SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 1997
Commission File Number 1-12381
Linens 'n Things, Inc.
(Exact name of registrant as specified in its charter)
Delaware 22-3463939
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
6 Brighton Road, Clifton, New Jersey 07015
(Address of principal executive offices) (Zip Code)
(201) 778-1300
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Number of shares outstanding of the issuer's Common Stock:
Class Outstanding at May 8, 1997
Common Stock, $0.01 par value 19,267,758
<PAGE>
INDEX
Part I. - Financial Information Page No.
-------
Consolidated Statements of Operations for the
Thirteen Weeks Ended March 29, 1997 and March 30, 1996 3
Consolidated Balance Sheets as of
March 29, 1997, December 31, 1996 and March 30, 1996 4
Consolidated Statements of Cash Flows for the
Thirteen Weeks Ended March 29, 1997 and March 30, 1996 5
Notes to Consolidated Financial Statements 6-7
Independent Auditors' Review Report 8
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-11
Part II. - Other Information 12
<PAGE>
LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
Thirteen Weeks Ended
March 29, March 30,
1997 1996
---------------- -----------
(Unaudited)
<S> <C> <C>
Net sales $ 179,911 $ 138,167
Cost of sales, including buying and warehousing costs 111,596 87,669
-------------- -------------
Gross profit 68,315 50,498
-------------- -------------
Selling, general and administrative expenses 67,371 51,509
-------------- -------------
Operating profit (loss) 944 (1,011)
Interest expense, net 336 2,082
-------------- -------------
Income (loss) before provision for
income taxes 608 (3,093)
Provision for (benefit from) income taxes 256 (1,307)
-------------- --------------
Net income (loss) $ 352 $ (1,786)
============== ==============
Per share of common stock:
Net income (loss) $ 0.02 $ (0.09)
-------------- --------------
Weighted average shares outstanding 19,706 19,268
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of March 29, 1997, December 31,1996 and March 30, 1996
(in thousands, except per share data)
<TABLE>
<CAPTION>
March 29, December 31, March 30,
1997 1996 1996
---------- ------------ ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 3,048 $ 26,914 $ 4,251
Accounts receivable, net 15,738 17,384 9,633
Inventories 202,166 202,134 180,348
Prepaid expenses and other current assets 9,785 10,360 10,755
----------- --------- -----------
Total current assets 230,737 256,792 204,987
----------- --------- -----------
Property and equipment, net 137,862 138,508 111,111
Goodwill, net of accumulated amortization
of $5,028 at March 29, 1997
$4,814 at December 31, 1996
and $4,178 at March 30, 1996 22,163 22,376 23,013
Deferred charges and other noncurrent assets, net 6,117 6,281 6,433
----------- --------- -----------
Total assets $ 396,879 $ 423,957 $ 345,544
----------- --------- -----------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 67,971 $ 92,529 $ 69,427
Accrued expenses and other current liabilities 43,345 53,207 28,706
Short-term debt 5,720 -- --
Due to related parties -- -- 159,854
----------- --------- -----------
Total current liabilities 117,036 145,736 257,987
Long-term note 13,500 13,500 --
Deferred income taxes and other long-term
liabilities 16,264 14,994 12,666
Shareholders' equity:
Preferred stock, $.01 par value;
1,000,000 shares authorized;
none issued and outstanding -- -- --
Common stock, $.01 par value;
60,000,000 shares authorized;
19,267,758 issued and outstanding at
March 29, 1997 and December 31, 1996 193 193 --
Additional paid-in capital 200,189 200,189 42,372
Retained earnings 49,697 49,345 32,519
----------- --------- -----------
Total shareholders' equity 250,079 249,727 74,891
----------- --------- -----------
Total liabilities and shareholders' equity $ 396,879 $ 423,957 $ 345,544
----------- --------- ---------
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
Thirteen Weeks Ended
March 29, March 30,
1997 1996
------------- --------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 352 $ (1,786)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization 4,264 3,538
Deferred income taxes 450 1,559
Loss on disposal of assets 634 172
Changes in assets and liabilities:
Decrease in accounts receivable 1,646 4,322
Increase in inventories (32) (3,455)
Decrease in prepaid expenses
and other current assets 1,099 814
Increase in deferred charges
and other noncurrent assets -- (3)
Decrease in accounts payable (19,241) (13,556)
Decrease in accrued expenses
and other liabilities (3,161) (12,584)
------------- ------------
Net cash used in operating activities (13,989) (20,979)
------------- ------------
Cash flows from investing activities:
Additions to property and equipment (3,875) (6,889)
------------- ------------
Cash flows from financing activities:
Increase in due to related parties -- 41,202
Proceeds from issuance of short-term debt 5,720 --
Decrease in book overdrafts (11,722) (13,305)
------------- ------------
Net cash (used in) provided by financing activities (6,002) 27,897
------------- -----------
Net (decrease) increase in cash and cash equivalents (23,866) 29
Cash and cash equivalents at beginning of year 26,914 4,222
------------ -----------
Cash and cash equivalents at end of period $ 3,048 $ 4,251
------------ -----------
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
LINENS 'N THINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Business
Linens 'n Things, Inc. (formerly Bloomington, MN., L.T., Inc.) and subsidiaries
(collectively the "Company") operated 165 stores, including 132 superstores, in
34 states across the United States as of March 29, 1997. The Company's
superstores average 33,000 square feet while traditional stores average 10,000
square feet. The Company's newest superstores range between 35,000 and 40,000
gross square feet in size. The Company's stores emphasize a broad assortment of
home textiles, housewares and home accessories, carrying both national brand and
private label goods.
2. Basis of Presentation
The accompanying consolidated financial statements, except for the December 31,
1996 consolidated balance sheet, are unaudited. In the opinion of management,
the accompanying consolidated financial statements contain all adjustments
(consisting of only normal recurring accruals) necessary to present fairly the
financial position of the Company as of March 29, 1997 and March 30, 1996 and
the results of operations and cash flows for the respective thirteen weeks then
ended. Because of the seasonality of the specialty retailing business, operating
results of the Company on a quarterly basis may not be indicative of operating
results for the full year.
These consolidated financial statements should be read in conjunction with the
Company's audited Consolidated Financial Statements for the year ended December
31, 1996, included in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission. All significant intercompany accounts and
transactions have been eliminated.
The December 31, 1996 Consolidated Balance Sheet amounts have been derived from
the Company's audited consolidated balance sheet amounts.
3. Initial Public Offering
The Company was a wholly-owned subsidiary of CVS Corporation ("CVS"), formerly
Melville Corporation, until November 26, 1996, when CVS completed an initial
public offering ("IPO") of 13,000,000 shares of the Company's common stock.
Subsequent to the IPO, CVS owned approximately 32.5% of the Company's
outstanding common stock, having retained 6,267,758 shares.
During 1996, CVS acquired 100 shares of common stock of Linens 'n Things Center,
Inc. ("LNT Center"), a newly formed California corporation, for $130,010,000. In
June, 1996, CVS contributed all outstanding shares of common stock of
Bloomington, MN., L.T., Inc. to LNT Center. In addition, CVS made a capital
contribution of $28,000,000 to LNT Center during October, 1996. Subsequently,
CVS contributed all outstanding shares of common stock of LNT Center to Linens
'n Things, Inc., a newly formed Delaware corporation. The accompanying
consolidated financial statements are presented as if Linens 'n Things, Inc. had
existed and owned LNT Center and Bloomington, MN., L.T., Inc. throughout 1996.
Immediately prior to the consummation of the IPO, the authorized capital stock
of the Company was changed from 100 shares of common stock, par value $.01 per
share, to 60 million shares of common stock, par value $.01 per share, and each
issued and outstanding share of common stock was converted into 192,677.58
shares of common stock.
4. Short-Term Borrowing Arrangements
Prior to the IPO, all financing was provided to the Company by CVS. Interest
rates charged on borrowings from CVS were based on CVS' commercial paper
borrowing rates. In connection with the IPO, the Company repaid all indebtedness
to CVS and entered into a three-year, $125.0 million senior revolving credit
facility agreement (the "Credit Agreement"). The Credit Agreement contains
certain financial covenants, including those relating to the maintenance of a
minimum tangible net worth, a minimum fixed charge coverage ratio, and a maximum
leverage ratio, as defined in the Credit Agreement. Interest on all borrowings
is determined based upon several alternative rates as stipulated in the Credit
Agreement. As of March 29, 1997, the Company was in compliance with all terms
and conditions of the Credit Agreement. On March 29, 1997, the Company had
borrowings under the Credit Agreement of $720,000.
LINENS 'N THINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Credit Agreement allows for $10.0 million in borrowings from uncommitted
lines outside of the Credit Agreement. As of March 29, 1997, the Company had
$5.0 million in borrowings against the uncommitted lines of credit. The average
borrowing rate for the first quarter ended March 29, 1997 was 5.78%.
5. Long-Term Note
In conjunction with the IPO, the Company issued a four-year, $13.5 million
subordinated note (the "Note") to CVS. The Note contains no principal
amortization prior to maturity in December 2000, and requires quarterly interest
payments at the 90-day LIBOR rate plus the applicable spread under the Credit
Agreement described above. The Note also provides for forgiveness by CVS, at
varying amounts, based upon the proceeds from any sales of the Company's common
stock by CVS together with the market value of the common stock which CVS
continues to own at December 31, 1997. The average borrowing rate on the Note
for the first quarter ended March 29, 1997 was 6.8%.
6. Recent Accounting Pronouncement
In February 1997, Statement of Financial Accounting Standards No. 128, "Earnings
per Share" ("SFAS No. 128") was issued. SFAS No. 128 simplifies the standards
for computing earnings per share, and makes the United States standards for
computing earnings per share more comparable to international standards. SFAS
No. 128 requires the presentation of "basic" earnings per share (which excludes
dilution) and "diluted" earnings per share. The Company does not believe the
adoption of SFAS No. 128 in fiscal 1997 will have a significant impact on the
Company's reported earnings per share. SFAS No. 128 is effective for financial
statements issued for periods ending after December 15, 1997 and requires
restatement of prior period earnings per share presented.
<PAGE>
Independent Auditors' Review Report
The Board of Directors and Shareholders
Linens 'n Things, Inc.:
We have reviewed the consolidated balance sheets of Linens 'n Things, Inc. and
Subsidiaries as of March 29, 1997 and March 30, 1996, and the related
consolidated statements of operations and cash flows for the thirteen-week
periods then ended. These consolidated financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical review procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the consolidated financial statements referred to above for them to
be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Linens 'n Things, Inc. and
Subsidiaries as of December 31,1996 and the related consolidated statements of
operations, shareholders' equity, and cash flows for the year then ended (not
presented herein); and in our report dated February 4,1997, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying consolidated balance sheet as of
December 31, 1996, is fairly presented, in all material respects, in relation to
the consolidated balance sheet from which it has been derived.
/S/ KPMG PEAT MARWICK LLP
New York, New York
April 15, 1997
<PAGE>
LINENS 'N THINGS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
Consolidated Financial Statements of the Company and the notes thereto appearing
elsewhere in this document.
Results of Operations
Thirteen Weeks Ended March 29, 1997 Compared to Thirteen Weeks Ended March 30,
1996
During the thirteen weeks ended March 29, 1997, the Company opened one
superstore and closed five stores, as compared to opening three superstores and
closing ten stores in the thirteen weeks ended March 30, 1996. At March 29,
1997, the Company operated 165 stores, of which 132 were superstores, as
compared to 148 stores, of which 102 were superstores, at March 30, 1996. Store
square footage increased 28% to 4,696,000 at March 29, 1997 from 3,680,000 at
March 30, 1996.
Net sales increased 30.2% to $179.9 million for the thirteen weeks
ended March 29, 1997, compared to $138.2 million for the same period last year,
primarily as a result of new store openings since March 30, 1996. Comparable
store net sales for the thirteen weeks ended March 29, 1997 increased 7.7% at
the Company's superstore locations and 5.7% for the Company as a whole.
Traditional store net sales were less than 10% of total net sales during the
thirteen weeks ended March 29, 1997, and will continue to represent a declining
percentage of total net sales throughout the year as more superstores are opened
and traditional stores are closed. The Company's average net sales per
superstore were $5.6 million for the fifty-two weeks ended March 29, 1997, up
from $5.2 million for the same period in 1996. For the fifty-two weeks ended
March 29, 1997 average superstore net sales per square foot increased to $173
from $171 in the prior fifty-two week period. Comparable store net sales
increased in key product categories of the Company's business and across all
major markets. Net sales for the thirteen weeks ended March 29, 1997 reflect the
entire Easter selling season, and a milder winter as compared to the same period
in 1996. In 1996, the final week of the Easter selling season fell in the second
quarter.
For the thirteen weeks ended March 29, 1997, while both the "linens"
and "things" sides of the business experienced comparable store net sales gains,
"things" continued to grow at a faster pace than "linens." For the thirteen
weeks ended March 29, 1997, net sales of "things" merchandise increased
approximately 45% over the same period in the prior year, while net sales of
"linens" merchandise increased approximately 24% for the same period. The
increase in net sales of "things" merchandise primarily resulted from the growth
in the number of superstore locations which carry a larger line of "things"
products as well as the overall expansion of the product categories in existing
stores.
Gross profit for the thirteen weeks ended March 29, 1997 was $68.3
million, or 38.0% of net sales, compared to $50.5 million, or 36.6% of net
sales, in the same period during 1996. The improvements in gross profit were due
primarily to lower clearance markdowns, improved margins due to the shift in the
merchandise mix towards "things" and lower freight costs as a result of
increased utilization of the Company's distribution center during the thirteen
weeks ended March 29, 1997 compared to the prior year period. Gross margin for
both "linens" and "things" merchandise increased consistent with the Company's
consolidated results. The gross margin for "things" merchandise was slightly
higher than the gross margin for "linens" merchandise for the first thirteen
week periods in both 1997 and 1996.
Selling, general and administrative expenses ("SG&A") for the thirteen
weeks ended March 29, 1997 were $67.4 million, or 37.5% of net sales, compared
to $51.5 million, or 37.3% of net sales in the corresponding period during 1996.
During the thirteen weeks ended March 30, 1996, the Company recorded a $0.5
million insurance recovery gain associated with damages to one of its stores
caused by severe winter conditions. Excluding this gain, SG&A as a percentage of
net sales would have shown an improvement of 20 basis points (37.5% for the
thirteen weeks ended March 29, 1997 compared to 37.7% for the same period in the
prior year). This improvement is primarily attributable to the sales volume
increasing faster than increases in SG&A during the thirteen weeks ended March
29, 1997 compared to the prior year period (excluding the insurance recovery
gain).
Operating profit for the thirteen weeks ended March 29, 1997 increased
to $0.9 million, or 0.5% of net sales, compared to a loss of $1.0 million, or
(0.7%) of net sales, during the same period in 1996.
Net interest expense (including commitment fees in connection with the
$125 million Credit Agreement) for the thirteen weeks ended March 29, 1997 was
$336,000 compared to $2.1 million for the thirteen weeks ended March 30, 1996.
The reduction in net interest expense is due to a reduction in net average
borrowings, which were $7.9 million in the thirteen weeks ended March 29, 1997
as compared to $145.0 million in the same period in 1996. The reduction in net
average borrowings is a result of the capital contributions from CVS of $158.0
million in 1996 prior to the IPO and improved operating performance. See "--
Liquidity and Capital Resources."
The Company's income tax expense for the thirteen weeks ended March 29,
1997 was $256,000, as compared to a benefit of $1.3 million during the same
period in 1996.
Net income for the thirteen weeks ended March 29, 1997 increased to
$352,000, or $0.02 per share, compared to a net loss of $1.8 million, or ($0.09)
per share, during the same period in 1996.
Liquidity and Capital Resources
The Company's capital requirements have been used primarily for capital
investment in new stores, new store inventory purchases and seasonal working
capital. The capital requirements and working capital needs have been funded
through a combination of internally generated cash from operations, credit
extended by suppliers and borrowings from CVS.
Net cash used in operating activities for the first quarter of 1997 was
$14.0 million compared to $21.0 million for the same period last year. The
decrease in cash used during the first quarter of 1997 was due to a $2.1 million
increase in profitability and only a slight increase in inventory due to an
improved inventory turnover rate compared to the first quarter of 1996. The
decrease was also due to a smaller reduction in current liabilities caused by
the timing of vendor payments.
Net cash used in investing activities during the first quarter of 1997
was $3.9 million compared to $6.9 million in the same period last year. The
decrease from the first quarter of 1996 is associated with the timing of the
Company's new store openings.
Net cash used in financing activities during the first quarter of 1997
was $6.0 million compared to net cash provided by financing activities of $27.9
million for the same period last year. Net cash used during the first quarter of
1997 was primarily the result of the timing of the settlement of vendor payments
offset by borrowings of $5.7 million. Net cash provided during the first quarter
of 1996 was primarily the result of CVS's funding of the Company's increased
working capital needs.
The Company has available a $125 million three-year senior revolving
credit facility. Management believes that the Company's cash flow from
operations and the revolving credit facility will be sufficient to fund
anticipated capital expenditures and working capital requirements for at least
the next three years. Through December 31, 1996, the Company had not borrowed
against this facility. For more discussion, see "Notes to Consolidated Financial
Statements."
Inflation
The Company does not believe that its operating results have been
materially affected by inflation during the preceding three years. There can be
no assurance, however, that the Company's operating results will not be affected
by inflation in the future.
Seasonality
The Company's business is subject to substantial seasonal variations.
Historically, the Company has realized a significant portion of its net sales
and substantially all of its net income for the year during the third and fourth
quarters, with a majority of net sales and net income for such quarters realized
in the fourth quarter. The Company's quarterly results of operations may also
fluctuate significantly as a result of a variety of other factors, including the
timing of new store openings. The Company believes this is the general pattern
associated with its segment of the retail industry and expects this pattern will
continue in the future. Consequently, comparisons between quarters are not
necessarily meaningful and the results for any quarter are not necessarily
indicative of future results.
Forward Looking Statements
This Quarterly Report to Shareholders contains forward-looking
information within the meaning of The Private Securities Litigation Reform Act
of 1995. The statements are made a number of times throughout the document and
may be identified by use of forward-looking terminology such as "expect",
"believe", "will" or similar statements or variations of such terms. Such
forward-looking statements involve certain risks and uncertainties including
levels of sales, store competition and acceptance of product offerings and
fashions and, in each case, actual results may differ materially from such
forward-looking information. Certain factors that may cause actual results to
differ from such forward-looking statements are included in the "Risk Factors"
section of the Company's Registration Statement on Form S-1 as filed with the
Securities and Exchange Commission on November 25, 1996 as well as other
periodic reports filed by the Company with the Securities and Exchange
Commission and you are urged to consider such factors. The Company assumes no
obligation for updating any such forward-looking statements.
<PAGE>
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) EXHIBIT INDEX
Exhibit
Number Description
11 Computation of Net Income (Loss) Per Common Share
15 Letter re Unaudited Interim Financial Information
27 Financial Data Schedule (filed electronically with SEC only)
(b) Reports on Form 8-K:
No Current Reports on Form 8-K were filed by the Company during the
three month period ended March 29, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Linens 'n Things, Inc.
(Registrant)
James M. Tomaszewski
Senior Vice President, Chief Financial Officer
Date: May 12, 1997
LINENS 'N THINGS, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE
(in thousands, except per share data)
<TABLE>
<CAPTION>
For the Thirteen Weeks Ended
March 29, March 30,
1997 1996
------------------------------------
(Unaudited)
<S> <C> <C>
FINANCIAL STATEMENT PRESENTATION
Weighted-average number of shares outstanding 19,706 19,268
=================== ===================
Net income (loss) applicable to common shares $352 $(1,786)
=================== ===================
Per-share amounts
Net income (loss) per share $0.02 $(0.09)
=================== ===================
PRIMARY
Weighted-average number of shares outstanding 19,706 19,268
=================== ===================
Net income (loss) applicable to common shares $352 $(1,786)
=================== ===================
Per-share amounts
Net income (loss) per share $0.02 $(0.09)
=================== ===================
FULLY DILUTED
Weighted-average number of shares outstanding
and fully diluted common share equivalents 19,784 19,268
=================== ===================
Net income (loss) applicable to common shares $352 $(1,786)
=================== ===================
Per-share amounts
Net income (loss) per share $0.02 $(0.09)
=================== ===================
</TABLE>
Accountants' Acknowledgement
Linens 'n Things, Inc.
Clifton, New Jersey
Board of Directors:
Re: Registration Statement Numbers 333-26819 and 333-26827 on Form S-8
With respect to the subject registration statements, we acknowledge our
awareness of the use therein of our report dated April 15, 1997 related to our
review of interim financial information.
Pursuant to Rule 436(c) under the Securities Act of 1933, such report is not
considered a part of a registration statement prepared or certified by an
accountant or a report prepared or certified by an accountant within the meaning
of Sections 7 and 11 of the Act.
/S/ KPMG PEAT MARWICK LLP
New York, New York
May 8, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Appendix A to Item 601(c) of Regulation S-K
Commercial and Industrial Companies
Article 5 of Regulation S-X
(in Thousands except per share data)
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-29-1997
<CASH> 3,048
<SECURITIES> 0
<RECEIVABLES> 15,738
<ALLOWANCES> 0
<INVENTORY> 202,166
<CURRENT-ASSETS> 230,737
<PP&E> 178,289
<DEPRECIATION> 40,247
<TOTAL-ASSETS> 396,879
<CURRENT-LIABILITIES> 117,036
<BONDS> 13,500
0
0
<COMMON> 193
<OTHER-SE> 249,886
<TOTAL-LIABILITY-AND-EQUITY> 396,879
<SALES> 179,911
<TOTAL-REVENUES> 179,911
<CGS> 111,596
<TOTAL-COSTS> 67,371
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 336
<INCOME-PRETAX> 608
<INCOME-TAX> 256
<INCOME-CONTINUING> 352
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 352
<EPS-PRIMARY> 0.02
<EPS-DILUTED> 0.02
</TABLE>
