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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): May 16, 1996
CARSON PIRIE SCOTT & CO.
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(Exact name of registrant as specified in its charter)
Illinois
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(State or other jurisdiction of incorporation)
0-22682 37-0175980
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(Commission File Number) (IRS Employer Identification No.)
331 West Wisconsin Avenue, Milwaukee, Wisconsin 53203
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(Address of principal executive offices) (Zip Code)
(414) 347-4141
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(Registrant's Telephone Number)
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Item 5. Other Events.
On May 16, 1996, Carson Pirie Scott & Co. reported its
earnings for the first quarter in a news release, a copy of which
is attached as Exhibit 1.
Item 7. Exhibits.
1. News Release, dated May 16, 1996.
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.
Dated May 30, 1996.
CARSON PIRIE SCOTT & CO.
By: /s/ Charles J. Hansen
------------------------
Charles J. Hansen
Vice President,
General Counsel,
and Secretary
EXHIBIT INDEX
1. News release dated as of May 16, 1996
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EXHIBIT 1
Investors Media
- ----------- ----------
John Doyle Edward P. Carroll, Jr.
Vice President - Treasurer Executive V.P. Marketing
(414) 278-5757 (414) 347-5340
FOR IMMEDIATE RELEASE THURSDAY, MAY 16, 1996
CARSON PIRIE SCOTT & CO. FIRST QUARTER EARNINGS FROM
ONGOING OPERATIONS DOUBLE TO $0.15 PER SHARE
MILWAUKEE, WISCONSIN, MAY 16, 1996 - Carson Pirie Scott
& Co. (NYSE:CRP), announced its first quarter financial results.
Stanton J. Bluestone, Chairman and Chief Executive Officer of Carson
Pirie Scott & Co. commented:
"I was very pleased with first quarter results. Our solid 4.6% comparable
sales growth provided the impetus for excellent bottom-line earnings.
Strong selling was evident throughout the apparel categories with a 9%
gain in Feminine Apparel and a 10% gain in the Men's area. Wear-to-Work
apparel, Better Sportswear and Special Sizes produced the strongest results
among the feminine apparel categories, while Dress Shirts, Sport Coats and
the introduction of Polo, Hilfiger and Nautica paced the growth in Men's
apparel. The five most recently renovated stores produced exceptionally
strong sales growth in the quarter.
I am cautiously optimistic about our results for the balance of the year.
In the second quarter we will open a 126,000 square foot store at the
Cherryvale Mall in Rockford, Illinois. The store will be the first of four
new store openings in 1996. We will also complete five renovations of our
existing store base by the end of the third quarter and will expand the
rollout of the three key Men's vendors."
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1996 First Quarter Results Summary
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($ in millions, Net Net
except EPS) Sales EBITDA Income EPS
- ---------------- ------ ------ -------- -----
ONGOING
OPERATIONS(1) $236.8 $11.8 $2.4 $0.15
NON-RECURRING
ITEMS:
Minnesota Ops. (net) - - - -
Minnesota sale gain - - - -
Write-off of loan fees - - (0.2) (0.01)
Sale of Proffitt's stock - - 9.0 0.53
Charitable contribution - - (1.5) (0.09)
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TOTAL COMPANY $236.8 $11.8 $9.7 $0.58
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(1) Excludes the results of the 8 stores sold to Mervyns in
March 1995 and non-recurring items.
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1995 First Quarter Results Summary
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($ in millions, Net Net
except EPS) Sales EBITDA Income EPS
- ------------------ ------ ------ ------ ----
ONGOING
OPERATIONS(1) $224.4 $9.2 $1.4 $0.07
NON-RECURRING
ITEMS:
Minnesota
Ops. (net) 25.0 - - -
Minnesota
sale gain - - 33.0 1.77
Write-off of
loan fees - - - -
Sale of Proffitt's
stock - - - -
Charitable
contribution - - - -
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TOTAL
COMPANY $249.4 $9.2 $34.4 $1.84
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(1) Excludes the results of the 8 stores sold to Mervyns in
March 1995 and non-recurring items.
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RESULTS OF ONGOING OPERATIONS: Ongoing operations exclude from
total company results the operations of the eight-store Minnesota Division
sold to Mervyn's in March 1995 and non-recurring items. The sales from
ongoing operations increased 5.5% to $236.8 million in the first quarter of
1996 from the prior year's sales of $224.4 million. Sales increased 4.6% on
a same-store basis. Earnings from ongoing operations before interest, taxes,
depreciation, amortization and other non-cash items ("EBITDA") increased
78.7% to $11.8 million in 1996 from $9.2 million in 1995. Net income from
ongoing operations increased $1.0 million in the quarter versus the prior
year first quarter as a result of the improved EBITDA performance. Earnings
per share from ongoing operations ("EPS") improved by more than 100% from
$0.07 to $0.15 per share.
TOTAL COMPANY RESULTS: Total Company sales declined $12.6 million in
the first quarter of 1996 versus the first quarter of 1995. The decline
resulted from the sale of the Minnesota division. The Minnesota division
contributed $25.0 million in sales to the 1995 first quarter results that
were absent in the 1996 first quarter. These sales were clearance sales and
generated no incremental EBITDA contribution.
Total Company net income declined $24.7 million and EPS was lower by
$1.26 in the 1996 quarter compared to the 1995 quarter. The decreases are a
result of lower net non-recurring gains in the 1996 quarter compared to
the non-recurring gain recorded in the same period of last year.
Specifically, the 1996 first quarter included net non-recurring after-tax
gains of $7.3 million or $0.43 per share consisting of a $9.0 million gain
related to the Company's sale of all of its shares of Proffitt's Inc. common
stock, offset by a one-time $1.5 million charitable contribution to the
Carson Pirie Scott Foundation and a $0.2 million write-off of capitalized
loan costs. The 1995 first quarter included a net non-recurring after-tax
gain of $33.0 million or $1.77 per share from the sale of the Minnesota
division.
SHARE REPURCHASE PROGRAM: During the quarter, the Company's
board of directors increased the authorization for share repurchases from
$10 million to $20 million. The Company repurchased 150,000 shares for
$3.4 million in the first quarter as part of the buyback program.
Carson Pirie Scott & Co., a major department store retailer, operates 51
traditional department stores and 3 furniture stores: 31 Carson Pirie
Scott stores in greater Chicago, Indiana and Minnesota; 12 Bergner's
in central Illinois, and 11 Boston Stores in Wisconsin.
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CARSON PIRIE SCOTT & CO. AND SUBSIDIARIES
Consolidated Statements of Operations
(dollars in thousands, except per share amounts)
Three Months Ended
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May 4, 1996 April 29, 1995
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Net sales $ 236,769 $ 249,356
Cost of sales (153,742) (169,685)
Selling, general and
administrative expense (71,240) (70,506)
EBITDA 11,787 9,165
Depreciation and
amortization expense (4,032) (3,054)
Other (93) (7)
Non-recurring items - 55,000
Income from operations 7,662 61,104
Non-recurring items 12,065 -
Acquisition expense - -
Interest expense (3,744) (3,804)
Income before income taxes 15,983 57,300
Income tax expense (6,297) (22,920)
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Net income $ 9,686 34,380
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Outstanding shares 16,800 18,700
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Net income per share:
Ongoing Operations $ 0.15 $ 0.07
Primary $ 0.58 $ 1.84
Fully-diluted $ 0.57 $ 1.84
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Statistics:
Same-store sales increase 4.6% 3.6%
Gross margin rate (r) 35.1% 32.0%
Gross margin rate (C) 35.1% 35.5%
Net SG&A rate (r) (30.1%) (28.3%)
Net SG&A rate (C) (30.1%) (31.4%)
EBITDA rate (r) 5.0% 3.7%
EBITDA rate (C) 5.0% 4.1%
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(r)Total Company rates as reported
(C) Ongoing Operations rates which exclude the impact of eight stores sold
to Mervyn's in 1995.
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Trailing Twelve Months
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May 4, 1996 April 29, 1995
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Net sales $ 1,071,225 $ 1,154,993
Cost of sales (684,492) (749,706)
Selling, general and
administrative expense (296,458) (314,857)
EBITDA 90,275 90,430
Depreciation and
amortization expense (12,370) (8,719)
Other 126 547
Non-recurring items 904 71,171
Income from operations 78,935 153,429
Non-recurring items 12,065 -
Acquisition expense (6,835) -
Interest expense (17,914) (17,074)
Income before income taxes 66,251 136,355
Income tax expense (26,404) (54,541)
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Net income $ 39,847 81,814
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Statistics:
Same-store sales increase 2.9% 4.5%
Gross margin rate (r) 36.1% 35.1%
Gross margin rate (C) 36.1% 36.3%
Net SG&A rate (r) (27.7%) (27.3%)
Net SG&A rate (C) (27.7%) (28.4%)
EBITDA rate (r) 8.4% 7.8%
EBITDA rate (C) 8.4% 7.9%
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(r)Total Company rates as reported
(C) Ongoing Operations rates which exclude the impact of eight stores sold
to Mervyn's in 1995.
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CARSON PIRIE SCOTT & CO. AND SUBSIDIARIES
Consolidated Balance Sheets
(dollars in thousands)
Assets May 4, 1996 April 29, 1995
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Current assets:
Cash and cash equivalents $ 34,092 100,778
Receivables, net 223,901 240,142
Inventories 191,641 180,906
Other current assets 20,476 22,256
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Total current assets 470,110 544,082
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Property and equipment, net 145,369 115,602
Other assets 62,285 70,667
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$ 680,764 730,351
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Liabilities and Shareholders' Equity
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Current liabilities:
Current maturities of
long-term debt $ 3,162 2,750
Accounts payable and
accrued liabilities 156,718 142,213
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Total current liabilities 159,880 144,963
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Other liabilities 44,828 50,747
Accounts receivable
securitization 107,000 163,135
Long-term debt, less
current maturities 48,046 107,017
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Total liabilities 359,754 465,862
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Shareholders' equity:
Common stock 162 164
Paid-in capital and
amortized stock
compensation 168,600 149,978
Unrealized gain on
investments 597 2,543
Retained earnings 151,651 111,804
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Total shareholders' equity 321,010 264,489
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$ 680,764 730,351
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Balance Sheet Statistics:
Net Debt/Capitalization (1) 27.9% 39.4%
Net Debt/Capitalization (1)
(excluding A/R debt) 5.1% 3.3%
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(1) Net Debt = Long-term debt + A/R Securitization - Cash
