Circuit City 1998 Annual Report Download - page 29

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At December 31, 1998, the aggregate maturities of long-term debt are as follows (in thousands):
AMOUNT
The Company maintains lines of credit with various financial institutions. The maximum aggregate amounts available under these lines of
credit were $101.7 million at December 31, 1998 including $4.2 million denominated in a foreign currency (2.5 million Pounds Sterling). No
amounts were outstanding under these lines at December 31, 1998. These lines accrue interest at variable rates based on either the prime rate or
LIBOR. The prime rate and LIBOR were 8 percent and 5.1 percent, respectively, at December 31, 1998. The foreign currency line is secured
by substantially all of the assets of the Company's United Kingdom subsidiaries. These lines expire on various dates through December 1999.
Associated with the lines of credit, the Company may have outstanding letters of credit equal to the amount of the total line less outstanding
borrowings. At December 31, 1998 there was $100,000 of outstanding standby letters of credit.
6. SHAREHOLDERS' EQUITY
In May, 1998 the Board of Directors authorized a share repurchase program to acquire up to 1,350,000 (subsequently increased to 4,350,000)
common shares on the open market. The Company purchased an aggregate of 2,103,990 shares during 1998 at an aggregate cost of $28.6
million.
As required by law, certain foreign subsidiaries must retain a percentage of shareholders' capital in the respective company. Accordingly, a
portion of retained earnings is restricted and not available for distribution to shareholders. Such amount at December 31, 1998 was not
material.
1998 1997
------- ------
Mortgage loan (a)........................... $2,016 $ 1,972
Secured loan (b) ........................... 3,158
Other....................................... 12
------ -------
Total long-term debt................... 5,174 1,984
Less: current maturities............... 2,681 12
------ -------
$ 2,493 $ 1,972
======= ======
1999..................................................$ 2,681
2000................................................... 665
2001................................................... 665
2002................................................... 665
2003................................................... 498
-------
$ 5,174
=======
(a) subsidiary of the Company entered into a mortgage agreement in the
amount of 1.2 million Pounds Sterling due in its entirety in June
1999, with interest payable semi-annually at a rate of 9.6 percent per
annum. The mortgage is secured by land and building with an aggregate
net book value of 2.4 million Pounds Sterling at December 31, 1998.
The mortgage contains certain covenants calling for timely reporting
of financial information, restrictions on changes in ownership and
employment levels by such subsidiary. As of December 31, 1998 the
Company was in compliance with those covenants.
(b) subsidiary of the Company entered into a 5 year loan agreement in the
amount of 26.7 million Swedish Krone which is payable in quarterly
installments having commenced in November 1998 with interest payable
quarterly at a rate of LIBOR plus 200 basis points. The loan
is secured by substantially all of the assets of the Company's United
Kingdom subsidiaries.