================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
FORM 10-Q
--------------
(MARK ONE)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Period Ended November 28, 1998
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 NUMBER 1-8546
SYMS CORP
------------------------------------------------------
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-2465228
- -------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
SYMS WAY, SECAUCUS, NEW JERSEY 07094
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(201) 902-9600
----------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
--------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether 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 periods 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 [ ]
At January 4, 1999, the latest practicable date, there were 17,023,590 shares
outstanding of Common Stock, par value $0.05 per share.
==============================================================================
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
================================================================================
<TABLE>
<CAPTION>
INDEX
PAGE NO.
--------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets as of
November 28, 1998, February 28, 1998 and November 29, 1997 1
Condensed Consolidated Statements of Income for the Thirteen
Weeks and Thirty-Nine Weeks Ended November 28, 1998 and
November 29, 1997 2
Condensed Consolidated Statements of Cash Flows for the Thirty-Nine
Weeks Ended November 28, 1998 and November 29, 1997 3
Notes to Condensed Consolidated Financial Statements 4-5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 6-8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 9
SIGNATURES 10
</TABLE>
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
(IN THOUSANDS)
<TABLE>
<CAPTION>
NOVEMBER 28, FEBRUARY 28, NOVEMBER 29,
1998 1998 1997
------------ ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ................................................... $ 1,329 $ 3,840 $ 4,322
Merchandise inventories ..................................................... 162,607 127,028 151,316
Deferred income taxes ....................................................... 3,855 5,614 5,958
Prepaid expenses and other current assets ................................... 3,732 4,621 1,576
-------- -------- --------
TOTAL CURRENT ASSETS ...................................................... 171,523 141,103 163,172
PROPERTY AND EQUIPMENT - Net of accumulated
depreciation and amortization ............................................... 150,266 146,378 146,909
DEFERRED INCOME TAXES .......................................................... -- -- 418
OTHER ASSETS ................................................................... 6,845 6,711 6,706
-------- -------- --------
TOTAL ASSETS .............................................................. $328,634 $294,192 $317,205
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ............................................................ $ 39,583 $ 21,986 $ 49,224
Accrued expenses ............................................................ 11,347 11,725 11,466
Obligations to customers .................................................... 3,448 4,508 4,189
Income taxes payable ........................................................ 3,862 2,675 3,514
Short term borrowings ....................................................... 14,300 -- 2,600
Current portion of obligations under capital lease .......................... 547 481 460
-------- -------- --------
TOTAL CURRENT LIABILITIES ................................................. 73,087 41,375 71,453
OBLIGATIONS UNDER CAPITAL LEASE ................................................ -- 419 547
DEFERRED INCOME TAXES .......................................................... 444 564 --
OTHER LONG TERM LIABILITIES .................................................... 1,222 964 886
COMMITMENTS
SHAREHOLDERS' EQUITY
Preferred stock, par value; $100 per share. Authorized 1,000 shares;
none outstanding ............................................................ -- -- --
Common stock, par value; $0.05 per share. Authorized 30,000
shares; 17,024 shares outstanding as of November 28, 1998, (Net of 864
Treasury Shares) 17,849 shares outstanding as of February 28,
1998 and 17,028 shares outstanding as of November 29, 1997 .................. 851 892 892
Additional paid-in capital .................................................. 3,347 13,102 13,070
Retained earnings ........................................................... 249,683 236,876 230,357
TOTAL SHAREHOLDERS' EQUITY ................................................ 253,881 250,870 244,319
-------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................................ $328,634 $294,192 $317,205
======== ======== ========
</TABLE>
NOTES:
(1) The balance sheet at February 28, 1998 has been derived from the audited
financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See notes to condensed consolidated financial statements CONDENSED CONSOLIDATED
1
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
CONDENSED CONSOLIDATED STATEMENT OF INCOME
- --------------------------------------------------------------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED
------------------------- ------------------------
NOVEMBER 28, NOVEMBER 29, NOVEMBER 28, NOVEMBER 29,
1998 1997 1998 1997
----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Sales ......................... $ 95,533 $ 97,867 $252,794 $262,106
Cost of goods sold ................ 56,681 55,824 152,352 155,619
-------- -------- -------- --------
Gross profit ...................... 38,852 42,043 100,442 106,487
Expenses:
Selling, general and administrative 19,137 17,729 54,531 53,105
Advertising ....................... 2,838 2,955 6,187 6,855
Occupancy ......................... 4,096 3,775 12,006 11,705
Depreciation and amortization ..... 2,075 2,171 6,226 6,461
-------- -------- -------- --------
Income from operations ............ 10,706 15,413 21,492 28,361
Interest expense - net ............ 168 124 147 365
-------- -------- -------- --------
Income before income taxes ........ 10,538 15,289 21,345 27,996
Provision for income taxes ........ 4,215 6,268 8,538 11,479
-------- -------- -------- --------
Net income ........................ $ 6,323 $ 9,021 $ 12,807 $ 16,517
======== ======== ======== ========
Net income per share - basic ...... $ 0.36 $ 0.51 $ 0.73 $ 0.93
======== ======== ======== ========
Weighted average shares
outstanding - basic ............... 17,352 17,848 17,624 17,722
======== ======== ======== ========
Net income per share - diluted .... $ 0.36 $ 0.50 $ 0.72 $ 0.93
======== ======== ======== ========
Weighted average shares
outstanding - diluted ............. 17,391 17,956 17,705 17,789
======== ======== ======== ========
</TABLE>
See notes to condensed consolidated financial statements
2
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------
(IN THOUSANDS)
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
------------------------
NOVEMBER 28, NOVEMBER 29,
1998 1997
----------- -----------
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .................................................. $ 12,807 $ 16,517
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization ............................... 6,226 6,461
Deferred income taxes ....................................... 1,639 460
(Gain) on sale of property and equipment .................... (779) (28)
Loss on disposal of assets .................................. -- 50
(Increase) decrease in operating assets:
Merchandising inventories .............................. (35,579) (28,776)
Other current assets ................................... 889 180
Other assets ........................................... (163) 59
Increase (decrease) in operating liabilities:
Accounts payable ........................................ 17,597 20,501
Accrued expenses ........................................ (378) 411
Obligations to customers ................................ (1,060) (896)
Other long term liabilities ............................. 258 253
Income taxes ............................................ 1,187 (2,319)
-------- --------
Net cash provided by operating activities ......... 2,644 12,873
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property and equipment ..................... (10,370) (10,644)
Proceeds from sale of property and equipment ................ 1,064 29
-------- --------
Net cash (used in) investing activities ........... (9,306) (10,615)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of obligations under capital lease ............... (353) (298)
Revolving line of credit borrowings - net ................... 14,300 (2,350)
Exercise of stock options/stock repurchase .................. (9,796) 1,368
-------- --------
Net cash provided by (used in) financing activities 4,151 (1,280)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ............. (2,511) 978
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ................... 3,840 3,344
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD ......................... $ 1,329 $ 4,322
======== ========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest (net of amount capitalized) ................... $ 296 $ 419
======== ========
Income taxes paid - net ................................ $ 5,175 $ 13,329
======== ========
</TABLE>
See notes to condensed consolidated financial statements
3
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THIRTEEN AND THIRTY-NINE WEEKS ENDED NOVEMBER 28, 1998 AND NOVEMBER 29, 1997
- --------------------------------------------------------------------------------
(UNAUDITED)
NOTE 1 -- THE COMPANY
Syms Corp (the "Company") operates a chain of forty-four "off-price" retail
clothing stores located throughout the Northeastern and Middle Atlantic regions
and in the Midwest, Southeast and Southwest. Each store offers a broad range of
first quality, in season merchandise bearing nationally recognized designer or
brand-name labels for men, women and children.
NOTE 2 -- BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the thirteen and thirty-nine week periods
ended November 28, 1998 are not necessarily indicative of the results that may
be expected for the entire fiscal year ending February 27, 1999. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's annual report on Form 10-K for the fiscal year
ended February 28, 1998.
NOTE 3 -- ACCOUNTING PERIOD
The Company maintains its records on the basis of a 52-53 week fiscal year
ending the Saturday closest to the end of February. The fiscal year ending
February 27, 1999 and February 28, 1998 are both comprised of 52 weeks.
NOTE 4 -- MERCHANDISE INVENTORIES
Merchandise inventories are stated at the lower of cost (first in, first out) or
market, as determined by the retail inventory method.
NOTE 5 -- BANK CREDIT FACILITIES
The Company has an unsecured revolving credit agreement with a bank for a line
of credit not to exceed $40,000,000 through December 1, 2000. Interest on
individual advances is payable quarterly at 1 1/2% per annum below the bank's
base rate, except that at the time of advance, the Company has the option to
select an interest rate based upon one of two other alternative calculations,
with such rate to be fixed for a period not to exceed 90 days. The average
interest rate on short term borrowings was 6.07% at November 28, 1998. The
average daily unused portion is subject to a commitment fee of 1/8% of 1% per
annum. The Company had outstanding borrowings of $14,300,000, $0 and $2,600,000
as of November 28, 1998, February 28, 1998 and November 29, 1997, respectively.
The agreement contains financial covenants, with respect to consolidated
tangible net worth, as defined, working capital and maximum capital
expenditures, including dividends, as well as other financial ratios.
In addition, the Company has a separate $20,000,000 credit facility with another
bank available for the issuance of letters of credit for the purchase of
merchandise and short term borrowing. This agreement may be canceled at any time
by either party. At November 28, 1998, February 28, 1998 and November 29, 1997
the Company had $3,256,000, $6,023,000 and $3,706,000, respectively, in
outstanding letters of credit.
4
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
NOTE 6 -- NET INCOME PER SHARE
In accordance with SFAS 128, basic income per share has been computed based upon
the weighted average common shares outstanding. Diluted net income per share
gives effect to outstanding stock options.
Net income per share has been computed as follows:
THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED
--------------------- -----------------------
NOV. 28, NOV. 29, NOV. 28, NOV. 29,
1998 1997 1998 1997
-------- --------- ------------ --------
BASIC NET INCOME PER SHARE:
Net Income .................... $ 6,323 $ 9,021 $12,807 $16,517
Average shares outstanding .... 17,352 17,848 17,624 17,722
Basic net income per share .... $ .36 $ .51 $ .73 $ .93
DILUTED NET INCOME PER SHARE:
Net Income .................... $ 6,323 $ 9,021 $12,807 $16,517
Average shares outstanding .... 17,352 17,848 17,624 17,722
Stock Options ................. 39 108 81 67
Total average equivalent shares 17,391 17,956 17,705 17,789
Diluted net income per share .. $ .36 $ .50 $ .72 $ .93
Options to purchase 132,500 and 0 shares of common stock at prices ranging from
$10.6875 to $12.250 per share were outstanding as of November 28, 1998 and
November 29, 1997, respectively, but were not included in the computation of
diluted net income per share because the exercise price of the options exceed
the average market price.
5
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENT
This report includes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements in this report
other than the statements of historical fact, including, without limitation,
certain statements under the "Liquidity and Capital Resources", "Year 2000
Compliance" and "Impact of Inflation and Changing Prices" sub-heading in this
term Item- "Management's Discussion and Analysis of Financial Condition and
Results of Operations" are forward-looking statements. Although management
believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that those expectations will prove to have
been correct. Important factors that could cause actual results to differ
materially from management's expectations ("Cautionary Factors") include,
without limitation, the changing nature of the apparel retailing industry, the
Company's ability to maintain favorable relationships with vendors, expansion in
the number of the Company's stores, competition which the Company faces and
general economic conditions. All written and oral forward-looking statements by
or attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these Cautionary Factors.
RESULTS OF OPERATIONS
Thirteen and Thirty-Nine Weeks Ended November 28, 1998 Compared to Thirteen and
Thirty-Nine Weeks Ended November 29, 1997
Net sales of $95,533,000 for the thirteen weeks ended November 28, 1998
decreased $2,334,000 (2.4%) as compared to net sales of $97,867,000 for the
thirteen weeks ended November 29, 1997. For the thirty-nine weeks ended November
28, 1998 net sales decreased (3.6%) to $252,794,000 as compared to net sales of
$262,106,000 for the thirty-nine weeks ended November 29, 1997. Comparable store
net sales decreased 7.6% for the thirteen weeks and decreased 6.8% for the
thirty-nine weeks ended November 28, 1998 from the 1997 periods. This decrease
in the third quarter of fiscal year 1998 resulted from warmer weather and the
rescheduling of a coupon promotion, which in the prior fiscal year occurred in
the third quarter, to the fourth quarter of fiscal year 1998.
Gross profit for the thirteen weeks ended November 28, 1998 was $38,852,000, a
decrease of $3,191,000 (7.6%) as compared to $42,043,000 for the fiscal period
ended November 29, 1997. Gross profit for the thirty-nine weeks ended November
28, 1998 was $100,442,000 a decrease of $6,045,000 (5.7%) as compared to
$106,487,000 for the fiscal period ended November 29, 1997. The decrease in
gross profit for the thirty-nine weeks ended November 28, 1998 resulted
primarily from lower net sales in the current thirty-nine week period as well
higher markdowns which was partially offset by improved mark-up on goods.
Selling, general and administrative expense increased $1,408,000 to $19,137,000
(20.0% as a percentage of net sales) for the thirteen weeks ended November 28,
1998 as compared to $17,729,000 (18.1% as a percentage of net sales) for the
thirteen weeks ended November 29, 1997. Selling, general and administrative
expense increased $1,426,000 to $54,531,000 (21.6%) for the thirty-nine weeks
ended November 28, 1998 as compared to $53,105,000 (20.3%) for the thirty-nine
weeks ended November 29, 1997. The increase was primarily due to the SG&A
expenses of the three new stores opened this year (Kendall, FL, Troy, MI &
Boston, MA) which amounted to $2,348,000 for the thirty-nine weeks ended
November 28, 1998.
6
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
Advertising expense for the thirteen weeks ended November 28, 1998 decreased to
$2,838,000, as compared to $2,955,000 in the thirteen week period ended November
29, 1997. Advertising expense for the thirty-nine weeks ended November 28, 1998
decreased to $6,187,000, as compared to $6,855,000 in the thirty-nine week
period ended November 29, 1997. This decrease in advertising expense resulted
from expense savings achieved through opportunistic media buying as well as
other cost controls.
Occupancy costs were $4,096,000 (4.3% as a percentage of net sales) for the
thirteen week period ended November 28, 1998, up from $3,775,000 (3.9% as a
percentage of net sales) for the thirteen week period ended November 29, 1997.
Occupancy costs were $12,006,000 (4.7%) for the thirty-nine week period ended
November 28, 1998, up from $11,705,000 (4.5%) for the thirty-nine week period
ended November 29, 1997. The increases in both the thirteen and thirty-nine week
periods resulted mainly from the addition of the three new stores located in
Kendall, Fl, Troy, MI and Boston, MA.
Depreciation and amortization amounted to $2,075,000 for the thirteen week
period ended November 28, 1998, a decrease of $96,000, as compared to $2,171,000
for the thirteen weeks ended November 29, 1997. Depreciation and amortization
for the thirty-nine week period ended November 28, 1998 amounted to $6,226,000,
a decrease of $235,000, as compared to $6,461,000 for the thirty-nine weeks
ended November 29, 1997. The decrease in the thirteen week and thirty-nine week
periods resulted mainly from certain assets becoming fully depreciated, somewhat
offset by the addition of three new stores.
For the thirteen and thirty-nine week periods ended November 28, 1998 the
effective income tax rate was 40.0% as compared to 41.0% last year. Last year's
rate was affected by additional tax provisions for certain states.
LIQUIDITY AND CAPITAL RESOURCES
Working capital at November 28, 1998 was $98,436,000, an increase of $6,717,000
from $91,719,000 as of November 29, 1997, and the ratio of current assets to
current liabilities improved to 2.35 to 1 as compared to 2.28 to 1 at November
28, 1998 and November 29, 1997, respectively.
Net cash provided by operating activities totaled $2,644,000 for the thirty-nine
weeks ended November 28, 1998, a decrease of $10,229,000 as compared to
$12,873,000 for the thirty-nine weeks ended November 29, 1997. This decrease was
caused primarily from a lower net income and increased inventories. Net income
for 1998 amounted to $12,807,000 compared to $16,517,000 in 1997, a decrease of
$3,710,000.
Net cash used in investing activities was $9,306,000 and $10,615,000 for the
thirty-nine weeks ended November 28, 1998 and November 29, 1997, respectively.
Net cash provided by financing activities was $4,151,000 for the thirty-nine
weeks ended November 28, 1998, compared to $1,280,000 used in financing
activities in 1997. The increase this year is due primarily to increased
borrowings of $14,300,000, offset by $9,796,000 used to fund the company's stock
repurchase program. As of November 28, 1998 and November 29, 1997, the Company
had net borrowings of $14,300,000 and $2,600,000, respectively, under its
revolving credit agreement.
The Company has a revolving credit agreement with a bank for a line of credit
not to exceed $40,000,000 through December 1, 2000. Except for funds provided
from this credit agreement, the Company has satisfied its operating and capital
expenditure requirements, including those for the opening and expansion of
stores, from internally generated funds. For the thirty-nine weeks ended
November 28, 1998 average borrowings under the revolving credit agreement were
$6,302,000 with a weighted average interest rate of 6.1%. For the thirty-nine
weeks ended November 28, 1998 average borrowings under the revolving credit
agreement were $6,469,000 with a weighted average interest rate of 6.2%.
7
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
The Company has planned capital expenditures for the fiscal year ending February
27, 1999 of $13,400,000, which includes the opening of three new stores in
Kendall, FL, Troy, MI and Boston, MA.
Through the thirty-nine week period ended November 28, 1998 the Company has
incurred $10,370,000 of capital expenditures relating to the $13,400,000.
The Company has also announced that its Board of Directors has authorized the
repurchase of an aggregate of up to 15% of its outstanding shares of common
stock at prevailing market prices through the fiscal year ending February 26,
2000. This program is subject to market and general economic conditions and may
be suspended from time to time without further notice. The Company has purchased
approximately 863,900 shares at a cost of approximately $10,167,000 as of
November 28, 1998.
Management believes that existing cash, internally generated funds, trade credit
and funds available from the revolving credit agreement will be sufficient for
working capital and capital expenditure requirements for the fiscal year ending
February 27, 1999.
YEAR 2000
The Company has commenced a comprehensive program consisting of identifying,
assessing and, if necessary, upgrading and/or replacing its systems and
equipment that may be vulnerable to year 2000 problems. This process is already
underway. The Company has developed a plan to test its entire system for year
2000 compliance. The Company believes that it will have completed all of its
necessary upgrades and/or replacements and the testing of its systems by October
1999.
The Company has developed a plan to communicate with its suppliers to determine
if those parties have appropriate plans to remedy year 2000 issues when their
systems interface with the Company's systems or may otherwise impact the
operations of the Company. There can be no assurance, however, that the systems
of other companies on which the Company's processes rely will be timely
converted, or that a failure to successfully convert by another company, or a
conversion that is incompatible with the Company's systems, would not have an
impact on the Company's operations. The Company believes that it will complete
its assessment by the end of the fiscal year.
Management currently estimates that the cost, in connection with bringing its
own systems and equipment into compliance, was less than $50,000 for the
thirty-nine weeks ended November 28, 1998 and does not expect the additional
cost to exceed $600,000. Although the Company is not aware of any material
operational issues or costs associated with preparing its internal systems for
the year 2000, there can be no assurance that there will not be a delay in, or
increased costs associated with, the implementation of the necessary systems and
changes to address the year 2000.
A potential source of risk includes, but is not limited to, the inability of
principal suppliers to be year 2000 compliant, which could result in delays in
product deliveries from such suppliers.
The Company currently does not have a contingency plan in place to cover any
unforeseen problems encountered that relate to the year 2000, but intends to
produce one before the end of the fiscal year.
IMPACT OF INFLATION AND CHANGING PRICES
Although the Company cannot accurately determine the precise effect of inflation
on its operations, it does not believe inflation has had a material effect on
sales or results of operations.
8
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
PART II. OTHER INFORMATION
- --------------------------------------------------------------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K - During the quarter ended November 28, 1998 no
reports on Form 8-K were filed.
9
<PAGE>
--------------------------
SYMS CORP AND SUBSIDIARIES
--------------------------
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.
SYMS CORP
DATE: BY /s/ MARCY SYMS
---------------------------------------
MARCY SYMS
CHIEF EXECUTIVE OFFICER
BY /s/ ANTONE F. MOREIRA
---------------------------------------
ANTONE F. MOREIRA
VICE PRESIDENT &
CHIEF FINANCIAL OFFICER
(Principal Financial Officer &
Chief Accounting Officer)
10
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> NOV-28-1998
<PERIOD-END> NOV-28-1998
<CASH> 1,329
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 162,607
<CURRENT-ASSETS> 171,523
<PP&E> 235,093
<DEPRECIATION> 84,827
<TOTAL-ASSETS> 328,634
<CURRENT-LIABILITIES> 73,087
<BONDS> 0
0
0
<COMMON> 851
<OTHER-SE> 253,030
<TOTAL-LIABILITY-AND-EQUITY> 328,634
<SALES> 252,794
<TOTAL-REVENUES> 252,794
<CGS> 152,352
<TOTAL-COSTS> 152,352
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 147
<INCOME-PRETAX> 21,345
<INCOME-TAX> 8,538
<INCOME-CONTINUING> 12,807
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,807
<EPS-PRIMARY> .73
<EPS-DILUTED> .72
</TABLE>
