<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 1, 1999
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 1-10767
-------
VALUE CITY DEPARTMENT STORES, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 31-1322832
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
3241 Westerville Road, Columbus, Ohio 43224
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (614) 471-4722
--------------
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.
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 June 8, 1999
- ------------------------------- ---------------------------
Common Stock, Without Par Value 32,330,017 Shares
<PAGE> 2
VALUE CITY DEPARTMENT STORES, INC.
TABLE OF CONTENTS
================================================================================
<TABLE>
<CAPTION>
PAGE NO.
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<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
May 1, 1999 and January 30, 1999 3
Consolidated Statements of Income
Three months ended May 1, 1999
and May 2, 1998 4
Consolidated Statements of Cash Flows
Three months ended May 1, 1999
and May 2, 1998 5
Notes to the Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Item 3. Quantitative and Qualitative Disclosures about Market Risk N/A
PART II. OTHER INFORMATION
Item 1. Legal Proceedings N/A
Item 2. Changes in Securities N/A
Item 3. Defaults Upon Senior Securities N/A
Item 4. Submission of Matters to a Vote of Security Holders N/A
Item 5. Other Information N/A
Signatures 12
Item 6. Exhibits and Reports on Form 8-K
Part A: Exhibit 27 Financial Data Schedule for First Quarter Form 10-Q 13
Part B: Reports on Form 8-K N/A
</TABLE>
page 2
<PAGE> 3
VALUE CITY DEPARTMENT STORES, INC.
PART 1. - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
MAY 1, JANUARY 30,
1999 1999
--------- ---------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 15,737 $ 20,895
Accounts receivable, net 7,489 6,996
Receivables from affiliates 445 587
Inventories 325,287 286,029
Prepaid expenses and other assets 9,283 4,384
Deferred income taxes 16,141 14,441
--------- ---------
Total current assets 374,382 333,332
Property and equipment, at cost:
Furniture, fixtures and equipment 171,994 168,270
Leasehold improvements 130,664 126,857
Land and building 995 986
Capital leases 15,276 15,276
--------- ---------
318,929 311,389
Accumulated depreciation and amortization (149,921) (143,208)
--------- ---------
Property and equipment, net 169,008 168,181
Investment in joint venture 8,280 8,391
Goodwill and tradenames, net 44,721 45,519
Other assets 19,958 17,983
--------- ---------
Total assets $ 616,349 $ 573,406
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 140,799 $ 110,312
Accounts payable to affiliates 6,823 3,687
Accrued expenses:
Compensation 6,528 6,617
Taxes 19,485 12,925
Other 26,028 24,037
Current maturities of long-term obligations 9,264 9,259
--------- ---------
Total current liabilities 208,927 166,837
Long-term obligations, net of current maturities 101,414 101,447
Deferred income taxes and other noncurrent liabilities 2,207 3,204
Shareholders' equity:
Common shares, without par value; 80,000,000 authorized;
issued, including treasury shares, 32,667,417 shares and
32,637,617 shares, respectively 113,299 113,073
Contributed capital 12,111 12,083
Retained earnings 181,632 180,070
Deferred compensation expense, net (604) (671)
Treasury shares, at cost, 343,600 shares (2,637) (2,637)
--------- ---------
Total shareholders' equity 303,801 301,918
--------- ---------
Total liabilities and shareholders' equity $ 616,349 $ 573,406
========= =========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
page 3
<PAGE> 4
VALUE CITY DEPARTMENT STORES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------------
MAY 1, MAY 2,
1999 1998
--------- ---------
<S> <C> <C>
Total sales $ 362,877 $ 301,349
Less licensed departments sales (18,396) (56,560)
--------- ---------
Net owned sales 344,481 244,789
Cost of sales (214,859) (154,475)
--------- ---------
Gross profit 129,622 90,314
Selling, general and administrative expenses (126,177) (93,028)
License fees from affiliates,
and other operating income 1,813 6,268
--------- ---------
Operating profit 5,258 3,554
Interest expense, net (2,480) (556)
Gain on disposal of assets, net 13 5
--------- ---------
Income before equity in loss of
joint venture and provision for income taxes 2,791 3,003
Equity in loss of joint venture (111) (136)
--------- ---------
Income before provision for income taxes 2,680 2,867
Provision for income taxes (1,118) (1,178)
--------- ---------
Net income $ 1,562 $ 1,689
========= =========
Basic and diluted earnings per share $ 0.05 $ 0.05
========= =========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
page 4
<PAGE> 5
VALUE CITY DEPARTMENT STORES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MAY 1, MAY 2,
1999 1998
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,562 $ 1,689
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 7,884 6,404
Deferred income taxes and other noncurrent liabilities (2,697) (3,131)
Equity in loss of joint venture 111 136
Gain on disposal of assets (13) (5)
Change in working capital, assets and liabilities:
Receivables (351) 1,247
Inventories (39,258) (54,931)
Prepaid expenses and other assets (4,899) (3,363)
Accounts payable 33,623 30,390
Accrued expenses 7,371 43
-------- --------
Net cash provided by (used in) operating activities 3,333 (21,521)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (6,529) (4,555)
Proceeds from sale of assets 31 6
Other assets (2,191) (1,340)
-------- --------
Net cash used in investing activities (8,689) (5,889)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net principal payments under long-term obligations (28) (9)
Net proceeds from issuance of common shares 226 1,810
-------- --------
Net cash provided by financing activities 198 1,801
-------- --------
Net decrease in cash and equivalents (5,158) (25,609)
Cash and equivalents, beginning of period 20,895 68,968
-------- --------
Cash and equivalents, end of period $ 15,737 $ 43,359
======== ========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
page 5
<PAGE> 6
VALUE CITY DEPARTMENT STORES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MAY 1, 1999 AND MAY 2, 1998
(UNAUDITED)
================================================================================
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements include the accounts of
Value City Department Stores, Inc. and its wholly owned subsidiaries. These
entities are herein referred to collectively as the "Company." The Company
operates a chain of full-line, off-price department stores, principally
under the name "Value City," as well as off-price shoe stores, principally
under the name "DSW Shoe Warehouse."
The balance sheet for January 30, 1999 is condensed information taken from
the audited financial statements. The interim financial statements are
unaudited and are presented pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, the consolidated financial
statements should be read in conjunction with the audited consolidated
financial statements included in the Company's Annual Report on Form
10-K405 for the Transition Period from August 2, 1998 to January 30, 1999.
In the opinion of management, the accompanying consolidated financial
statements reflect all adjustments necessary (which are of a normal
recurring nature) to present fairly the financial position and results of
operations and cash flows for the interim periods presented, but are not
necessarily indicative of the results of operations for a full fiscal year.
2. SEGMENT REPORTING
The Company is managed in two operating segments: Value City Department
Stores and DSW Stores. All of the operations are located in the United
States. The Company has identified such segments based on management
responsibility and measures segment profit as operating profit which is
defined as income before interest expense and income taxes. Corporate
assets include goodwill and loan costs related to the Shonac acquisition.
Prior to the acquisition of Shonac effective May 3, 1998, the Company was
managed as one operating segment.
THREE MONTH PERIOD ENDED MAY 1, 1999:
<TABLE>
<CAPTION>
VALUE CITY DSW CORPORATE TOTAL
<S> <C> <C> <C> <C>
Net owned sales $288,078 $56,403 $344,481
Operating profit (loss) 3,262 1,996 5,258
Identifiable assets 527,190 56,255 32,904 616,349
Capital expenditures 5,941 588 6,529
Depreciation and amortization 6,611 450 823 7,884
</TABLE>
page 6
<PAGE> 7
VALUE CITY DEPARTMENT STORES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
================================================================================
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, the percentage
relationships to net owned sales of the listed items included in the Company's
Consolidated Statements of Operations.
<TABLE>
<CAPTION>
3 Months Ended
---------------------
5/1/99 5/2/98
------ ------
<S> <C> <C>
Net sales 100.0% 100.0%
Gross profit 37.6 36.9
Selling, general and
administrative expenses (36.6) (38.0)
License fees from affiliates
and other operating income 0.5 2.6
----- -----
Operating profit 1.5 1.5
Interest expense, net (0.7) (0.2)
Equity in loss of joint venture -- (0.1)
----- -----
Income before income taxes 0.8 1.2
Provision for income taxes (0.3) (0.5)
----- -----
Net income 0.5% 0.7%
===== =====
</TABLE>
page 7
<PAGE> 8
VALUE CITY DEPARTMENT STORES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
================================================================================
THREE MONTH PERIOD ENDED MAY 1, 1999 COMPARED TO THREE MONTH PERIOD ENDED MAY 2,
1998
Effective May 3, 1998, the Company purchased 99.9% of the common stock of
Shonac Corporation ("Shonac") from Nacht Management, Inc. and Schottenstein
Stores Corporation ("SSC"). SSC owns approximately 56.3% of the Company's
outstanding common shares. The Company also acquired the store operations of
Valley Fair Corporation ("Valley Fair") from SSC. Shonac had operated, as
licensee, the shoe departments in the Company's department stores since Shonac's
inception in 1969. Shonac also operated a chain of retail shoe outlets located
throughout the United States, principally under the name DSW Shoe Warehouse.
Valley Fair operated two department stores located in Irvington and Little
Ferry, New Jersey. The Company had been a licensee of certain departments in
these two stores for 18 years. The acquisitions have been accounted for using
the purchase method of accounting. Accordingly, the three months ended May 1,
1999 include the results of operations of Shonac and Valley Fair. As the Company
operated as one segment for the period ended May 2, 1998, the discussion that
follows compares operations before and after the acquisition.
The Company's total sales, which include licensed departments sales,
increased $61.6 million from $301.3 million to $362.9 million. Net owned sales
for the department stores ("Value City") increased $0.9 million, or 0.4% from
$244.8 million to $245.7 million (excluding shoe sales of $42.4 million). Value
City's comparable store owned sales decreased 0.8%, or $2.0 million. Shonac
contributed net owned sales of $98.8 million with comparable store sales
increases of 7.7%. For the quarter, non-apparel owned sales increased 3.4% and
apparel sales increased 4.2%. On a comparable store basis, non-apparel sales
increased 1.9% and apparel sales increased 1.2%.
Gross profit increased $39.3 million from $90.3 million to $129.6
million, and increased as a percentage of owned sales from 36.9% to 37.6%. The
acquisition of Shonac contributed $38.0 million. Value City's gross profit
increased $1.3 million, or 1.4%, from $90.3 million to $91.6 million, and
increased as a percentage of owned sales from 36.9% to 37.3%. The percentage
increase is due to reduced markdowns and improvement in initial markup.
Selling, general and administrative expenses ("SG&A") increased $33.1
million from $93.0 million to $126.2 million, but decreased as a percentage of
owned sales from 38.0% to 36.6%, a reduction of 1.4%, due primarily to the
leveraging effect of the Shonac acquisition. Shonac incurred SG&A of $31.6
million before eliminating license fee revenue, or 31.9% of their owned sales.
Value City's SG&A increased $6.1 million and increased as a percentage of owned
sales from 38.0% to 40.3%. This is primarily attributable to increases in
distribution, advertising, personnel and new stores, net of closed stores.
Management is presently in the process of reviewing all overhead expenses to
identify opportunities for reductions.
Based upon its experience, the Company estimates the average cost of
opening a new department store to range from approximately $4.4 million to $6.5
million and the cost of opening a new shoe store to range from approximately
$1.0 million to $2.0 million including leasehold improvements, fixtures,
inventory, pre-opening expenses and other costs. Preparations for opening a
department store generally take between eight and twelve weeks, and preparations
for a shoe store generally take eight to ten weeks. Effective August 1998,
pre-opening costs are expensed as incurred in accordance with Accounting
Standards Executive Committee Statement of Position 98-5. Previously, such costs
were amortized ratably over the first twelve months of the store's operations.
It has been the Company's experience that new stores generally achieve
profitability and contribute to net income after the first full year of
operations. Two department stores opened less than twelve months as of the
beginning of the current fiscal year had a pretax net operating loss of $0.6
million for this year. Two department stores opened less than twelve months
during fiscal 1998 had a pretax net operating loss of $0.6 million including
$0.2 million of pre-opening expense amortization. The Company plans to open six
to ten Value City stores and three to six shoe stores during fiscal 1999.
License fees from affiliates and other operating income decreased $4.5
million, or 71.1%, from $6.3 million to $1.8 million, and decreased as a
percentage of owned sales from 2.6% to 0.5%. This decrease is due primarily to
the reduction of license fees from Shonac resulting from its acquisition and
consolidation with Value City.
Operating profit increased $1.7 million from $3.6 million to $5.2
million. The percentage of owned sales remained the same at 1.5%.
Interest expense, net of interest income, increased from $0.6 million to
$2.5 million and increased as a percentage of owned sales from 0.2% to 0.7%.
This increase is due primarily to the interest on debt incurred to acquire
Shonac and the operations of Valley Fair.
Equity in the unconsolidated joint venture represents the Company's fifty
percent interest in VCM's operating results. Equity in the loss of VCM remained
the same at $0.1 million.
Income before provision for income taxes decreased $0.2 million from $2.9
million to $2.7 million, and decreased as a percentage of owned sales from 1.2%
to 0.8% as a result of the above factors.
page 8
<PAGE> 9
VALUE CITY DEPARTMENT STORES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
================================================================================
LIQUIDITY AND CAPITAL RESOURCES
Net working capital was $165.5 at May 1, 1999 compared to $166.5 million at
January 30, 1999. Current ratios at those dates were 1.8 and 2.0 to 1.0,
respectively.
Net cash provided from operating activities totaled $3.3 million for the
three months ended May 1, 1999 and net cash used in operating activities totaled
$21.5 million for the three months ended May 2, 1998.
Net income, adjusted for depreciation and amortization, provided $9.4
million of operating cash flow for the three months ended May 1, 1999. This was
decreased by $5.6 million representing an increase in inventories net of an
increase in accounts payable. Other changes in working capital assets and
liabilities used $0.5 million.
During the quarter ended May 2, 1998, net income adjusted for depreciation
and amortization, provided $8.1 million of operating cash flow. This was reduced
by $24.5 million representing an increase in inventories net of an increase in
accounts payable. Other changes in working capital assets and liabilities used
$5.1 million.
Net cash used by investing activities totaled $8.7 million and $5.9 million
for the quarter ended May 1, 1999 and May 2, 1998, respectively.
Net cash used for capital expenditures was $6.5 million and $4.6 million
for the quarter ended May 1, 1999 and May 2, 1998, respectively. During the 1999
period, capital expenditures included $1.7 million for new stores, $2.6 million
on existing stores, $2.1 million for MIS equipment upgrades and new systems and
$0.1 million for transportation equipment.
The Company utilizes computer technologies throughout its business to
effectively carry out its day-to-day operations. Computer technologies include
both information technology in the form of hardware and software, as well as
embedded technology in the Company's facilities and equipment. Similar to most
companies, the Company must determine whether its systems are capable of
recognizing and processing date sensitive information properly as the year 2000
approaches. The Company is utilizing a multi-phased concurrent approach to
address this issue. The phases included in the Company's approach are the
awareness, assessment, remediation, validation and implementation phases. The
Company has completed the awareness phase of its project. Furthermore, the
Company has substantially completed the assessment phase and is well into the
remediation, validation and implementation phase. The Company is actively
correcting and replacing those systems which are not year 2000 ready in order to
ensure the Company's ability to continue to meet its internal needs and those of
its suppliers and customers. The Company currently intends to substantially
complete the remediation, validation and implementation phases of the year 2000
project prior to September 1999. This process includes the testing of critical
systems to ensure that year 2000 readiness has been accomplished. The Company
currently believes it will be able to modify, replace, or mitigate its affected
systems in time to avoid any material detrimental impact on its operations. If
the Company determines that it may be unable to remediate and properly test
affected systems on a timely basis, the Company intends to develop appropriate
contingency plans for any such mission-critical systems at the time such
determination is made. While the Company is not presently aware of any
significant exposure that its systems will not be properly remediated on a
timely basis, there can be no assurances that any or all of the Company's
systems are or will be year 2000 compliant. An interruption of the Company's
ability to conduct its business due to a year 2000 readiness problem could have
a material adverse effect on the Company's financial condition.
The Company estimates that the aggregate costs of its year 2000 project
will be approximately $5.5 million to $6.5 million, including costs already
incurred. A significant portion of these costs are not likely to be incremental
costs, but rather will represent the redeployment of existing employees and
equipment. This reallocation of resources is not expected to have a significant
impact on the day-to-day operations of the Company. Total costs of approximately
$5.3 million have been incurred by the Company for this project through May 1,
1999. The anticipated impact and costs of the project, as well as the date on
which the Company expects to complete the project, are based on management's
best estimates using information currently available and numerous assumptions
about future events. Based on its current estimates and information currently
available, the Company does not anticipate that the costs associated with this
project will have a material adverse effect on the Company's consolidated
financial position, results of operations or cash flows in future periods.
However, there can be no guarantee that these estimates will be achieved and
actual results could differ materially from those plans.
page 9
<PAGE> 10
VALUE CITY DEPARTMENT STORES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
================================================================================
The Company has initiated formal communications with its significant
suppliers, and critical business partners to determine the extent to which the
Company may be vulnerable in the event that those parties fail to properly
remediate their own year 2000 issues. The Company has taken steps to monitor the
progress made by those parties, and intends to test critical system interfaces,
as the year 2000 approaches. The Company will develop appropriate contingency
plans in the event that a significant exposure is identified relative to the
dependencies on third-party systems. While the Company is not presently aware of
any such significant exposure, there can be no guarantee that the systems of
third-parties on which the Company relies will be converted in a timely manner,
or that a failure to properly convert by another party would not have a material
adverse effect on the Company.
The Company has available a $185.0 million long-term unsecured revolving
bank credit facility with a three year term that primarily bears interest at a
floating rate of LIBOR plus 1.50%. The interest rate on $40.0 million has been
locked in at a fixed rate of 7.395% for a three year period under a swap
agreement. The terms of the credit facility require the Company to comply with
certain restrictive covenants and financial ratio tests, including minimum
tangible net worth; a maximum consolidated debt to earnings before interest,
taxes, depreciation and amortization ratio, a minimum fixed charge coverage
ratio; and, limitations on dividends, incurrance of additional debt and capital
expenditures. At May 1, 1999 the LIBOR rate was 4.92875%, borrowings aggregated
$55.0 million and $18.2 million of letters of credit were issued and outstanding
for merchandise purchases under the credit facility. The Company believes that
the cash generated by its operations, along with the available proceeds from the
credit facility will be sufficient to meet its future obligations including
capital expenditures.
ADOPTION OF ACCOUNTING STANDARDS
The Financial Accounting Standards Board ("FASB") periodically issues
Statements on Financial Accounting Standards ("SFAS"), some of which require
implementation by a date falling within or after the close of the Company's
fiscal year.
SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities," establishes accounting and reporting standards for derivative
instruments and for hedging activities. SFAS No. 133 is effective for all fiscal
quarters of fiscal years beginning after June 15, 1999. The adoption of SFAS No.
133 is not expected to have a significant impact on the Company's financial
statements.
INCOME TAXES
The effective tax rate for the three months ended May 1, 1999 and May 2,
1998 was 41.7% and 41.1%, respectively. The increase in the rate is due to the
effect of non-deductible goodwill amortization associated with the Shonac
acquisition.
INFLATION
The results of operations and financial condition are presented based upon
historical cost. While it is difficult to accurately measure the impact of
inflation because of the nature of the estimates required, management believes
that the effect of inflation, if any, on the results of operations and financial
condition has been minor.
page 10
<PAGE> 11
VALUE CITY DEPARTMENT STORES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
================================================================================
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The Company cautions that any forward-looking statements (as such term is
defined in the Private Securities Litigation Reform Act of 1995) contained in
this Report, or made by management of the Company involve risks and
uncertainties, and are subject to change based on various important factors. The
following factors, among others, in some cases have affected and in the future
could affect the Company's financial performance and actual results and could
cause actual results for 1999 and beyond to differ materially from those
expressed or implied in any such forward-looking statements: decline in demand
for the Company's merchandise, the availability of desirable store locations on
suitable terms, changes in consumer spending patterns, consumer preferences and
overall economic conditions, the impact of competition and pricing, changes in
weather patterns, the ability of the Company and its vendors and suppliers to
become year 2000 compliant, changes in existing or potential duties, tariffs or
quotas, paper and printing costs, and the ability to hire and train associates.
Historically, the Company's operations have been seasonal, with a
disproportionate amount of sales and a majority of net income occurring in the
back-to-school and Christmas selling seasons. As a result of this seasonality,
any factors negatively affecting the Company during this period, including
adverse weather, the timing and level of markdowns or unfavorable economic
conditions, could have a material adverse effect on the Company's financial
condition and results of operations for the entire year.
page 11
<PAGE> 12
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.
VALUE CITY DEPARTMENT STORES, INC.
(Registrant)
By /s/ Robert M. Wysinski
-----------------------------------------
Robert M. Wysinski, Senior Vice President,
Chief Financial Officer, Treasurer
And Secretary *
Date: June 11, 1999
- -------------------
- --------------------------------------------------------------------------------
* Mr. Wysinski is the principal financial officer and has been duly
authorized to sign on behalf of the registrant.
page 12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENTS OF INCOME AND BALANCE SHEETS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-29-2000
<PERIOD-END> MAY-01-1999
<CASH> 15,737
<SECURITIES> 0
<RECEIVABLES> 7,934
<ALLOWANCES> 0
<INVENTORY> 325,287
<CURRENT-ASSETS> 374,382
<PP&E> 318,929
<DEPRECIATION> 149,921
<TOTAL-ASSETS> 616,349
<CURRENT-LIABILITIES> 208,927
<BONDS> 0
0
0
<COMMON> 113,299
<OTHER-SE> 190,502
<TOTAL-LIABILITY-AND-EQUITY> 616,349
<SALES> 344,481
<TOTAL-REVENUES> 344,481
<CGS> 214,859
<TOTAL-COSTS> 341,036
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,480
<INCOME-PRETAX> 2,680
<INCOME-TAX> 1,118
<INCOME-CONTINUING> 1,562
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,562
<EPS-BASIC> .05
<EPS-DILUTED> .05
</TABLE>
