Petsmart 2003 Annual Report Download - page 33

a third party, or pay a guaranteed residual amount. The special purpose entity was created speciÑcally to hold the
properties, which consisted of two land parcels and seven stores. It engaged in no other business activity.
In April 2003, we made the decision to purchase the two land parcels, and in June 2003, the seven stores under
the structured leasing facility were sold to a third party by the special purpose entity lessor. We immediately entered
into lease agreements for the seven stores with the third party buyer. Based on the lease terms, the lease agreements
for six of the seven buildings resulted in capital lease treatment under SFAS No. 13, ""Accounting for Leases.'' As a
result, we recognized capital lease assets and related obligations of approximately $10.7 million upon execution of
the lease agreements. One of the buildings and the related land for all seven stores are classiÑed as operating leases.
These transactions have eliminated any arrangements between us and special purpose entities.
Item 3. Legal Proceedings
We are involved in the defense of various legal proceedings that we do not believe are material to our business.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of our security holders during the fourth quarter of the Ñscal year ended
February 1, 2004.
PART II
Item 5. Market for the Registrant's Common Stock and Related Stockholder Matters
Price Range of Common Stock and Dividend Policy. Our common stock is traded on the NASDAQ National
Market under the symbol PETM. The following table indicates the intra-day quarterly high and low price per share
of our common stock. These prices represent quotations among dealers without adjustments for retail mark-ups,
markdowns, or commissions, and may not represent actual transactions.
Dividends
High Low Declared
Fiscal Year Ended February 1, 2004
First Quarter ended May 4, 2003ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $15.63 $ 9.90 $ Ì
Second Quarter ended August 3, 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20.50 14.57 Ì
Third Quarter ended November 2, 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26.48 18.01 0.02
Fourth Quarter ended February 1, 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28.80 22.31 0.02
Fiscal Year Ended February 2, 2003
First Quarter ended May 5, 2002ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $16.25 $ 9.55 $ Ì
Second Quarter ended August 4, 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.29 12.15 Ì
Third Quarter ended November 3, 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21.00 13.26 Ì
Fourth Quarter ended February 2, 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20.00 14.48 Ì
Dividends. On June 23, 2003, our Board of Directors declared a quarterly cash dividend of $0.02 per share,
which was paid November 21, 2003, to stockholders of record on October 31, 2003. On December 16, 2003, the
Board of Directors declared a quarterly cash dividend of $0.02 per share payable on February 20, 2004, to
stockholders of record on January 30, 2004. On March 23, 2004, the Board of Directors declared a quarterly cash
dividend of $0.03 per share payable on May 21, 2004, to stockholders of record on April 30, 2004. We believe our
ability to generate cash allows us to invest in the growth of the business and, at the same time, distribute a quarterly
dividend. Our credit facility permits us to pay dividends, so long as we are not in default and the payment of
dividends would not result in default. During 2003, we were not in default of our credit facility, which permitted us
to pay dividends.
Holders. On March 29, 2004, there were 5,648 holders of record of our common stock.
Equity Compensation Plan Information. Information regarding our equity compensation plans will be
included in our proxy statement with respect to our Annual Meeting of Stockholders to be held on June 10, 2004,
under the caption ""Equity Compensation Plans'' and is incorporated by reference in this Annual Report on
Form 10-K.
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