FORM 10-Q
SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended April 2, 1994
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From ... to ...
Commission File No. 1-8739
Burlington Coat Factory Warehouse Corporation
_____________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 22-1970303
- - ------------------------------ -------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1830 Route 130 North
Burlington, New Jersey 08016
- - ------------------------------ -------------------------------
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code (609) 387-7800
Indicate by check mark whether the Registrant (1) has filed
all reports required 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 _______________
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest
practicable date.
Class Outstanding at May 11, 1994
- - -------------------------- --------------------------------
Common stock, par value $1 41,119,463
Page 1
<PAGE>
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
I N D E X
Page
Part I - Financial Information:
Item 1. Financial Statements:
Condensed consolidated balance sheets - 3
April 2, 1994 (unaudited), July 3, 1993
and March 27, 1993 (unaudited)
Condensed consolidated statements of operations - nine 4
and three months ended April 2, 1994 (unaudited) and
March 27, 1993 (unaudited)
Condensed consolidated statements of cash flows - 5
Nine months ended April 2, 1994 (unaudited) and
March 27, 1993 (unaudited)
Notes to condensed consolidated financial statements 6-7
Item 2. Management's discussion and analysis of results 8 - 12
of operations and financial condition
Part II - Other Information:
Item 6. Exhibits and reports on Form 8-K 13
SIGNATURES 13
* * * * * * * * * * * *
Page 2
<PAGE>
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(All amounts in thousands)
<TABLE>
April 02, July 03, March 27,
1994 1993 1993
---------- -------- ----------
<S> <C> <C> <C>
ASSETS
Current Assets:
Cash and Cash Equivalents $ 62,752 $ 34,881 $ 89,547
Short-Term Investments 28,194 16,421 31,509
Accounts Receivable 15,393 10,057 11,095
Merchandise Inventories 424,070 352,919 312,306
Deferred Tax Asset 5,133 4,441 4,278
Prepaid and Other Current Assets 2,592 16,641 5,889
--------- --------- ----------
Total Current Assets 538,134 435,360 454,624
Property and Equipment Net of
Accumulated Depreciation
and Amortization 173,829 142,582 133,854
Other Assets 11,293 7,539 6,421
---------- --------- ---------
Total Assets $ 723,256 $ 585,481 $ 594,899
========== ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 164,976 $ 116,207 $ 115,555
Income Taxes Payable 13,010 5,758 11,271
Other Current Liabilities 61,097 38,169 44,337
Current Maturities of Long
Term Debt 58 113 127
---------- --------- ---------
Total Current Liabilities 239,141 160,247 171,290
Long Term Debt 91,379 91,428 91,437
Other Liabilities 6,763 5,379 5,424
Deferred Tax Liability 6,321 5,316 4,930
Stockholders' Equity:
Unrealized Loss-Marketable
Securities (11) (11) --
Equity Adjustment for Foreign
Currency Translation 46 -- --
Common Stock 41,117 41,028 41,006
Capital in Excess of Par Value 24,010 23,598 22,929
Retained Earnings 316,340 260,346 259,733
Less Treasury Stock at Cost (1,850) (1,850) (1,850)
---------- --------- -----------
Total Stockholders' Equity 379,652 323,111 321,818
Total Liabilities and
Stockholders' Equity $ 723,256 $ 585,481 $ 594,899
========= ========= =========
See Notes to the condensed consolidated financial statements.
</TABLE>
Page 3
<PAGE>
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(All amounts in thousands except per share data)
<TABLE>
Nine Months Ended Three Months Ended
April 02, March 27, April 02, March 27,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
REVENUES: --------------------------------------------------
Net Sales $1,194,048 $ 947,408 $ 327,413 $ 257,323
Other Income 7,771 11,794 2,314 4,515
---------- --------- --------- ---------
1,201,819 959,202 329,727 261,838
---------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of Sales (Exclusive
of Depreciation and
Amortization) 775,226 618,916 212,960 168,492
Selling and Administrative
Expenses 312,171 253,911 104,253 83,650
Depreciation and Amortization 16,761 13,013 5,544 4,364
Interest Expenses 7,378 7,193 2,415 2,306
--------- --------- --------- ---------
1,111,536 893,033 325,172 258,812
--------- --------- --------- ---------
Income Before Provision for
Income Taxes and Cumulative
Effect on Prior Years of
Change in Accounting Principle 90,283 66,169 4,555 3,026
Provision for Income Taxes 34,289 24,480 1,727 1,125
--------- --------- --------- --------
Income Before Cumulative Effect
on Prior Years of Change in
Accounting Principle 55,994 41,689 2,828 1,901
--------- ---------- ---------- ---------
Cumulative Effect on Prior Years
of Change in Accounting Principle
(See Note 4) -- 601 -- --
--------- ---------- ---------- ---------
Net Income $ 55,994 $ 42,290 $ 2,828 $ 1,901
========= ========= ========= =========
Earnings Per Share:
Income Per Share Before
Cumulative Effect on Prior
Years of Change in
Accounting Principle $1.38 $1.03 $0.07 $0.05
Income Per Share From Cumulative
Effect on Prior Years of Change
in Accounting Principle -- $0.02 -- --
--------- ---------- -------- ---------
Net Income Per Share $1.38 $1.05 $0.07 $0.05
========== ========= ========= =========
Weighted Average Shares
Outstanding 40,617,704 40,464,084 40,636,737 40,486,050
========== ========== ========== ==========
Dividends Per Share -- -- -- --
========== =========== ========== ==========
See Notes to the condensed consolidated financial statements.
</TABLE>
Page 4
<PAGE>
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(All amounts in thousands)
<TABLE>
Nine Months Ended
April 02, March 27,
1994 1993
---------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 55,994 $ 42,290
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Depreciation and Amortization 16,761 13,013
Provision for Deferred Income Taxes 313 (631)
Loss on Disposition of Fixed Assets 216 313
Rent Expense and Other 4,563 3,498
Changes in Operating Assets and
Liabilities, Net of Effect of
Acquisition:
Accounts Receivable (8,894) (4,745)
Merchandise Inventories (65,059) (48,167)
Prepaids and Other Current Assets 14,388 3,210
Accounts Payable 44,969 44,051
Other Current Liabilities 29,521 14,454
--------- ---------
Net Cash Provided by Operating Activities 92,772 67,286
--------- ---------
INVESTING ACTIVITIES
Acquisition of Property and Equipment (48,241) (26,965)
Short Term Investments-Net (11,773) 26,535
Proceeds From Sale of Fixed Assets 17 14
Issuance of Long Term Notes Receivable (2,515) (924)
Receipts Against Long Term Notes
Receivable 446 374
Acquisition of Investments -- (155)
Proceeds From Sale of Investments -- 113
Acquisition of Leasehold (2,050) --
Minority Interest 547 --
Cash of Acquired Company,
Net of Acquisition Costs 306 --
Other 63 150
--------- --------
Net Cash (Used) by Investing Activities (63,200) (858)
---------- ---------
FINANCING ACTIVITIES
Principal Payments on Long Term Debt (104) (3,046)
Issuance of Common Stock Upon Exercise of
Stock Options 501 816
Repayments of Borrowings Under Line of
Credit of Acquired Company (2,098) --
----------- --------
Net Cash Used in Financing Activities (1,701) (2,230)
Increase in Cash and Cash Equivalents 27,871 64,198
Cash and Cash Equivalents at
Beginning of Period 34,881 25,349
---------- ---------
Cash and Cash Equivalents at
End of Period $ 62,752 $ 89,547
=========== ==========
Interest Paid: $5,444 $9,654
Income Taxes Paid: $26,724 $17,719
=========== ==========
See notes to the condensed consolidated financial statements.
</TABLE>
Page 5
<PAGE>
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NINE AND THREE MONTHS ENDED APRIL 2, 1994 AND MARCH 27, 1993
1. The condensed consolidated financial statements include the accounts of
the Company and all its subsidiaries. All significant intercompany accounts
and transactions have been eliminated. The accompanying financial statements
are unaudited, but in the opinion of management reflect all adjustments,
which include normal recurring accruals, necessary for a fair presentation
of the results of operations for the interim period. Since the Company's
business is seasonal in character, the operating results for the nine and
three months ended April 2, 1994 and the corresponding periods ended
March 27, 1993 are not necessarily indicative of results for the fiscal year.
2. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
that these condensed consolidated financial statements be read in
conjunction with the financial statements and notes thereto included in
the Company's Annual Report on Form 10-K filed with the Securities
and Exchange Commission on October 1, 1993.
3. Inventories as of April 2, 1994 and March 27, 1993 are stated at
the lower of FIFO cost or market, as determined by the gross profit method.
Inventories as of July 3, 1993 were valued by the retail inventory method.
4. During the quarter ended September 26, 1992, the Company adopted
Statement of Financial Accounting Standards No. 109, "Accounting for
Income Taxes." The Company reflected the cumulative effect on prior
years of the change in accounting principle by recording a benefit of
$.6 million ($.02 per share) during the first quarter of fiscal 1993.
Under Statement No. 109, income taxes are recognized for (a) the amount
of taxes payable or refundable for the current year, and (b) deferred
tax liabilities and assets for the future tax consequences of events
that have been recognized in the Company's financial statements or tax
returns. The effects of income taxes are measured based on enacted tax
law and rates.
During the nine-month period ended April 2, 1994, federal tax
legislation was enacted that changed the income tax consequences for the
Company. The principal provision of the new law which affects the
Company was an increase in the federal statutory tax rate from 34% to
35%. The effect on current and deferred taxes of a change in tax rates
is recognized in income in the period that includes the enactment date.
As a result, taxes currently payable and deferred tax liabilities increased
by $.3 million. The effect, which decreased net income $.3 million, was
recognized as a component of income tax expense in the nine-month period
ended April 2, 1994.
Additionally, management has estimated that the combined federal,
state and local effective tax rate will be approximately 38% in the fiscal
year ending 1994.
Page 6
As of April 2, 1994, the Company had a deferred tax liability
of $6.3 million and a $5.1 million current deferred tax asset. Valuation
allowances were not required. Deferred tax assets consisted primarily
of certain operating costs, provisions for uncollectible receivables and
certain inventory related costs not currently deductible for tax
purposes. Deferred tax liabilities primarily reflected the excess of
tax depreciation over book depreciation.
5. Licensee department sales, included in net sales, amounted to $14.6
million and $4.1 million for the nine and three month periods ended
April 2, 1994, respectively, compared with $14.1 million and $4. million
for the similar periods of fiscal 1993.
6. Other current liabilities primarily consist of sales tax payable,
accrued operating expenses, payroll taxes payable and other miscellaneous
recurring and non-recurring items.
7. Certain reclassification have been made to the prior year's condensed
consolidated financial statements to conform to the classifications used
in the current period.
8. On December 6, 1993, the Company acquired 100% ownership of a
Northeastern regional retail chain (Decelle, Inc.) for approximately $.2
million and at closing repaid Decelle bank debt of approximately $2.1
million. The chain is comprised of 9 stores in Massachusetts, New
Hampshire and Rhode Island. Net sales for the Decelle, Inc. chain amounted
to $10.8 million for the period from December 6, 1993 through April 2,
1994. Net sales in the current quarter were $7.0 million.
Page 7
<PAGE>
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition.
Results of Operations
- - ---------------------
The following table sets forth certain items in the condensed
consolidated statements of operations as a percentage of net sales
for the nine and three month periods ended April 2, 1994 and March 27,
1993.
<TABLE>
Percentage of Net Sales
Nine Months Ended Three Months Ended
April 2, March 27, April 2, March 27,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Net Sales 100.0% 100.0% 100.0% 100.0%
Costs and expenses:
Cost of sales 64.9 65.3 65.1 65.5
Selling &
administrative
expenses 26.1 26.8 31.8 32.5
Depreciation &
amortization 1.4 1.4 1.7 1.7
Interest expense .6 .8 .7 .9
-------- -------- ------- -------
93.0 94.3 99.3 100.6
-------- -------- ------- -------
Other income .6 1.3 .7 1.7
-------- -------- ------- -------
Income before income
taxes and cumulative
effect on prior
years of change in
accounting principle 7.6 7.0 1.4 1.1
Provision for
Income tax 2.9 2.6 .5 .4
------- -------- ------ ------
Income before
cumulative effect
on prior years of
change in
accounting principle 4.7 4.4 .9 .7
Cumulative effect
on prior years of
change in accounting
principle -- .1 -- --
-------- -------- ------ -------
Net income 4.7% 4.5% .9% .7%
======== ======== ========= =======
</TABLE>
Page 8
Net sales increased $246.6 million (26.0%) for the nine month period
ended April 2, 1994, compared with the similar period of a year ago.
Comparative store sales increased 8.3%. Part of this increase is the
result of an earlier Easter selling season this fiscal year compared
with last fiscal year. For the current fiscal year, the third fiscal
quarter included the entire Easter selling season, whereas the last
two weeks of the Easter selling season occurred during the fourth
fiscal quarter of last year. The earlier Easter season resulted in
a shifting of approximately $19.0 million in sales into the current
fiscal year's third quarter. New stores opened subsequent to March
27, 1993 contributed $113.5 million to this year's sales. Stores which
were in operation a year ago, which were closed prior to July 4, 1993,
contributed $4.0 million to last year's sales. The Cohoes stores showed
a comparative store sales increase of 5.9%, and these stores contributed
$28.9 million to consolidated sales for the nine month period. In
addition, one new Cohoes store was opened during the nine month period
which contributed $5.9 million to the Company's net sales. On December
6, 1993 the Company acquired 100% ownership of a northeast regional retail
chain (Decelle, Inc.). Sales for the period December 6, 1993 through
April 2, 1994 for Decelle, Inc. amounted to $10.8 million.
For the three months ended April 2, 1994, net sales increased $327.4
million (27.2%) compared with the similar period of a year ago. Comparative
store sales increased 10.3%. As mentioned previously, a portion of this
increase is attributable to the shift in the Easter selling season into this
year's third fiscal quarter from the fourth fiscal quarter of a year ago.
New Burlington Coat Factory Warehouse stores opened subsequent to March 27,
1993 contributed $40.8 million to the third quarter's net sales volume.
Cohoes comparative store sales increased $.6 million (7.5%) for the third
quarter of fiscal 1994 compared with the similar period of fiscal 1993.
The Decelle stores contributed $7.0 million to this year's third quarter.
Other income (consisting primarily of rental income from leased departments,
investment income, and miscellaneous items) decreased $4.0 million for the
nine months ended April 2, 1994 compared with the nine months ended
March 27, 1993. The decrease is primarily due to decreases in leased
department rental income, the result of the closing of approximately 30 leased
departments which the Company has converted to Company department selling
space, and to a decrease in investment income. Investment income decreased
$1.7 million due to a decrease in investable funds during the nine month
period ended April 2, 1994 compared with the similar period of a year ago.
Other income decreased $1.1 million for the third quarter of fiscal year 1994
compared with the similar period of 1993. Rental income and investment income
decreased $.2 million and $.7 million, respectively, in the three months
ended April 2, 1994 compared with the three months ended March 27, 1993.
Cost of sales increased $156.3 million (25.3%) for the nine months ended
April 2, 1994 compared with the similar period a year ago. Cost of sales,
as a percentage of net sales, decreased to 64.9% from 65.3% for the same
periods. The decrease is due primarily to improved initial mark-ons and a
reduction in markdowns as a percentage of sales. These improvements were
offset in part by higher than anticipated markdowns in our Cohoes division.
Cost of sales increased $44.5 million (26.4%) for the three months ended
April 2, 1994 compared with the similar period of a year ago. As a
percentage of net sales, cost of sales decreased to 65.1% from 65.5% for
these comparative three month periods.
Page 9
<PAGE>
Selling and administrative expenses increased by $58.3 million (22.9%)
for the nine month period ended April 2, 1994 compared with the nine
months ended March 27, 1993. This increase is due mainly to the increase
in the number of stores operating during the current fiscal year compared
with the similar period of a year ago. Twenty-five new stores were opened
subsequent to March 27, 1993. The nine Decelle stores acquired during the
period contributed $4.0 million to selling, and administrative expense.
As a percentage of sales, selling and administrative expenses decreased to
26.1% for the nine months ended April 2, 1994 from 26.8% for the similar
period last year. This percentage decrease is primarily the result of the
Company's comparative store sales growth realized during the first nine
months of fiscal 1994. In addition, as a percentage of sales a marginal
increase in selling expenses and insurance expense was offset by a decrease
in advertising expense. Third quarter selling and administrative expenses
increased to $104.3 million from $83.7 million for the similar period of
fiscal 1993. As a percentage of net sales, selling and administrative
expenses decreased to 31.8% from 32.5% for these comparative periods.
Interest expense increased $.2 and $.1 million for the nine and three
months ended April 2, 1994 compared with the comparative periods ended
March 27, 1993, respectively. This increase is the result of interest
charges associated with the borrowings made by the Company under its
revolving credit and term loan agreement (see Liquidity and Capital
Resources).
The provision for income taxes increased to $34.3 million for the nine
months ended April 2, 1994, from $24.5 million for the comparative period of
a year ago. The effective tax percentages were 38.0% for the nine and three
month periods ended April 2, 1994 and 37.0% for comparative periods a year
ago. The increase in effective tax percentages is primarily the result of tax
consequences related to the enactment of the Omnibus Budget Reconciliation Act
(see Note No. 4 to Condensed Consolidated Financial Statements).
Income before cumulative effect of change in accounting principle increased to
$56.0 million for the nine months ended April 2, 1994 from $41.7 million
for the comparative period of fiscal 1993. Income per share before
cumulative effect increased to $1.38 per share compared with $1.03 for the
comparative period of a year ago. Income before cumulative effect of change
in accounting principle increased $1.9 million to $2.8 million for the
three months ended April 2, 1994 compared with the similar period of a year
ago. Net income per share before cumulative effect of change in accounting
principle for the three months ended April 2, 1994 was $.07 compared with
$.05 for the three months ended March 27, 1993. During the quarter ended
September 26, 1992, the Company recorded a cumulative effect benefit
resulting from the adoption of Statement of Financial Accounting Standards
No. 109, "Accounting for Income Taxes" (See Note No. 4 to Condensed
Consolidated Financial Statements) in the amount of $.6 million ($.02 per
share).
The Company's business is seasonal, with its highest sales occurring in
the months of October, November, and December of each year. The
Company's net income generally reflects the same seasonal pattern as its
Page 10
<PAGE>
net sales. The Company believes that in the past substantially all of
its profits have been derived from operations during the months of
October, November and December.
Liquidity and Capital Resources
During the nine months ended April 2, 1994, the Company opened twenty
Burlington Coat Factory Warehouse stores and one Cohoes Fashions store.
In addition, on December 6, 1993 the Company acquired 100% ownership of
Decelle, Inc., a nine store Northeast regional retail chain for $.2
million and repaid Decelle's bank debt of approximately $2.1 million.
Although the Company cannot at this time determine the exact number of
stores to be opened during the remainder of fiscal 1994, it is estimated
that an additional 2 to 3 stores will be opened during the remaining
three months of fiscal 1994. Expenditures incurred to set up and fixture
new stores through the first nine months of fiscal 1994, amounted to
approximately $15.0 million. Of the new stores opened during the
period, 17 locations were leased, while 4 properties were purchased
for approximately $9.5 million. In addition, one location, scheduled
to open in the fourth quarter of fiscal 1994, was acquired for $4.5
million. One previously leased location was purchased for $1.4
million during the quarter. The estimated cost to set up and fixture
anticipated new store openings during the balance of fiscal 1994 is
approximately $1.5 million.
Total funds provided by operations increased $19.4 million to $77.8 million
for the nine months ended April 2, 1994. Total funds provided by operations
are calculated by adding back to net income non-cash expenditures such as
depreciation and deferred taxes.
Working capital increased to $299.0 million at April 2, 1994 from $283.3
million at March 27, 1993, an increase of $15.7 million.
Net cash provided by operating activities of $92.8 million for the
nine months ended April 2, 1994, increased from $67.3 million for the
comparative period of fiscal 1993. This increase is the result of the
increase in net income for the nine months ended April 2, 1994 compared
with net income for the similar period of a year ago. In addition,
inventory increased by $65.0 million during the nine months ended April 2,
1994. This increase is the result of the new stores opened since June,
1993 and planned inventory growth throughout the chain especially in the
outerwear categories.
The Company believes that its current capital expenditure and operating
requirements will be satisfied from internally generated funds, the
proceeds of the $80 million long term subordinated notes issued by the
Company to institutional investors in June 1990 (the Notes), and from
short-term borrowings under its revolving credit and term loan agreement.
The Company has in place a revolving credit and term loan agreement in
the amount of $40 million. During the first quarter of fiscal 1994 the
Company had maximum borrowings under this agreement of $31.4 million.
The average borrowing during the first quarter amounted to $12.1 million
at an average interest rate of 3.6%. During the second fiscal quarter,
the Company had maximum borrowings under this agreement of $20.8 million
Page 11
<PAGE>
with an average borrowing of $6.9 million at an average interest
rate of 3.6%. During the third fiscal quarter, the Company had maximum
borrowings under this agreement of $18.3 million. The average borrowing
during the quarter amounted to $10.0 million at an average interest rate
of 4%. As of April 2, 1994 all borrowings under this agreement had
been repaid. During the first nine months of fiscal 1993 the Company did
not draw on this line of credit. The Company borrowed under its line of
credit during the first nine months of 1994 in order to finance the opening
of new stores as well as planned inventory growth at existing stores.
The Company's long-term borrowings at April 2, 1994 include $80.0 million under
the Notes, an industrial development bond of $10.0 million issued by the New
Jersey Economic Development Authority, an Urban Development Action Grant of
$.9 million from the United States Department of Housing incurred in
connection with the construction of the Company's Office and Warehouse/
Distribution Facility in Burlington, New Jersey and $.5 million in various
other note and mortgage indebtedness.
The Notes mature on June 27, 2005 and bear interest at the rate of 10.6%
per annum. The Notes have an average maturity of ten years and are subject
to mandatory prepayment in installments of $8.0 million each without premium
on June 27 of each year beginning in 1996. The Notes are subordinated to
senior debt, including, among others, bank debt and indebtedness for
borrowed money. The interest rate on the bonds issued in connection with
the Company's industrial development bond financing is fixed at 9.78% over
the life of these serial and term bonds. The bonds mature at various dates
commencing in September 1996 and ending in September 2010. The Urban
Development Action Grant is interest free and must be repaid in 1999.
A payment of 5% of the outstanding balance of the Urban Development Action
Grant is required to be made to the City of Burlington each year in lieu
of taxes.
Furthermore, in the event that the Company decides to purchase additional
store locations, it may be necessary to finance such acquisitions with
additional long term borrowings.
Over the past two years, which has been a period of low inflation, the
Company has been able to increase sales volume to compensate for increases
in operating expenses. Historically, the Company has been able to increase
its selling prices as the costs of merchandising and related operating
expenses have increased and, therefore, inflation has not had a significant
effect on operations.
New Accounting Standards
In November 1992, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 112, "Employers' Accounting for Post
Employment Benefits". This pronouncement will not have an effect on the
Company's condensed consolidated financial statements as the benefits
covered in the pronouncement are not provided by the Company.
Page 12
<PAGE>
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K
a. Exhibits
b. No reports on Form 8-K have been filed during the quarter
for which this report is filed.
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.
BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
/s/ Monroe G. Milstein
------------------------------------------------------
Monroe G. Milstein
Chairman and Chief Executive Officer
/s/ Robert L. LaPenta, Jr.
---------------------------------------------------------
Robert L. LaPenta, Jr.
Corporate Controller & Chief Accounting
Officer
Date: May 16, 1994
Page 13
