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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 quarterly period ended July 29, 2000, 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 1-12814
COLE NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation or organization) |
34-1453189 (I.R.S. employer identification no.) |
5915 Landerbrook Drive Mayfield Heights, Ohio (Address of principal executive offices) |
44124 (Zip code) |
(440) 449-4100 (Registrants telephone number, including area code) |
Indicate by check mark whether the 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 period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
X YES NO
As of August 24, 2000, 15,621,426 shares of the registrants common stock were outstanding.
COLE NATIONAL CORPORATION AND SUBSIDIARIES
FORM 10-Q
QUARTER ENDED JULY 29, 2000
INDEX
Page No. | ||||||
PART I. FINANCIAL INFORMATION | ||||||
Item 1. | Financial Statements | |||||
Consolidated Balance Sheets as of July 29, 2000 and January 29, 2000 | 1 | |||||
Consolidated Statements of Operations for the 13 and 26 weeks ended July 29, 2000 and July 31, 1999 | 2 | |||||
Consolidated Statements of Cash Flows for the 26 weeks ended July 29, 2000 and July 31, 1999 | 3 | |||||
Notes to Consolidated Financial Statements | 4 | |||||
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations | 7 | ||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 11 | ||||
PART II. OTHER INFORMATION | ||||||
Item 4. | Submission of Matters to a Vote of Security Holders | 12 | ||||
Item 6. | Exhibits and Reports on Form 8-K | 13 |
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
COLE NATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in Thousands)
July 29, | January 29, | |||||||||
2000 | 2000 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and temporary cash investments | $ | 18,295 | $ | 28,953 | ||||||
Accounts receivable, less allowance for doubtful accounts of $8,378 and $7,557, respectively | 41,520 | 41,682 | ||||||||
Current portion of notes receivable | 4,965 | 4,917 | ||||||||
Inventories | 132,868 | 116,514 | ||||||||
Refundable income taxes | 1,546 | 1,546 | ||||||||
Prepaid expenses and other | 7,059 | 6,947 | ||||||||
Deferred income tax benefits | 4,272 | 3,901 | ||||||||
Total current assets | 210,525 | 204,460 | ||||||||
Property and equipment, at cost | 280,049 | 267,633 | ||||||||
Less accumulated depreciation and amortization | (151,657 | ) | (144,249 | ) | ||||||
Total property and equipment, net | 128,392 | 123,384 | ||||||||
Notes receivable, excluding current portion and less reserves for uncollectible amounts of $4,863 and $4,196, respectively | 23,927 | 25,948 | ||||||||
Deferred income taxes and other assets | 75,881 | 77,080 | ||||||||
Intangible assets, net | 154,566 | 157,399 | ||||||||
Total assets | $ | 593,291 | $ | 588,271 | ||||||
Liabilities and Stockholders Equity | ||||||||||
Current liabilities: | ||||||||||
Current portion of long-term debt | $ | 1,074 | $ | 1,515 | ||||||
Accounts payable | 62,485 | 60,388 | ||||||||
Accrued interest | 6,113 | 6,482 | ||||||||
Accrued liabilities | 78,984 | 71,998 | ||||||||
Accrued income taxes | | 178 | ||||||||
Total current liabilities | 148,656 | 140,561 | ||||||||
Long-term debt, net of discount and current portion | 284,299 | 284,584 | ||||||||
Other long-term liabilities | 15,310 | 16,610 | ||||||||
Stockholders equity | 145,026 | 146,516 | ||||||||
Total liabilities and stockholders equity | $ | 593,291 | $ | 588,271 | ||||||
The accompanying notes to consolidated financial statements are an integral part of these consolidated balance sheets.
1
COLE NATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||||
July 29, | July 31, | July 29, | July 31, | |||||||||||||||
2000 | 1999 | 2000 | 1999 | |||||||||||||||
Net revenue | $ | 264,663 | $ | 260,918 | $ | 522,434 | $ | 521,401 | ||||||||||
Costs and expenses: | ||||||||||||||||||
Cost of goods sold | 87,981 | 90,882 | 174,309 | 179,000 | ||||||||||||||
Operating expenses | 159,624 | 148,428 | 317,967 | 300,287 | ||||||||||||||
Depreciation and amortization | 9,960 | 8,936 | 19,962 | 18,202 | ||||||||||||||
Total costs and expenses | 257,565 | 248,246 | 512,238 | 497,489 | ||||||||||||||
Operating income | 7,098 | 12,672 | 10,196 | 23,912 | ||||||||||||||
Interest and other (income) expense: | ||||||||||||||||||
Interest expense | 7,028 | 6,975 | 14,088 | 13,803 | ||||||||||||||
Interest and other income | (934 | ) | (1,080 | ) | (1,884 | ) | (1,819 | ) | ||||||||||
Total interest and other expense, net | 6,094 | 5,895 | 12,204 | 11,984 | ||||||||||||||
Income (loss) before income taxes | 1,004 | 6,777 | (2,008 | ) | 11,928 | |||||||||||||
Income tax provision (benefit) | 552 | 2,779 | (1,104 | ) | 4,891 | |||||||||||||
Net income (loss) | $ | 452 | $ | 3,998 | $ | (904 | ) | $ | 7,037 | |||||||||
Earnings (loss) per common share: | ||||||||||||||||||
Basic | $ | .03 | $ | .27 | $ | (.06 | ) | $ | .47 | |||||||||
Diluted | $ | .03 | $ | .27 | $ | (.06 | ) | $ | .47 |
The accompanying notes to consolidated financial statements are an integral part of these consolidated statements.
2
COLE NATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Twenty-six Weeks Ended | |||||||||||
July 29, | July 31, | ||||||||||
2000 | 1999 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (904 | ) | $ | 7,037 | ||||||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | |||||||||||
Depreciation and amortization | 19,962 | 18,202 | |||||||||
Non-cash interest, net | (711 | ) | (854 | ) | |||||||
Increases (decreases) in cash resulting from changes in assets and liabilities: | |||||||||||
Accounts and notes receivable, prepaid expenses and other assets | 2,981 | 173 | |||||||||
Inventories | (16,354 | ) | (6,971 | ) | |||||||
Accounts payable, accrued liabilities and other liabilities | 9,274 | (24,951 | ) | ||||||||
Accrued interest | (369 | ) | 64 | ||||||||
Accrued, refundable and deferred income taxes | (549 | ) | 4,354 | ||||||||
Net cash provided (used) by operating activities | 13,330 | (2,946 | ) | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment, net | (17,598 | ) | (13,501 | ) | |||||||
Systems development costs | (3,851 | ) | (6,500 | ) | |||||||
Investment in Pearle Europe, net | (553 | ) | (1,360 | ) | |||||||
Other, net | (10 | ) | (582 | ) | |||||||
Net cash used by investing activities | (22,012 | ) | (21,943 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Repayment of long-term debt | (770 | ) | (710 | ) | |||||||
Proceeds from exercise of stock options | 472 | 153 | |||||||||
Common stock repurchased | | (564 | ) | ||||||||
Issuance of stock option notes receivable | (1,128 | ) | | ||||||||
Payment of deferred financing fees | (375 | ) | | ||||||||
Other, net | (175 | ) | 207 | ||||||||
Net cash used by financing activities | (1,976 | ) | (914 | ) | |||||||
Cash and temporary cash investments: | |||||||||||
Net decrease during the period | (10,658 | ) | (25,803 | ) | |||||||
Balance, beginning of the period | 28,953 | 51,057 | |||||||||
Balance, end of the period | $ | 18,295 | $ | 25,254 | |||||||
The accompanying notes to consolidated financial statements are an integral part of these consolidated statements.
3
COLE NATIONAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(1) Basis of Presentation and Accounting Policies
The consolidated financial statements include the accounts of Cole National Corporation and its wholly owned subsidiaries, including Cole National Group, Inc. and its wholly owned subsidiaries (collectively, the Company). All significant intercompany transactions have been eliminated in consolidation.
The accompanying consolidated financial statements have been prepared without audit and certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, although management believes that the disclosures herein are adequate to make the information not misleading. Results for interim periods are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with Cole National Corporations consolidated financial statements for the fiscal year ended January 29, 2000.
In the opinion of management, the accompanying financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly its financial position as of July 29, 2000 and the results of operations and cash flows for the 26 weeks ended July 29, 2000 and July 31, 1999.
Inventories
The accompanying interim consolidated financial statements have been prepared without physical inventories.
Cash Flows
Net cash flows from operating activities reflect cash payments for income taxes and interest of $176,000 and $13,915,000 respectively, for the 26 weeks ended July 29, 2000, and $283,000 and $13,331,000, respectively, for the 26 weeks ended July 31, 1999.
Earnings Per Share
Earnings per share for the 13 and 26 weeks ended July 29, 2000 and July 31, 1999 have been calculated based on the following weighted average number of common shares and equivalents outstanding:
Thirteen Weeks | Twenty-six Weeks | |||||||||||||||
2000 | 1999 | 2000 | 1999 | |||||||||||||
Basic | 15,552,558 | 14,855,657 | 15,535,685 | 14,862,827 | ||||||||||||
Diluted | 15,594,889 | 14,874,604 | 15,556,856 | 14,971,526 |
4
COLE NATIONAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(1) Basis of Presentation and Accounting Policies (continued)
Total Other Comprehensive Income (Loss)
Total other comprehensive income (loss) for the 13 and 26 weeks ended July 29, 2000 and July 31, 1999 is as follows (000s omitted):
Thirteen Weeks | Twenty-six Weeks | |||||||||||||||
2000 | 1999 | 2000 | 1999 | |||||||||||||
Net income (loss) | $ | 452 | $ | 3,998 | $ | (904 | ) | $ | 7,037 | |||||||
Cumulative translation income (loss) | 1,141 | (32 | ) | (672 | ) | (886 | ) | |||||||||
Total comprehensive income (loss) | $ | 1,593 | $ | 3,966 | $ | (1,576 | ) | $ | 6,151 | |||||||
(2) Credit Facility
In June 2000, the credit facility was amended providing availability under the working capital commitment of from $50.0 million to 75.0 million based on Cole National Groups current debt leverage ratio described in the credit facility. As of July 29, 2000 total availability under the credit facility was $50.0 million (less commitments under outstanding letters of credit). The amendment also modified certain covenants, as well as the permitted levels on indebtedness, dividends, investments, and capital expenditures.
5
COLE NATIONAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(3) Segment Information
Information on the Companys reportable segments is as follows (000s omitted):
Thirteen Weeks | Twenty-six Weeks | |||||||||||||||||
2000 | 1999 | 2000 | 1999 | |||||||||||||||
Net revenue: | ||||||||||||||||||
Cole Vision | $ | 190,548 | $ | 192,050 | $ | 397,663 | $ | 404,132 | ||||||||||
Things Remembered | 74,115 | 68,868 | 124,771 | 117,269 | ||||||||||||||
Consolidated net revenue | $ | 264,663 | $ | 260,918 | $ | 522,434 | $ | 521,401 | ||||||||||
Income or (loss): | ||||||||||||||||||
Cole Vision | $ | (969 | ) | $ | 4,077 | $ | 8,474 | $ | 18,404 | |||||||||
Things Remembered | 11,887 | 10,479 | 9,509 | 9,138 | ||||||||||||||
Total segment profit | 10,918 | 14,556 | 17,983 | 27,542 | ||||||||||||||
Unallocated amounts: | ||||||||||||||||||
Corporate expenses | 3,820 | 1,884 | 7,787 | 3,630 | ||||||||||||||
Consolidated operating income | 7,098 | 12,672 | 10,196 | 23,912 | ||||||||||||||
Interest and other expense, net | 6,094 | 5,895 | 12,204 | 11,984 | ||||||||||||||
Income before income taxes | $ | 1,004 | $ | 6,777 | $ | (2,008 | ) | $ | 11,928 | |||||||||
(4) Reclassifications
Certain fiscal 1999 amounts have been reclassified to conform with the fiscal 2000 presentation.
6
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
The following is a discussion of certain factors affecting Cole National Corporations results of operations for the 13 and 26 week periods ended July 29, 2000 and July 31, 1999 (the Companys second quarter and first six months, respectively) and its liquidity and capital resources. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this filing and the audited financial statements for the fiscal year ended January 29, 2000 included in the annual report on Form 10-K.
Fiscal years end on the Saturday closest to January 31 and are identified according to the calendar year in which they begin. For example, the fiscal year ended January 29, 2000 is referred to as fiscal 1999. The current fiscal year, which will end February 3, 2001, is referred to as fiscal 2000.
Results of Operations
The following table sets forth certain operating information for the second quarter and first six months of fiscal 2000 and fiscal 1999 (dollars in millions):
Second Quarter | First Six Months | |||||||||||||||||||||||||
2000 | 1999 | Change | 2000 | 1999 | Change | |||||||||||||||||||||
Net Revenue: | ||||||||||||||||||||||||||
Cole Vision | $ | 190.6 | $ | 192.0 | (0.8 | )% | $ | 397.6 | $ | 404.1 | (1.6 | )% | ||||||||||||||
Things Remembered | 74.1 | 68.9 | 7.6 | 124.8 | 117.3 | 6.4 | ||||||||||||||||||||
Total net revenue | $ | 264.7 | $ | 260.9 | 1.4 | % | $ | 522.4 | $ | 521.4 | 0.2 | % | ||||||||||||||
Gross margin | $ | 176.7 | $ | 170.0 | 3.9 | % | $ | 348.1 | $ | 342.4 | 1.7 | % | ||||||||||||||
Operating expenses | 159.6 | 148.4 | 7.5 | 317.9 | 300.3 | 5.9 | ||||||||||||||||||||
Depreciation and amortization | 10.0 | 8.9 | 11.5 | 20.0 | 18.2 | 9.7 | ||||||||||||||||||||
Operating income | $ | 7.1 | $ | 12.7 | (44.0 | )% | $ | 10.2 | $ | 23.9 | (57.4 | )% | ||||||||||||||
Percentage of Net Revenue: | ||||||||||||||||||||||||||
Gross margin | 66.8 | % | 65.2 | % | 1.6 | 66.6 | % | 65.7 | % | 0.9 | ||||||||||||||||
Operating expenses | 60.3 | % | 56.9 | % | 3.4 | 60.8 | % | 57.6 | % | 3.2 | ||||||||||||||||
Depreciation and amortization | 3.8 | % | 3.4 | % | 0.4 | 3.8 | % | 3.5 | % | 0.3 | ||||||||||||||||
Operating income | 2.7 | % | 4.9 | % | (2.2 | ) | 2.0 | % | 4.6 | % | (2.6 | ) | ||||||||||||||
Number of Retail Locations at the End of the Period: | ||||||||||||||||||||||||||
Cole Licensed Brands | 1,106 | 1,176 | (6.0 | )% | ||||||||||||||||||||||
Pearle company-owned | 446 | 462 | (3.5 | )% | ||||||||||||||||||||||
Pearle franchised | 425 | 418 | 1.7 | % | ||||||||||||||||||||||
Total Cole Vision | 1,977 | 2,056 | (3.8 | )% | ||||||||||||||||||||||
Things Remembered | 788 | 810 | (2.7 | )% | ||||||||||||||||||||||
Total Cole National | 2,765 | 2,866 | (3.5 | )% | ||||||||||||||||||||||
7
The increase in net revenue for the second quarter and first six months of fiscal 2000 was primarily attributable to increases in consolidated comparable store sales and revenue associated with the MetLife vision care business acquired in October 1999, offset by a reduction in the number of locations, including the closing of all optical departments at Montgomery Ward in December 1999. Changes in comparable store sales by business were:
Second Quarter | First Six Months | ||||||||
Cole Licensed Brands | 5.5 | % | 5.2 | % | |||||
Pearle U.S. company-owned | (2.8 | %) | (2.0 | %) | |||||
Total Cole Vision | 2.5 | % | 2.4 | % | |||||
Things Remembered | 8.5 | % | 7.4 | % | |||||
Total Cole National | 4.2 | % | 3.7 | % | |||||
Pearle U.S. franchise stores | 0.9 | % | 2.3 | % | |||||
Pearle U.S. chain-wide | (0.8 | )% | 0.3 | % |
Sales at Cole Licensed Brands increased despite the closing of the Montgomery Ward departments. The average selling price at Cole Licensed Brands for the second quarter and first six months was slightly above last year, while the number of transactions was also up slightly even though there were fewer locations. Sales results for the second quarter and first six months at Pearle company-owned stores reflected a decrease in the number of transactions due, in part, to fewer locations. The average transaction increased slightly in the second quarter and first six months. At Things Remembered, the comparable store sales increases for the second quarter and first six months reflected an increase in sales of new merchandise at higher average unit retails and an increase in the number of transactions compared to a year ago.
The gross margin increase was primarily attributable to the revenue increase at Things Remembered. Gross margin as a percentage of net revenue at Cole Vision improved 1.9 and 1.4 percentage points in fiscal 2000 compared to the second quarter and first six months of last year, respectively. The primary cause for the improvement was the additional revenue associated with the MetLife vision care business. Gross margin as a percentage of net revenue at Things Remembered was flat to last year in the second quarter and decreased 0.9 percentage points compared to the first six months in fiscal 1999 reflecting the impact of an aggressive merchandise clearance promotion in the first quarter of this year.
The unfavorable leverage in operating expenses for the second quarter was primarily attributable to a 1.8 percentage point increase in payroll costs, and a 1.0 percentage point increase in managed vision care costs. The unfavorable leverage for the first six months was primarily attributable to a 2.0 percentage point increase in payroll costs, including a 0.3 percentage point increase from first quarter severance costs, and a 0.5 percentage point increase in managed vision care costs primarily associated with the MetLife vision care business. The leverage loss resulted primarily from the decline in comparable store sales at Pearle company-owned stores, a $1.8 million first quarter charge for severance costs recorded in connection with a personnel reduction at Cole Vision, and increased expenses associated with the Target Optical expansion. The increase in depreciation and amortization was primarily attributable to amortization of systems development costs related to the Pearle manufacturing and merchandise/inventory management system implemented in the third quarter last year and amortization of restricted stock awarded in January 2000.
The decreases in operating income for the second quarter and first six months compared to the same periods a year earlier were primarily the result of the increases in operating expenses and depreciation and amortization as noted above.
8
Net interest and other expense increased slightly for the second quarter and first six months compared to the same periods a year ago. Income tax provisions were recorded in the first six months of fiscal 2000 and fiscal 1999 using the Companys estimated annual effective tax rates of 55% and 41%, respectively. The higher rate for fiscal 2000 approximates the full year effective rate realized in fiscal 1999.
Net income for the second quarter decreased to $0.5 million from $4.0 million for the same period last year. For the first six months of fiscal 2000, net income decreased to a loss of $0.9 million from a profit of $7.0 million for the first six months of fiscal 1999. The decrease was primarily due to the decrease in income from operations, offset in part by the higher effective tax rate on the fiscal 2000 loss.
Liquidity and Capital Resources
The Companys primary source of liquidity is funds provided from operations of its operating subsidiaries. In addition, its wholly-owned subsidiary, Cole National Group, Inc., and its operating subsidiaries have a working capital line of credit of $75.0 million. By amendment, availability under the working capital commitment ranges from $50.0 million to $75.0 million based on Cole National Groups current debt leverage ratio described in the credit facility. As of July 29, 2000, total availability under the credit facility was $50.0 million and availability after reduction for commitment under outstanding letters of credit totaled $40.4 million. There were no working capital borrowings outstanding at any time during the first six months of fiscal 2000 and fiscal 1999. However, the Company expects to supplement its seasonal cash needs with working capital borrowings in the third and fourth quarters this year.
Operations for the first six months provided $13.3 million of cash in fiscal 2000 compared to a use of $2.9 million for the same period in fiscal 1999. The primary reason for the additional $16.3 million in cash provided by operations was an increase in accounts payable and accrued liabilities in the first six months of fiscal 2000 due, in large part, to accounts payable in connection with the remerchandising of the Pearle stores and the opening of the Target departments compared to a significant decrease in accounts payable and accrued liabilities for the same period in fiscal 1999. This favorable comparison was partially offset by a larger increase in inventories this year than last year and a decrease in net income compared to last year.
Cash used by investing activities included capital additions of $17.6 million and $13.5 million for the first six months of fiscal 2000 and fiscal 1999, respectively. The majority of capital expenditures were for store fixtures, equipment and leasehold improvements for new stores and the remodeling of existing stores. Investments in systems development costs totaled $3.9 million and $6.5 million in the first six months of fiscal 2000 and fiscal 1999, respectively. The Companys net investment in Pearle Europe was increased by $0.6 million and $1.4 million in the first six months of fiscal 2000 and fiscal 1999, respectively.
The Company believes that funds provided from operations, along with funds available under the credit facility, will provide adequate sources of liquidity to allow its operating subsidiaries to continue to expand the number of stores and to fund capital expenditures and systems development costs.
Recent Developments and Forward-Looking Information
Primarily as a result of the costs associated with the rapid expansion of Target Optical, the Company expects that third quarter operating results will be below last years level (before the severance charges of $4.7 million in the third quarter of fiscal 1999).
Certain sections of this Form 10-Q, including this Managements Discussion and Analysis, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forecasted due to a variety of factors that can adversely affect the Companys operating results, liquidity and financial condition such as risks associated with the timing and achievement of the continuing restructuring and improvements in the operations of the optical business, the
9
Companys ability to select, stock and price merchandise attractive to customers, success of systems integration, competition in the optical industry, integration of acquired businesses, economic and weather factors affecting consumer spending, operating factors affecting customer satisfaction, including manufacturing quality of optical and engraved goods, the Companys relationships with host stores and franchisees, the mix of goods sold, pricing and other competitive factors, and the seasonality of the Companys business. Forward-looking statements are made based upon managements expectations and beliefs concerning future events impacting the Company. All forward-looking statements involve risk and uncertainty.
10
Item 3. Quantitative and Qualitative Disclosures about Market Risk
The Company is exposed to market risk from changes in foreign currency exchange rates, which could impact its results of operations and financial condition. Foreign exchange risk arises from the Companys exposure in fluctuations in foreign currency exchange rates because the Companys reporting currency is the United States dollar. Management seeks to minimize the exposure to foreign currency fluctuations through natural internal offsets to the fullest extent possible.
11
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
On June 15, 2000 the Company held its annual meeting of stockholders. At that meeting, the stockholders elected seven directors to serve until the next annual meeting of stockholders and confirmed the appointment of Arthur Andersen LLP as independent auditors of the Company for the fiscal year ending February 3, 2001.
Of the total eligible votes of 15,518,812, stockholders cast votes of 14,345,290 or 92.44% of the total eligible votes. The votes cast for the aforementioned matters were as follows:
1) Election of Directors
Abstentions | ||||||||||||
And/or Broker | ||||||||||||
For | Withheld | Non-votes | ||||||||||
Jeffrey A. Cole | 13,272,831 | 1,072,459 | 0 | |||||||||
Timothy F. Finley | 13,272,110 | 1,073,180 | 0 | |||||||||
Irwin W. Gold | 13,272,110 | 1,073,180 | 0 | |||||||||
Peter V. Handal | 13,272,010 | 1,073,280 | 0 | |||||||||
Larry Pollock | 13,274,930 | 1,070,360 | 0 | |||||||||
Charles A. Ratner | 13,271,075 | 1,074,215 | 0 | |||||||||
Walter J. Salmon | 13,274,885 | 1,070,405 | 0 |
2) Confirmation of Independent Auditors
Abstentions | ||||||||||||
And/or Broker | ||||||||||||
For | Withheld | Non-votes | ||||||||||
Arthur Andersen LLP | 14,292,762 | 34,698 | 17,830 |
12
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits. The following Exhibits are filed herewith and made a part hereof:
10.1 | Eighth Amendment to the Credit Agreement, dated as of June 9, 2000, among Cole Vision Corporation, Things Remembered, Inc., and Pearle Inc. and Canadian Imperial Bank of Commerce. | |
27 | Financial Data Schedule |
(b) Reports on Form 8-K
None |
13
SIGNATURE
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.
COLE NATIONAL CORPORATION |
By: /s/ William P. Lahiff, Jr. |
William P. Lahiff, Jr. Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer) |
Date: September 11, 2000
14
COLE NATIONAL CORPORATION
FORM 10-Q
QUARTER ENDED JULY 29, 2000
EXHIBIT INDEX
Exhibit | ||||||
Number | Description | |||||
10.1 | Eighth Amendment to the Credit Agreement, dated as of June 9, 2000, among Cole Vision Corporation, Things Remembered, Inc., and Pearle Inc. and Canadian Imperial Bank of Commerce. | |||||
27 | Financial Data Schedule |
15
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