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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 (Date of earliest event reported): February 22, 2000
WHITEHALL JEWELLERS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-028176 36-1433610
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(State of incorporation (Commission (I.R.S. Employer
or organization) File Number) Identification No.)
155 North Wacker Drive, Suite 500, Chicago, Illinois 60606
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(Address of principal executives offices) (Zip Code)
Registrant's telephone number, including area code: (312) 782-6800
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(Former name or former address, if changed since last report
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Item 5. Other Events
On February 22, 2000, the registrant issued a press release
announcing financial results for the fourth fiscal quarter and the fiscal year
ended January 31, 2000. This press release is attached hereto as Exhibit 99 and
is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99 Press release dated February 22, 2000
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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.
Date: February 22, 2000 WHITEHALL JEWELLERS, INC.
(Registrant)
By: /s/ John R. Desjardins
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John R. Desjardins
Executive Vice President,
Finance & Administration
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EXHIBIT INDEX
Description
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Exhibit No.
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99 Press release dated February 22, 2000
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EXHIBIT 99
[WHITEHALL JEWELLERS, INC. LOGO]
NEWS RELEASE
- -------------------------------------------------------------------------------
For: Whitehall Jewellers, Inc.
Contacts: John R. Desjardins
FOR IMMEDIATE RELEASE Executive Vice President -
- --------------------- Finance and Administration
312-782-6800 - Ext. 151
Howard Adamski
Vice President - Treasurer
312-782-6800 - Ext. 286
WHITEHALL JEWELLERS, INC. REPORTS A 39% INCREASE
IN FISCAL 1999 EPS TO $1.28 PER SHARE
*****************4TH QUARTER EPS - $0.97*****************
Chicago, Illinois, February 22, 2000 -- Whitehall Jewellers, Inc.
(NYSE:JWL) today reported financial results for the fourth fiscal quarter and
fiscal year ended January 31, 2000.
For the fourth fiscal quarter of 1999, net income rose 31.4% to $14.8
million, or $0.97 per diluted share, versus $11.3 million, or $.73 per diluted
share, a year ago. During the same period, income from operations increased
30.5% to $25.6 million compared to $19.6 million in the fourth fiscal quarter of
1998. Comparable store sales rose 11.1%, up from 8.3% in the fourth fiscal
quarter of 1998. Net sales rose 25.1% to $127.7 million, versus $102.0 million
for the fourth fiscal quarter of 1998.
For the fiscal year ended January 31, 2000 net income rose
35.6% to $19.3 million, or $1.28 per diluted share, compared to net income of
$14.3 million, or $.92 per diluted share for the fiscal year ended January 31,
1999. Gross margin improvement and increased operating leverage boosted fiscal
1999 operating income to $37.3 million, versus $27.3 million for the previous
fiscal year. Operating margin increased to 11.8% in fiscal year 1999 versus
11.4% in fiscal year 1998. Comparable store sales rose 11.0% for the fiscal year
ended January 31, 1999, versus a comparable store sales increase of 5.8%
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Internet Website: www.whitehalljewellers.com
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in 1998. Net sales for the fiscal year ended January 31, 2000 increased 32.0% to
$315.4 million, versus $238.9 million a year ago.
Hugh M. Patinkin, Chairman and Chief Executive Officer, commented,
"Fiscal 1999 was a great year for Whitehall. Our operating strategies have
produced outstanding financial returns year after year. These returns start with
strong sales which have been driven by productive marketing and merchandise
programs. We are particularly pleased with our direct marketing programs that
ran this Christmas season. Over the last five years, our total sales have grown
at a compound annual rate of over 24% while our operating profit has grown at
26% per year."
"A great deal of our growth comes from opening new stores which are
highly productive in their first year of operation," Mr. Patinkin continued. "We
opened 46 new stores during 1999 and they generated impressive financial
results. Based on our strong track record and our view that there are
significant growth opportunities, we have accelerated our growth plans with 62
new stores scheduled to open in 2000."
Mr. Patinkin concluded, "The Whitehall model has been predictable as
well as strong. Our fourth quarter comp store sales gain of 11.1% marks our 25th
consecutive quarter of comp store sales increases. In fact, comp store sales
have increased by an average of 8% per year over the last six years."
On Wednesday, February 23, 2000 at 10:50 am (ET), the Company will host
a conference call to review its fiscal 1999 results. The teleconference number
is 800-446-1949 and participants are asked to dial-in 10 minutes prior to the
conference call. Participants may listen to the conference call on a tape replay
by dialing 800-479-6252 and using the passcode "2066838".
Whitehall Jewellers, Inc. is a leading national specialty retailer of
fine jewelry, currently operating 296 stores in 33 states. The Company operates
stores in regional and superregional shopping malls under the names Whitehall
Co. Jewellers, Lundstrom Jewelers and Marks Bros. Jewelers.
All statements, trend analysis and other information contained in this release
relative to markets for the Company's products, trends in the Company's
operations or financial results, plans, expectations, estimates and beliefs, as
well as other statements including words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend" and other similar expressions, constitute
forward-looking statements under the Private Securities Litigation Reform Act of
1995. These forward-looking statements
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Internet Website: www.whitehalljewellers.com
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are subject to known and unknown risks, uncertainties and other factors which
may cause actual results to be materially different from those contemplated by
the forward-looking statements. Such factors include, among other things: (1)
the extent and results of the Company's store expansion strategy and associated
occupancy costs, and access to funds for new store openings; (2) the seasonality
of the Company's business; (3) economic conditions, the retail sales environment
and the Company's ability to execute its business strategy and the related
effects on comparable store sales and other results; (4) the extent and success
of the Company's marketing and promotional programs; (5) the extent to which the
Company is able to retain and attract key personnel as well as personnel costs;
(6) competition; (7) the availability and cost of consumer credit; (8)
relationships with suppliers; (9) timely "Year 2000" compliance by the Company
and third party suppliers and service providers; (10) the Company's ability to
maintain adequate information systems capacity and infrastructure; (11) the
Company's leverage and cost of funds; (12) the Company's ability to maintain
adequate loss prevention measures; (13) fluctuations in raw material prices
including diamond, gem and gold prices; (14) the extent and results of the
Company's E-commerce strategies and those of others; (15) regulation; (16) the
successful integration of acquired locations and assets into the Company's
existing operations; and, (17) the risk factors listed from time to time in the
Company's filings with the Securities and Exchange Commission.
-tables to follow -
For Investor Relations info: [email protected]
Internet Website: www.whitehalljewellers.com
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Whitehall Jewellers, Inc.
Statements of Operations
For the three months and twelve months ended January 31, 2000 and 1999
(unaudited)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
January January January January
31, 2000 31, 1999 31, 2000 31, 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net sales $127,652 $102,026 $315,406 $238,942
Cost of sales (including buying and
occupancy expenses) 69,793 56,383 182,898 139,368
-------- -------- -------- --------
Gross profit 57,859 45,643 132,508 99,574
Selling, general and administrative expenses 32,274 26,043 95,252 72,261
-------- -------- -------- --------
Income from operations 25,585 19,600 37,256 27,313
Interest expense 1,501 1,267 5,819 4,123
-------- -------- -------- --------
Income before income taxes 24,084 18,333 31,437 23,190
Income tax expense 9,271 7,063 12,103 8,928
-------- -------- -------- --------
Net income $14,813 $ 11,270 $19,334 $ 14,262
======== ======== ======== ========
Basic earnings per share:
Net income $ 1.02 $ 0.74 $ 1.33 $ 0.93
Weighted average common shares and
common share equivalents 14,473 15,284 14,560 15,275
======== ======== ======== ========
Diluted earnings per share:
Net income $ 0.97 $ 0.73 $ 1.28 $ 0.92
Weighted average common shares and
common share equivalents 15,319 15,405 15,129 15,495
======== ======== ======== ========
</TABLE>
On December 14, 1999, the Board of Directors of the Company approved a
three-for-two stock split to be effected in the form of a stock dividend payable
on January 4, 2000 to all common shareholders of record at the close of business
on December 24, 1999. The financial statements have been restated for all
periods presented to give effect for this split.
- more -
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Internet Website: www.whitehalljewellers.com
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Whitehall Jewellers, Inc.
Balance Sheets
(unaudited, in thousands)
<TABLE>
<CAPTION>
January 31, 2000 January 31, 1999
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<S> <C> <C>
ASSETS
Current Assets:
Accounts receivable, net $ 3,159 $ 3,297
Layaway receivables, net 5,638 3,514
Merchandise inventories 147,691 116,748
Prepaid expenses 1,109 1,329
Deferred income taxes, net 2,086 1,518
Deferred financing costs 362 143
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Total current assets 160,045 126,549
Property and equipment, net 49,144 34,304
Goodwill 6,186 6,448
Deferred income tax, net 613 926
Deferred financing costs 948 1,529
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Total assets $ 216,936 $ 169,756
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Outstanding checks, net $ 17,207 $ 8,003
Revolver loans 41,117 28,886
Current portion of long-term debt 3,250 2,750
Accounts payable 37,005 25,601
Accrued payroll 5,945 4,174
Income taxes 7,315 5,226
Other accrued expenses 16,868 13,431
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Total current liabilities 128,707 88,071
Term loan 14,000 17,250
Subordinated debt 640 640
Other long-term liabilities 1,661 1,627
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Total liabilities 145,008 107,588
Commitments and contingencies
Stockholders' equity:
Common stock 15 15
Class B common stock --- ---
Class C common stock --- ---
Class D common stock --- ---
Additional paid-in capital 60,426 60,003
Accumulated earnings 21,484 2,150
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81,925 62,168
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Treasury stock (9,997) ---
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Total stockholders' equity 71,928 62,168
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Total liabilities and stockholders'
equity $ 216,936 $ 169,756
================================== =================================
</TABLE>
# # #
For Investor Relations info: [email protected]
Internet Website: www.whitehalljewellers.com
