Circuit City 2006 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2006 Circuit City annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

Years ended December 31: 2004
----
As previously
-------------
reported As restated
-------- -----------
Net sales $1,927,835 $1,928,147
Cost of sales 1,637,452 1,641,681
Gross profit 290,383 286,466
Income from operations 22,916 18,999
Income before income taxes 20,473 16,556
Provision for income taxes 7,923 6,368
Net income 12,550 10,188
Net income per common share, basic: $.37 $.30
Net income per common share, diluted: $.35 $.29
The Company also previously restated its segment disclosures for the year ended
December 31, 2004 - see Note 12.
Property, plant and equipment, net consists of the following (in thousands):
2006 2005
---- ----
Land and buildings $33,525 $42,585
Furniture and fixtures, office, computer and other equipment and 77,478 71,719
software
Leasehold improvements 12,762 11,328
123,765 125,632
Less accumulated depreciation and amortization 75,179 68,373
------ ------
Property, plant and equipment, net $48,586 $57,259
======= =======
Included in property, plant and equipment are assets under capital leases, as follows (in thousands):
2006 2005
---- ----
Furniture and fixtures, office, computer and other equipment $2,358 $1,582
Less: Accumulated amortization 1,270 754
----- ---
$1,088 $ 828
------ -----
this change resulted in a restatement of the results of operations for the years ended December 31, 2004.
As a result, the accompanying financial statements for the year ended December 31, 2004 have been restated from the
amounts previously reported to properly reflect these items. These restated financial statements were filed with the SEC
in November 2005. A summary of the significant effects of the restatement is as follows (in thousands, except per share
data):
3.
PROPERTY, PLANT AND EQUIPMENT
4.
RELATED PARTY TRANSACTIONS
The Company leased its headquarters office/warehouse facility from affiliates during the years ended December 31,
2006, December 31, 2005 and December 31, 2004 (see Note 11). Rent expense under the lease aggregated $612,000 in
each of those years. The Company believes that these payments were no higher than would be paid to an unrelated
lessor for comparable space.
5.
CREDIT FACILITIES
In October 2005, the Company amended and restated its $70,000,000 revolving credit agreement with a group of
financial institutions to increase the amount available to $120,000,000 (which may be increased by up to $30 million,
subject to certain conditions) and to provide for borrowings by the Company’s United States and United Kingdom