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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: March 14, 1994
Date of earliest event reported: March 14, 1994
CARTER HAWLEY HALE STORES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-8765 94-0457907
(State or other jurisdiction of (Commission (I.R.S. employer
incorporation or organization) file number) identification no.)
3880 NORTH MISSION ROAD
LOS ANGELES, CALIFORNIA 90031
(Address of principal executive offices, including zip code)
213-227-2000
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
Carter Hawley Hale Stores, Inc. today reported results for its fiscal
year and fourth quarter ended January 29, 1994.
For fiscal year 1993, the 52 weeks ended January 29, 1994, Carter
Hawley Hale reported earnings of $33.9 million before interest, taxes and
non-recurring costs. Non-recurring charges were $45.0 million. This compares to
EBIT of $70.9 million in fiscal 1992. For the year, the Company reported
a net loss of $95.9 million, or $2.30 per share, compared to net earnings in
the prior year of $1.2 billion. The results for 1992 included non-recurring and
non-cash benefits of reorganization income totalling $884.1 million, an
extraordinary gain of $304.4 million on the discharge of debt, and $18.8
million from the cumulative effect of a change in accounting for income taxes.
Net sales for the year were $2.09 billion, compared to $2.14 billion in
the prior year.
For the fourth quarter, the Company reported EBIT of $30.0 million
before non-recurring costs of $20.0 million, versus EBIT of $66.9 million in
the fourth quarter of the prior year. For the quarter, the Company reported a
net loss of $18.0 million, or $.38 per share, compared to net earnings of $27.8
million, or $.79 per share, in the fourth quarter of 1992.
Sales for the fourth quarter of fiscal 1993 were $705.6 million,
compared with $732.5 million in the prior year.
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CARTER HAWLEY HALE STORES, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED FIFTY-TWO WEEKS ENDED
--------------------------- ---------------------------
JANUARY 29, JANUARY 30, JANUARY 29, JANUARY 30,
1994 1993 1994 1993
----------- ----------- ----------- -----------
(IN THOUSANDS)
<S> <C> <C> <C> <C>
Sales....................................... $705,578 $732,526 $2,092,681 $2,137,847
Finance charge revenue...................... 21,450 20,734 81,438 82,642
Cost of goods sold, including occupancy and
buying costs.............................. 539,244 522,395 1,589,077 1,587,979
Selling, general and administrative
expenses.................................. 157,827 163,947 551,098 561,610
-------- -------- ---------- ----------
Earnings from operations before
non-recurring costs, interest expense, and
reorganization income..................... 29,957 66,918 33,944 70,900
Charge for non-recurring costs.............. 20,000 45,000
-------- -------- ---------- ----------
Earnings (loss) from operations before
interest expense and reorganization
income.................................... 9,957 66,918 (11,056) 70,900
Interest expense, net....................... 21,063 22,496 84,864 89,808
-------- -------- ---------- ----------
Earnings (loss) from operations before
reorganization income..................... (11,106) 44,422 (95,920) (18,908)
Reorganization income....................... 884,131
-------- -------- ---------- ----------
Pretax earnings (loss)...................... (11,106) 44,422 (95,920) 865,223
Income tax expense.......................... (6,900) (16,600) 0 (9,800)
-------- -------- ---------- ----------
Earnings (loss) before extraordinary items
and cumulative effect of change in
accounting................................ (18,006) 27,822 (95,920) 855,423
Extraordinary gain on debt discharge........ 304,388
Cumulative effect of change in accounting
for income taxes.......................... 18,832
-------- -------- ---------- ----------
Net earnings (loss)......................... $(18,006) $ 27,822 $ (95,920) $1,178,643
-------- -------- ---------- ----------
-------- -------- ---------- ----------
Earnings (loss) per common share............ $ (0.38) $ 0.79 $ (2.30) $ *
-------- -------- ---------- ----------
-------- -------- ---------- ----------
Weighted average number of common shares
outstanding during the period............. 46,791 35,118 41,671 *
-------- -------- ---------- ----------
-------- -------- ---------- ----------
</TABLE>
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* Per share data omitted as amount does not reflect the current capital
structure.
A
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CARTER HAWLEY HALE STORES, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
JANUARY 29, JANUARY 30,
1994 1993
----------- -----------
(IN THOUSANDS)
<S> <C> <C>
Current assets
Cash............................................................... $ 18,192 $ 18,617
Accounts receivable, net........................................... 627,374 579,794
Merchandise inventories............................................ 427,631 467,709
Other current assets............................................... 9,799 12,913
---------- ----------
1,082,996 1,079,033
Property and equipment, net.......................................... 810,608 788,129
Other assets......................................................... 40,543 45,740
---------- ----------
$1,934,147 $1,912,902
---------- ----------
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Notes payable...................................................... $ $ 52,315
Current installments............................................... 3,459 7,070
Accounts payable................................................... 151,687 172,159
Accrued expenses................................................... 186,837 142,973
Current income taxes............................................... 1,203 3,038
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343,186 377,555
Receivables based financing.......................................... 332,182 467,577
Other long-term debt................................................. 517,287 515,658
Convertible subordinated notes....................................... 143,750
Capital lease obligations............................................ 44,667 47,558
Other liabilities.................................................... 124,508 117,343
Deferred income taxes................................................ 14,850 12,450
Shareholders' Equity
Preferred stock, $.01 par value.................................... 11 11
Common Stock, $.01 par value....................................... 467 352
Other paid-in capital.............................................. 500,784 351,678
Accumulated earnings (deficit)..................................... (87,545) 22,720
---------- ----------
413,717 374,761
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$1,934,147 $1,912,902
---------- ----------
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</TABLE>
B
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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.
Carter Hawley Hale Stores, Inc.
/s/ Marc E. Bercoon
---------------------------------------
Marc E. Bercoon, Senior Vice President,
General Counsel and Corporate Secretary
March 14, 1994
