Dillard's 2004 Annual Report Download - page 56

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thus off balance sheet. Since May 2002, future transfers no longer meet sale treatment, and interest paid to outside
investors is recorded in interest expense instead of other revenue. Accordingly, as a result of this decision, the Company
recorded an income statement charge of $5.4 million related to the amortization of the beneficial interests recognized up
front on the off-balance-sheet financing for the twelve months ended February 1, 2003. This charge was included in
Service Charges, Interest and Other Income.
At January 31, 2004 the Company had $50.0 million outstanding in short-term borrowings under its accounts receivable
conduit facilities related to seasonal financing needs.
The Company’s receivable financing conduits were terminated and amounts outstanding were repaid concurrent with the
sale of the Company’s private label credit card business to GE on November 1, 2004.
17. Quarterly Results of Operations (unaudited)
Fiscal 2004, Three Months Ended
(in thousands of dollars, except per share data) May 1 July 31 October 30 January 29
Net sales $1,854,395 $1,671,380 $1,698,897 $2,303,900
Gross profit 666,895 525,534 557,999 760,379
Net income (loss) 53,762 (26,029) (18,688) 108,621
Diluted earnings per share:
Net income (loss) 0.64 (0.31) (0.23) 1.30
Fiscal 2003, Three Months Ended
(in thousands of dollars, except per share data) May 3 August 2 November 1 January 31
Net sales $1,813,911 $1,721,485 $1,764,484 $2,299,054
Gross profit 601,939 535,067 564,431 727,324
Net income (loss) 24,349 (50,346) (15,835) 51,176
Diluted earnings per share:
Net income (loss) 0.29 (0.60) (0.19) 0.61
Total of quarterly earnings per common share may not equal the annual amount because net income per common share is
calculated independently for each quarter.
Quarterly information for fiscal 2004 and fiscal 2003 includes the following items:
First Quarter
2004
• a $4.7 million pretax charge ($3.0 million after tax or $0.04 per diluted share) for asset impairment and store closing
charges related to certain stores.
2003
• a pretax gain of $15.6 million ($10.0 million after tax or $0.12 per diluted share) pertaining to the Company’s sale
of its interest in Sunrise Mall and its associated center in Brownsville, Texas.
• a pretax gain of $12.3 million ($7.9 million after tax or $0.09 per diluted share) recorded due to the resolution of
certain liabilities originally recorded in conjunction with the purchase of Mercantile Stores Company, Inc.
Second Quarter
2003
• a call premium resulting in additional interest expense of $15.6 million ($10.0 million after tax or $0.12 per diluted
share) associated with a $125.9 million call of debt.
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