SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 6, 1994
CPI CORP.
__________________________________________________________________
(exact name of registrant as specified in its charter)
Delaware 0-11227 43-1256674
___________________________________________________________________
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) Number) Identification No.)
1706 Washington Avenue, St. Louis, Missouri 63103-1790
___________________________________________________________________
(Address of principal executive offices) (Zip code)
Registrants's telephone number, including area code (314) 231-1575
___________________________________________________________________
___________________________________________________________________
(Former name or former address, if changes since last report.)
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ITEM 5. OTHER EVENTS
On April 6, 1994, CPI Corp. issued the following Press Release:
CPI CORP. CONFIRMS FY 1993 PROJECTIONS OF LOWER EARNINGS,
RECORD SALES
- RECONFIRMS EXPECTATION OF HIGHER FY 1994 EARNINGS
St. Louis, MO, April 6, 1994 - CPI Corp. (NYSE - CPY) today
confirmed earlier projections that fiscal 1993 sales reached record
levels, but that earnings declined as expected. For the 52 weeks
ended February 5, 1994, net sales were $475.5 million, 5.8% above
the $449.4 million for the 53 weeks ended February 6, 1993.
Earnings from continuing operations were $11.1 million versus $22.6
million, while net earnings, including a $2.1 million credit from
an accounting change, were $13.2 million. Earnings per share,
before the $0.14 credit from the accounting change, were $0.76
versus $1.54. Net earnings per share, including the credit, were
$0.90. Weighted average shares outstanding were virtually
unchanged at 14,666,000.
Commenting on the outlook for the new fiscal year, Alyn V. Essman,
chairman and chief executive officer said, "As indicated in a March
17 letter to shareholders, we believe 1994 will be a better
earnings year than 1993, with earnings per share anticipated to be
in a range of $0.85 to $1.05. We expect a reduction in Portrait
Studio earnings for the first two quarters, followed by a
turnaround in the second half as we begin to realize the benefits
of marketing programs emanating from new technology. We also
anticipate somewhat better results for the year in the
Photofinishing segment and Other Products and Services. We should
repeat, however, that shareholders should be aware that these
projections are subject to the uncertainties of estimating in a
year of rapid change, are dependent on a second half earnings
increase, and cannot be confirmed until we experience the peak
sales period in November and December."
CPI Corp. is a consumer services company operating over 1,800
retail locations, including 995 Sears Portrait Studios in the U.S.,
Puerto Rico and Canada, 672 CPI/Fox Photo/Proex photofinishing
locations, 103 Prints Plus wall decor locations, and 45 high-tech
copy stores.
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<TABLE>
CPI CORP. CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
<CAPTION>
12 vs. 13 Weeks Ended
-----------------------
2/5/94 2/6/93
---------- ----------
(In Thousands Except Per Share Amounts)
<S> <C> <C>
Net Sales:
Portrait studios $ 81,440 $ 88,263
Photo finishing 45,987 45,734
Other products and services 18,597 3,642
__________ __________
Total net sales $ 146,024 $ 137,639
========== ==========
Operating earnings:
Portrait studios $ 13,797 $ 21,248
Photo finishing 1,734 2,806
Other products and services 3,051 (1,482)
---------- ----------
18,582 22,572
General corporate expense 4,739 5,757
---------- ----------
Income from operations 13,843 16,815
Net interest income (expense) (226) 187
Other income 101 154
---------- ----------
Earnings before income taxes 13,718 17,156
Income tax expense 5,483 6,548
---------- ----------
Earnings before cumulative
effect of accounting change 8,235 10,608
Cumulative effect of
accounting change - -
---------- ----------
Net earnings $ 8,235 $ 10,608
========== ==========
Earnings per commmon share:
Earnings before cumulative
effect of accounting change $ 0.56 $ 0.72
Cumulative effect of
accounting change - -
---------- ----------
Net earnings $ 0.56 $ 0.72
========== ==========
Weighted average number
of common and common
equivalent shares
outstanding 14,645 14,658
========== ==========
</TABLE>
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<TABLE>
CPI CORP. CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
<CAPTION>
52 vs. 53 Weeks Ended
-----------------------
2/5/94 2/6/93
---------- ----------
(In Thousands Except Per Share Amounts)
<S> <C> <C>
Net Sales:
Portrait studios $ 237,937 $ 264,358
Photo finishing 187,210 169,196
Other products and services 50,373 15,826
---------- ----------
Total net sales $ 475,520 $ 449,380
========== ==========
Operating earnings:
Portrait studios $ 29,970 $ 48,441
Photo finishing 6,972 9,609
Other products and services 1,142 (4,133)
---------- ----------
38,084 53,917
General corporate expense 19,299 19,082
---------- ----------
Income from operations 18,785 34,835
Net interest income (expense) (789) 1,014
Other income 524 674
---------- ----------
Earnings before income taxes 18,520 36,523
Income tax expense 7,404 13,908
---------- ----------
Earnings before cumulative
effect of accounting change 11,116 22,615
Cumulative effect of
accounting change 2,120 -
---------- ---------
Net earnings $ 13,236 $ 22,615
========== ==========
Earnings per commmon share:
Earnings before cumulative
effect of accounting change $ 0.76 $ 1.54
Cumulative effect of
accounting change 0.14 -
---------- ----------
Net earnings $ 0.90 $ 1.54
========== ==========
Weighted average number
of common and common
equivalent shares
outstanding 14,666 14,676
========== ==========
</TABLE>
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<TABLE>
CPI CORP. CONDENSED BALANCE SHEETS FEBRUARY 5, 1994 AND
FEBRUARY 6, 1993 (UNAUDITED)
<CAPTION>
FEBRAURY 5, FEBRUARY 6,
1994 1993
----------- -----------
(In Thousands)
<S> <C> <C>
Assets
Current assets:
Cash and short-term investments $ 66,356 $ 20,978
Other current assets 61,415 52,177
Net property and equipment 114,329 97,573
Other assets 63,696 67,023
__________ __________
Total assets $ 305,796 $ 237,751
========== ==========
Liabilities and stockholders' equity
Current liabilities $ 65,187 $ 56,827
Long-term obligations 59,811 342
Other liabilities 5,290 8,636
Stockholder's equity 175,508 171,946
__________ __________
Total liabilities and
stockholders' equity $ 305,796 $ 237,751
========== ==========
</TABLE>
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SIGNATURES
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.
CPI CORP.
(Registrant)
/s/ Barry Arthur
Executive Vice President -
Finance
Principal Financial Officer
Dated: April 15, 1994
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