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 3, 1995
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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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 11, 1995
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ITEM 5. OTHER EVENTS
(A) On April 3, 1995, CPI Corp. issued a press release on
"Sears, Roebuck and Co. Bestows Double Honors on CPI
Corp."
(B) One April 6, 1995, CPI Corp issued a press release on
"CPI Corp. Announced Fourth Quarter and FY 1994 Results".
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ITEM 5(A)
SEARS, ROEBUCK AND CO. BESTOWS DOUBLE HONORS ON CPI CORP.
- "Chairman's Award" is first ever to a Sears Licensed
Business.
- "Partners in Progress" awarded to CPI for tenth time in
twelve years.
St. Louis, MO, April 3, 1995 - CPI Corp. (NYSE - CPY) announced
today that is has received from Sears, Roebuck and Co. the first
"Chairman's Award" ever to be awarded to a Sears Licensed
Business. The award, designated the "1994 Product Development
Source of the Year," recognized CPI's accomplishment as exclusive
operator of Sears Portrait Studios in developing and implementing
a revolutionary marketing program, called the "Portrait Preview
System." The new program employs state-of-the-art digital imaging
technology that facilitates clearly superior products and customer
service. Consumer response to the program has been very
enthusiastic, resulting in significant sales increases in the
Sears Portrait Studios in a year in which overall industry
performance appears to be relatively flat.
Sears also recognized CPI Corp. with the prestigious "Partners in
Progress" award for the tenth time in twelve years. The award is
bestowed on less than one percent of Sears' approximate 10,000
suppliers world wide. Ken E. Hux, Sears Divisional Vice President,
Licensed Businesses, in making the presentation said, "CPI is being
recognized for its ongoing participation with Sears in bringing
quality products and services to the American consumer at a fair
price, and for joining with us in our continuing commitment to
stand for integrity, value, and the highest customer service
standards in the marketplace."
CPI Corp. is a consumer services company operating over 1,800
retail locations, including 1,013 Sears Portrait Studios in the
U.S., Puerto Rico and Canada, 660 CPI/Fox Photo/Proex
photofinishing locations, 120 Prints Plus wall decor locations, and
41 high-tech copy stores.
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ITEM 6(B)
CPI CORP. ANNOUNCED FOURTH QUARTER AND FY 1994 RESULTS
- Fourth quarter EPS up 54% to $0.86, as earnings improve in
all three major divisions
- Annual sales increase 12% to record $533 million
- Full-year EPS up 38% to $1.05 versus $0.76, before 1993
accounting credit
St. Louis, MO, April 6, 1995 - CPI Corp. (NYSE - CPY) reported
today that fiscal 1994 sales reached record levels, and that after-
tax earnings were up 33.3%, reversing a three-year decline. The
company posted a 54% increase in fourth quarter earnings per share
due mainly to significantly higher operating income from all three
major segments.
For the year ended February 4, 1995, net sales were $533.2 million,
12.1% above the $475.5 million in fiscal 1993. After-tax earnings
were $14.8 million compared with $11.1 million in 1993, and
earnings per share were $1.05 versus $0.76. Including a credit from
an accounting change, 1993 net earnings were $13.2 million, and net
earnings per share were $0.90. Weighted average shares outstanding
for fiscal 1994 were 14.1 million, down from 14.7 million for the
previous year.
Commenting on the full-year results, Alyn V. Essman, chairman and
chief executive officer said, "We are very pleased that our
earnings came in at the top of the range we projected in March
1994. The increase was highlighted by strong performance of the
Sears Portrait Studios. With customers responding enthusiastically
to our new marketing programs, sales grew by approximately 16% to
$275.5 million, and operating earnings were up 30% to $39.1
million."
Regarding the company's other businesses, Essman said, "While sales
in the photofinishing segment increased slightly to $191.2 million,
operating earnings declined to $4.5 million from $7.0 million, due
to a slight shift in sales mix to lower margin products, plus the
expense of two major market tests. In its first full year
following acquisition (May 30, 1993), our Prints Plus operating
turned in sales of $49.9 million. Operating earnings were $5.5
million, a greater improvement than it appears since the 1993
earnings of $5.0 million did not include the early, seasonally slow
period. Sales in the electronic publishing division were up 5%,
and operating losses were reduced by $320,000 as a result of
increased efficiencies." Due to added borrowings to fund capital
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investments, annual interest expense increased to $4.3 million for
$0.8 million in 1993. Corporate overhead increased less than 2%,
excluding a $1.4 million one-time charge in 1993 for early
retirement allowances.
Regarding the fourth quarter, Essman said, "Sales increased in all
four segments with total sales up approximately 5% to $153
million. Improved margins resulted in significantly higher gains
in operating income, with Portrait Studios up 37%, Photofinishing
up 74%, Prints Plus up 28%, and Other Products and Services
decreasing slightly, for a cumulative increase in operating income
of $7.4 million. With fewer shares outstanding, fourth quarter
earnings increased 54% to $0.86 per share from $0.56 in 1993.
Essman concluded, "We are looking forward with optimism to 1995
with the new programs we have in place and our plans for further
business development."
CPI Corp. is a consumer services company operating over 1,800
retail locations, including 1,013 Sears Portrait Studios in the
U.S., Puerto Rico and Canada, 660 CPI/Fox Photo/Proex
photofinishing locations, 120 Prints Plus wall decor locations, and
41 high-tech copy stores.
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<TABLE>
CONDENSED STATEMENTS OF EARNINGS
FOR 12 WEEKS AND 52 WEEKS ENDED FEBRUARY 4, 1995 AND FEBRUARY 5,
1994
<CAPTION>
12 Weeks Ended 52 Weeks Ended
------------------- --------------------
02/04/95 02/05/94 02/04/95 02/05/94
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Sales:
Portrait studios $ 83,435 $ 81,440 $ 275,477 $ 237,937
One-hour
photofinishing 47,838 45,987 191,187 187,210
Wall decor 18,037 15,270 49,944 34,613
Other products
and services 3,685 3,327 16,547 15,760
__________ __________ __________ __________
Total net sales $ 152,995 $ 146,024 $ 533,155 $ 475,520
========== ========== ========== ==========
Operating earnings:
Portrait studios $ 18,889 $ 13,797 $ 39,073 $ 29,970
One-hour
photofinishing 3,011 1,734 4,571 6,972
Wall decor 5,294 4,149 5,491 4,981
Other products
and services (1,255) (1,098) (3,519) (3,839)
__________ __________ __________ __________
25,939 18,582 45,616 38,084
General corporate
expense 5,803 4,739 18,223 19,299
__________ __________ __________ __________
Income from operations 20,136 13,843 27,393 18,785
Net interest income
(expense) (1,586) (226) (4,339) (789)
Other income 178 101 474 524
__________ __________ __________ __________
Earnings before
income taxes 18,728 13,718 23,528 18,520
Income tax expense 6,882 5,483 8,706 7,404
__________ __________ __________ __________
Earnings before
cumulative effect
of accounting change 11,846 8,235 14,822 11,116
Cumulative effect of
accounting change - - - 2,120
__________ __________ __________ __________
Net earnings $ 11,846 $ 8,235 $ 14,822 $ 13,236
========== ========== ========== ==========
Earnings per common
share:
Earnings before
cumulative effect
of accounting
change $ 0.86 $ 0.56 $ 1.05 $ 0.76
Cumulative effect of
accounting change - - - 0.14
__________ __________ __________ __________
Net earnings $ 0.86 $ 0.56 $ 1.05 $ 0.90
Weighted average
number of common
and common
equivalent shares
outstanding 13,741 14,645 14,101 14,666
========== ========== ========== ==========
</TABLE>
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<TABLE>
CONDENSED BALANCE SHEETS
FOR FEBRUARY 4, 1995 AND FEBRUARY 5, 1994
<CAPTION>
FEBRUARY 4, FEBRUARY 5,
1995 1994
___________ ___________
<S> <C> <C>
Assets
Current assets:
Cash and short-term investments $ 14,350 $ 66,356
Other current assets 67,633 61,415
Net property and equipment 159,125 114,329
Other assets 59,373 63,696
__________ __________
Total assets $ 300,481 $ 305,796
========== ==========
Liabilities and stockholders' equity
Current liabilities $ 69,767 $ 65,187
Long-term obligations 59,742 59,811
Other liabilities 4,972 5,290
Stockholders' equity 166,000 175,508
__________ __________
Total liabilities and
stockholders' equity $ 300,481 $ 305,796
========== ==========
</TABLE>
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