45,544 (10,813) $137,333 172,064
Depreciation and
amortization 10,874 6,711 1,689 19,274
Interest income
(expense), net 3,667 (3,580) (702) (615)
Income tax (expense)
benefit (18,946) 5,056 (17,710) (31,600)
Capital expenditures 39,221 9,272 (16) 48,477
SOURCE Retail Ventures, Inc.
