Pier 1 2007 Annual Report Download - page 16

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Savannah, Georgia. The Savannah facility is closer to the Pier 1 Kids’ stores and will now service both Pier 1
and Pier 1 Kids stores.
Item 3. Legal Proceedings.
During fiscal 2007, the Company recorded a pre-tax charge of $4.9 million for settlement of and legal
fees related to class action lawsuits in California primarily regarding compensation matters. Cash outlays
related to the settlement are expected to be completed in fiscal 2008.
There are various claims, lawsuits, investigations and pending actions against the Company and its
subsidiaries incident to the operations of its business. The Company considers them to be ordinary and routine
in nature. The Company maintains liability insurance against most of these claims. Excluding the class action
lawsuits discussed above, it is the opinion of management, after consultation with counsel, that the ultimate
resolution of such litigation will not have a material adverse effect, either individually or in aggregate, on the
Company’s financial position, results of operations or liquidity.
Item 4. Submission of Matters to a Vote of Security Holders.
There were no matters submitted to a vote of the Company’s security holders during the fourth quarter of
the Company’s 2007 fiscal year.
PART II
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.
Market Prices of Common Stock
The following table shows the high and low closing sale prices of the Company’s common stock on the
New York Stock Exchange (the “NYSE”), as reported in the consolidated transaction reporting system for each
quarter of fiscal 2007 and 2006.
Fiscal 2007 High Low
Market Price
First quarter .................................................... $12.65 $ 8.07
Second quarter .................................................. 9.12 5.68
Third quarter ................................................... 7.81 5.84
Fourth quarter................................................... 6.86 5.95
Fiscal 2006
First quarter .................................................... $19.42 $14.35
Second quarter .................................................. 16.79 12.90
Third quarter ................................................... 13.37 9.96
Fourth quarter................................................... 13.36 8.56
Number of Holders of Record
The Company’s common stock is traded on the NYSE. As of April 30, 2007, there were approximately
9,900 shareholders of record of the Company’s common stock.
Dividends
During fiscal 2007, the Company paid cash dividends totaling approximately $17.4 million, or $0.20 per
share. In October 2006, the Company announced that its Board of Directors discontinued the Company’s
$0.10 per share quarterly dividend. The Company believes that discontinuing the cash dividend will provide
financial flexibility as it executes the Company’s turnaround strategy. The Company does not currently
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