Express 2013 Annual Report Download - page 24

Table of Contents

    


Net sales (1) $ 2,219,125 $ 2,157,227 $ 2,080,459 $1,912,004 $ 1,725,730
Cost of goods sold, buying and occupancy costs (1) 1,501,418 1,414,588 1,325,998 1,233,680 1,179,752
Gross profit 717,707 742,639 754,461 678,324 545,978
Selling, general, and administrative expenses 504,277 491,599 483,823 461,073 409,198
Other operating (income) expense, net (829)(523)(308)18,000 9,943
Operating income 214,259 251,563 270,946 199,251 126,837
Interest expense, net 19,522 19,552 35,792 59,477 52,738
Other expense (income), net 1,571 40 (411)(1,968)(2,444)
Income before income taxes 193,166 231,971 235,565 141,742 76,543
Income tax expense (2) 76,627 92,704 94,868 14,354 1,236
Net income $116,539 $139,267 $140,697 $127,388 $75,307
Dividends declared per share $ — $ — $ — $ 0.56 $ —

Basic $1.38 $1.60 $1.59 $1.49 $1.01
Diluted $1.37 $1.60 $1.58 $1.48 $1.00

Basic 84,466 86,852 88,596 85,369 74,566
Diluted 85,068 87,206 88,896 86,050 75,604

Comparable sales change (4) 3 % — % 6%10% (4)%
Comparable sales change (excluding e-commerce sales) (4) (1)% (3)% 3%7% (6)%
Net sales per gross square foot (5) $338 $349 $355 $346 $321
Total gross square feet (in thousands) (average) 5,439 5,307 5,196 5,029 5,033
Number of stores (at year end) 632 625 609 591 573
Capital expenditures $105,368 $99,674 $77,176 $54,843 $26,853

Cash and cash equivalents $311,884 $256,297 $152,362 $187,762 $234,404
Working capital (excluding cash and cash equivalents )(6) (27,630)(53,211)(31,536)(56,054)(65,794)
Total assets 1,182,670 1,019,199 866,320 862,749 869,554
Total debt (including current portion) 199,170 198,843 198,539 367,407 416,763
Total stockholders' equity $474,569 $371,162 $281,147 $130,162 $141,453
* 2012 represents a 53-week year.
(1) Financial results for 2012, 2011, 2010, and 2009 include a revision for the reclassification of sell-off revenue from Costs of goods sold, buying and occupancy costs to Net sales. Refer also to Note 1 of our Consolidated
Financial Statements for additional information regarding this revision.
(2) Prior to the Reorganization, we were treated as a partnership for federal income tax purposes, and therefore had not been subject to federal and state income tax, with the exception of a limited number of state and local
jurisdictions. In connection with the Reorganization, we became taxable as a corporation, effective May 2, 2010, and recorded a $31.8 million tax benefit related to this conversion.
(3) On May 12, 2010, in connection with the IPO, we converted from a Delaware limited liability company into a Delaware corporation and changed our name to Express, Inc. In connection with this conversion, all of our equity
interests, which consisted of Class L, Class A, and Class C units, were converted into shares of our common stock at a ratio of 0.702, 0.649, and 0.442, respectively. All information prior to this conversion contained herein
has been retrospectively recast to reflect this conversion.
(4) Comparable sales have been calculated based upon stores that were open at least thirteen full months as of the end of the reporting period. For 2013, comparable sales were calculated based on the 52-week period ended
February 1, 2014 compared to the 52-week period ended February 2, 2013. For 2012, comparable sales were calculated based upon the 53-week period ended February 2, 2013 compared to the 53-week period ended
February 4, 2012.
(5) Net sales per gross square foot is calculated by dividing net sales for the applicable period by the average gross square footage during such period. For the purpose of calculating net sales per gross square foot, e-commerce
sales and other revenues are excluded from net sales.
(6) Working capital is defined as current assets, less cash and cash equivalents, less current liabilities, excluding the current portion of long-term debt.
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